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PART I
Cautionary Statement About Forward-Looking Statements
This report includes certain “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Statements in the future tense, and all statements accompanied by terms such as
“believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and variations
thereof and similar terms are intended to be forward-looking statements. We intend that all forward-looking
statements we make will be subject to safe harbor protection of the federal securities laws pursuant to
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Our disclosure and analysis in this report, in our Annual Report to Shareholders and in our other filings with
the Securities and Exchange Commission (“SEC”) contain forward-looking statements regarding our intent,
belief and current expectations about our strategic direction, prospects and future results. From time to time, we
also provide forward-looking statements in other materials we release as well as oral forward-looking statements.
Such statements give our current expectations or forecasts of future events; they do not relate strictly to historical
or current facts. Management believes that these forward-looking statements are reasonable as and when made.
However, caution should be taken not to place undue reliance on any such forward-looking statements because
such statements speak only as of the date when made.
Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to
differ materially from our historical experience and our present expectations or anticipated results. These risks
and uncertainties are described in Part I, “Item 1A. Risk Factors” and may also be described from time to time in
our future reports filed with the SEC. You should consider the limitations on, and risks associated with, forward-
looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking
statements. We do not undertake any obligation to update forward-looking statements to reflect events,
circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those
statements.
Item 1. Business
Overview
United Parcel Service, Inc. (“UPS”) was founded in 1907 as a private messenger and delivery service in
Seattle, Washington. Today, UPS is the world’s largest package delivery company, a leader in the U.S. less-than-
truckload industry and the premier provider of global supply chain management solutions. We deliver packages
each business day for 1.1 million shipping customers to 7.7 million consignees in over 220 countries and
territories. In 2011, we delivered an average of 15.8 million pieces per day worldwide, or a total of 4.01 billion
packages. Total revenue in 2011 was $53.1 billion.
We are a global leader in logistics, and we create value for our customers through solutions that lower costs,
improve service and provide highly customizable supply chain control and visibility. Customers are attracted to
our broad set of services that are delivered as promised through our integrated ground, air and ocean global
network.
Our services and integrated network allow shippers to simplify their supply chains by using fewer carriers
and to adapt their transportation requirements and spend as their businesses evolve. Across our service portfolio,
we also provide control and visibility of customers’ inventories and supply chains via our UPS technology
platform. The information flow from UPS technology drives improvements for our customers, as well as for
UPS, in reliability, flexibility, productivity and efficiency.
Particularly over the last decade, UPS has significantly expanded the scope of our capabilities to include
more than package delivery. Our logistics and distribution capabilities give companies the power to easily
expand their businesses to new markets around the world. By leveraging our international infrastructure, UPS
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