UPS 2009 Annual Report Download - page 101

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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. As of December 31,
2009, we had $6.003 billion of our share repurchase authorization remaining.
Accumulated Other Comprehensive Income (Loss)
We incur activity in AOCI for unrealized holding gains and losses on available-for-sale securities, foreign
currency translation adjustments, unrealized gains and losses from derivatives that qualify as hedges of cash
flows, and unrecognized pension and postretirement benefit costs. The activity in AOCI is as follows (in
millions):
2009 2008 2007
Foreign currency translation gain (loss):
Balance at beginning of year ....................................... $ (38) $ 81 $ (109)
Aggregate adjustment for the year ................................... 75 (119) 190
Balance at end of year ............................................ 37 (38) 81
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of year ....................................... (60) 9 12
Current period changes in fair value (net of tax effect of $3, $(33), and $4) . . 25 (78) 6
Reclassification to earnings (net of tax effect of $5, $5, and $(5)) .......... 8 9 (9)
Balance at end of year ............................................ (27) (60) 9
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of year ....................................... (107) (250) 68
Current period changes in fair value (net of tax effect of $4, $(33), and
$(177)) ...................................................... 6 (54) (294)
Reclassification to earnings (net of tax effect of $(60), $118, and $(14)) ..... (99) 197 (24)
Balance at end of year ............................................ (200) (107) (250)
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of year ....................................... (5,437) (1,853) (2,176)
Reclassification to earnings (net of tax effect of $93, $81, and $73) ........ 156 133 122
Net actuarial gain (loss) and prior service cost resulting from remeasurements
of plan assets and liabilities (net of tax effect of $214, $(2,235), and
$111) ........................................................ 344 (3,717) 201
Balance at end of year ............................................ (4,937) (5,437) (1,853)
Accumulated other comprehensive income (loss) at end of year ............... $(5,127) $(5,642) $(2,013)
89