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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
100
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:
Options Outstanding Options Exercisable
Exercise Price Range Shares
(in thousands) Average Life
(in years)
Average
Exercise
Price Shares
(in thousands)
Average
Exercise
Price
$50.01 - $60.00 185 5.35 $ 55.83 150 $ 55.83
$60.01 - $70.00 144 6.35 67.18 97 67.18
$70.01 - $80.00 3,380 2.68 71.70 3,170 71.43
$80.01 - $90.00 1,503 3.10 81.13 1,342 80.91
5,212 3.00 $ 73.73 4,759 $ 73.52
Discounted Employee Stock Purchase Plan
We maintain an employee stock purchase plan for all eligible employees. Under this plan, shares of UPS class A common
stock may be purchased at quarterly intervals at 95% of the NYSE closing price of UPS class B common stock on the last day
of each quarterly period. Employees purchased 1.1, 1.2 and 1.3 million shares at average prices of $79.74, $72.17 and $66.86
per share during 2013, 2012 and 2011, respectively. This plan is not considered to be compensatory, and therefore no
compensation cost is measured for the employees’ purchase rights.
NOTE 11. SEGMENT AND GEOGRAPHIC INFORMATION
We report our operations in three segments: U.S. Domestic Package operations, International Package operations and
Supply Chain & Freight operations. Package operations represent our most significant business and are broken down into
regional operations around the world. Regional operations managers are responsible for both domestic and export operations
within their geographic area.
U.S. Domestic Package
Domestic Package operations include the time-definite delivery of letters, documents and packages throughout the United
States.
International Package
International Package operations include delivery to more than 220 countries and territories worldwide, including
shipments wholly outside the United States, as well as shipments with either origin or destination outside the United States. Our
International Package reporting segment includes the operations of our Europe, Asia and Americas operating segments.
Supply Chain & Freight
Supply Chain & Freight includes our forwarding and logistics operations, UPS Freight and other aggregated business
units. Our forwarding and logistics business provides services in more than 195 countries and territories worldwide, and
includes supply chain design and management, freight distribution, customs brokerage, mail and consulting services. UPS
Freight offers a variety of LTL and TL services to customers in North America. Other aggregated business units within this
segment include Mail Boxes Etc. (the franchisor of Mail Boxes Etc. and The UPS Store) and UPS Capital.
In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating
profit is before investment income, interest expense and income taxes. The accounting policies of the reportable segments are
the same as those described in the summary of accounting policies (see note 1), with certain expenses allocated between the
segments using activity-based costing methods. Unallocated assets are comprised primarily of cash, marketable securities, and
certain investment partnerships.