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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
104
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
2012 2011 2012 2011 2012 2011 2012 2011
Revenue:
U.S. Domestic Package $ 8,004 $ 7,543 $ 8,058 $ 7,737 $ 7,861 $ 7,767 $ 8,933 $ 8,670
International Package 2,966 2,900 3,014 3,139 2,943 3,057 3,201 3,153
Supply Chain & Freight 2,166 2,139 2,277 2,315 2,267 2,342 2,437 2,343
Total revenue 13,136 12,582 13,349 13,191 13,071 13,166 14,571 14,166
Operating profit (loss):
U.S. Domestic Package 995 880 1,134 997 129 1,046 (1,799) 841
International Package 408 453 454 505 449 417 (442) 334
Supply Chain & Freight 166 139 202 243 188 203 (541) 22
Total operating profit (loss) 1,569 1,472 1,790 1,745 766 1,666 (2,782) 1,197
Net income (loss) $ 970 $ 915 $ 1,116 $ 1,092 $ 469 $ 1,072 $ (1,748) $ 725
Net income (loss) per share:
Basic $ 1.01 $ 0.92 $ 1.16 $ 1.11 $ 0.49 $ 1.10 $ (1.83) $ 0.75
Diluted $ 1.00 $ 0.91 $ 1.15 $ 1.09 $ 0.48 $ 1.09 $ (1.83) $ 0.74
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.
Operating profit for the quarter ended June 30, 2011 was impacted by gains and losses on certain real estate transactions,
including a $15 million loss in the U.S. Domestic Package segment and a $48 million gain in the Supply Chain & Freight
segment. The combined impact of these transactions increased net income by $20 million, and basic and diluted earnings per
share by $0.02.
Operating profit for the quarter ended December 31, 2011 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
$827 million (allocated as follows—U.S. Domestic Package $479 million, International Package $171 million, Supply Chain &
Freight $177 million). This loss reduced net income by $527 million, and basic and diluted earnings per share by $0.54.