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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
112
NOTE 17. QUARTERLY INFORMATION (unaudited)
Our revenue, segment operating profit, net income, basic and diluted earnings per share on a quarterly basis are presented
below (in millions, except per share amounts):
First Quarter Second Quarter Third Quarter Fourth Quarter
2013 2012 2013 2012 2013 2012 2013 2012
Revenue:
U.S. Domestic Package $ 8,271 $ 8,004 $ 8,241 $ 8,058 $ 8,254 $ 7,861 $ 9,308 $ 8,933
International Package 2,978 2,966 3,062 3,014 3,017 2,943 3,372 3,201
Supply Chain & Freight 2,185 2,166 2,204 2,277 2,250 2,267 2,296 2,437
Total revenue 13,434 13,136 13,507 13,349 13,521 13,071 14,976 14,571
Operating profit (loss):
U.S. Domestic Package 1,085 995 1,132 1,134 1,186 129 1,200 (1,799)
International Package 352 408 451 454 417 449 537 (442)
Supply Chain & Freight 143 166 159 202 201 188 171 (541)
Total operating profit (loss) 1,580 1,569 1,742 1,790 1,804 766 1,908 (2,782)
Net income (loss) $ 1,037 $ 970 $ 1,071 $ 1,116 $ 1,097 $ 469 $ 1,167 $ (1,748)
Net income (loss) per share:
Basic $ 1.09 $ 1.01 $ 1.14 $ 1.16 $ 1.17 $ 0.49 $ 1.26 $ (1.83)
Diluted $ 1.08 $ 1.00 $ 1.13 $ 1.15 $ 1.16 $ 0.48 $ 1.25 $ (1.83)
Operating profit for the quarter ended March 31, 2013 was impacted by two items: (1) The termination fee and
transaction-related expenses for our proposed acquisition of TNT Express, and (2) The foreign currency gain realized upon the
liquidation of a subsidiary that would have been used to acquire the shares of TNT Express. These two items are discussed
further in note 15. The combination of these two items reduced the operating profit for the International Package segment by
$39 million, increased net income by $36 million, and increased basic and diluted earnings per share by $0.04.
Operating profit for the quarter ended September 30, 2012 was impacted by a charge for the establishment of a
withdrawal liability related to our withdrawal from the New England Teamsters and Trucking Industry Pension Fund, a
multiemployer pension plan. This charge reduced the operating profit for the U.S. Domestic Package segment by $896 million,
net income by $559 million and basic and diluted earnings per share by $0.58.
Operating profit for the quarter ended December 31, 2012 was impacted by a mark-to-market loss on our pension and
postretirement benefit plans related to the remeasurement of plan assets and liabilities recognized outside of a 10% corridor of
$4.831 billion (allocated as follows—U.S. Domestic Package $3.177 billion, International Package $941 million, Supply
Chain & Freight $713 million). This loss reduced net income by $3.023 billion, and basic and diluted earnings per share by
$3.16.