UPS 2014 Annual Report Download - page 108

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
96
NOTE 9. SHAREOWNERS’ EQUITY
Capital Stock, Additional Paid-In Capital, and Retained Earnings
We maintain two classes of common stock, which are distinguished from each other by their respective voting rights.
Class A shares of UPS are entitled to 10 votes per share, whereas class B shares are entitled to one vote per share. Class A
shares are primarily held by UPS employees and retirees, as well as trusts and descendants of the Company’s founders, and
these shares are fully convertible into class B shares at any time. Class B shares are publicly traded on the New York Stock
Exchange (“NYSE”) under the symbol “UPS”. Class A and B shares both have a $0.01 par value, and as of December 31,
2014, there were 4.6 billion class A shares and 5.6 billion class B shares authorized to be issued. Additionally, there are
200 million preferred shares authorized to be issued, with a par value of $0.01 per share; as of December 31, 2014, no preferred
shares had been issued.
The following is a rollforward of our common stock, additional paid-in capital, and retained earnings accounts (in
millions, except per share amounts):
2014 2013 2012
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of year 212 $ 2 225 $ 3 240 $ 3
Common stock purchases (5)— (8)(1)(9)—
Stock award plans 5 — 9 — 8 —
Common stock issuances 3 — 4 — 3 —
Conversions of class A to class B common stock (14)—(18)—(17)—
Class A shares issued at end of year 201 $ 2 212 $ 2 225 $ 3
Class B Common Stock
Balance at beginning of year 712 $ 7 729 $ 7 725 $ 7
Common stock purchases (21)—(35)—(13)—
Conversions of class A to class B common stock 14 — 18 — 17 —
Class B shares issued at end of year 705 $ 7 712 $ 7 729 $ 7
Additional Paid-In Capital
Balance at beginning of year $ — $ — $ —
Stock award plans 656 554 444
Common stock purchases (918)(768)(943)
Common stock issuances 309 307 293
Option premiums received (paid) (47)(93) 206
Balance at end of year $ — $ — $ —
Retained Earnings
Balance at beginning of year $ 6,925 $ 7,997 $ 10,128
Net income attributable to controlling interests 3,032 4,372 807
Dividends ($2.68, $2.48 and $2.28 per share) (2,487)(2,367)(2,243)
Common stock purchases (1,744)(3,077)(695)
Balance at end of year $ 5,726 $ 6,925 $ 7,997
For the years ended December 31, 2014, 2013 and 2012, we repurchased a total of 26.4, 43.2 and 21.8 million shares of
class A and class B common stock for $2.662, $3.846 and $1.638 billion, respectively ($2.695, $3.838 and $1.621 billion in
repurchases for 2014, 2013 and 2012, respectively, are reported on the cash flow statement due to the timing of settlements).
On February 14, 2013, the Board of Directors approved a new share repurchase authorization of $10.0 billion, which replaced
an authorization previously announced in 2012. This new share repurchase authorization has no expiration date. As of
December 31, 2014, we had $4.152 billion of this share repurchase authorization remaining.