UPS 2014 Annual Report Download - page 127

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
115
Operating profit for the quarter ended June 30, 2014 was impacted by a pre-tax charge of $1.066 billion associated with
curtailment, remeasurement and settlement of postretirement health and welfare benefit obligations for certain employees
covered by collective bargaining agreements (allocated as follows—U.S. Domestic Package $957 million, International
Package $27 million, Supply Chain & Freight $82 million). This charge reduced net income by $665 million, and basic and
diluted earnings per share by $0.73 and $0.72, respectively.
The curtailment, remeasurement and settlement charges described above that impacted the quarters ended June 30, 2014
and December 31, 2014 are discussed further in note 5.
Operating profit for the quarter ended March 31, 2013 was impacted by two items: (1) The termination fee and
transaction-related expenses for our proposed acquisition of TNT Express, and (2) The foreign currency gain realized upon the
liquidation of a subsidiary that would have been used to acquire the shares of TNT Express. These two items are discussed
further in note 15. The combination of these two items reduced the operating profit for the International Package segment by
$39 million, increased net income by $36 million, and increased basic and diluted earnings per share by $0.04.