UPS 2015 Annual Report Download - page 88

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
76
NOTE 3. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, including both owned assets as well as assets subject to capital leases, consists of the
following as of December 31 (in millions):
2015 2014
Vehicles $ 8,111 $ 7,542
Aircraft 15,815 15,801
Land 1,263 1,145
Buildings 3,280 3,276
Building and leasehold improvements 3,450 3,266
Plant equipment 8,026 7,649
Technology equipment 1,670 1,608
Equipment under operating leases 30 34
Construction-in-progress 273 299
41,918 40,620
Less: Accumulated depreciation and amortization (23,566)(22,339)
$ 18,352 $ 18,281
We continually monitor our aircraft fleet utilization in light of current and projected volume levels, aircraft fuel prices and
other factors. Additionally, we monitor our other property, plant and equipment categories for any indicators that the carrying
value of the assets may not be recoverable. No impairment charges on property, plant and equipment were recorded in 2015,
2014 or 2013.
NOTE 4. COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS
We sponsor various retirement and pension plans, including defined benefit and defined contribution plans which cover
our employees worldwide.
U.S. Pension Benefits
In the U.S. we maintain the following single-employer defined benefit pension plans: The UPS Retirement Plan, the UPS
Pension Plan, the UPS IBT Pension Plan and the UPS Excess Coordinating Benefit Plan, a non-qualified plan.
The UPS Retirement Plan is noncontributory and includes substantially all eligible employees of participating domestic
subsidiaries who are not members of a collective bargaining unit, as well as certain employees covered by a collective
bargaining agreement. This plan generally provides for retirement benefits based on average compensation levels earned by
employees prior to retirement. Benefits payable under this plan are subject to maximum compensation limits and the annual
benefit limits for a tax-qualified defined benefit plan as prescribed by the Internal Revenue Service (“IRS”).
The UPS Excess Coordinating Benefit Plan is a non-qualified plan that provides benefits to certain participants in the
UPS Retirement Plan for amounts that exceed the benefit limits described above.
The UPS Pension Plan is noncontributory and includes certain eligible employees of participating domestic subsidiaries
and members of collective bargaining units that elect to participate in the plan. This plan generally provides for retirement
benefits based on service credits earned by employees prior to retirement.
The UPS IBT Pension Plan is noncontributory and includes employees that were previously members of the Central
States Pension Fund, a multiemployer pension plan, in addition to other eligible employees who are covered under certain
collective bargaining agreements. This plan generally provides for retirement benefits based on service credits earned by
employees prior to retirement.
International Pension Benefits
We also sponsor various defined benefit plans covering certain of our international employees. The majority of our
international obligations are for defined benefit plans in Canada and the United Kingdom. In addition, many of our international
employees are covered by government-sponsored retirement and pension plans. We are not directly responsible for providing
benefits to participants of government-sponsored plans.