UPS 2010 Annual Report Download - page 105

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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.
For the years ended December 31, 2010, 2009 and 2008, we repurchased a total of 12.4, 10.9 and
53.6 million shares of class A and class B common stock for $809 million, $569 million and $3.558 billion,
respectively. In January 2008, our Board of Directors authorized an increase in our share 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, 2010, we had $5.194
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):
2010 2009 2008
Foreign currency translation gain (loss):
Balance at beginning of year ....................................... $ 37 $ (38) $ 81
Aggregate adjustment for the year ................................... (105) 75 (119)
Balance at end of year ............................................ (68) 37 (38)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of year ....................................... (27) (60) 9
Current period changes in fair value (net of tax effect of $17, $3, and
$(33)) ....................................................... 30 25 (78)
Reclassification to earnings (net of tax effect of $6, $5, and $5) ...........989
Balance at end of year ............................................ 12 (27) (60)
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of year ....................................... (200) (107) (250)
Current period changes in fair value (net of tax effect of $(4), $4, and
$(33)) ....................................................... (7) 6 (54)
Reclassification to earnings (net of tax effect of $(19), $(60), and $118) ..... (32) (99) 197
Balance at end of year ............................................ (239) (200) (107)
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of year ....................................... (4,937) (5,437) (1,853)
Reclassification to earnings (net of tax effect of $104, $93, and $81) ....... 170 156 133
Net actuarial gain (loss) and prior service cost resulting from remeasurements
of plan assets and liabilities (net of tax effect of $(670), $214, and
$(2,235)) ..................................................... (1,133) 344 (3,717)
Balance at end of year ............................................ (5,900) (4,937) (5,437)
Accumulated other comprehensive income (loss) at end of year ............... $(6,195) $(5,127) $(5,642)
93