UPS 2014 Annual Report Download - page 41

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
29
U.S. Domestic Package Operations
Year Ended December 31, % Change
2014 2013 2012 2014 / 2013 2013 / 2012
Average Daily Package Volume (in thousands):
Next Day Air 1,274 1,271 1,277 0.2 % (0.5)%
Deferred 1,155 1,074 1,031 7.5 % 4.2 %
Ground 12,893 12,060 11,588 6.9 % 4.1 %
Total Avg. Daily Package Volume 15,322 14,405 13,896 6.4 % 3.7 %
Average Revenue Per Piece:
Next Day Air $ 20.42 $ 20.12 $ 19.93 1.5 % 1.0 %
Deferred 12.57 12.70 13.06 (1.0)% (2.8)%
Ground 7.85 7.96 7.89 (1.4)% 0.9 %
Total Avg. Revenue Per Piece $ 9.25 $ 9.39 $ 9.38 (1.5)% 0.1 %
Operating Days in Period 253 252 252
Revenue (in millions):
Next Day Air $ 6,581 $ 6,443 $ 6,412 2.1 % 0.5 %
Deferred 3,672 3,437 3,392 6.8 % 1.3 %
Ground 25,598 24,194 23,052 5.8 % 5.0 %
Total Revenue $ 35,851 $34,074 $32,856 5.2 % 3.7 %
Operating Expenses (in millions):
Operating Expenses $ 32,992 $29,471 $32,397 11.9 % (9.0)%
Defined Benefit Plans Mark-to-Market Charge (660)—
(3,177)
Health & Welfare Plan Charges (990)— —
Multiemployer Pension Plan Withdrawal Charge ——
(896)
Adjusted Operating Expenses $ 31,342 $29,471 $28,324 6.3 % 4.0 %
Operating Profit (in millions) and Operating Margin:
Operating Profit $ 2,859 $ 4,603 $ 459 (37.9)% N/A
Adjusted Operating Profit $ 4,509 $ 4,603 $ 4,532 (2.0)% 1.6 %
Operating Margin 8.0% 13.5% 1.4%
Adjusted Operating Margin 12.6% 13.5% 13.8%