UPS 2013 Annual Report Download - page 134

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Reconciliation of Non-GAAP Financial Measures
(amounts in millions, except per share amounts)
2013 2012 2011 2010 2009 2013 2012 2011 2010 2009
Reported / GAAP 4,372$ 807$ 3,804$ 3,338$ 1,968$ 4.61$ 0.83$ 3.84$ 3.33$ 1.96$
Defined Benefit Plans Mark-to-Market Charge - 3,023 527 75 11 - 3.12 0.53 0.07 0.01
TNT Termination Fee and Related Expenses 177 - - - - 0.19 - - - -
Gain Upon Liquidation of Foreign Subsidiary (213) - - - - (0.23) - - - -
Restructuring Charge - - - 64 - - - - 0.06 -
Gains on Real Estate Transactions - - (20) (61) - - - (0.02) (0.06) -
Multiemployer Pension Plan Withdrawal Charge 559 - - - - 0.58 - - -
Gains / Losses on Sales of Businesses - - - 3 - - - - 0.00 -
Charge for Change in Tax Filing Status for German Subsidiary - - - 76 - - - - 0.08 -
Aircraft Impairment - - - - 116 - - - - 0.11
Remeasurment of Certain Foreign-Currency Denominated Obligations - - - - 48 - - - - 0.05
Adjusted
4,336
$
4,389
$
4,311
$
3,495
$
2,143
$
4.57
$
4.53
$
4.35
$
3.48
$
2.13
$
2013 2012 2011 2010 2009 2013 2012 2011 2010 2009
Reported / GAAP 7,034$ 1,343$ 6,080$ 5,641$ 3,508$ 12.7% 2.5% 11.4% 11.4% 7.7%
Defined Benefit Plans Mark-to-Market Charge - 4,831 827 112 16 0.0% 8.9% 1.6% 0.2% 0.1%
TNT Termination Fee and Related Expenses 284 - - - - 0.5% 0.0% 0.0% 0.0% 0.0%
Gain Upon Liquidation of Foreign Subsidiary (245) - - - - -0.4% 0.0% 0.0% 0.0% 0.0%
Restructuring Charge - - - 98 - 0.0% 0.0% 0.0% 0.2% 0.0%
Gains on Real Estate Transactions - - (33) (109) - 0.0% 0.0% -0.1% -0.2% 0.0%
Multiemployer Pension Plan Withdrawal Charge - 896 - - - 0.0% 1.7% 0.0% 0.0% 0.0%
Gains / Losses on Sales of Businesses - - - (20) - 0.0% 0.0% 0.0% -0.1% 0.0%
Aircraft Impairment - - - - 181 0.0% 0.0% 0.0% 0.0% 0.4%
Adjusted
7,073
$
7,070
$
6,874
$
5,722
$
3,705
$
12.8%
13.1%
12.9%
11.5%
8.2%
2013 2012 2011 2013 2012 2011
Beginning Balance (Reported / GAAP) 38,863$ 34,701$ 33,597$ 4,733$ 7,108$ 8,047$
Ending Balance (Reported / GAAP) 36,212$ 38,863$ 34,701$ 6,488$ 4,733$ 7,108$
Defined Benefit Plans Mark-to-Market Charge - - - - 3,023 527
TNT Termination Fee and Related Expenses 177 - - 177 - -
Gain Upon Liquidation of Foreign Subsidiary (213) - - (213) - -
Gains on Real Estate Transactions - - (33) - - (20)
Multiemployer Pension Plan Withdrawal Charge - - - - 559 -
Long-term U.S. Deferred Tax Assets - (559) - - - -
Adjusted Ending Balance
36,176
$
38,304
$
34,668
$
6,452
$
8,315
$
7,615
$
Average Reported Balance ((Reported Beginning + Reported Ending) / 2) 37,538$ 36,782$ 34,149$ 5,611$ 5,921$ 7,578$
Average Adjusted Balance ((Reported Beginning + Adjusted Ending) / 2) 37,520$ 36,503$ 34,133$ 5,593$ 7,712$ 7,831$
Return on Reported Balance (Reported Net Income / Average Reported Balance) 11.6% 2.2% 11.1% 77.9% 13.6% 50.2%
Return on Adjusted Balance (Adjusted Net Income / Average Adjusted Balance) 11.6% 12.0% 12.6% 77.5% 56.9% 55.1%
Return on Invested Capital 2011
Reported Adjusted Reported Adjusted Reported Adjusted
Operating Profit 7,034$ 7,073$ 1,343$ 7,070$ 6,080$ 6,874$
Less: Taxes (2,427) (2,504) (230) (2,439) (2,073) (2,365)
4,607$ 4,569$ 1,113$ 4,631$ 4,007$ 4,509$
Beginning LT Debt 11,089$ 11,089$ 11,095$ 11,095$ 10,491$ 10,491$
Ending LT Debt 10,824 10,824 11,089 11,089 11,095 11,095
Beginning Shareowners' Equity 4,733 4,733 7,108 7,108 8,047 8,047
Ending Shareowners' Equity 6,488 6,452 4,733 8,315 7,108 7,615
Average Invested Capital 16,567$ 16,549$ 17,013$ 18,804$ 18,371$ 18,624$
Return on Invested Capital
27.8%
27.6%
6.5%
24.6%
21.8%
24.2%
Note: The adjustments denoted in the tables above are further described in our annual reports on Form 10-K for the years ended December 31, 2013, 2012 and 2011, as well as in the historical financial
schedules on our investor relations website. The taxes deducted from operating profit in the return on invested capital calculation are based on the reported and adjusted effective tax rates noted
on page 43 of our 2013 annual report on Form 10-K.
Note: We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles ("GAAP") with certain non-GAAP financial measures, including net income,
earnings per share, operating profit, operating margin, return on assets, return on equity, and return on invested capital adjusted for the non-comparable items listed in the tables above. We
believe these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. We
believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our core
operating results, and provide a better baseline for analyzing trends in our underlying businesses.
Diluted Earnings Per ShareNet Income
Operating Profit Operating Margin
Return on Shareowners' Equity
2013 2012
Return on Assets
A1