UPS 2008 Annual Report Download - page 90

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following is a rollforward of our common stock, additional paid-in capital, and retained earnings
accounts (in millions, except per share amounts):
2008 2007 2006
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of year .................. 349 $ 3 401 $ 4 454 $ 5
Common stock purchases ..................... (11) — (18) (1) (17) —
Stock award plans ........................... 6 — 3 — 3 —
Common stock issuances ..................... 3 — 3 — 2 —
Conversions of Class A to Class B common
stock ................................... (33) — (40) — (41) (1)
Class A shares issued at end of year ............. 314 $ 3 349 $ 3 401 $ 4
Class B Common Stock
Balance at beginning of year .................. 694 $ 7 672 $ 7 646 $ 6
Common stock purchases ..................... (43) — (18) — (15) —
Conversions of Class A to Class B common
stock ................................... 33 — 40 — 41 1
Class B shares issued at end of year ............. 684 $ 7 694 $ 7 672 $ 7
Additional Paid-In Capital
Balance at beginning of year .................. $ — $ — $ —
Stock award plans ........................... 497 462 371
Common stock purchases ..................... (694) (627) (539)
Common stock issuances ..................... 197 165 168
Balance at end of year ....................... $ — $ — $ —
Retained Earnings
Balance at beginning of year .................. $14,186 $17,676 $17,037
Net income ................................ 3,003 382 4,202
Cumulative adjustment for accounting changes .... (60) (104) —
Dividends ($1.80, $1.68, and $1.52 per share) ..... (1,853) (1,778) (1,647)
Common stock purchases ..................... (2,864) (1,990) (1,916)
Balance at end of year ....................... $12,412 $14,186 $17,676
On January 1, 2007, we adopted FASB Interpretation No. 48, “Accounting for Uncertainty in Income
Taxes—an Interpretation of FASB Statement No. 109”, which resulted in a reduction to retained earnings of
$104 million (discussed further in Note 13). On January 1, 2008, we recognized a $44 million reduction to
retained earnings as a result of changing our measurement date under FAS 158, which is discussed further in
Note 5. Also on January 1, 2008, we recognized a $16 million reduction to retained earnings as a result of
adopting FAS 159, which is discussed further in Note 16.
For the years ended December 31, 2008, 2007 and 2006, we repurchased a total of 53.6, 35.9, and
32.6 million shares of Class A and Class B common stock for $3.558, $2.618, and $2.455 billion, respectively. In
January 2008, our Board of Directors authorized an increase in our share repurchase authority to $10.0 billion.
Unless terminated earlier by the resolution of our Board, the program will expire when we have purchased all
shares authorized for repurchase under the program.
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