UPS 2014 Annual Report Download - page 81

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
69
Accounting Standards Issued But Not Yet Effective
In April 2014, the FASB issued an accounting standards update that changes the requirements for reporting discontinued
operations. This update will have the impact of reducing the frequency of disposals reported as discontinued operations, by
requiring such a disposal to represent a strategic shift that has a major effect on an entity's operations and financial results. This
update also expands the disclosures for discontinued operations, and requires new disclosures related to individually significant
disposals that do not qualify as discontinued operations. This new guidance becomes effective for us prospectively in the first
quarter of 2015. This amended guidance will only have a potential impact to the extent that we discontinue any operations in
future periods.
In May 2014, the FASB issued an accounting standards update that changes the revenue recognition for companies that
enter into contracts with customers to transfer goods or services. This amended guidance requires revenue to be recognized in
an amount that reflects the consideration to which the company expects to be entitled for those goods and services when the
performance obligation has been satisfied. This amended guidance also requires enhanced disclosures regarding the nature,
amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. This amended
guidance is effective for us beginning in the first quarter of 2017 and early adoption is not permitted. At this time, we do not
expect this new guidance to have a material impact on our consolidated financial position or results of operations.
In June 2014, the FASB issued an accounting standards update for companies that grant their employees share-based
payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the
requisite service period. This new guidance becomes effective for us beginning in the first quarter of 2015, but early adoption is
permitted. This new guidance is not expected to have a material impact on our consolidated financial position or results of
operations.
Other accounting pronouncements issued, but not effective until after December 31, 2014, are not expected to have a
material 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 trading and available-for-sale at December 31, 2014
and 2013 (in millions):
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2014
Current marketable securities:
U.S. government and agency debt securities $ 321 $ 1 $ (1) $ 321
Mortgage and asset-backed debt securities 89 1 (1)89
Corporate debt securities 534 — — 534
U.S. state and local municipal debt securities 2 — — 2
Other debt and equity securities 46 — — 46
Total marketable securities $ 992 $ 2 $ (2) $ 992