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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
81
NOTE 7. DEBT AND FINANCING ARRANGEMENTS
The following table sets forth the principal amount, maturity or range of maturities, as well as the carrying value of our
debt obligations, as of December 31, 2012 and 2011 (in millions). The carrying value of these debt obligations can differ from
the principal amount due to the impact of unamortized discounts or premiums and valuation adjustments resulting from interest
rate swap hedging relationships.
Principal Carrying Value
Amount Maturity 2012 2011
Commercial paper $ — $ — $ —
Fixed-rate senior notes:
4.50% senior notes 1,750 2013 1,751 1,778
3.875% senior notes 1,000 2014 1,033 1,050
1.125% senior notes 375 2017 373 —
5.50% senior notes 750 2018 851 841
5.125% senior notes 1,000 2019 1,140 1,119
3.125% senior notes 1,500 2021 1,655 1,641
2.45% senior notes 1,000 2022 996 —
6.20% senior notes 1,500 2038 1,480 1,480
4.875% senior notes 500 2040 489 489
3.625% senior notes 375 2042 367 —
8.375% Debentures:
8.375% debentures 424 2020 512 504
8.375% debentures 276 2030 284 284
Pound Sterling Notes:
5.50% notes 107 2031 103 99
5.13% notes 734 2050 699 678
Floating rate senior notes 378 2049 – 2053 374 376
Capital lease obligations 440 2013 – 3004 440 469
Facility notes and bonds 320 2015 – 2036 320 320
Other debt 3 2013 - 2022 3 —
Total debt $ 12,432 12,870 11,128
Less: current maturities (1,781)(33)
Long-term debt $ 11,089 $ 11,095
Commercial Paper
We are authorized to borrow up to $10.0 billion under our U.S. commercial paper program. We also maintain a European
commercial paper program under which we are authorized to borrow up to €1.0 billion in a variety of currencies. No amounts
were outstanding under these programs as of December 31, 2012. The amount of commercial paper outstanding under these
programs in 2013 is expected to fluctuate.
Fixed Rate Senior Notes
We have completed several offerings of fixed rate senior notes. All of the notes pay interest semiannually, and allow for
redemption of the notes by UPS at any time by paying the greater of the principal amount or a “make-whole” amount, plus
accrued interest. We subsequently entered into interest rate swaps on several of these notes, which effectively converted the
fixed interest rates on the notes to variable LIBOR-based interest rates. The average interest rate payable on these notes,
including the impact of the interest rate swaps, for 2012 and 2011, respectively, were as follows: