0001090727-22-000019.txt : 20220426 0001090727-22-000019.hdr.sgml : 20220426 20220426060843 ACCESSION NUMBER: 0001090727-22-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20220426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220426 DATE AS OF CHANGE: 20220426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED PARCEL SERVICE INC CENTRAL INDEX KEY: 0001090727 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING & COURIER SERVICES (NO AIR) [4210] IRS NUMBER: 582480149 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15451 FILM NUMBER: 22851651 BUSINESS ADDRESS: STREET 1: 55 GLENLAKE PARKWAY NE CITY: ATLANTA STATE: GA ZIP: 30328 BUSINESS PHONE: 4048286000 MAIL ADDRESS: STREET 1: 55 GLENLAKE PARKWAY NE CITY: ATLANTA STATE: GA ZIP: 30328 8-K 1 ups-20220426.htm 8-K ups-20220426
0001090727falseApril 26, 202200010907272022-04-262022-04-260001090727exch:XNYS2022-04-262022-04-260001090727exch:XNYSups:SeniorNotes0.375Due2023Member2022-04-262022-04-260001090727ups:SeniorNotes1625Due2025Memberexch:XNYS2022-04-262022-04-260001090727exch:XNYSups:SeniorNotes1Due2028Member2022-04-262022-04-260001090727exch:XNYSups:SeniorNotes1.500Due2032Member2022-04-262022-04-26

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): April 26, 2022

ups-20220426_g1.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
0.375% Senior Notes due 2023UPS23ANew 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 April 26, 2022, United Parcel Service, Inc. (the “Company”) issued a press release containing information about the Company’s results of operations and its financial condition for the first quarter ended March 31, 2022. 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 its 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 are attached hereto as Exhibit 99.2.

Item 9.01 — Financial Statements and Exhibits.

(d) Exhibits

99.1       Press release dated April 26, 2022 "UPS RELEASES 1Q 2022 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: April 26, 2022By:/s/ BRIAN O. NEWMAN
Brian O. Newman
Executive Vice President and Chief Financial Officer


EX-99.1 2 exhibit991-q12022earningsp.htm EX-99.1 - PRESS RELEASE FIRST QUARTER EARNINGS Document

Exhibit 99.1
For Immediate Release

UPS RELEASES 1Q 2022 EARNINGS

Consolidated Revenues of $24.4B, Up 6.4% from Last Year
Consolidated Operating Profit of $3.3B, Up 17.6% from Last Year; Up 12.1% on an Adjusted* Basis
Diluted EPS of $3.03; Adjusted Diluted EPS Up 10.1% Over Last Year to $3.05
Reaffirms Full-Year 2022 Financial Guidance; Raises Targeted Share Repurchases to $2B for 2022

ATLANTA – April 26, 2022 – UPS (NYSE:UPS) today announced first-quarter 2022 consolidated revenue of $24.4 billion, a 6.4% increase over the first quarter of 2021. Consolidated operating profit was $3.3 billion, up 17.6% compared to the first quarter of 2021, and up 12.1% on an adjusted basis. Diluted earnings per share were $3.03 for the quarter; adjusted diluted earnings per share of $3.05 were 10.1% above the same period in 2021.

For the first quarter of 2022, GAAP results include a net charge of $19 million, or $0.02 per diluted share, comprised of after-tax transformation and other charges of $43 million offset by an after-tax gain of $24 million resulting from the curtailment of benefits in a Canadian retirement plan.

“I want to thank all UPSers for their outstanding efforts during a challenging first quarter to serve the needs of our customers,” said Carol Tomé, UPS chief executive officer. “The agility of our network and the continued execution of our strategy delivered another quarter of strong financial performance, putting us on our way to achieving our 2022 consolidated financial targets.”


U.S. Domestic Segment

1Q 2022
Adjusted
1Q 2022

1Q 2021
Adjusted
1Q 2021
Revenue$15,124M$14,010M
Operating profit$1,662M$1,705M$1,359M$1,463M

Revenue grew 8.0%, driven by a 9.5% increase in revenue per piece.
Operating margin was 11.0%; adjusted operating margin was 11.3%.

International Segment

1Q 2022
Adjusted
1Q 2022

1Q 2021
Adjusted
1Q 2021
Revenue$4,876M$4,607M
Operating profit$1,116M$1,120M$1,085M$1,091M

Revenue increased 5.8%, driven by a 10.5% increase in revenue per piece.
Operating margin was 22.9%; adjusted operating margin was 23.0%.













Supply Chain Solutions1

1Q 2022
Adjusted
1Q 2022

1Q 2021
Adjusted
1Q 2021
Revenue$4,378M$4,291M
Operating profit$473M$481M$321M$395M
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

Revenue increased 2.0%, led by Forwarding, which grew $517 million, or 25%.
Operating margin was 10.8%; adjusted operating margin was 11.0%.


2022 Outlook
The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-market adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.

For 2022, UPS reaffirms its full-year financial targets:
Consolidated revenue of about $102 billion
Consolidated adjusted operating margin of approximately 13.7%
Adjusted return on invested capital above 30%
Capital expenditures of 5.4% of revenue, or approximately $5.5 billion
Dividend payments, subject to board approval, of about $5.2 billion

Finally, UPS is announcing its plans to double the amount of share repurchases for 2022, taking the target to $2 billion for the year.


* “Adjusted” amounts and return on invested capital (ROIC) 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 first-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, April 26, 2022. 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 filed with 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 2021 revenue of $97.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s 534,000 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, equality, and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Forward-Looking Statements

This release and our 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 on our business and operations, financial performance and liquidity, our customers and suppliers, and on the global economy; changes in general economic conditions, in the U.S. or internationally; industry evolution and significant competition; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; increased or more complex physical or data security requirements, or any data security breach; 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; disruptions to our information technology infrastructure; 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, 2021 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.

Information, including comparisons to prior periods, may reflect adjusted results. See the appendix for reconciliations of adjusted results and other non-GAAP financial measures.


Reconciliation of GAAP and Non-GAAP Financial Measures

From time to time we supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures. These include: "adjusted" compensation and benefits; operating expenses; earnings before interest, taxes, depreciation and amortization (“EBITDA”); operating profit; operating margin; other income and (expense); income before income taxes; income tax expense; effective tax rate; net income; and earnings per share. We present revenue and revenue per piece on a constant currency basis. Additionally, we disclose free cash flow, return on invested capital (“ROIC”) and the ratio of adjusted total debt to adjusted EBITDA.

We believe that these non-GAAP measures provide meaningful information to assist users of our financial statements in more fully understanding our financial results and cash flows and assessing our ongoing performance, because they exclude items that may not be indicative of, or are unrelated to, our underlying operations and may provide a useful baseline for analyzing trends in our underlying
businesses. These non-GAAP measures are used internally by management for business unit operating performance analysis, business unit resource allocation and in connection with incentive compensation award determinations.

Non-GAAP 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 information does not represent a comprehensive basis of accounting. Therefore, our adjusted financial information may not be comparable to similarly titled information reported by other companies.

Transformation and Other Charges

Adjusted EBITDA, operating profit, operating margin, income before income taxes, net income and
earnings per share may exclude the impact of charges related to transformation activities, goodwill and asset impairments, and divestitures.

Changes in Foreign Currency Exchange Rates and Hedging Activities

Currency-neutral revenue, revenue per piece and operating profit exclude the period over period impact of foreign currency exchange rate changes and any foreign currency hedging activities. These measures 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



exchange rates used to translate the comparable results for each month in the prior year period (including the impact of any 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 foreign currency exchange rates and hedging activities.

Pension and Postretirement Adjustments

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 amendments, for our pension and
postretirement defined benefit plans immediately as part of other pension income (expense). 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 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.

The deferred income tax effects of pension and postretirement adjustments are calculated by multiplying the statutory tax rates applicable in each tax jurisdiction, including the U.S. federal jurisdiction and various U.S. state and non-U.S. jurisdictions, by the adjustments.

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 finance receivables and 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.

Return on Invested Capital

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 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 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 restructuring and other costs and investment income and other. 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.

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.





Reconciliation of GAAP and Non-GAAP Income Statement Items
(in millions, except per share amounts):
Three Months Ended March 31, 2022
As Reported (GAAP)
Pension Adj.(1)
Transformation & Other Adj.(2)
As Adjusted
(Non-GAAP)
U.S. Domestic Package$13,462 $— $43 $13,419 
International Package3,760 — 3,756 
Supply Chain Solutions3,905 — 3,897 
Operating Expense21,127 — 55 21,072 
U.S. Domestic Package1,662 — 43 1,705 
International Package1,116 — 1,120 
Supply Chain Solutions473 — 481 
Operating Profit3,251 — 55 3,306 
Other Income and (Expense):
Other pension income (expense)331 (33)— 298 
   Investment income (expense) and other(16)— — (16)
   Interest expense(174)— — (174)
Total Other Income (Expense)141 (33)— 108 
Income Before Income Taxes3,392 (33)55 3,414 
Income Tax Expense730 (9)12 733 
Net Income$2,662 $(24)$43 $2,681 
Basic Earnings Per Share$3.05 $(0.03)$0.05 $3.07 
Diluted Earnings Per Share$3.03 $(0.03)$0.05 $3.05 
(1) Represents the impact of curtailment of benefits effective December 31, 2023, for the Canada Ltd Retirement Plan.
    
(2) Transformation & Other of $55 million reflects other employee benefits costs of $33 million and other costs of $22 million.



















Reconciliation of Currency Adjusted Revenue, Revenue Per Piece, and Adjusted Operating Profit
(in millions, except per piece amounts):
Three Months Ended March 31,
2022
As-Reported
(GAAP)
2021
As-Reported
(GAAP)
% Change
(GAAP)
Currency
Impact
2022
Currency
Neutral
(Non-GAAP)(1)
% Change
(Non-GAAP)
Average Revenue Per Piece:
International Package:
   Domestic$7.36 $7.33 0.4 %$0.47 $7.83 6.8 %
   Export34.10 31.10 9.6 %0.78 34.88 12.2 %
      Total International Package$20.45 $18.50 10.5 %$0.62 $21.07 13.9 %
Consolidated$13.26 $12.12 9.4 %$0.09 $13.35 10.1 %
Revenue:
  U.S. Domestic Package$15,124 $14,010 8.0 %$— $15,124 8.0 %
  International Package4,876 4,607 5.8 %143 5,019 8.9 %
  Supply Chain Solutions(3)
4,378 4,291 2.0 %37 4,415 2.9 %
  Total revenue$24,378 $22,908 6.4 %$180 $24,558 7.2 %
2022
As-Adjusted
(Non-GAAP)
2021
As-Adjusted
(Non-GAAP)
% Change
(Non-GAAP)
Currency
Impact
2022
As-Adjusted
Currency
Neutral
(Non-GAAP)(1)
% Change
(Non-GAAP)
As-Adjusted Operating Profit(2):
  U.S. Domestic Package$1,705 $1,463 16.5 %$— $1,705 16.5 %
  International Package1,120 1,091 2.7 %28 1,148 5.2 %
  Supply Chain Solutions(3)
481 395 21.8 %(3)478 21.0 %
  Total operating profit$3,306 $2,949 12.1 %$25 $3,331 13.0 %


(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences

(2) Amounts adjusted for transformation & other

(3) The divestiture of UPS Freight was completed on April 30, 2021.
















Reconciliation of Free Cash Flow (Non-GAAP measure)
(in millions):
Three Months Ended March 31,
2022
Cash flows from operating activities$4,480 
Capital expenditures(548)
Proceeds from disposals of property, plant and equipment
— 
Net change in finance receivables
Other investing activities(22)
Free Cash Flow (Non-GAAP measure)$3,915 














































































Reconciliation of Return on Invested Capital (Non-GAAP measure)
(in millions):
TTM(1)
March 31,
2022
Net income$10,760 
Add back (deduct):
Income tax expense3,023 
Interest expense691 
Other pension (income) expense(1,185)
Investment (income) expense and other
Operating profit13,296 
Transformation and other205 
Adjusted operating profit$13,501 
Average debt and finance leases, including current maturities22,804 
Average pension and postretirement benefit obligations8,899 
Average shareowners' equity11,297 
Average Invested Capital$42,999 
Net income to average invested capital25.0 %
Adjusted Return on Invested Capital31.4 %

(1) Trailing twelve months







































Reconciliation of Adjusted Debt to Adjusted EBITDA (Non-GAAP measure)
(unaudited)


TTM(1)
(amounts in millions):March 31,
2022
Net income$10,760 
Add back:
Income tax expense3,023 
Interest expense691 
Depreciation & amortization2,995 
EBITDA17,469 
Add back (deduct):
Transformation and other205 
Defined benefit plan (gains) and losses(15)
Investment income and other(1,163)
Adjusted EBITDA16,496 
Debt and finance leases, including current maturities21,881 
Add back:
Non-current pension and postretirement benefit obligations8,203 
Adjusted total debt30,084 
Adjusted total debt/adjusted EBITDA1.82
(1) Trailing twelve months

EX-99.2 3 exhibit992-q12022financial.htm EX-99.2 - Q1 2022 FINANCIAL STATEMENT SCHEDULES Document

Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - First Quarter
(unaudited)
Three Months Ended
March 31
20222021Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$15,124 $14,010 $1,114 8.0 %
  International Package4,876 4,607 269 5.8 %
  Supply Chain Solutions(1)
4,378 4,291 87 2.0 %
  Total revenue24,378 22,908 1,470 6.4 %
Operating expenses:
  U.S. Domestic Package13,462 12,651 811 6.4 %
  International Package3,760 3,522 238 6.8 %
  Supply Chain Solutions(1)
3,905 3,970 (65)(1.6)%
  Total operating expenses21,127 20,143 984 4.9 %
Operating profit:
  U.S. Domestic Package1,662 1,359 303 22.3 %
  International Package1,116 1,085 31 2.9 %
  Supply Chain Solutions(1)
473 321 152 47.4 %
  Total operating profit3,251 2,765 486 17.6 %
Other income (expense):
 Other pension income (expense)331 3,603 (3,272)(90.8)%
  Investment income (expense) and other(16)13 (29)N/M
  Interest expense(174)(177)(1.7)%
  Total other income (expense)141 3,439 (3,298)(95.9)%
Income before income taxes3,392 6,204 (2,812)(45.3)%
Income tax expense730 1,412 (682)(48.3)%
Net income$2,662 $4,792 $(2,130)(44.4)%
Net income as a percentage of revenue10.9 %20.9 %
Per share amounts:
  Basic earnings per share$3.05 $5.50 $(2.45)(44.5)%
  Diluted earnings per share$3.03 $5.47 $(2.44)(44.6)%
Weighted-average shares outstanding:
  Basic874 872 0.2 %
  Diluted879 876 0.3 %
As Adjusted Income Data (2):
Operating profit:
  U.S. Domestic Package $1,705 $1,463 $242 16.5 %
  International Package 1,120 1,091 29 2.7 %
  Supply Chain Solutions(1)
481 395 86 21.8 %
  Total operating profit 3,306 2,949 357 12.1 %
Total other income (expense)$108 $149 $(41)(27.5)%
Income before income taxes $3,414 $3,098 $316 10.2 %
Net income $2,681 $2,430 $251 10.3 %
Basic earnings per share $3.07 $2.79 $0.28 10.0 %
Diluted earnings per share$3.05 $2.77 $0.28 10.1 %
(1) The divestiture of UPS Freight was completed on April 30, 2021.
(2) See Non-GAAP schedules for reconciliation of adjustments.

.
Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Selected Operating Data - First Quarter
(unaudited)
Three Months Ended
March 31
20222021Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,594 $2,331 $263 11.3 %
   Deferred1,420 1,260 160 12.7 %
   Ground11,110 10,419 691 6.6 %
      Total U.S. Domestic Package15,124 14,010 1,114 8.0 %
International Package:
   Domestic851 928 (77)(8.3)%
   Export3,778 3,493 285 8.2 %
   Cargo and Other247 186 61 32.8 %
      Total International Package4,876 4,607 269 5.8 %
Supply Chain Solutions(1):
   Forwarding2,589 2,072 517 25.0 %
Logistics1,251 1,104 147 13.3 %
   Freight— 767 (767)(100.0)%
   Other538 348 190 54.6 %
      Total Supply Chain Solutions4,378 4,291 87 2.0 %
Consolidated$24,378 $22,908 $1,470 6.4 %
Consolidated volume (in millions)1,490 1,521 (31)(2.0)%
Operating weekdays64 63 1.6 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,945 2,012 (67)(3.3)%
   Deferred1,509 1,513 (4)(0.3)%
   Ground16,287 16,827 (540)(3.2)%
      Total U.S. Domestic Package19,741 20,352 (611)(3.0)%
International Package:
   Domestic1,806 2,010 (204)(10.1)%
   Export1,731 1,783 (52)(2.9)%
      Total International Package3,537 3,793 (256)(6.7)%
Consolidated23,278 24,145 (867)(3.6)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$20.84 $18.39 $2.45 13.3 %
   Deferred14.70 13.221.48 11.2 %
   Ground10.669.83 0.83 8.4 %
      Total U.S. Domestic Package11.9710.93 1.04 9.5 %
International Package:
   Domestic7.36 7.33 0.03 0.4 %
   Export34.1031.103.00 9.6 %
      Total International Package20.45 18.50 1.95 10.5 %
Consolidated$13.26 $12.12 $1.14 9.4 %
(1) The divestiture of UPS Freight was completed on April 30, 2021.





Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Detail of Operating Expenses - First Quarter
(unaudited)
Three Months Ended
March 31
20222021Change% Change
(in millions)
Compensation and benefits$11,616 $11,483 $133 1.2 %
Repairs and maintenance626 619 1.1 %
Depreciation and amortization764 722 42 5.8 %
Purchased transportation4,600 4,243 357 8.4 %
Fuel1,220 807 413 51.2 %
Other occupancy491 466 25 5.4 %
Other expenses1,810 1,803 0.4 %
Total operating expenses$21,127 $20,143 $984 4.9 %


























































Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Consolidated Balance Sheets
March 31, 2022 (unaudited) and December 31, 2021

March 31, 2022December 31, 2021
(amounts in millions)
ASSETS
Current Assets:
Cash and cash equivalents$12,208 $10,255 
Marketable securities337 338 
Accounts receivables11,335 12,669 
Less: Allowance for credit losses(136)(128)
Accounts receivable, net11,199 12,541 
Other current assets1,857 1,800 
 Total Current Assets25,601 24,934 
Property, Plant and Equipment, Net33,595 33,475 
Operating Lease Right-Of-Use Assets3,481 3,562 
Goodwill3,668 3,692 
Intangible Assets, Net2,465 2,486 
Investments and Restricted Cash22 26 
Deferred Income Tax Assets173 176 
Other Non-Current Assets1,108 1,054 
Total Assets $70,113 $69,405 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$2,141 $2,131 
Current maturities of operating leases579 580 
Accounts payable7,036 7,523 
Accrued wage and withholdings3,418 3,819 
Self-insurance reserves1,025 1,048 
Accrued group welfare and retirement plan contributions922 1,038 
Other current liabilities 1,721 1,430 
Total Current Liabilities16,842 17,569 
Long-Term Debt and Finance Leases19,740 19,784 
Non-Current Operating Leases2,970 3,033 
Pension and Postretirement Benefit Obligations8,203 8,047 
Deferred Income Tax Liabilities3,356 3,125 
Other Non-Current Liabilities3,568 3,578 
Shareowners' Equity:
Class A common stock
Class B common stock
Additional paid-in capital1,231 1,343 
Retained earnings17,433 16,179 
Accumulated other comprehensive loss(3,257)(3,278)
Deferred compensation obligations12 16 
Less: Treasury stock(12)(16)
Total Equity for Controlling Interests15,416 14,253 
Noncontrolling interests18 16 
Total Shareowners' Equity15,434 14,269 
Total Liabilities and Sharewoners' Equity$70,113 $69,405 






Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(unaudited)
(amounts in millions)Three Months Ended
March 31
20222021
Cash Flows From Operating Activities:
Net income$2,662 $4,792 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 764 722 
 Pension and postretirement benefit (income) expense 201 (3,024)
 Pension and postretirement benefit contributions (45)(215)
 Self-insurance reserves (45)
 Deferred tax (benefit) expense 209 942 
 Stock compensation expense 386 315 
 Other (gains) losses 44 57 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable 1,227 435 
 Other assets 363 
 Accounts payable (743)(261)
 Accrued wages and withholdings (343)199 
 Other liabilities 173 180 
Other operating activities(17)22 
 Net cash from operating activities 4,480 4,531 
Cash Flow From Investing Activities:
Capital expenditures(548)(834)
Proceeds from disposal of businesses, property, plant and equipment— 10 
Purchases of marketable securities(68)(78)
Sales and maturities of marketable securities60 134 
Net change in finance receivables11 
Cash paid for business acquisitions, net of cash and cash equivalents acquired(3)
Other investing activities(22)(6)
Net cash used in investing activities(572)(766)
Cash Flow From Financing Activities:
Net change in short-term debt— 697 
Proceeds from long-term borrowings— — 
Repayments of long-term borrowings(18)(1,528)
Purchases of common stock(254)— 
Issuances of common stock67 78 
Dividends(1,284)(858)
Other financing activities(481)(334)
Net cash used in financing activities(1,970)(1,945)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash15 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash1,953 1,821 
Cash, Cash Equivalents and Restricted Cash:
Beginning of period10,255 5,910 
End of period$12,208 $7,731 







Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited)
(amounts in millions)Three Months Ended
March 31
20222021
Cash flows from operating activities$4,480 $4,531 
Capital expenditures(548)(834)
Proceeds from disposals of property, plant and equipment— 10 
Net change in finance receivables11 
Other investing activities(22)(6)
   Free Cash Flow (Non-GAAP measure)$3,915 $3,712 














































Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Reconciliation of Adjusted Debt to Adjusted EBITDA (Non-GAAP measure)
(unaudited)
(amounts in millions)
TTM(1)
TTM(1)
March 31, 2022March 31, 2021
Net Income$10,760 $5,170 
Add back:
Income tax expense3,023 1,628 
Interest expense691 711 
Depreciation and amortization2,995 2,772 
EBITDA17,469 10,281 
Add back (deduct):
Transformation and other205 1,173 
Defined benefit plan (gains) and losses(15)3,194 
Investment income and other(1,163)(1,326)
Adjusted EBITDA$16,496 $13,322 
Debt and finance leases, including current maturities$21,881 $23,727 
Add back:
Non-current pension and postretirement benefit obligations8,203 9,594 
Adjusted total debt$30,084 $33,321 
Adjusted total adjusted debt/adjusted EBITDA1.82 2.50 


(1) Trailing twelve months









































Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Reconciliation of Return of Invested Capital (Non-GAAP measure)
(unaudited)
(amounts in millions)
TTM(1)
TTM(1)
March 31, 2022March 31, 2021
Net Income$10,760 $5,170 
Add back (deduct):
Income tax expense3,023 1,628 
Interest expense691 711 
Other pension (income) expense(1,185)1,900 
Investment (income) expenses and other(32)
Operating profit13,296 9,377 
Transformation and other$205$1,173
Adjusted operating profit$13,501 $10,550 
Average debt and finance leases, including current maturities$22,804 $26,164 
Average pension and postretirement benefit obligations8,899 10,036 
Average shareowners' equity11,297 5,236 
Average Invested Capital$42,999 $41,436 
Net income to average invested capital25.0 %12.5 %
Adjusted Return on Invested Capital31.4 %25.5 %


(1) Trailing twelve months































Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Reconciliation of GAAP and As Adjusted Income Statement Data
(unaudited)
Three Months Ended March 31,
(in millions, except per share amounts)20222021
As Reported (GAAP)
Pension Adj.(1)
Transformation & Other Adj.(2)
As Adjusted
(Non-GAAP)
As Reported (GAAP)
Pension Adj.(3)
Transformation & Other Adj.(4)
As Adjusted
(Non-GAAP)
% Change As Rep. (GAAP)% Change As Adj. (Non-GAAP)
U.S. Domestic Package$13,462 $— 43 $13,419 $12,651 $— $104 $12,547 6.4 %6.9 %
International Package3,760 — 3,756 3,522 — 3,516 6.8 %6.8 %
Supply Chain Solutions(5)
3,905 — 3,897 3,970 — 74 3,896 (1.6)%— %
Operating expense21,127 — 55 21,072 20,143 — 184 19,959 4.9 %5.6 %
U.S. Domestic Package$1,662 $— 43 $1,705 $1,359 $— $104 $1,463 22.3 %16.5 %
International Package1,116 — 1,120 1,085 — 1,091 2.9 %2.7 %
Supply Chain Solutions(5)
473 — 481 321 — 74 395 47.4 %21.8 %
Operating Profit3,251 — 55 3,306 2,765 — 184 2,949 17.6 %12.1 %
Other Income and (Expense):
Other pension income (expense)331 (33)— 298 3,603 (3,290)— 313 (90.8)%(4.8)%
Investment income (expense) and other(16)— — (16)13 — — 13 N/MN/M
Interest expense(174)— — (174)(177)— — (177)(1.7)%(1.7)%
Total Other Income (Expense)$141 $(33)$— $108 $3,439 $(3,290)$— $149 (95.9)%(27.5)%
Income Before Income Taxes3,392 (33)55 3,414 6,204 (3,290)184 3,098 (45.3)%10.2 %
Income Tax Expense730 (9)12733 1,412 (788)44668 (48.3)%9.7 %
Net Income$2,662 $(24)$43 $2,681 $4,792 $(2,502)$140 $2,430 (44.4)%10.3 %
Basic Earnings Per Share$3.05 $(0.03)$0.05 $3.07 $5.50 $(2.87)$0.16 $2.79 (44.5)%10.0 %
Diluted Earnings Per Share$3.03 $(0.03)$0.05 $3.05 $5.47 $(2.86)$0.16 $2.77 (44.6)%10.1 %
Weighted-average shares outstanding:
Basic874 872 
Diluted879 876 

(1) Represents the impact of curtailment of benefits effective December 31, 2023, for the Canada Ltd Retirement Plan.
(2) Transformation & Other of $55 million reflects other employee benefits costs of $33 million and other costs of $22 million.
(3) Represents a mark-to-market gain recognized outside of a 10% corridor for the UPS IBT Pension Plan.
(4) Transformation & Other Adj. of $184 million reflects a valuation allowance of $66 million related to the divestiture of UPS Freight, other employee benefits costs of $76 million and other costs of $42 million.
(5) The divestiture of UPS Freight was completed on April 30, 2021
















Certain prior year amounts have been reclassified to conform to the current year presentation.



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

Currency Neutral Revenue Per Piece, Revenue and As Adjusted Operating Profit
Three Months EndedCurrency
March 31Neutral
20222021% ChangeCurrency
2022 (1)
% Change
Average Revenue Per Piece:
International Package:
   Domestic$7.36 $7.33 0.4 %$0.47 $7.83 6.8 %
   Export34.10 31.10 9.6 %0.78 34.88 12.2 %
      Total International Package$20.45 $18.50 10.5 %$0.62 $21.07 13.9 %
Consolidated$13.26 $12.12 9.4 %$0.09 $13.35 10.1 %
Three Months EndedCurrency
March 31Neutral
20222021% ChangeCurrency
2022 (1)
% Change
Revenue (in millions):
  U.S. Domestic Package$15,124 $14,010 8.0 %$— $15,124 8.0 %
  International Package4,876 4,607 5.8 %143 5,019 8.9 %
  Supply Chain Solutions(2)
4,378 4,291 2.0 %37 4,415 2.9 %
  Total revenue$24,378 $22,908 6.4 %$180 $24,558 7.2 %
Three Months EndedCurrency
March 31Neutral
20222021% ChangeCurrency
2022 (1)
% Change
As-Adjusted Operating Profit (in millions)(3):
  U.S. Domestic Package$1,705 $1,463 16.5 %$— $1,705 16.5 %
  International Package1,120 1,091 2.7 %28 1,148 5.2 %
  Supply Chain Solutions(2)
481 395 21.8 %(3)478 21.0 %
  Total operating profit$3,306 $2,949 12.1 %$25 $3,331 13.0 %

(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.
(2) The divestiture of UPS Freight was completed on April 30, 2021.
(3) Amounts adjusted for transformation & other.






















Certain prior year amounts have been reclassified to conform to the current year presentation.



United Parcel Service, Inc.
Aircraft Fleet - As of March 31, 2022
(unaudited)
DescriptionOwned and Finance LeasesOperating Leases & Charters from OthersOn OrderUnder Option
Operating:
Boeing 757-20075 — — — 
Boeing 767-30072 — 19 
Boeing 767-300BCF— — — 
Boeing 767-300BDSF— — — 
Airbus A300-60052 — — — 
Boeing MD-1142 — — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF— — — 
Boeing 747-8F27 — — 
Other— 296 — — 
          Total289 296 20 

















































Certain prior year amounts have been reclassified to conform to the current year presentation.

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Cover Document
Apr. 26, 2022
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 Apr. 26, 2022
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
New York Stock Exchange | Senior Notes 0.375% Due 2023 [Member]  
Entity Information  
Title of Each Class 0.375% Senior Notes due 2023
Trading Symbol UPS23A
Name of Each Exchange on Which Registered NYSE
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