UPS 2009 Annual Report Download - page 119

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 16. QUARTERLY INFORMATION (unaudited)
First Quarter Second Quarter Third Quarter Fourth Quarter
2009 2008 2009 2008 2009 2008 2009 2008
Revenue:
U.S. Domestic Package ........ $ 6,949 $ 7,735 $ 6,789 $ 7,714 $ 6,868 $ 7,841 $ 7,552 $ 7,988
International Package ......... 2,240 2,759 2,246 2,948 2,422 2,949 2,791 2,637
Supply Chain & Freight ....... 1,749 2,181 1,794 2,339 1,863 2,323 2,034 2,072
Total revenue ............ 10,938 12,675 10,829 13,001 11,153 13,113 12,377 12,697
Operating profit (loss):
U.S. Domestic Package ........ 384 959 476 899 514 1,117 764 932
International Package ......... 294 421 293 407 313 386 467 366
Supply Chain & Freight ....... 40 113 126 148 102 129 28 (495)
Total operating profit ..... 718 1,493 895 1,454 929 1,632 1,259 803
Net income ..................... $ 401 $ 906 $ 445 $ 873 $ 549 $ 970 $ 757 $ 254
Earnings per share:
Basic ...................... $ 0.40 $ 0.87 $ 0.45 $ 0.86 $ 0.55 $ 0.96 $ 0.76 $ 0.25
Diluted ..................... $ 0.40 $ 0.87 $ 0.44 $ 0.85 $ 0.55 $ 0.96 $ 0.75 $ 0.25
First quarter 2009 U.S. Domestic Package operating profit includes the $181 million impairment charge on
our McDonnell-Douglas DC-8-71 and DC-8-73 airframes, engines, and parts, as discussed in Note 4. This charge
reduced first quarter net income by $116 million, and basic and diluted earnings per share by $0.12.
Second quarter 2009 interest expense includes a $77 million charge for the remeasurement of certain
obligations denominated in foreign currencies, in which hedge accounting was not able to be applied. This charge
reduced second quarter net income by $48 million, basic earnings per share by $0.04, and diluted earnings per
share by $0.05.
Fourth quarter 2008 operating profit includes the goodwill impairment charge of $548 million in our Supply
Chain & Freight segment and the intangible asset impairment charge of $27 million in our International Package
segment, as discussed in Note 6. There were no tax benefits related to these two charges, therefore fourth quarter
2008 net income was reduced by $575 million, which reduced basic and diluted earnings per share by $0.58.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
107