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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
97
Deferred Compensation Obligations and Treasury Stock
We maintain a deferred compensation plan whereby certain employees were previously able to elect to defer the gains on
stock option exercises by deferring the shares received upon exercise into a rabbi trust. The shares held in this trust are
classified as treasury stock, and the liability to participating employees is classified as “deferred compensation obligations” in
the shareowners’ equity section of the consolidated balance sheets. The number of shares needed to settle the liability for
deferred compensation obligations is included in the denominator in both the basic and diluted earnings per share calculations.
Employees are generally no longer able to defer the gains from stock options exercised subsequent to December 31, 2004.
Activity in the deferred compensation program for the years ended December 31, 2013, 2012 and 2011 is as follows (in
millions):
2013 2012 2011
Shares Dollars Shares Dollars Shares Dollars
Deferred Compensation Obligations
Balance at beginning of year $ 78 $ 88 $ 103
Reinvested dividends 4 3 4
Options exercise deferrals — — —
Benefit payments (13)(13)(19)
Balance at end of year $ 69 $ 78 $ 88
Treasury Stock
Balance at beginning of year (1) $ (78)(2) $ (88)(2) $ (103)
Reinvested dividends — (4) — (3) — (4)
Options exercise deferrals — — — — — —
Benefit payments — 13 1 13 — 19
Balance at end of year (1) $ (69)(1) $ (78)(2) $ (88)
Noncontrolling Interests
We have noncontrolling interests in certain consolidated subsidiaries in our International Package and Supply Chain &
Freight segments, primarily in international locations. The activity related to our noncontrolling interests is presented below (in
millions):
2013 2012 2011
Noncontrolling Interests
Balance at beginning of period $ 80 $ 73 $ 68
Purchase of noncontrolling interests (66) 7 5
Dividends attributable to noncontrolling interests — — —
Net income attributable to noncontrolling interests — — —
Balance at end of period $ 14 $ 80 $ 73
In January 2013, we repurchased the noncontrolling interest in our joint venture that operates in the Middle East, Turkey,
and portions of the Central Asia region for $70 million. After this transaction, we own 100% of this entity.