United Parcel Service · Earnings release · 8-K Exhibit 99

EX-99.23exhibit992-financialstatem.htmEX-99.2 Q2 2022 FINANCIAL STATEMENT SCHEDULES Document

United Parcel Service, Inc.

Selected Financial Data - Second Quarter

(unaudited)

Three Months Ended

Change

% Change

(amounts in millions, except per share data)

Statement of Income Data:

Revenue:

U.S. Domestic Package

$

$

$

%

T1International Package

%

Supply Chain Solutions

%

Total revenue

%

Operating expenses:

U.S. Domestic Package

%

International Package

%

Supply Chain Solutions

%

Total operating expenses

%

Operating profit:

T2U.S. Domestic Package

%

International Package

%

Supply Chain Solutions

%

Total operating profit

%

Other income (expense):

Other pension income (expense)

%

Investment income (expense) and other

(3)

%

Interest expense

%

Total other income (expense)

(9)

%

Income before income taxes

%

Income tax expense

%

Net income

$

$

$

%

Net income as a percentage of revenue

%

%

Per share amounts:

Basic earnings per share

$

$

$

%

Diluted earnings per share

$

$

$

%

Weighted-average shares outstanding:

Basic

4

%

Diluted

4

%

Non-GAAP Adjusted Income Data (1):

Operating profit:

U.S. Domestic Package

$

$

$

%

International Package

%

Supply Chain Solutions

%

Total operating profit

%

Total other income (expense)

$

$

$

(9)

%

Income before income taxes

$

$

$

%

Net income

$

$

$

%

Basic earnings per share

$

$

$

%

Diluted earnings per share

$

$

$

%

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

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Operating Data - Second Quarter

(unaudited)

Three Months Ended

Change

% Change

Revenue (in millions):

U.S. Domestic Package:

Next Day Air

$

$

$

%

Deferred

%

Ground

%

Cargo and Other

%

Total U.S. Domestic Package

%

International Package:

Domestic

%

Export

%

Cargo and Other

%

Total International Package

%

Supply Chain Solutions:

Forwarding

%

Logistics

%

Other

%

Total Supply Chain Solutions

%

Consolidated

$

$

$

%

T3Consolidated volume (in millions)

%

Operating weekdays

—

%

Average Daily Package Volume (in thousands):

U.S. Domestic Package:

Next Day Air

%

Deferred

%

Ground

%

Total U.S. Domestic Package

%

International Package:

Domestic

%

Export

%

Total International Package

%

Consolidated

%

Average Revenue Per Piece:

U.S. Domestic Package:

Next Day Air

$

$

$

%

Deferred

%

Ground

%

Total U.S. Domestic Package

%

International Package:

Domestic

%

Export

%

Total International Package

%

Consolidated

$

$

$

%

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Detail of Operating Expenses - Second Quarter

(unaudited)

Three Months Ended

Change

% Change

(in millions)

Compensation and benefits

$

$

$

%

Repairs and maintenance

%

Depreciation and amortization

%

T4Purchased transportation

%

Fuel

%

Other occupancy

%

Other expenses

%

Total operating expenses

$

$

$

%

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Financial Data - Year to Date

(unaudited)

Six Months Ended

Change

% Change

(amounts in millions, except per share data)

Statement of Income Data:

Revenue:

U.S. Domestic Package

$

$

$

%

International Package

%

Supply Chain Solutions

%

Total revenue

%

Operating expenses:

U.S. Domestic Package

%

International Package

%

Supply Chain Solutions

%

Total operating expenses

%

Operating profit:

U.S. Domestic Package

%

International Package

%

Supply Chain Solutions

%

Total operating profit

%

Other income (expense):

Other pension income (expense)

%

Investment income (expense) and other

%

Interest expense

%

Total other income (expense)

(9)

%

Income before income taxes

%

Income tax expense

%

Net income

$

$

$

%

Net income as a percentage of revenue

%

%

Per share amounts:

Basic earnings per share

$

$

$

%

Diluted earnings per share

$

$

$

%

Weighted-average shares outstanding:

Basic

1

%

Diluted

2

%

Non-GAAP Adjusted Income Data (1):

Operating profit:

U.S. Domestic Package

$

$

$

%

International Package

%

Supply Chain Solutions

%

Total operating profit

%

Total other income (expense)

$

$

$

%

Income before income taxes

$

$

$

%

Net income

$

$

$

%

Basic earnings per share

$

$

$

%

Diluted earnings per share

$

$

$

%

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

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Operating Data - Year to Date

(unaudited)

Six Months Ended

Change

% Change

Revenue (in millions):

U.S. Domestic Package:

Next Day Air

$

$

$

%

Deferred

%

Ground

%

Cargo and Other

7

%

Total U.S. Domestic Package

%

International Package:

Domestic

%

Export

%

Cargo and Other

%

Total International Package

%

Supply Chain Solutions:

Forwarding

%

Logistics

%

Other

%

Total Supply Chain Solutions

%

Consolidated

$

$

$

%

Consolidated volume (in millions)

%

Operating weekdays

—

%

Average Daily Package Volume (in thousands):

U.S. Domestic Package:

Next Day Air

%

Deferred

%

Ground

%

Total U.S. Domestic Package

%

International Package:

Domestic

%

Export

%

Total International Package

%

Consolidated

%

Average Revenue Per Piece:

U.S. Domestic Package:

Next Day Air

$

$

$

%

Deferred

%

Ground

%

Total U.S. Domestic Package

%

International Package:

Domestic

%

Export

%

Total International Package

%

Consolidated

$

$

$

%

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Detail of Operating Expenses - Year to Date

(unaudited)

Six Months Ended

Change

% Change

(in millions)

Compensation and benefits

$

$

$

%

Repairs and maintenance

%

Depreciation and amortization

%

Purchased transportation

%

Fuel

%

Other occupancy

%

Other expenses

%

Total operating expenses

$

$

$

%

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Consolidated Balance Sheets

ASSETS

Current Assets:

Cash and cash equivalents

$

$

Accounts receivable, Net

Other current assets

Total Current Assets

Property, Plant and Equipment, Net

Operating Lease Right-Of-Use Assets

Goodwill

Intangible Assets, Net

Deferred Income Tax Assets

Other Non-Current Assets

Total Assets

$

$

LIABILITIES AND SHAREOWNERS' EQUITY

Current Liabilities:

Current maturities of long-term debt and finance leases

$

$

Current maturities of operating leases

Accounts payable

Accrued wages and withholdings

Self-insurance reserves

Accrued group welfare and retirement plan contributions

Other current liabilities

Total Current Liabilities

Long-Term Debt and Finance Leases

Non-Current Operating Leases

Pension and Postretirement Benefit Obligations

Deferred Income Tax Liabilities

Other Non-Current Liabilities

Shareowners' Equity:

Class A common stock

1

1

Class B common stock

8

8

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Deferred compensation obligations

3

5

Less: Treasury stock

(3)

(5)

Total Equity for Controlling Interests

Noncontrolling interests

Total Shareowners' Equity

Total Liabilities and Shareowners' Equity

$

$

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Statements of Consolidated Cash Flows

(In millions, unaudited)

Six Months Ended

Cash Flows From Operating Activities:

Net income

$

$

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization

Pension and postretirement benefit expense

Pension and postretirement benefit contributions

Self-insurance reserves

Deferred tax (benefit) expense

Stock compensation expense

Other (gains) losses

Changes in assets and liabilities, net of effects of business acquisitions:

Accounts receivable

Other assets

Accounts payable

Accrued wages and withholdings

Other liabilities

Other operating activities

(1)

Net cash from operating activities

Cash Flows From Investing Activities:

Capital expenditures

Proceeds from disposal of businesses, property, plant and equipment

Purchases of marketable securities

—

Sales and maturities of marketable securities

—

Acquisitions, net of cash acquired

—

Other investing activities

(6)

Net cash used in investing activities

Cash Flows From Financing Activities:

Proceeds from long-term borrowings

—

Repayments of long-term borrowings

Purchases of common stock

—

Issuances of common stock

Dividends

Other financing activities

Net cash used in financing activities

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash:

Beginning of period

End of period

$

$

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of Free Cash Flow (Non-GAAP measure)

(In millions, unaudited)

Six Months Ended

Cash flows from operating activities

$

$

Capital expenditures

Proceeds from disposals of property, plant and equipment

Other investing activities

T5Free Cash Flow (Non-GAAP measure)

$

$

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Three Months Ended

(amounts in millions)

Operating Profit (GAAP)

$

$

Operating Margin (GAAP)

%

%

Transformation Strategy Costs:

Transformation Strategy Costs:

Transformation 2.0

—

(3)

Transformation 2.0

—

—

%

Fit to Serve

—

9

Fit to Serve

—

%

—

%

T6Network Reconfiguration and Efficiency Reimagined

Network Reconfiguration and Efficiency Reimagined

%

%

Total Transformation Strategy Costs

Total Transformation Strategy Costs

%

%

Loss (Gain) on Divestiture (1)

—

Loss (Gain) on Divestiture (1)

—

%

%

Non-GAAP Adjusted Operating Profit

$

$

Non-GAAP Adjusted Operating Margin

%

%

(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Three Months Ended

(amounts in millions)

Income Before Income Taxes (GAAP)

$

$

Income Tax Expense (GAAP)

$

$

Transformation Strategy Costs:

Transformation Strategy Costs:

Transformation 2.0

—

(3)

Transformation 2.0

—

(1)

Fit to Serve

—

9

Fit to Serve

—

2

Network Reconfiguration and Efficiency Reimagined

Network Reconfiguration and Efficiency Reimagined

Total Transformation Strategy Costs

Total Transformation Strategy Costs

Loss (Gain) on Divestiture (1)

—

Loss (Gain) on Divestiture (1)

—

(5)

Reversal of Income Tax Valuation Allowance (2)

—

Non-GAAP Adjusted Income Before Income Taxes

$

$

Non-GAAP Adjusted Income Tax Expense

$

$

(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.

(2) Reflects the partial reversal of an income tax valuation allowance in 2025.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Three Months Ended

(amounts in millions)

Net Income (GAAP)

$

$

Diluted Earnings Per Share (GAAP)

$

$

Transformation Strategy Costs:

Transformation Strategy Costs:

Transformation 2.0

—

(2)

Transformation 2.0

—

—

Fit to Serve

—

7

Fit to Serve

—

Network Reconfiguration and Efficiency Reimagined

Network Reconfiguration and Efficiency Reimagined

Total Transformation Strategy Costs

Total Transformation Strategy Costs

Loss (Gain) on Divestiture (1)

—

Loss (Gain) on Divestiture (1)

—

Reversal of Income Tax Valuation Allowance (2)

—

Reversal of Income Tax Valuation Allowance (2)

—

Non-GAAP Adjusted Net Income

$

$

Non-GAAP Adjusted Diluted Earnings Per Share

$

$

(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.

(2) Reflects the partial reversal of an income tax valuation allowance in 2025.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)

Three Months Ended

U.S. Domestic Package

Operating Expenses

% Change

Operating Profit

% Change

Operating Margin

GAAP

$

$

%

$

$

%

%

%

Adjusted for:

Transformation Strategy Costs

%

%

Non-GAAP Adjusted Measure

$

$

%

$

$

%

%

%

International Package

Operating Expenses

% Change

Operating Profit

% Change

Operating Margin

GAAP

$

$

%

$

$

%

%

%

Adjusted for:

Transformation Strategy Costs

—

—

—

%

%

Non-GAAP Adjusted Measure

$

$

%

$

$

%

%

%

Supply Chain Solutions

Operating Expenses

% Change

Operating Profit

% Change

Operating Margin

GAAP

$

$

%

$

$

%

%

%

Adjusted for:

Transformation Strategy Costs

—

2

—

(2)

—

%

%

Loss (Gain) on Divestiture

—

—

—

%

%

Non-GAAP Adjusted Measure

$

$

%

$

$

%

%

%

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)

Three Months Ended

% Change

Operating Days

Average Daily U.S. Domestic Package Volume (in thousands)

U.S. Domestic Package Cost Per Piece (GAAP)

$

$

%

Transformation Strategy Costs

U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece

$

$

%

Note: Cost per piece excludes expense associated with cargo and other activity.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Six Months Ended

(amounts in millions)

Operating Profit (GAAP)

$

$

Operating Margin (GAAP)

%

%

Transformation Strategy Costs:

Transformation Strategy Costs:

Transformation 2.0

—

Transformation 2.0

—

%

—

%

Fit to Serve

—

Fit to Serve

—

%

%

Network Reconfiguration and Efficiency Reimagined

Network Reconfiguration and Efficiency Reimagined

%

%

Total Transformation Strategy Costs

Total Transformation Strategy Costs

%

%

Loss (Gain) on Divestiture (1)

—

Loss (Gain) on Divestiture (1)

—

%

—

%

Non-GAAP Adjusted Operating Profit

$

$

Non-GAAP Adjusted Operating Margin

%

%

(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Six Months Ended

(amounts in millions)

(amounts in millions)

Other Income (Expense) (GAAP)

$

$

Income Before Income Taxes (GAAP)

$

$

Goodwill and Asset Impairment Charges (2)

—

Transformation Strategy Costs:

Transformation 2.0

—

Non-GAAP Adjusted Other Income (Expense)

$

$

Fit to Serve

—

Network Reconfiguration and Efficiency Reimagined

Total Transformation Strategy Costs

Loss (Gain) on Divestiture (1)

—

Goodwill and Asset Impairment Charges (2)

—

Non-GAAP Adjusted Income Before Income Taxes

$

$

(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.

(2) Reflects the write-down of an equity investment in 2025.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Six Months Ended

(amounts in millions)

Income Tax Expense (GAAP)

$

$

Transformation Strategy Costs:

Transformation 2.0

—

3

Fit to Serve

—

6

Network Reconfiguration and Efficiency Reimagined

Total Transformation Strategy Costs

Loss (Gain) on Divestiture (1)

—

4

Reversal of Income Tax Valuation Allowance (3)

—

Non-GAAP Adjusted Income Tax Expense

$

$

(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.

(3) Reflects the partial reversal of an income tax valuation allowance in 2025.

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)

Six Months Ended

(amounts in millions)

Net Income (GAAP)

$

$

Diluted Earnings Per Share (GAAP)

$

$

Transformation Strategy Costs:

Transformation Strategy Costs:

Transformation 2.0

—

Transformation 2.0

—

Fit to Serve

—

Fit to Serve

—

Network Reconfiguration and Efficiency Reimagined

Network Reconfiguration and Efficiency Reimagined