UPS 2008 Annual Report Download - page 11

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UNITED PARCEL SERVICE, INC.
ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2008
TABLE OF CONTENTS
PART I
Item 1. Business ...................................................................... 1
Overview ................................................................. 1
Operations ................................................................ 2
Products and Services ....................................................... 5
Technology ............................................................... 6
Sales and Marketing ........................................................ 7
Employees ................................................................ 7
Competition ............................................................... 8
Competitive Strengths ....................................................... 8
Government Regulation ..................................................... 9
Item 1A. Risk Factors ................................................................... 11
Item 1B. Unresolved Staff Comments ...................................................... 12
Item 2. Properties ..................................................................... 12
Operating Facilities ......................................................... 12
Fleet ..................................................................... 13
Safety .................................................................... 14
Item 3. Legal Proceedings .............................................................. 14
Item 4. Submission of Matters to a Vote of Security Holders ................................... 15
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities ............................................................. 16
Shareowners Return Performance Graph ........................................ 17
Item 6. Selected Financial Data .......................................................... 18
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ..... 19
Operations ................................................................ 19
Liquidity and Capital Resources ............................................... 32
Critical Accounting Policies and Estimates ...................................... 40
Item 7A. Quantitative and Qualitative Disclosures about Market Risk ............................. 47
Item 8. Financial Statements and Supplementary Data ........................................ 49
Report of Independent Registered Public Accounting Firm on Internal Control over
Financial Reporting ......................................................... 49
Report of Independent Registered Public Accounting Firm .......................... 50
Consolidated Balance Sheets ................................................. 51
Statements of Consolidated Income ............................................ 52
Statements of Consolidated Comprehensive Income ............................... 52
Statements of Consolidated Cash Flows ......................................... 53
Notes to Consolidated Financial Statements ...................................... 54
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ..... 97
Item 9A. Controls and Procedures ......................................................... 98
Item 9B. Other Information .............................................................. 98
PART III
Item 10. Directors, Executive Officers and Corporate Governance ............................... 99
Item 11. Executive Compensation ......................................................... 100
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters ..................................................................... 100
Item 13. Certain Relationships and Related Transactions, and Director Independence ................ 100
Item 14. Principal Accountant Fees and Services ............................................. 101
PART IV
Item 15. Exhibits and Financial Statement Schedules .......................................... 102