UPS 2010 Annual Report Download - page 103

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
higher future contributions to these plans, including unfavorable investment performance, changes in
demographics, and increased benefits to participants. At this time, we are unable to determine the amount of
additional future contributions, if any, or whether any material adverse effect on our financial condition, results
of operations, or liquidity would result from our participation in these plans.
In January 2008, a class action complaint was filed in the United States District Court for the Eastern
District of New York alleging price-fixing activities relating to the provision of freight forwarding services. UPS
was not named in this case. On July 21, 2009, the plaintiffs filed a first amended complaint naming numerous
global freight forwarders as defendants. UPS and UPS Supply Chain Solutions are among the 60 defendants
named in the amended complaint. We intend to vigorously defend ourselves in this case. At this time, we have
not determined the amount of any liability that may result from these matters or whether such liability, if any,
would have a material adverse effect on our financial condition, results of operations or liquidity.
Other Matters
We received a grand jury subpoena from the Antitrust Division of the DOJ regarding the DOJ’s
investigation into certain pricing practices in the freight forwarding industry in December 2007.
In October 2007, June 2008, and February 2009, we received information requests from the European
Commission (“Commission”) relating to its investigation of certain pricing practices in the freight forwarding
industry, and subsequently responded to each request. On February 9, 2010, UPS received a Statement of
Objections by the Commission. This document contains the Commission’s preliminary view with respect to
alleged anticompetitive behavior in the freight forwarding industry by 18 freight forwarders, including UPS.
Although it alleges anticompetitive behavior, it does not prejudge the Commission’s final decision, as to facts or
law (which is subject to appeal to the European courts). The options available to the Commission include taking
no action or imposing a monetary fine; the range of any potential action by the Commission is not reasonably
estimable. Any decision imposing a fine would be subject to appeal. UPS has responded to the Statement of
Objections, including at a July 2010 Commission hearing, and we intend to continue to vigorously defend
ourselves in this proceeding. We received an additional information request from the Commission in January
2011, and will respond in due course.
In August 2010, competition authorities in Brazil opened an administrative proceeding to investigate alleged
anticompetitive behavior in the freight forwarding industry. Approximately 45 freight forwarding companies and
individuals are named in the proceeding, including UPS, UPS SCS Transportes (Brasil) S.A., and a former
employee in Brazil. UPS will have an opportunity to respond to these allegations.
We also received and responded to related information requests from competition authorities in other
jurisdictions.
We are cooperating with each of these investigations, and intend to continue to vigorously defend ourselves.
At this time, we are unable to determine the amount of any liability that may result from these matters or whether
any such liability would have a material adverse effect on our financial condition, results of operations or
liquidity.
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