UPS 2013 Annual Report Download - page 81

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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In December 2011, the FASB issued an Accounting Standards Update that required entities disclose both gross and net
information about instruments and transactions eligible for offset in the statement of financial position, as well as instruments
and transactions subject to a master netting arrangement. In addition, the update requires disclosure of collateral received and
posted in connection with master netting agreements or similar arrangements. This requirement became effective for us
beginning with the first quarter of 2013. This update did not have a material effect on our consolidated financial position or
results of operations, and we have included the required disclosures in all applicable filings since implementation.
In July 2012, the FASB issued an Accounting Standards Update that added an optional qualitative assessment for
determining whether an indefinite-lived intangible asset is impaired. The objective of this update is to reduce the cost and
complexity of performing an impairment test for indefinite-lived intangible assets by allowing an entity the option to make a
qualitative evaluation about the likelihood of an intangible impairment to determine whether it should calculate the fair value of
the asset. This accounting standards update also amends existing guidance by expanding upon the examples of events and
circumstances that an entity should consider between annual impairment tests in determining whether it is more likely than not
that the fair value of the intangible asset is less than its carrying amount. We adopted this accounting standard update and
applied its provisions to certain of our intangible assets for our annual impairment testing as of October 1, 2012.
In February 2013, the FASB issued an accounting standards update that adds new disclosure requirements for items
reclassified out of accumulated other comprehensive income. This update requires that companies present either in a single
note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each
component of accumulated other comprehensive income based on its source (e.g., the release due to cash flow hedges from
interest rate contracts) and the income statement line items affected by the reclassification (e.g., interest income or interest
expense). If a component is not required to be reclassified to net income in its entirety (e.g., the net periodic pension cost),
companies would instead cross reference to the related note for additional information (e.g., the pension note). We adopted this
accounting standard update in the first quarter of 2013 and have included the required presentation in all applicable filings since
that date (see note 9).
Other accounting pronouncements adopted during the periods covered by the consolidated financial statements had an
immaterial impact on our consolidated financial position and results of operations.
Accounting Standards Issued But Not Yet Effective
Accounting pronouncements issued, but not effective until after December 31, 2013, are not expected to have a
significant impact on our consolidated financial position or results of operations.
Changes in Presentation
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had
no impact on our financial position or results of operations.
NOTE 2. CASH AND INVESTMENTS
The following is a summary of marketable securities classified as available-for-sale at December 31, 2013 and 2012 (in
millions):
Cost Unrealized
Gains Unrealized Losses Estimated Fair Value
2013
Current marketable securities:
U.S. government and agency debt securities $ 355 $ — $ (1) $ 354
Mortgage and asset-backed debt securities 76 1 (2) 75
Corporate debt securities 146 1 (1) 146
U.S. state and local municipal debt securities 2 — — 2
Other debt and equity securities 3 — — 3
Total marketable securities $ 582 $ 2 $ (4) $ 580