UPS 2015 Annual Report Download - page 145

Reconciliation of Non-GAAP Financial Measures
(amounts in millions, except per share amounts)
2015 2014 2013 2012 2011 2010 2015 2014 2013 2012 2011 2010
Reported / GAAP 4,844$ 3,032$ 4,372$ 807$ 3,804$ 3,338$ 5.35$ 3.28$ 4.61$ 0.83$ 3.84$ 3.33$
Defined Benefit Plans Mark-to-Market Charge 79 670 - 3,023 527 75 0.08 0.73 - 3.12 0.53 0.07
TNT Termination Fee and Related Expenses - 177 - - - - 0.19 - - -
Gain Upon Liquidation of Foreign Subsidiary - (213) - - - - (0.23) - - -
Restructuring Charge - - - - 64 - - - - 0.06
Gains on Real Estate Transactions - - - (20) (61) - - - (0.02) (0.06)
Multiemployer Pension Plan Withdrawal Charge - - 559 - - - - 0.58 - -
Gains / Losses on Sales of Businesses - - - - 3 - - - - -
Charge for Change in Tax Filing Status for German Subsidiary - - - - 76 - - - - 0.08
Health & Welfare Plan Charges 687 - - - - 0.74 - - - -
Adjusted 4,923$ 4,389$ 4,336$ 4,389$ 4,311$ 3,495$ 5.43$ 4.75$ 4.57$ 4.53$ 4.35$ 3.48$
2015 2014 2013 2012 2011 2010 2015 2014 2013 2012 2011 2010
Reported / GAAP 7,668$ 4,968$ 7,034$ 1,343$ 6,080$ 5,641$ 13.1% 8.5% 12.7% 2.5% 11.4% 11.4%
Defined Benefit Plans Mark-to-Market Charge 118 1,062 - 4,831 827 112 0.2% 1.8% 0.0% 8.9% 1.6% 0.2%
TNT Termination Fee and Related Expenses - 284 - - - 0.0% 0.0% 0.5% 0.0% 0.0% 0.0%
Gain Upon Liquidation of Foreign Subsidiary - (245) - - - 0.0% 0.0% -0.4% 0.0% 0.0% 0.0%
Restructuring Charge - - - - 98 0.0% 0.0% 0.0% 0.0% 0.0% 0.2%
Gains on Real Estate Transactions - - - (33) (109) 0.0% 0.0% 0.0% 0.0% -0.1% -0.2%
Multiemployer Pension Plan Withdrawal Charge - - 896 - - 0.0% 0.0% 0.0% 1.7% 0.0% 0.0%
Gains / Losses on Sales of Businesses - - - - (20) 0.0% 0.0% 0.0% 0.0% 0.0% -0.1%
Health & Welfare Plan Charges 1,102 - - - - 0.0% 1.9% 0.0% 0.0% 0.0% 0.0%
Adjusted 7,786$ 7,132$ 7,073$ 7,070$ 6,874$ 5,722$ 13.3% 12.2% 12.8% 13.1% 12.9% 11.5%
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Reported / GAAP 4,767$ 2,859$ 2,137$ 1,677$ 764$ 432$ 13.0% 8.0% 17.6% 12.9% 8.1% 4.6%
Defined Benefit Plans Mark-to-Market Charge 62 660 44 200 12 202 0.1% 1.8% 0.4% 1.6% 0.1% 2.1%
Health & Welfare Plan Charges 990 28 84 0.0% 2.8% 0.0% 0.2% 0.0% 0.9%
Adjusted 4,829$ 4,509$ 2,181$ 1,905$ 776$ 718$ 13.1% 12.6% 18.0% 14.7% 8.2% 7.6%
2015 2014 2013 2015 2014 2013
Beginning Balance (Reported / GAAP) 35,440$ 35,553$ 38,818$ 2,158$ 6,488$ 4,733$
Beginning Balance (Adjusted) 35,744$ 35,517$ 38,259$ 5,356$ 6,566$ 7,941$
Ending Balance (Reported / GAAP) 38,311$ 35,440$ 35,553$ 2,491$ 2,158$ 6,488$
Defined Benefit Plans Mark-to-Market Charge - - - 2,709 3,198 114
TNT Termination Fee and Related Expenses - - 177 - - 177
Gain Upon Liquidation of Foreign Subsidiary - - (213) - - (213)
Health & Welfare Plan Charges 1,417 - - - -
Multiemployer Pension Plan Withdrawal Charge - - - - - -
Long-Term U.S. Deferred Tax Assets 39 (1,113) - - - -
Adjusted Ending Balance 38,350$ 35,744$ 35,517$ 5,200$ 5,356$ 6,566$
Average Reported Balance ((Reported Beginning + Reported Ending) / 2) 36,876$ 35,497$ 37,186$ 2,325$ 4,323$ 5,611$
Average Adjusted Balance ((Adjusted Beginning + Adjusted Ending) / 2) 37,047$ 35,631$ 36,888$ 5,278$ 5,961$ 7,254$
Return on Reported Balance (Reported Net Income / Average Reported Balance) 13.1% 8.5% 11.8% 208.4% 70.1% 77.9%
Return on Adjusted Balance (Adjusted Net Income / Average Adjusted Balance) 13.3% 12.3% 11.8% 93.3% 73.6% 59.8%
Return on Invested Capital Reported Adjusted Reported Adjusted Reported Adjusted
Operating Profit 7,668$ 7,786$ 4,968$ 7,132$ 7,034$ 7,073$
Less: Taxes (2,607) (2,647) (1,719) (2,532) (2,427) (2,504)
5,061$ 5,139$ 3,249$ 4,600$ 4,607$ 4,569$
Beginning LT Debt 9,856$ 9,856$ 10,824$ 10,824$ 11,089$ 11,089$
Ending LT Debt 11,316 11,316 9,856 9,856 10,824 10,824
Beginning Shareowners' Equity 2,158 5,356 6,488 6,566 4,733 7,941
Ending Shareowners' Equity 2,491 5,200 2,158 5,356 6,488 6,566
Average Invested Capital 12,911$ 15,864$ 14,663$ 16,301$ 16,567$ 18,210$
Return on Invested Capital 39.2% 32.4% 22.2% 28.2% 27.8% 25.1%
Note: The adjustments denoted in the tables above are further described in our annual reports on Form 10-K for the years ended December 31, 2015, 2014 and 2013, as well as in the historical financial
schedules on our investor relations website. The taxes deducted from operating profit in the return on invested capital calculation are based on the reported and adjusted effective tax rates noted
on page 45 of our 2015 annual report on Form 10-K.
Note: We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles ("GAAP") with certain non-GAAP financial measures, including net income,
earnings per share, operating profit, operating margin, return on assets, return on equity, and return on invested capital adjusted for the non-comparable items listed in the tables above. We
believe these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. We
believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our core
operating results, and provide a better baseline for analyzing trends in our underlying businesses.
Return on Assets
Return on Shareowners' Equity
2015
2014
2013
U.S. Domestic Package
International Package
Supply Chain & Freight
U.S. Domestic Package
International Package
Supply Chain & Freight
Net Income
Diluted Earnings Per Share
Operating Profit
Operating Margin
Operating Profit
Operating Margin
A1