UPS 2011 Annual Report Download - page 134

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 18. QUARTERLY INFORMATION (unaudited)
Our revenue, segment operating profit, net income, basic and diluted earnings per share on a quarterly basis
are presented below (in millions, except per share amounts):
First Quarter Second Quarter Third Quarter Fourth Quarter
2011 2010 2011 2010 2011 2010 2011 2010
Revenue:
U.S. Domestic Package ........ $ 7,543 $ 7,102 $ 7,737 $ 7,269 $ 7,767 $ 7,291 $ 8,670 $ 8,080
International Package ......... 2,900 2,639 3,139 2,771 3,057 2,676 3,153 3,047
Supply Chain & Freight ....... 2,139 1,987 2,315 2,164 2,342 2,225 2,343 2,294
Total revenue ............ 12,582 11,728 13,191 12,204 13,166 12,192 14,166 13,421
Operating profit:
U.S. Domestic Package ........ 880 536 997 722 1,046 994 841 986
International Package ......... 453 420 505 513 417 411 334 487
Supply Chain & Freight ....... 139 56 243 136 203 181 22 199
Total operating profit ..... 1,472 1,012 1,745 1,371 1,666 1,586 1,197 1,672
Net income ..................... $ 915 $ 515 $ 1,092 $ 826 $ 1,072 $ 972 $ 725 $ 1,025
Earnings per share:
Basic ...................... $ 0.92 $ 0.52 $ 1.11 $ 0.83 $ 1.10 $ 0.98 $ 0.75 $ 1.03
Diluted ..................... $ 0.91 $ 0.51 $ 1.09 $ 0.82 $ 1.09 $ 0.97 $ 0.74 $ 1.02
Second quarter 2011 operating profit was impacted by gains and losses on certain real estate transactions,
including a $15 million loss in the U.S. Domestic Package segment and a $48 million gain in the Supply Chain &
Freight segment. The combined impact of these transactions increased net income by $20 million, and basic and
diluted earnings per share by $0.02.
Fourth quarter 2011 operating profit was impacted by a mark-to-market loss on our pension and
postretirement benefit plans related to the remeasurement of plan assets and liabilities recognized outside of a
10% corridor of $827 million (allocated as follows—U.S. Domestic Package $479 million, International Package
$171 million, Supply Chain & Freight $177 million). This loss reduced net income by $527 million, and basic
and diluted earnings per share by $0.54.
First quarter 2010 U.S. Domestic Package operating profit includes a $98 million restructuring charge
related to the reorganization of our domestic management structure, as discussed in Note 16. First quarter 2010
Supply Chain & Freight operating profit includes a $38 million loss on the sale of a specialized transportation
business in Germany, also discussed in Note 16. Additionally, first quarter 2010 net income includes a $76
million charge to income tax expense, resulting from a change in the tax filing status of a German subsidiary, as
discussed in Note 13. The combined impact of these items reduced net income by $175 million, basic earnings
per share by $0.17, and diluted earnings per share by $0.18.
Third quarter 2010 U.S. Domestic Package operating profit includes a $109 million gain on the sale of real
estate. This gain increased net income by $61 million, and basic and diluted earnings per share by $0.06.
Fourth quarter 2010 Supply Chain & Freight operating profit includes a $71 million gain on the sale of UPS
Logistics Technologies and a $13 million loss related to a financial guarantee associated with the specialized
transportation business sold in the first quarter of 2010, which are discussed in Note 16. Additionally, fourth
quarter 2010 operating profit was impacted by a mark-to-market loss on our pension and postretirement benefit
plans related to the remeasurement of plan assets and liabilities recognized outside of a 10% corridor of
$112 million (allocated as follows—U.S. Domestic Package $31 million, International Package $42 million,
Supply Chain & Freight $39 million). The combined impact of these items decreased net income by $43 million,
and basic and diluted earnings per share by $0.04.
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