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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2024

g795027a09.jpg
United Parcel Service, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware001-1545158-2480149
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification No.)

      55 Glenlake Parkway, N.E., Atlanta, Georgia                30328
(Address of principal executive offices)                 (Zip Code)
Registrant’s telephone number, including area code (404) 828-6000
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Class B common stock, par value $0.01 per shareUPSNew York Stock Exchange
1.625% Senior Notes Due 2025UPS25New York Stock Exchange
1% Senior Notes due 2028UPS28New York Stock Exchange
1.500% Senior Notes due 2032UPS32New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company. ☐

If an emerging growth company, indicate by check mark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐









Item 2.02 — Results of Operations and Financial Condition.
     
On January 30, 2024, United Parcel Service, Inc. (the “Company”) issued a press release containing information about the Company’s results of operations and financial condition for the quarter ended December 31, 2023. The Company also posted on its website at www.investors.ups.com financial statement schedules containing additional detail about the Company's results of operations and financial condition for the same period.

A copy of the press release is attached hereto as Exhibit 99.1. A copy of the financial statement schedules is attached hereto as Exhibit 99.2.

Item 9.01 — Financial Statements and Exhibits.

(d) Exhibits

99.1       Press release dated January 30, 2024 "UPS RELEASES 4Q 2023 EARNINGS"
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

The information contained in Items 2.02 and 9.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933 or the Exchange Act, except as may be expressly set forth by reference in any such filing.



Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNITED PARCEL SERVICE, INC.
Date: January 30, 2024By:/s/ BRIAN O. NEWMAN
Brian O. Newman
Executive Vice President and Chief Financial Officer



Exhibit 99.1

UPS RELEASES 4Q 2023 EARNINGS

•Consolidated Revenues of $24.9B, Compared to $27.0B Last Year
•Consolidated Operating Margin of 9.9%; Adjusted* Consolidated Operating Margin of 11.2%
•Diluted EPS of $1.87; Adj. Diluted EPS of $2.47, Compared to $3.62 Last Year
•Declares a Quarterly Dividend of $1.63, a $0.01 Increase Per Share

ATLANTA – January 30, 2024 – UPS (NYSE:UPS) today announced fourth-quarter 2023 consolidated revenues of $24.9 billion, a 7.8% decrease from the fourth quarter of 2022. Consolidated operating profit was $2.5 billion, down 22.5% compared to the fourth quarter of 2022, and down 27.1% on an adjusted basis. Diluted earnings per share were $1.87 for the quarter; adjusted diluted earnings per share of $2.47 were 31.8% below the same period in 2022.

For the fourth quarter of 2023, GAAP results include a total charge of $512 million, or $0.60 per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $274 million, after-tax transformation and other charges of $154 million, and a non-cash, after-tax impairment charge of $84 million related to our Coyote trade name in our truckload brokerage unit.

“I want to thank UPSers for providing the best on-time performance of any carrier for the sixth year in a row,” said Carol Tomé, UPS chief executive officer. “2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth.”
U.S. Domestic Segment

4Q 2023
Adjusted
4Q 2023

4Q 2022
Adjusted
4Q 2022
Revenue
$16,915 M$18,252 M
Operating profit
$1,437 M$1,569 M$1,840 M$2,328 M

•Revenue decreased 7.3%, driven by a 7.4% decrease in average daily volume.
•Operating margin was 8.5%; adjusted operating margin was 9.3%.

International Segment

4Q 2023
Adjusted
4Q 2023

4Q 2022
Adjusted
4Q 2022
Revenue
$4,606 M$4,950 M
Operating profit
$890 M$899 M$1,020 M$1,091 M

•Revenue decreased 6.9%, driven by an 8.3% decrease in average daily volume primarily due to softness in Europe.
•Operating margin was 19.3%; adjusted operating margin was 19.5%.


Supply Chain Solutions1

4Q 2023
Adjusted
4Q 2023

4Q 2022
Adjusted
4Q 2022
Revenue
$3,396 M$3,831 M
Operating profit
$150 M$319 M$335 M$403 M
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

•Revenue decreased 11.4% due primarily to market rate declines and excess market capacity in forwarding.
•Operating margin was 4.4%; adjusted operating margin was 9.4%.

Full-Year 2023 Consolidated Results
•Revenue was $91.0 billion, a decrease of 9.3%.
•Operating profit of $9.1 billion; adjusted operating profit of $9.9 billion, down 28.7%.
•Operating margin was 10.0%; adjusted operating margin was 10.9%.
•Diluted EPS totaled $7.80; adjusted diluted EPS of $8.78.
•Adjusted return on invested capital was 21.9%.
•Cash from operations was $10.2 billion and free cash flow was $5.3 billion.

In addition, the Company returned $7.6 billion of cash to shareowners through dividends and share buybacks.

Dividend Declaration
For the 15th consecutive year, the UPS Board of Directors has approved an increase to the company’s quarterly dividend. UPS will pay a first-quarter 2024 dividend of $1.63 per share on all outstanding Class A and Class B shares. The dividend is payable March 8, 2024 to shareowners of record on February 20, 2024.

2024 Outlook
The company provides certain guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.

For the full year 2024, UPS expects revenue to range from approximately $92.0 billion to $94.5 billion and consolidated adjusted operating margin to range from approximately 10.0% to 10.6%.

The company is planning capital expenditures of about $4.5 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is expected to be around 23.5%.


* “Adjusted” or “Adj.” amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.

Contacts:
UPS Media Relations: 404-828-7123 or pr@ups.com
UPS Investor Relations: 404-828-6059 (option 4) or investor@ups.com

# # #


Conference Call Information

UPS CEO Carol Tomé and CFO Brian Newman will discuss fourth-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, January 30, 2024. That call will be open to others through a live Webcast. To access the call, go to www.investors.ups.com and click on “Earnings Conference Call.” Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under “Quarterly Earnings and Financials” and as furnished to the SEC as an exhibit to our Current Report on Form 8-K.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2023 revenue of $91.0 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 500,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equity and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Forward-Looking Statements

This release, our Annual Report on Form 10-K for the year ended December 31, 2022 and our other filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than those of current or historical fact, and all statements accompanied by terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be forward-looking statements. Forward-looking statements are made subject to the safe harbor provisions of the federal securities laws pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty.

Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties, include, but are not limited to the impact of: continued uncertainties related to the COVID-19 pandemic; changes in general economic conditions, in the U.S. or internationally; industry evolution and significant competition; changes in our relationships with any of our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; results of negotiations and ratifications of labor contracts; our ability to maintain our brand image and corporate reputation; increased or more complex physical security requirements; a significant data breach or information technology system disruption; global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks,


epidemics or pandemics; exposure to changing economic, political and social developments in international markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; changing prices of energy, including gasoline, diesel and jet fuel, or interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; significant expenses and funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations, or economic or market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent laws and regulations, including relating to climate change; potential claims or litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2022, and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law.

From time to time, we expect to participate in analyst and investor conferences. Materials provided or displayed at those conferences, such as slides and presentations, may be posted on our investor relations website at www.investors.ups.com under the heading "Presentations" when made available. These presentations may contain new material nonpublic information about our company and you are encouraged to monitor this site for any new posts, as we may use this mechanism as a public announcement.

Reconciliation of GAAP and Non-GAAP Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures.
Adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies.
Forward-Looking Non-GAAP Metrics
From time to time when presenting forward-looking non-GAAP metrics, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period.
Changes in Foreign Currency Exchange Rates and Hedging Activities
We supplement the reporting of revenue, revenue per piece and operating profit with adjusted measures that exclude the period-over-period impact of foreign currency exchange rate changes and hedging activities. We believe currency-neutral revenue, revenue per piece and operating profit information allows users of our financial statements to understand growth trends in our products and results. We evaluate the performance of International Package and Supply Chain Solutions on this currency-neutral basis.
Currency-neutral revenue, revenue per piece and operating profit are calculated by dividing current period reported U.S. Dollar revenue, revenue per piece and operating profit by the current period average


exchange rates to derive current period local currency revenue, revenue per piece and operating profit. The derived amounts are then multiplied by the average foreign currency exchange rates used to translate the comparable results for each month in the prior year period (including the period-over-period impact of foreign currency hedging activities). The difference between the current period reported U.S. Dollar revenue, revenue per piece and operating profit and the derived current period U.S. Dollar revenue, revenue per piece and operating profit is the period-over-period impact of currency fluctuations.
Incentive Compensation Program Design Changes
During 2022, we completed certain structural changes to the design of our incentive compensation programs that resulted in a one-time, non-cash charge in connection with the accelerated vesting of certain equity incentive awards that we do not expect to repeat. We supplement the presentation of our operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of these changes. We believe excluding the impacts of such changes allows users of our financial statements to more appropriately identify underlying growth trends in compensation and benefits expense.
Long-lived Asset Estimated Residual Value Changes
During the fourth quarter of 2022, we incurred a one-time, non-cash charge resulting from a reduction in the estimated residual value of our MD-11 fleet. We supplement the presentation of our operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of this charge. We believe excluding the impact of this charge better enables users of our financial statements to understand the ongoing cost associated with our long-lived assets.
Transformation Charges, and Goodwill, Asset Impairment and Divestiture Charges
We supplement the presentation of our operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of charges related to transformation activities, and goodwill, asset impairment and divestiture charges. We believe excluding the impact of these charges better enables users of our financial statements to view and evaluate underlying business performance from the perspective of management. We do not consider these costs when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.
One-Time Compensation Payment
We supplement the presentation of our operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of a one-time payment made to certain U.S.-based, non-union part-time supervisors following the ratification of our labor agreement with the Teamsters. We do not expect this or similar payments to recur. We believe excluding the impact of this one-time payment better enables users of our financial statements to view and evaluate underlying business performance from the same perspective as management.
Defined Benefit Pension and Postretirement Medical Plan Gains and Losses
We recognize changes in the fair value of plan assets and net actuarial gains and losses in excess of a 10% corridor (defined as 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation), as well as gains and losses resulting from plan curtailments and settlements, for our pension and postretirement defined benefit plans immediately as part of Investment income and other in the statements of consolidated income. We supplement the presentation of our income before income taxes,


net income and earnings per share with adjusted measures that exclude the impact of these gains and losses and the related income tax effects. We believe excluding these defined benefit pension and postretirement medical plan gains and losses provides important supplemental information by removing the volatility associated with plan amendments and short-term changes in market interest rates, equity values and similar factors.
Free Cash Flow
We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners.
Adjusted Return on Invested Capital
Adjusted ROIC is calculated as the trailing twelve months (“TTM”) of adjusted operating income divided by the average of total debt, non-current pension and postretirement benefit obligations and shareowners’ equity, at the current period end and the corresponding period end of the prior year. Because adjusted ROIC is not a measure defined by GAAP, we calculate it, in part, using non-GAAP financial measures that we believe are most indicative of our ongoing business performance. We consider adjusted ROIC to be a useful measure for evaluating the effectiveness and efficiency of our long-term capital investments.
Adjusted Total Debt / Adjusted EBITDA
Adjusted total debt is defined as our long-term debt and finance leases, including current maturities, plus non-current pension and postretirement benefit obligations. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted for the impacts of incentive compensation program redesign, one-time compensation, goodwill & asset impairment charges, transformation and other costs, defined benefit plan gains and losses and other income. We believe the ratio of adjusted total debt to adjusted EBITDA is an important indicator of our financial strength, and is a ratio used by third parties when evaluating the level of our indebtedness.




Reconciliation of GAAP and Non-GAAP Income Statement Items
(in millions, except per share data):


Three months ended December 31, 2023
As Reported (GAAP)
Pension Adj.(1)
Asset Impairment Charges(2)
Transformation & Other Adj.(3)
As Adjusted
(Non-GAAP)
U.S. Domestic Package$15,478 $— $— $132 $15,346 
International Package3,716 — — 9 3,707 
Supply Chain Solutions3,246 — 111 58 3,077 
Operating Expense22,440 — 111 199 22,130 
U.S. Domestic Package1,437 — — 132 1,569 
International Package890 — — 9 899 
Supply Chain Solutions150 — 111 58 319 
Operating Profit2,477 — 111 199 2,787 
Other Income and (Expense):
Other pension income (expense)(293)359 — — 66 
Investment income (expense) and other86 — — — 86 
Interest expense(207)— — — (207)
Total Other Income (Expense)(414)359 — — (55)
Income Before Income Taxes2,063 359 111 199 2,732 
Income Tax Expense458 85 27 45 615 
Net Income$1,605 $274 $84 $154 $2,117 
Basic Earnings Per Share$1.88 $0.32 $0.10 $0.18 $2.47 
Diluted Earnings Per Share$1.87 $0.32 $0.10 $0.18 $2.47 
(1) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(2) Represents an indefinite-lived intangible asset impairment charge.
(3) Reflects other employee benefits costs of $159 million and other costs of $40 million.

















Reconciliation of GAAP and Non-GAAP Income Statement Items
(in millions, except per share data):


Twelve Months Ended December 31, 2023
As Reported (GAAP)
Pension Adj.(1)
One-Time Compensation(2)
Goodwill & Asset Impairment Charges(3)
Transformation & Other Adj.(4)
As Adjusted
(Non-GAAP)
U.S. Domestic Package$54,882 $— $61 $— $266 $54,555 
International Package14,600 — — — 51 14,549 
Supply Chain Solutions12,335 — — 236 118 11,981 
Operating Expense81,817 — 61 236 435 81,085 
U.S. Domestic Package5,076 — 61 — 266 5,403 
International Package3,231 — — — 51 3,282 
Supply Chain Solutions834 — — 236 118 1,188 
Operating Profit9,141 — 61 236 435 9,873 
Other Income and (Expense):
Other pension income (expense)(95)359 — — — 264 
Investment income (expense) and other312 — — — — 312 
Interest expense(785)— — — — (785)
Total Other Income (Expense)(568)359 — — — (209)
Income Before Income Taxes8,573 359 61 236 435 9,664 
Income Tax Expense1,865 85 15 43 102 2,110 
Net Income$6,708 $274 $46 $193 $333 $7,554 
Basic Earnings Per Share$7.81 $0.32 $0.05 $0.22 $0.40 $8.80 
Diluted Earnings Per Share$7.80 $0.32 $0.05 $0.22 $0.39 $8.78 
(1) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(2) Represents a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.
(3) Reflects impairment charges of $125 and $111 million in respect of goodwill and an indefinite-lived intangible asset, respectively.
(4) Reflects other employee benefits costs of $337 million and other costs of $98 million.





Reconciliation of Currency Adjusted Revenue, Revenue Per Piece,
and Adjusted Operating Profit
(in millions, except per piece data)
Three Months Ended December 31,
2023
As Reported
(GAAP)		2022
As Reported
(GAAP)		% Change
(GAAP)		Currency
Impact
2023
Currency
Neutral
(Non-GAAP)(1)
% Change
(Non-GAAP)
Average Revenue Per Piece:
International Package:
   Domestic$8.11 $7.55 7.4 %$(0.15)$7.96 5.4 %
   Export32.41 32.39 0.1 %(0.22)32.19 (0.6)%
      Total International Package$20.68 $20.06 3.1 %$(0.19)$20.49 2.1 %
Consolidated$13.11 $13.04 0.5 %$(0.02)$13.09 0.4 %
Revenue:
  U.S. Domestic Package$16,915 $18,252 (7.3)%$— $16,915 (7.3)%
  International Package4,606 4,950 (6.9)%(41)4,565 (7.8)%
  Supply Chain Solutions3,396 3,831 (11.4)%(24)3,372 (12.0)%
  Total revenue$24,917 $27,033 (7.8)%$(65)$24,852 (8.1)%


2023
As Adjusted
(Non-GAAP)		2022
As Adjusted
(Non-GAAP)		% Change
(Non-GAAP)		Currency
Impact
2023
As Adjusted
Currency
Neutral
(Non-GAAP)(1)
% Change
(Non-GAAP)
As Adjusted Operating Profit(2):
  U.S. Domestic Package$1,569 $2,328 (32.6)%$— $1,569 (32.6)%
  International Package899 1,091 (17.6)%18 917 (15.9)%
  Supply Chain Solutions319 403 (20.8)%(7)312 (22.6)%
  Total operating profit$2,787 $3,822 (27.1)%$11 $2,798 (26.8)%
(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.
(2) Amounts adjusted for transformation & other.









Reconciliation of Currency Adjusted Revenue, Revenue Per Piece,
and Adjusted Operating Profit
(in millions, except per piece data)
Twelve Months Ended December 31,
2023
As Reported
(GAAP)		2022
As Reported
(GAAP)		% Change
(GAAP)		Currency
Impact
2023
Currency
Neutral
(Non-GAAP)(1)
% Change
(Non-GAAP)
Average Revenue Per Piece:
International Package:
   Domestic$7.78 $7.46 4.3 %$0.07 $7.85 5.2 %
   Export33.03 34.48 (4.2)%0.19 33.22 (3.7)%
      Total International Package$20.71 $20.91 (1.0)%$0.13 $20.84 (0.3)%
Consolidated$13.62 $13.38 1.8 %$0.02 $13.64 1.9 %
Revenue:
  U.S. Domestic Package$59,958 $64,209 (6.6)%$— $59,958 (6.6)%
  International Package17,831 19,698 (9.5)%111 17,942 (8.9)%
  Supply Chain Solutions13,169 16,431 (19.9)%9 13,178 (19.8)%
  Total revenue$90,958 $100,338 (9.3)%$120 $91,078 (9.2)%


2023
As Adjusted
(Non-GAAP)		2022
As Adjusted
(Non-GAAP)		% Change
(Non-GAAP)		Currency
Impact
2023
As Adjusted
Currency
Neutral
(Non-GAAP)(1)
% Change
(Non-GAAP)
As Adjusted Operating Profit(2):
  U.S. Domestic Package$5,403 $7,574 (28.7)%$— $5,403 (28.7)%
  International Package3,282 4,419 (25.7)%133 3,415 (22.7)%
  Supply Chain Solutions1,188 1,860 (36.1)%(9)1,179 (36.6)%
  Total operating profit$9,873 $13,853 (28.7)%$124 $9,997 (27.8)%
(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.
(2) Amounts adjusted for transformation & other.









Reconciliation of Free Cash Flow (Non-GAAP measure)
(in millions):
Twelve Months Ended December 31,
2023
Cash flows from operating activities$10,238 
Capital expenditures(5,158)
Proceeds from disposals of property, plant and equipment193 
Other investing activities(19)
   Free Cash Flow (Non-GAAP measure)$5,254 

























































Reconciliation of Adjusted Debt to Adjusted EBITDA (Non-GAAP measure)
(in millions):

TTM(1) Ended
December 31
2023
Net income$6,708 
Add back:
Income tax expense1,865 
Interest expense785 
Depreciation & amortization3,366 
EBITDA$12,724 
Add back (deduct):
Incentive compensation program redesign— 
One-time compensation61 
Goodwill & asset impairment charges236 
Transformation and other435 
Defined benefit plan (gains) and losses359 
Investment income and other pension income(576)
Adjusted EBITDA$13,239 
Debt and finance leases, including current maturities$22,264 
Add back:
Non-current pension and postretirement benefit obligations6,159 
Adjusted total debt$28,423 
Adjusted total debt/Net income4.24 
Adjusted total debt/adjusted EBITDA (Non-GAAP)2.15 
(1) Trailing twelve months.
    


Reconciliation of Adjusted Return on Invested Capital (Non-GAAP measure)
(in millions):
TTM(1) Ended
December 31
2023
Net income$6,708 
Add back (deduct):
Income tax expense1,865 
Interest expense785 
Other pension (income) expense95 
Investment (income) expense and other(312)
Operating profit$9,141 
Incentive compensation program redesign— 
Long-lived asset estimated residual value changes— 
One-time compensation61 
Goodwill & asset impairment charges236 
Transformation and other435 
Adjusted operating profit$9,873 
Average debt and finance leases, including current maturities20,963 
Average pension and postretirement benefit obligations5,483 
Average shareowners' equity18,558 
Average invested capital$45,004 
Net income to average invested capital14.9 %
Adjusted Return on Invested Capital (Non-GAAP)21.9 %

(1) Trailing twelve months.


Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20232022Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$16,915 $18,252 $(1,337)(7.3)%
  International Package4,606 4,950 (344)(6.9)%
  Supply Chain Solutions3,396 3,831 (435)(11.4)%
  Total revenue24,917 27,033 (2,116)(7.8)%
Operating expenses:
  U.S. Domestic Package15,478 16,412 (934)(5.7)%
  International Package3,716 3,930 (214)(5.4)%
  Supply Chain Solutions3,246 3,496 (250)(7.2)%
  Total operating expenses22,440 23,838 (1,398)(5.9)%
Operating profit:
  U.S. Domestic Package1,437 1,840 (403)(21.9)%
  International Package890 1,020 (130)(12.7)%
  Supply Chain Solutions150 335 (185)(55.2)%
  Total operating profit2,477 3,195 (718)(22.5)%
Other income (expense):
 Other pension income (expense)(293)1,325 (1,618)N/A
  Investment income (expense) and other86 129 (43)(33.3)%
  Interest expense(207)(182)(25)13.7 %
  Total other income (expense)(414)1,272 (1,686)N/A
Income before income taxes2,063 4,467 (2,404)(53.8)%
Income tax expense458 1,014 (556)(54.8)%
Net income$1,605 $3,453 $(1,848)(53.5)%
Net income as a percentage of revenue6.4 %12.8 %
Per share amounts:
  Basic earnings per share$1.88 $3.98 $(2.10)(52.8)%
  Diluted earnings per share$1.87 $3.96 $(2.09)(52.8)%
Weighted-average shares outstanding:
  Basic856 867 (11)(1.3)%
  Diluted858 871 (13)(1.5)%
As Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $1,569 $2,328 $(759)(32.6)%
  International Package 899 1,091 (192)(17.6)%
  Supply Chain Solutions319 403 (84)(20.8)%
  Total operating profit 2,787 3,822 (1,035)(27.1)%
Total other income (expense)$(55)$244 $(299)N/A
Income before income taxes $2,732 $4,066 $(1,334)(32.8)%
Net income $2,117 $3,154 $(1,037)(32.9)%
Basic earnings per share $2.47 $3.64 $(1.17)(32.1)%
Diluted earnings per share$2.47 $3.62 $(1.15)(31.8)%

(1) See Non-GAAP schedules for reconciliation of adjustments.


Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Selected Operating Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20232022Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,654 $2,776 $(122)(4.4)%
   Deferred1,602 1,845 (243)(13.2)%
   Ground12,659 13,631 (972)(7.1)%
      Total U.S. Domestic Package16,915 18,252 (1,337)(7.3)%
International Package:
   Domestic845 881 (36)(4.1)%
   Export3,616 3,840 (224)(5.8)%
   Cargo and Other145 229 (84)(36.7)%
      Total International Package4,606 4,950 (344)(6.9)%
Supply Chain Solutions:
   Forwarding1,317 1,803 (486)(27.0)%
Logistics1,656 1,508 148 9.8 %
   Other423 520 (97)(18.7)%
      Total Supply Chain Solutions3,396 3,831 (435)(11.4)%
Consolidated$24,917 $27,033 $(2,116)(7.8)%
Consolidated volume (in millions)1,630 1,762 (132)(7.5)%
Operating weekdays63 63 — 0.0 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,933 2,185 (252)(11.5)%
   Deferred1,595 1,967 (372)(18.9)%
   Ground18,921 20,086 (1,165)(5.8)%
      Total U.S. Domestic Package22,449 24,238 (1,789)(7.4)%
International Package:
   Domestic1,653 1,853 (200)(10.8)%
   Export1,771 1,882 (111)(5.9)%
      Total International Package3,424 3,735 (311)(8.3)%
Consolidated25,873 27,973 (2,100)(7.5)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$21.79 $20.17 $1.62 8.0 %
   Deferred15.94 14.891.05 7.1 %
   Ground10.6210.77 (0.15)(1.4)%
      Total U.S. Domestic Package11.9611.95 0.01 0.1 %
International Package:
   Domestic8.11 7.55 0.56 7.4 %
   Export32.4132.390.02 0.1 %
      Total International Package20.68 20.06 0.62 3.1 %
Consolidated$13.11 $13.04 $0.07 0.5 %








Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Detail of Operating Expenses - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20232022Change% Change
(in millions)
Compensation and benefits$12,901 $13,286 $(385)(2.9)%
Repairs and maintenance702 724 (22)(3.0)%
Depreciation and amortization867 888 (21)(2.4)%
Purchased transportation3,817 4,499 (682)(15.2)%
Fuel1,282 1,571 (289)(18.4)%
Other occupancy529 486 43 8.8 %
Other expenses2,342 2,384 (42)(1.8)%
Total operating expenses$22,440 $23,838 $(1,398)(5.9)%


























































Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Twelve Months Ended
December 31
20232022Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$59,958 $64,209 $(4,251)(6.6)%
  International Package17,831 19,698 (1,867)(9.5)%
  Supply Chain Solutions13,169 16,431 (3,262)(19.9)%
  Total revenue90,958 100,338 (9,380)(9.3)%
Operating expenses:
  U.S. Domestic Package54,882 57,212 (2,330)(4.1)%
  International Package14,600 15,372 (772)(5.0)%
  Supply Chain Solutions12,335 14,660 (2,325)(15.9)%
  Total operating expenses81,817 87,244 (5,427)(6.2)%
Operating profit:
  U.S. Domestic Package5,076 6,997 (1,921)(27.5)%
  International Package3,231 4,326 (1,095)(25.3)%
  Supply Chain Solutions834 1,771 (937)(52.9)%
  Total operating profit9,141 13,094 (3,953)(30.2)%
Other income (expense):
 Other pension income (expense)(95)2,251 (2,346)N/A
  Investment income (expense) and other312 184 128 69.6 %
  Interest expense(785)(704)(81)11.5 %
  Total other income (expense)(568)1,731 (2,299)N/A
Income before income taxes8,573 14,825 (6,252)(42.2)%
Income tax expense1,865 3,277 (1,412)(43.1)%
Net income$6,708 $11,548 $(4,840)(41.9)%
Net income as a percentage of revenue7.4 %11.5 %
Per share amounts:
  Basic earnings per share$7.81 $13.26 $(5.45)(41.1)%
  Diluted earnings per share$7.80 $13.20 $(5.40)(40.9)%
Weighted-average shares outstanding:
  Basic859 871 (12)(1.4)%
  Diluted860 875 (15)(1.7)%
As Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $5,403 $7,574 $(2,171)(28.7)%
  International Package 3,282 4,419 (1,137)(25.7)%
  Supply Chain Solutions1,188 1,860 (672)(36.1)%
  Total operating profit 9,873 13,853 (3,980)(28.7)%
Total other income (expense)$(209)$670 $(879)N/A
Income before income taxes $9,664 $14,523 $(4,859)(33.5)%
Net income $7,554 $11,326 $(3,772)(33.3)%
Basic earnings per share $8.80 $13.00 $(4.20)(32.3)%
Diluted earnings per share$8.78 $12.94 $(4.16)(32.1)%

(1) See Non-GAAP schedules for reconciliation of adjustments.



Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Twelve Months Ended
December 31
20232022Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$9,894 $10,699 $(805)(7.5)%
   Deferred5,093 5,968 (875)(14.7)%
   Ground44,971 47,542 (2,571)(5.4)%
      Total U.S. Domestic Package59,958 64,209 (4,251)(6.6)%
International Package:
   Domestic3,144 3,346 (202)(6.0)%
   Export14,003 15,341 (1,338)(8.7)%
   Cargo and Other684 1,011 (327)(32.3)%
      Total International Package17,831 19,698 (1,867)(9.5)%
Supply Chain Solutions:
   Forwarding5,534 8,943 (3,409)(38.1)%
Logistics5,927 5,351 576 10.8 %
   Other1,708 2,137 (429)(20.1)%
      Total Supply Chain Solutions13,169 16,431 (3,262)(19.9)%
Consolidated$90,958 $100,338 $(9,380)(9.3)%
Consolidated volume (in millions)5,662 6,194 (532)(8.6)%
Operating weekdays254 255 (1)(0.4)%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,757 1,992 (235)(11.8)%
   Deferred1,224 1,553 (329)(21.2)%
   Ground16,049 17,242 (1,193)(6.9)%
      Total U.S. Domestic Package19,030 20,787 (1,757)(8.5)%
International Package:
   Domestic1,591 1,759 (168)(9.6)%
   Export1,669 1,745 (76)(4.4)%
      Total International Package3,260 3,504 (244)(7.0)%
Consolidated22,290 24,291 (2,001)(8.2)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$22.17 $21.06 $1.11 5.3 %
   Deferred16.3815.071.318.7 %
   Ground11.03 10.81 0.22 2.0 %
      Total U.S. Domestic Package12.40 12.11 0.29 2.4 %
International Package:
   Domestic7.78 7.46 0.32 4.3 %
   Export33.0334.48(1.45)(4.2)%
      Total International Package20.71 20.91 (0.20)(1.0)%
Consolidated$13.62 $13.38 $0.24 1.8 %








Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Twelve Months Ended
December 31
20232022Change% Change
(in millions)
Compensation and benefits$47,088 $47,720 $(632)(1.3)%
Repairs and maintenance2,828 2,884 (56)(1.9)%
Depreciation and amortization3,366 3,188 178 5.6 %
Purchased transportation13,651 17,675 (4,024)(22.8)%
Fuel4,775 6,018 (1,243)(20.7)%
Other occupancy2,019 1,844 175 9.5 %
Other expenses8,090 7,915 175 2.2 %
Total operating expenses$81,817 $87,244 $(5,427)(6.2)%


























































Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Consolidated Balance Sheets
December 31, 2023 (unaudited) and December 31, 2022

December 31, 2023December 31, 2022
(amounts in millions)
ASSETS
Current Assets:
Cash and cash equivalents$3,206 $5,602 
Marketable securities2,866 1,993 
Accounts receivable11,342 12,729 
Less: Allowance for credit losses(126)(146)
Accounts receivable, net11,216 12,583 
Other current assets2,125 2,039 
 Total Current Assets19,413 22,217 
Property, Plant and Equipment, Net36,945 34,719 
Operating Lease Right-Of-Use Assets4,308 3,755 
Goodwill4,872 4,223 
Intangible Assets, Net3,305 2,796 
Deferred Income Tax Assets126 139 
Other Non-Current Assets1,888 3,275 
Total Assets $70,857 $71,124 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$3,348 $2,341 
Current maturities of operating leases709 621 
Accounts payable6,340 7,515 
Accrued wages and withholdings3,224 4,049 
Self-insurance reserves1,320 1,069 
Accrued group welfare and retirement plan contributions1,479 1,078 
Other current liabilities 1,256 1,467 
Total Current Liabilities17,676 18,140 
Long-Term Debt and Finance Leases18,916 17,321 
Non-Current Operating Leases3,756 3,238 
Pension and Postretirement Benefit Obligations6,159 4,807 
Deferred Income Tax Liabilities3,772 4,302 
Other Non-Current Liabilities3,264 3,513 
Shareowners' Equity:
Class A common stock2 2 
Class B common stock7 7 
Additional paid-in capital— — 
Retained earnings21,055 21,326 
Accumulated other comprehensive loss(3,758)(1,549)
Deferred compensation obligations9 13 
Less: Treasury stock(9)(13)
Total Equity for Controlling Interests17,306 19,786 
Noncontrolling interests8 17 
Total Shareowners' Equity17,314 19,803 
Total Liabilities and Shareowners' Equity$70,857 $71,124 







Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(unaudited)
(amounts in millions)Twelve Months Ended
December 31
20232022
Cash Flows From Operating Activities:
Net income$6,708 $11,548 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 3,366 3,188 
 Pension and postretirement benefit expense 1,330 (129)
 Pension and postretirement benefit contributions (1,393)(2,342)
 Self-insurance reserves 57 (20)
 Deferred tax (benefit) expense 199 531 
 Stock compensation expense 220 1,568 
 Other (gains) losses 265 123 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable 1,256 (322)
 Other assets 87 117 
 Accounts payable (1,377)34 
 Accrued wages and withholdings (296)(189)
 Other liabilities (42)(9)
Other operating activities(142)6 
 Net cash from operating activities 10,238 14,104 
Cash Flows From Investing Activities:
Capital expenditures(5,158)(4,769)
Proceeds from disposal of businesses, property, plant and equipment193 12 
Purchases of marketable securities(3,521)(1,906)
Sales and maturities of marketable securities2,701 255 
Acquisitions, net of cash acquired(1,329)(755)
Other investing activities(19)(309)
Net cash used in investing activities(7,133)(7,472)
Cash Flows From Financing Activities:
Net change in short-term debt1,272 — 
Proceeds from long-term borrowings3,429 — 
Repayments of long-term borrowings(2,429)(2,304)
Purchases of common stock(2,250)(3,500)
Issuances of common stock248 262 
Dividends(5,372)(5,114)
Other financing activities(432)(529)
Net cash used in financing activities(5,534)(11,185)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash33 (100)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash(2,396)(4,653)
Cash, Cash Equivalents and Restricted Cash:
Beginning of period5,602 10,255 
End of period$3,206 $5,602 








Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited)
(amounts in millions)Twelve Months Ended
December 31
20232022
Cash flows from operating activities$10,238 $14,104 
Capital expenditures(5,158)(4,769)
Proceeds from disposals of property, plant and equipment193 12 
Other investing activities(19)(309)
   Free Cash Flow (Non-GAAP measure)$5,254 $9,038 















































Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Reconciliation of Adjusted Debt to Adjusted EBITDA (Non-GAAP measure)
(unaudited)
(amounts in millions)
TTM(1) Ended
TTM(1) Ended
December 31, 2023December 31, 2022
Net income$6,708 $11,548 
Add back:
Income tax expense1,865 3,277 
Interest expense785 704 
Depreciation & amortization3,366 3,188 
EBITDA12,724 18,717 
Add back (deduct):
Incentive compensation program redesign— 505 
One-time compensation61 — 
Goodwill & asset impairment charges236 — 
Transformation and other435 178 
Defined benefit plan (gains) and losses359 (1,061)
Investment income and other pension income(576)(1,374)
Adjusted EBITDA$13,239 $16,965 
Debt and finance leases, including current maturities$22,264 $19,662 
Add back:
Non-current pension and postretirement benefit obligations6,159 4,807 
Adjusted total debt$28,423 $24,469 
Adjusted total debt/Net income4.24 2.12 
Adjusted total debt/adjusted EBITDA (Non-GAAP)2.15 1.44 


(1) Trailing twelve months.


































Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Reconciliation of Adjusted Return on Invested Capital (Non-GAAP measure)
(unaudited)
(amounts in millions)
TTM(1) Ended
TTM(1) Ended
December 31, 2023December 31, 2022
Net income$6,708 $11,548 
Add back (deduct):
Income tax expense1,865 3,277 
Interest expense785 704 
Other pension (income) expense95 (2,251)
Investment (income) expense and other(312)(184)
Operating profit$9,141 $13,094 
Incentive compensation program redesign— 505 
Long-lived asset estimated residual value changes— 76 
One-time compensation61 — 
Goodwill & asset impairment charges236 — 
Transformation and other435 178 
Adjusted operating profit$9,873 $13,853 
Average debt and finance leases, including current maturities$20,963 $20,789 
Average pension and postretirement benefit obligations5,483 6,427 
Average shareowners' equity18,558 17,036 
Average invested capital$45,004 $44,252 
Net income to average invested capital14.9 %26.1 %
Adjusted Return on Invested Capital (Non-GAAP)21.9 %31.3 %


(1) Trailing twelve months.



























Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Reconciliation of GAAP and As Adjusted Income Statement Data
(unaudited)
Three Months Ended December 31,
(in millions, except per share data)20232022
As Reported (GAAP)
Pension Adj.(1)
Asset Impairment Charges(2)
Transformation & Other Adj.(3)
As Adjusted
(Non-GAAP)		As Reported (GAAP)
Pension Adj.(4)
Incentive Compensation Design Adj.(5)
Aircraft Residual Value Adj.(6)
Transformation & Other Adj.(7)
As Adjusted
(Non-GAAP)		% Change
As Rep.
(GAAP)		% Change
As Adj.
(Non-GAAP)
U.S. Domestic Package$15,478 $— $— $132 $15,346 $16,412 $— $431 $25 $32 $15,924 (5.7)%(3.6)%
International Package3,716 — — 9 3,707 3,930 — 30 51 (10)3,859 (5.4)%(3.9)%
Supply Chain Solutions3,246 — 111 58 3,077 3,496 — 44 — 24 3,428 (7.2)%(10.2)%
Operating expense22,440 — 111 199 22,130 23,838 — 505 76 46 23,211 (5.9)%(4.7)%
U.S. Domestic Package$1,437 $— $— $132 $1,569 $1,840 $— $431 $25 $32 $2,328 (21.9)%(32.6)%
International Package890 — — 9 899 1,020 — 30 51 (10)1,091 (12.7)%(17.6)%
Supply Chain Solutions150 — 111 58 319 335 — 44 — 24 403 (55.2)%(20.8)%
Operating Profit2,477 — 111 199 2,787 3,195 — 505 76 46 3,822 (22.5)%(27.1)%
Other Income and (Expense):
Other pension income (expense)(293)359 — — 66 1,325 (1,028)— — — 297 N/A(77.8)%
Investment income (expense) and other86 — — — 86 129 — — — — 129 (33.3)%(33.3)%
Interest expense(207)— — — (207)(182)— — — — (182)13.7 %13.7 %
Total Other Income (Expense)$(414)$359 $— $— $(55)$1,272 $(1,028)$— $— $— $244 N/AN/A
Income Before Income Taxes2,063 359 111 199 2,732 4,467 (1,028)505 76 46 4,066 (53.8)%(32.8)%
Income Tax Expense458 85 27 45 615 1,014 (246)121 18 5 912 (54.8)%(32.6)%
Net Income$1,605 $274 $84 $154 $2,117 $3,453 $(782)$384 $58 $41 $3,154 (53.5)%(32.9)%
Basic Earnings Per Share$1.88 $0.32 $0.10 $0.18 $2.47 $3.98 $(0.90)$0.44 $0.07 $0.05 $3.64 (52.8)%(32.1)%
Diluted Earnings Per Share$1.87 $0.32 $0.10 $0.18 $2.47 $3.96 $(0.90)$0.44 $0.07 $0.05 $3.62 (52.8)%(31.8)%
Weighted-average shares outstanding:
Basic856 867 
Diluted858 871 

(1) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(2) Represents an indefinite-lived intangible asset impairment charge.
(3) Reflects other employee benefits costs of $159 million and other costs of $40 million.
(4) Net mark-to-market gain recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(5) One-time non-cash expense related to stock-based awards that were accelerated to fully vest at December 31, 2022 in connection with a change in incentive compensation program design.
(6) One-time non-cash charge reflecting a reduction in the estimated residual value of fully-depreciated MD-11 aircraft.
(7) Reflects a reduction to employee benefits costs of $25 million offset by other costs of $71 million.






Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers. Earnings Per Share amounts disclosed above may not cross-foot due to calculations based on unrounded numbers.


United Parcel Service, Inc.
Reconciliation of GAAP and As Adjusted Income Statement Data
(unaudited)
Twelve Months Ended December 31,
(in millions, except per share data)20232022
As Reported (GAAP)
Pension Adj.(1)
One-Time Compensation(2)
Goodwill & Asset Impairment Charges(3)
Transformation & Other Adj.(4)
As Adjusted
(Non-GAAP)		As Reported (GAAP)
Pension Adj.(5)
Incentive Compensation Design Adj.(6)
Aircraft Residual Value Adj.(7)
Transformation & Other Adj.(8)
As Adjusted
(Non-GAAP)		% Change
As Rep.
(GAAP)		% Change
As Adj.
(Non-GAAP)
U.S. Domestic Package$54,882 $— $61 $— $266 $54,555 $57,212 $— $431 $25 $121 $56,635 (4.1)%(3.7)%
International Package14,600 — — — 51 14,549 15,372 — 30 51 12 15,279 (5.0)%(4.8)%
Supply Chain Solutions12,335 — — 236 118 11,981 14,660 — 44 — 45 14,571 (15.9)%(17.8)%
Operating expense81,817 — 61 236 435 81,085 87,244 — 505 76 178 86,485 (6.2)%(6.2)%
U.S. Domestic Package$5,076 $— $61 $— $266 $5,403 $6,997 $— $431 $25 $121 $7,574 (27.5)%(28.7)%
International Package3,231 — — — 51 3,282 4,326 — 30 51 12 4,419 (25.3)%(25.7)%
Supply Chain Solutions834 — — 236 118 1,188 1,771 — 44 — 45 1,860 (52.9)%(36.1)%
Operating Profit9,141 — 61 236 435 9,873 13,094 — 505 76 178 13,853 (30.2)%(28.7)%
Other Income and (Expense):
Other pension income (expense)(95)359 — — — 264 2,251 (1,061)— — — 1,190 N/A(77.8)%
Investment income (expense) and other312 — — — — 312 184 — — — — 184 69.6 %69.6 %
Interest expense(785)— — — — (785)(704)— — — — (704)11.5 %11.5 %
Total Other Income (Expense)$(568)$359 $— $— $— $(209)$1,731 $(1,061)$— $— $— $670 N/AN/A
Income Before Income Taxes8,573 359 61 236 435 9,664 14,825 (1,061)505 76 178 14,523 (42.2)%(33.5)%
Income Tax Expense1,865 85 15 43 102 2,110 3,277 (255)121 18 36 3,197 (43.1)%(34.0)%
Net Income$6,708 $274 $46 $193 $333 $7,554 $11,548 $(806)$384 $58 $142 $11,326 (41.9)%(33.3)%
Basic Earnings Per Share$7.81 $0.32 $0.05 $0.22 $0.40 $8.80 $13.26 $(0.93)$0.44 $0.07 $0.16 $13.00 (41.1)%(32.3)%
Diluted Earnings Per Share$7.80 $0.32 $0.05 $0.22 $0.39 $8.78 $13.20 $(0.92)$0.44 $0.07 $0.15 $12.94 (40.9)%(32.1)%
Weighted-average shares outstanding:
Basic859 871 
Diluted860 875 

(1) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(2) Represents a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.
(3) Reflects impairment charges of $125 and $111 million in respect of goodwill and an indefinite-lived intangible asset, respectively.
(4) Reflects other employee benefits costs of $337 million and other costs of $98 million.    
(5) Net mark-to-market gain of $1.0 billion recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans and $34 million gain representing the curtailment of benefits for certain Canadian pension plans.
(6) One-time non-cash expense related to stock-based awards that were accelerated to fully vest at December 31, 2022 in connection with a change in incentive compensation program design.
(7) One-time non-cash charge reflecting a reduction in the estimated residual value of fully-depreciated MD-11 aircraft.
(8) Reflects other employee benefits costs of $46 million and other costs of $132 million.



Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers. Earnings Per Share amounts disclosed above may not cross-foot due to calculations based on unrounded numbers.


United Parcel Service, Inc.
Supplemental Analysis of Currency - Fourth Quarter
(unaudited)

Reconciliation of Currency Neutral Revenue Per Piece, Revenue and As Adjusted Operating Profit
Three Months EndedCurrency
December 31Neutral
(in millions, except per piece data)
(GAAP)(Non-GAAP)
20232022% ChangeCurrency
2023 (1)
% Change
Average Revenue Per Piece:
International Package:
   Domestic$8.11 $7.55 7.4 %$(0.15)$7.96 5.4 %
   Export32.41 32.39 0.1 %(0.22)32.19 (0.6)%
      Total International Package$20.68 $20.06 3.1 %$(0.19)$20.49 2.1 %
Consolidated$13.11 $13.04 0.5 %$(0.02)$13.09 0.4 %
Three Months EndedCurrency
December 31Neutral
(GAAP)(Non-GAAP)
20232022% ChangeCurrency
2023 (1)
% Change
Revenue (in millions):
  U.S. Domestic Package$16,915 $18,252 (7.3)%$— $16,915 (7.3)%
  International Package4,606 4,950 (6.9)%(41)4,565 (7.8)%
  Supply Chain Solutions3,396 3,831 (11.4)%(24)3,372 (12.0)%
  Total revenue$24,917 $27,033 (7.8)%$(65)$24,852 (8.1)%
Three Months EndedCurrency
December 31Neutral
(Non-GAAP)(Non-GAAP)
20232022% ChangeCurrency
2023 (1)
% Change
As Adjusted Operating Profit (in millions)(2):
  U.S. Domestic Package$1,569 $2,328 (32.6)%$— $1,569 (32.6)%
  International Package899 1,091 (17.6)%18 917 (15.9)%
  Supply Chain Solutions319 403 (20.8)%(7)312 (22.6)%
  Total operating profit$2,787 $3,822 (27.1)%$11 $2,798 (26.8)%

(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.
(2) See Non-GAAP schedules for reconciliation of adjustments.




















Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Supplemental Analysis of Currency - Year to Date
(unaudited)

Reconciliation of Currency Neutral Revenue Per Piece, Revenue and As Adjusted Operating Profit
Twelve Months EndedCurrency
December 31Neutral
(in millions, except per piece data)
(GAAP)(Non-GAAP)
20232022% ChangeCurrency
2023 (1)
% Change
Average Revenue Per Piece:
International Package:
   Domestic$7.78 $7.46 4.3 %$0.07 $7.85 5.2 %
   Export33.03 34.48 (4.2)%0.19 33.22 (3.7)%
      Total International Package$20.71 $20.91 (1.0)%$0.13 $20.84 (0.3)%
Consolidated$13.62 $13.38 1.8 %$0.02 $13.64 1.9 %
Twelve Months EndedCurrency
December 31Neutral
(GAAP)(Non-GAAP)
20232022% ChangeCurrency
2023 (1)
% Change
Revenue (in millions):
  U.S. Domestic Package$59,958 $64,209 (6.6)%$— $59,958 (6.6)%
  International Package17,831 19,698 (9.5)%111 17,942 (8.9)%
  Supply Chain Solutions13,169 16,431 (19.9)%9 13,178 (19.8)%
  Total revenue$90,958 $100,338 (9.3)%$120 $91,078 (9.2)%
Twelve Months EndedCurrency
December 31Neutral
(Non-GAAP)(Non-GAAP)
20232022% ChangeCurrency
2023 (1)
% Change
As Adjusted Operating Profit (in millions)(2):
  U.S. Domestic Package$5,403 $7,574 (28.7)%$— $5,403 (28.7)%
  International Package3,282 4,419 (25.7)%133 3,415 (22.7)%
  Supply Chain Solutions1,188 1,860 (36.1)%(9)1,179 (36.6)%
  Total operating profit$9,873 $13,853 (28.7)%$124 $9,997 (27.8)%

(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.
(2) See Non-GAAP schedules for reconciliation of adjustments.




















Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.


United Parcel Service, Inc.
Aircraft Fleet - As of December 31, 2023
(unaudited)

DescriptionUPS Owned and/or OperatedCharters & Leases Operated by OthersOn OrderUnder Option
Operating:
Boeing 757-20075 — — — 
Boeing 767-30078 — 21 — 
Boeing 767-300BCF6 — — — 
Boeing 767-300BDSF4 — — — 
Airbus A300-60052 — — — 
Boeing MD-11(1)
38 — — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF2 — — — 
Boeing 747-8F28 — 2 — 
Other— 269 — — 
          Total294 269 23 — 

(1) Two of the MD-11 aircraft shown above have been retired from operational use as of December 31, 2023. We anticipate retiring an additional nine of these aircraft during 2024.














































Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

v3.24.0.1
Cover Document
Jan. 30, 2024
Entity Information  
Entity Emerging Growth Company false
Document Type 8-K
Entity Registrant Name United Parcel Service, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-15451
Entity Tax Identification Number 58-2480149
Entity Address, Street 55 Glenlake Parkway
Entity Address, City N.E., Atlanta
Entity Address, State GA
Entity Address, Postal Zip Code 30328
City Area Code 404
Local Phone Number 828-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Central Index Key 0001090727
Amendment Flag false
Document Period End Date Jan. 30, 2024
New York Stock Exchange  
Entity Information  
Title of Each Class Class B common stock, par value $0.01 per share
Trading Symbol UPS
Name of Each Exchange on Which Registered NYSE
New York Stock Exchange | 1.625% Senior Notes Due 2025  
Entity Information  
Title of Each Class 1.625% Senior Notes Due 2025
Trading Symbol UPS25
Name of Each Exchange on Which Registered NYSE
New York Stock Exchange | 1% Senior Notes due 2028  
Entity Information  
Title of Each Class 1% Senior Notes due 2028
Trading Symbol UPS28
Name of Each Exchange on Which Registered NYSE
New York Stock Exchange | 1.500% Senior Notes due 2032  
Entity Information  
Title of Each Class 1.500% Senior Notes due 2032
Trading Symbol UPS32
Name of Each Exchange on Which Registered NYSE
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