UPS 2011 Annual Report Download - page 12

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UNITED PARCEL SERVICE, INC.
ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2011
TABLE OF CONTENTS
PART I
Item 1. Business ...................................................................... 1
Overview ................................................................. 1
Business Strategy .......................................................... 2
Technology ............................................................... 3
Reporting Segments and Products & Services .................................... 4
Sustainability .............................................................. 8
Community ............................................................... 9
Reputation ................................................................ 9
Employees ................................................................ 9
Safety ................................................................... 10
Competition ............................................................... 10
Competitive Strengths ....................................................... 10
Government Regulation ..................................................... 11
Where You Can Find More Information ......................................... 13
Item 1A. Risk Factors ................................................................... 14
Item 1B. Unresolved Staff Comments ...................................................... 18
Item 2. Properties ..................................................................... 18
Operating Facilities ......................................................... 18
Fleet ..................................................................... 20
Item 3. Legal Proceedings .............................................................. 20
Item 4. Mine Safety Disclosures ......................................................... 20
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities ............................................................. 21
Shareowner Return Performance Graph ........................................ 22
Item 6. Selected Financial Data .......................................................... 23
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ..... 24
Overview ................................................................. 24
Items Affecting Comparability ................................................ 25
U.S. Domestic Package Operations ............................................. 27
International Package Operations .............................................. 30
Supply Chain & Freight Operations ............................................ 34
Operating Expenses ......................................................... 37
Investment Income and Interest Expense ........................................ 40
Income Tax Expense ........................................................ 41
Liquidity and Capital Resources ............................................... 42
New Accounting Pronouncements ............................................. 51
Critical Accounting Policies and Estimates ...................................... 51
Item 7A. Quantitative and Qualitative Disclosures about Market Risk ............................. 56
Item 8. Financial Statements and Supplementary Data ........................................ 59
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ..... 123
Item 9A. Controls and Procedures ......................................................... 123
Item 9B. Other Information .............................................................. 123
PART III
Item 10. Directors, Executive Officers and Corporate Governance ............................... 124
Item 11. Executive Compensation ......................................................... 125
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters ..................................................................... 125
Item 13. Certain Relationships and Related Transactions, and Director Independence ................ 125
Item 14. Principal Accounting Fees and Services ............................................. 126
PART IV
Item 15. Exhibits and Financial Statement Schedules ......................................... 127