UPS 2011 Annual Report Download - page 135

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As discussed in Note 1, our operating profit, net income and earnings per share have all been revised for the
retrospective application of our changes in accounting policies for recognizing the expense associated with our
pension and postretirement benefit plans. The impact of these accounting policy changes revised our previously
reported information by the following (in millions, except per share amounts):
Increase (Reduction) to Previously-Reported
Information
First Quarter Second Quarter Third Quarter Fourth Quarter
2011 2010 2011 2010 2011 2010 2011 2010
Operating profit:
U.S. Domestic Package ..................... $ 31 $ (26) $ 31 $ (26) $ 31 $ (26) $ (448) $ (57)
International Package ...................... 7 (7) 8 (8) 8 (8) (163) (50)
Supply Chain & Freight .................... 8 3 8 3 8 4 (169) (35)
Total operating profit ................... 46 (30) 47 (31) 47 (30) (780) (142)
Net income .................................. $ 30 $ (18) $ 29 $ (19) $ 30 $ (19) $ (498) $ (94)
Earnings per share:
Basic ................................... $0.03 $(0.02) $0.03 $(0.02) $0.03 $(0.02) $(0.51) $(0.10)
Diluted .................................. $0.03 $(0.02) $0.02 $(0.02) $0.03 $(0.02) $(0.51) $(0.09)
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures:
As of the end of the period covered by this report, management, including our chief executive officer and
chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and
procedures and internal controls over financial reporting. Based upon, and as of the date of, the evaluation, our
chief executive officer and chief financial officer concluded that the disclosure controls and procedures and
internal controls over financial reporting were effective to ensure that information required to be disclosed in the
reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when
required and is accumulated and communicated to our management, including the Chief Executive Officer and
Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting:
There were no changes in the Company’s internal controls over financial reporting during the quarter ended
December 31, 2011 that have materially affected, or are reasonably likely to materially affect, the Company’s
internal control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting:
UPS management is responsible for establishing and maintaining adequate internal controls over financial
reporting for United Parcel Service, Inc. and its subsidiaries (the “Company”). Based on the criteria for effective
internal control over financial reporting established in Internal Control—Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission, management has assessed the Company’s
internal control over financial reporting as effective as of December 31, 2011. The independent registered public
accounting firm of Deloitte & Touche LLP, as auditors of the consolidated balance sheets of United Parcel
Service, Inc. and its subsidiaries as of December 31, 2011 and the related consolidated statements of income,
comprehensive income and cash flows for the year ended December 31, 2011, has issued an attestation report on
the Company’s internal control over financial reporting, which is included herein.
United Parcel Service, Inc.
February 27, 2012
Item 9B. Other Information
None.
123