UPS 2010 Annual Report Download - page 104

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 9. SHAREOWNERS’ EQUITY
Capital Stock, Additional Paid-In Capital, and Retained Earnings
We maintain two classes of common stock, which are distinguished from each other by their respective
voting rights. Class A shares of UPS are entitled to 10 votes per share, whereas class B shares are entitled to one
vote per share. Class A shares are primarily held by UPS employees and retirees, and these shares are fully
convertible into class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange
(NYSE) under the symbol “UPS.” Class A and B shares both have a $0.01 par value, and as of December 31,
2010, there were 4.6 billion class A shares and 5.6 billion class B shares authorized to be issued. Additionally,
there are 200 million preferred shares authorized to be issued, with a par value of $0.01 per share; as of
December 31, 2010, no preferred shares had been issued.
The following is a rollforward of our common stock, additional paid-in capital, and retained earnings
accounts (in millions, except per share amounts):
2010 2009 2008
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of year .................. 285 $ 3 314 $ 3 349 $ 3
Common stock purchases ..................... (6) — (10) — (11) —
Stock award plans ........................... 6 — 5 — 6 —
Common stock issuances ..................... 3 — 4 — 3 —
Conversions of class A to class B common stock . . (30) — (28) — (33) —
Class A shares issued at end of year ............. 258 $ 3 285 $ 3 314 $ 3
Class B Common Stock
Balance at beginning of year .................. 711 $ 7 684 $ 7 694 $ 7
Common stock purchases ..................... (6) — (1) — (43) —
Conversions of class A to class B common stock . . 30 — 28 — 33 —
Class B shares issued at end of year ............. 735 $ 7 711 $ 7 684 $ 7
Additional Paid-In Capital
Balance at beginning of year .................. $ 2 $ — $ —
Stock award plans ........................... 398 381 497
Common stock purchases ..................... (649) (569) (694)
Common stock issuances ..................... 249 190 197
Balance at end of year ....................... $ — $ 2 $ —
Retained Earnings
Balance at beginning of year .................. $12,745 $12,412 $14,186
Net income attributable to controlling interests .... 3,488 2,152 3,003
Cumulative adjustment for accounting changes .... — — (60)
Dividends ($1.88, $1.80, and $1.68 per share) ..... (1,909) (1,819) (1,853)
Common stock purchases ..................... (160) — (2,864)
Balance at end of year ....................... $14,164 $12,745 $12,412
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