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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):
2009 2008 2007
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of year .................. 314 $ 3 349 $ 3 401 $ 4
Common stock purchases ..................... (10) — (11) — (18) (1)
Stock award plans ........................... 5 — 6 — 3 —
Common stock issuances ..................... 4 — 3 — 3 —
Conversions of Class A to Class B common
stock ................................... (28) — (33) — (40) —
Class A shares issued at end of year ............. 285 $ 3 314 $ 3 349 $ 3
Class B Common Stock
Balance at beginning of year .................. 684 $ 7 694 $ 7 672 $ 7
Common stock purchases ..................... (1) — (43) — (18) —
Conversions of Class A to Class B common
stock ................................... 28 — 33 — 40 —
Class B shares issued at end of year ............. 711 $ 7 684 $ 7 694 $ 7
Additional Paid-In Capital
Balance at beginning of year .................. $ — $ — $ —
Stock award plans ........................... 381 497 462
Common stock purchases ..................... (569) (694) (627)
Common stock issuances ..................... 190 197 165
Balance at end of year ....................... $ 2 $ — $ —
Retained Earnings
Balance at beginning of year .................. $12,412 $14,186 $17,676
Net income attributable to controlling interests .... 2,152 3,003 382
Cumulative adjustment for accounting changes .... — (60) (104)
Dividends ($1.80, $1.80, and $1.68 per share) ..... (1,819) (1,853) (1,778)
Common stock purchases ..................... — (2,864) (1,990)
Balance at end of year ....................... $12,745 $12,412 $14,186
On January 1, 2007, we adopted a new accounting standard for income taxes, which resulted in a reduction
to retained earnings of $104 million. On January 1, 2008, we recognized a $44 million reduction to retained
earnings as a result of changing our measurement date under new accounting guidance related to retirement
benefits. Also on January 1, 2008, we recognized a $16 million reduction to retained earnings as a result of
adopting a new accounting standard for financial instruments. These accounting changes are discussed further in
Note 1.
As a result of the uncertain economic environment, we have slowed our share repurchase activity. We
currently intend to repurchase shares in 2010 at a rate that should approximately offset the dilution from our
stock compensation programs. For the years ended December 31, 2009, 2008 and 2007, we repurchased a total of
10.9, 53.6, and 35.9 million shares of Class A and Class B common stock for $569 million, $3.558 billion, and
$2.618 billion, respectively. In January 2008, our Board of Directors authorized an increase in our share
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