UPS 2011 Annual Report Download - page 116
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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
able to defer the gains from stock options exercised subsequent to December 31, 2004. Activity in the deferred
compensation program for the years ended December 31, 2011, 2010, and 2009 is as follows (in millions):
2011 2010 2009
Shares Dollars Shares Dollars Shares Dollars
Deferred Compensation Obligations
Balance at beginning of year ....................... $103 $108 $121
Reinvested dividends ............................. 4 4 3
Options exercise deferrals ......................... — 1 —
Benefit payments ................................ (19) (10) (16)
Balance at end of year ............................ $ 88 $103 $108
Treasury Stock
Balance at beginning of year ....................... (2) $(103) (2) $(108) (2) $(121)
Reinvested dividends ............................. — (4) — (4) — (3)
Options exercise deferrals ......................... — — — (1) — —
Benefit payments ................................ — 19 — 10 — 16
Balance at end of year ............................ (2) $ (88) (2) $(103) (2) $(108)
Noncontrolling Interests
We have noncontrolling interests in certain consolidated subsidiaries in our International Package and
Supply Chain & Freight segments, the largest of which relates to a joint venture that operates in the Middle East,
Turkey, and portions of the Central Asia region. The activity related to our noncontrolling interests is presented
below (in millions):
2011 2010
Noncontrolling Interests
Balance at beginning of period ........................ $ 68 $ 66
Acquired noncontrolling interests ...................... 5 2
Dividends attributable to noncontrolling interests ......... — —
Net income attributable to noncontrolling interests ........ — —
Balance at end of period ............................. $ 73 $ 68
NOTE 11. STOCK-BASED COMPENSATION
Incentive Compensation Plan
The UPS Incentive Compensation Plan permits the grant of nonqualified and incentive stock options, stock
appreciation rights, restricted stock and stock units, and restricted performance shares and units, to eligible
employees. The number of shares reserved for issuance under the Incentive Compensation Plan is 80 million.
Each share issued pursuant to an option and each share issued subject to the exercised portion of a stock
appreciation right will reduce the share reserve by one share. Each share issued pursuant to restricted stock and
stock units, and restricted performance shares and units, will reduce the share reserve by 2.76 shares. As of
December 31, 2011, stock options, restricted performance units and restricted stock units had been granted under
the Incentive Compensation Plan. We had 39 million shares available to be issued under the Incentive
Compensation Plan as of December 31, 2011.
104