UPS 2015 Annual Report Download - page 113

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
101
NOTE 10. 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,
2015, 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, 2015, 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):
2015 2014 2013
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock:
Balance at beginning of year 201 $ 2 212 $ 2 225 $ 3
Common stock purchases (4)— (5)— (8)(1)
Stock award plans 5 — 5 — 9 —
Common stock issuances 3 — 3 — 4 —
Conversions of class A to class B common stock (11)—(14)—(18)—
Class A shares issued at end of year 194 $ 2 201 $ 2 212 $ 2
Class B Common Stock:
Balance at beginning of year 705 $ 7 712 $ 7 729 $ 7
Common stock purchases (23)—(21)—(35)—
Conversions of class A to class B common stock 11 — 14 — 18 —
Class B shares issued at end of year 693 $ 7 705 $ 7 712 $ 7
Additional Paid-In Capital:
Balance at beginning of year $ — $ — $ —
Stock award plans 492 656 554
Common stock purchases (791)(918)(768)
Common stock issuances 316 309 307
Option premiums received (paid) (17)(47)(93)
Balance at end of year $ — $ — $ —
Retained Earnings:
Balance at beginning of year $ 5,726 $ 6,925 $ 7,997
Net income attributable to controlling interests 4,844 3,032 4,372
Dividends ($2.92, $2.68 and $2.48 per share) (2,649)(2,487)(2,367)
Common stock purchases (1,920)(1,744)(3,077)
Balance at end of year $ 6,001 $ 5,726 $ 6,925
For the years ended December 31, 2015, 2014 and 2013, we repurchased a total of 26.8, 26.4 and 43.2 million shares of
class A and class B common stock for $2.711, $2.662 and $3.846 billion, respectively ($2.702, $2.695 and $3.838 billion in
repurchases for 2015, 2014 and 2013, 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, 2015, we had $1.441 billion of this share repurchase authorization remaining.