Enhanced Investments - Financial Portal

Published: 2023-08-08 06:07:20 ET

EX-99.2 3 exhibit992-q22023financial.htm EX-99.2 FINANCIAL STATEMENT SCHEDULES Document

Exhibit 99.2

United Parcel Service, Inc.

Selected Financial Data - Second Quarter

(unaudited)


	Three Months Ended
	June 30
	2023			2022			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	14,396		$	15,459		$	(1,063)	(6.9)	%
International Package	4,415			5,073			(658)		(13.0)	%
Supply Chain Solutions	3,244			4,234			(990)		(23.4)	%
Total revenue	22,055			24,766			(2,711)		(10.9)	%

Operating expenses:
U.S. Domestic Package	12,794			13,630			(836)		(6.1)	%
International Package	3,532			3,880			(348)		(9.0)	%
Supply Chain Solutions	2,949			3,721			(772)		(20.7)	%
Total operating expenses	19,275			21,231			(1,956)		(9.2)	%

Operating profit:
U.S. Domestic Package	1,602			1,829			(227)		(12.4)	%
International Package	883			1,193			(310)		(26.0)	%
Supply Chain Solutions	295			513			(218)		(42.5)	%
Total operating profit	2,780			3,535			(755)		(21.4)	%

Other income (expense):
Other pension income (expense)	66			298			(232)		(77.9)	%
Investment income (expense) and other	65			35			30		85.7	%
Interest expense	(191)			(171)			(20)		11.7	%
Total other income (expense)	(60)			162			(222)		N/A

Income before income taxes	2,720			3,697			(977)		(26.4)	%

Income tax expense	639			848			(209)		(24.6)	%

Net income	$	2,081		$	2,849		$	(768)	(27.0)	%

Net income as a percentage of revenue	9.4		%	11.5		%

Per share amounts:
Basic earnings per share	$	2.42		$	3.26		$	(0.84)	(25.8)	%
Diluted earnings per share	$	2.42		$	3.25		$	(0.83)	(25.5)	%

Weighted-average shares outstanding:
Basic	860			874			(14)		(1.6)	%
Diluted	861			876			(15)		(1.7)	%

As Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	1,681		$	1,855		$	(174)	(9.4)	%
International Package	902			1,204			(302)		(25.1)	%
Supply Chain Solutions	336			517			(181)		(35.0)	%
Total operating profit	2,919			3,576			(657)		(18.4)	%

Total other income (expense)	$	(60)		$	162		$	(222)	N/A
Income before income taxes	$	2,859		$	3,738		$	(879)	(23.5)	%
Net income	$	2,187		$	2,880		$	(693)	(24.1)	%

Basic earnings per share	$	2.54		$	3.30		$	(0.76)	(23.0)	%
Diluted earnings per share	$	2.54		$	3.29		$	(0.75)	(22.8)	%

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

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Selected Operating Data - Second Quarter

(unaudited)


	Three Months Ended
	June 30
	2023		2022		Change		% Change

Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	2,407	$	2,656	$	(249)	(9.4)	%
Deferred	1,169		1,392		(223)		(16.0)	%
Ground	10,820		11,411		(591)		(5.2)	%
Total U.S. Domestic Package	14,396		15,459		(1,063)		(6.9)	%
International Package:
Domestic	763		829		(66)		(8.0)	%
Export	3,468		3,976		(508)		(12.8)	%
Cargo and Other	184		268		(84)		(31.3)	%
Total International Package	4,415		5,073		(658)		(13.0)	%
Supply Chain Solutions:
Forwarding	1,376		2,389		(1,013)		(42.4)	%
Logistics	1,431		1,290		141		10.9	%
Other	437		555		(118)		(21.3)	%
Total Supply Chain Solutions	3,244		4,234		(990)		(23.4)	%
Consolidated	$	22,055	$	24,766	$	(2,711)	(10.9)	%

Consolidated volume (in millions)	1,338		1,476		(138)		(9.4)	%

Operating weekdays	64		64		—		0.0	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,679		1,910		(231)		(12.1)	%
Deferred	1,087		1,401		(314)		(22.4)	%
Ground	14,974		16,374		(1,400)		(8.6)	%
Total U.S. Domestic Package	17,740		19,685		(1,945)		(9.9)	%
International Package:
Domestic	1,554		1,703		(149)		(8.7)	%
Export	1,608		1,683		(75)		(4.5)	%
Total International Package	3,162		3,386		(224)		(6.6)	%
Consolidated	20,902		23,071		(2,169)		(9.4)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	22.40	$	21.73	$	0.67	3.1	%
Deferred	16.80		15.52		1.28		8.2	%
Ground	11.29		10.89		0.40		3.7	%
Total U.S. Domestic Package	12.68		12.27		0.41		3.3	%
International Package:
Domestic	7.67		7.61		0.06		0.8	%
Export	33.70		36.91		(3.21)		(8.7)	%
Total International Package	20.91		22.17		(1.26)		(5.7)	%
Consolidated	$	13.92	$	13.72	$	0.20	1.5	%

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Detail of Operating Expenses - Second Quarter

(unaudited)


	Three Months Ended
	June 30
	2023		2022		Change		% Change
(in millions)
Compensation and benefits	$	11,197	$	11,344	$	(147)	(1.3)	%
Repairs and maintenance	682		727		(45)		(6.2)	%
Depreciation and amortization	828		762		66		8.7	%
Purchased transportation	3,173		4,390		(1,217)		(27.7)	%
Fuel	1,090		1,697		(607)		(35.8)	%
Other occupancy	458		422		36		8.5	%
Other expenses	1,847		1,889		(42)		(2.2)	%
Total operating expenses	$	19,275	$	21,231	$	(1,956)	(9.2)	%

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Selected Financial Data - Year to Date

(unaudited)


	Six Months Ended
	June 30
	2023			2022			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	29,383		$	30,583		$	(1,200)	(3.9)	%
International Package	8,958			9,949			(991)		(10.0)	%
Supply Chain Solutions	6,639			8,612			(1,973)		(22.9)	%
Total revenue	44,980			49,144			(4,164)		(8.5)	%

Operating expenses:
U.S. Domestic Package	26,315			27,092			(777)		(2.9)	%
International Package	7,247			7,640			(393)		(5.1)	%
Supply Chain Solutions	6,097			7,626			(1,529)		(20.0)	%
Total operating expenses	39,659			42,358			(2,699)		(6.4)	%

Operating profit:
U.S. Domestic Package	3,068			3,491			(423)		(12.1)	%
International Package	1,711			2,309			(598)		(25.9)	%
Supply Chain Solutions	542			986			(444)		(45.0)	%
Total operating profit	5,321			6,786			(1,465)		(21.6)	%

Other income (expense):
Other pension income (expense)	132			629			(497)		(79.0)	%
Investment income (expense) and other	168			19			149		784.2	%
Interest expense	(379)			(345)			(34)		9.9	%
Total other income (expense)	(79)			303			(382)		N/A

Income before income taxes	5,242			7,089			(1,847)		(26.1)	%

Income tax expense	1,266			1,578			(312)		(19.8)	%

Net income	$	3,976		$	5,511		$	(1,535)	(27.9)	%

Net income as a percentage of revenue	8.8		%	11.2		%

Per share amounts:
Basic earnings per share	$	4.62		$	6.31		$	(1.69)	(26.8)	%
Diluted earnings per share	$	4.61		$	6.28		$	(1.67)	(26.6)	%

Weighted-average shares outstanding:
Basic	861			874			(13)		(1.5)	%
Diluted	863			878			(15)		(1.7)	%

As Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	3,169		$	3,560		$	(391)	(11.0)	%
International Package	1,708			2,324			(616)		(26.5)	%
Supply Chain Solutions	594			998			(404)		(40.5)	%
Total operating profit	5,471			6,882			(1,411)		(20.5)	%

Total other income (expense)	$	(79)		$	270		$	(349)	N/A
Income before income taxes	$	5,392		$	7,152		$	(1,760)	(24.6)	%
Net income	$	4,091		$	5,561		$	(1,470)	(26.4)	%

Basic earnings per share	$	4.75		$	6.36		$	(1.61)	(25.3)	%
Diluted earnings per share	$	4.74		$	6.33		$	(1.59)	(25.1)	%

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

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Selected Operating Data - Year to Date

(unaudited)


	Six Months Ended
	June 30
	2023		2022		Change		% Change

Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	4,868	$	5,250	$	(382)	(7.3)	%
Deferred	2,363		2,812		(449)		(16.0)	%
Ground	22,152		22,521		(369)		(1.6)	%
Total U.S. Domestic Package	29,383		30,583		(1,200)		(3.9)	%
International Package:
Domestic	1,557		1,680		(123)		(7.3)	%
Export	7,020		7,754		(734)		(9.5)	%
Cargo and Other	381		515		(134)		(26.0)	%
Total International Package	8,958		9,949		(991)		(10.0)	%
Supply Chain Solutions:
Forwarding	2,890		4,978		(2,088)		(41.9)	%
Logistics	2,841		2,541		300		11.8	%
Other	908		1,093		(185)		(16.9)	%
Total Supply Chain Solutions	6,639		8,612		(1,973)		(22.9)	%
Consolidated	$	44,980	$	49,144	$	(4,164)	(8.5)	%

Consolidated volume (in millions)	2,745		2,966		(221)		(7.5)	%

Operating weekdays	128		128		—		0.0	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,708		1,928		(220)		(11.4)	%
Deferred	1,113		1,455		(342)		(23.5)	%
Ground	15,385		16,330		(945)		(5.8)	%
Total U.S. Domestic Package	18,206		19,713		(1,507)		(7.6)	%
International Package:
Domestic	1,594		1,754		(160)		(9.1)	%
Export	1,645		1,708		(63)		(3.7)	%
Total International Package	3,239		3,462		(223)		(6.4)	%
Consolidated	21,445		23,175		(1,730)		(7.5)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	22.27	$	21.27	$	1.00	4.7	%
Deferred	16.59		15.10		1.49		9.9	%
Ground	11.25		10.77		0.48		4.5	%
Total U.S. Domestic Package	12.61		12.12		0.49		4.0	%
International Package:
Domestic	7.63		7.48		0.15		2.0	%
Export	33.34		35.47		(2.13)		(6.0)	%
Total International Package	20.69		21.29		(0.60)		(2.8)	%
Consolidated	$	13.83	$	13.49	$	0.34	2.5	%

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Detail of Operating Expenses - Year to Date

(unaudited)


	Six Months Ended
	June 30
	2023		2022		Change		% Change
(in millions)
Compensation and benefits	$	22,659	$	22,945	$	(286)	(1.2)	%
Repairs and maintenance	1,407		1,428		(21)		(1.5)	%
Depreciation and amortization	1,662		1,526		136		8.9	%
Purchased transportation	6,716		8,997		(2,281)		(25.4)	%
Fuel	2,361		2,917		(556)		(19.1)	%
Other occupancy	1,009		923		86		9.3	%
Other expenses	3,845		3,622		223		6.2	%
Total operating expenses	$	39,659	$	42,358	$	(2,699)	(6.4)	%

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Consolidated Balance Sheets

June 30, 2023 (unaudited) and December 31, 2022


	June 30, 2023		December 31, 2022
(amounts in millions)

ASSETS
Current Assets:
Cash and cash equivalents	$	4,812	$	5,602
Marketable securities	3,071		1,993
Accounts receivable	9,738		12,729
Less: Allowance for credit losses	(151)		(146)
Accounts receivable, net	9,587		12,583

Other current assets	1,969		2,039
Total Current Assets	19,439		22,217
Property, Plant and Equipment, Net	35,501		34,719
Operating Lease Right-Of-Use Assets	4,219		3,755
Goodwill	4,250		4,223
Intangible Assets, Net	2,890		2,796
Deferred Income Tax Assets	137		139
Other Non-Current Assets	3,911		3,275
Total Assets	$	70,347	$	71,124

LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases	$	1,412	$	2,341
Current maturities of operating leases	673		621
Accounts payable	6,085		7,515
Accrued wages and withholdings	2,962		4,049
Self-insurance reserves	1,101		1,069
Accrued group welfare and retirement plan contributions	1,200		1,078
Other current liabilities	1,253		1,467
Total Current Liabilities	14,686		18,140
Long-Term Debt and Finance Leases	19,351		17,321
Non-Current Operating Leases	3,680		3,238
Pension and Postretirement Benefit Obligations	4,635		4,807
Deferred Income Tax Liabilities	4,421		4,302
Other Non-Current Liabilities	3,537		3,513

Shareowners' Equity:
Class A common stock	2		2
Class B common stock	7		7
Additional paid-in capital	—		—
Retained earnings	21,584		21,326
Accumulated other comprehensive loss	(1,574)		(1,549)
Deferred compensation obligations	9		13
Less: Treasury stock	(9)		(13)
Total Equity for Controlling Interests	20,019		19,786
Noncontrolling interests	18		17
Total Shareowners' Equity	20,037		19,803
Total Liabilities and Shareowners' Equity	$	70,347	$	71,124

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Statements of Consolidated Cash Flows

(unaudited)


(amounts in millions)		Six Months Ended
		June 30
		2023		2022
Cash Flows From Operating Activities:
	Net income	$	3,976	$	5,511
	Adjustments to reconcile net income to net cash from operating activities:
	Depreciation and amortization	1,662		1,526
	Pension and postretirement benefit expense	486		433
	Pension and postretirement benefit contributions	(1,328)		(123)
	Self-insurance reserves	64		112
	Deferred tax (benefit) expense	168		360
	Stock compensation expense	165		617
	Other (gains) losses	(19)		11
	Changes in assets and liabilities, net of effects of business acquisitions:
	Accounts receivable	2,898		820
	Other assets	187		(62)
	Accounts payable	(1,921)		(508)
	Accrued wages and withholdings	(535)		(348)
	Other liabilities	(132)		22
	Other operating activities	(77)		(78)
	Net cash from operating activities	5,594		8,293

Cash Flows From Investing Activities:
	Capital expenditures	(1,820)		(1,388)
	Proceeds from disposal of businesses, property, plant and equipment	50		9
	Purchases of marketable securities	(2,970)		(132)
	Sales and maturities of marketable securities	1,903		130
	Acquisitions, net of cash acquired	(34)		(99)
	Other investing activities	12		(19)
	Net cash used in investing activities	(2,859)		(1,499)

Cash Flows From Financing Activities:
	Net change in short-term debt	—		—
	Proceeds from long-term borrowings	2,503		—
	Repayments of long-term borrowings	(1,596)		(1,105)
	Purchases of common stock	(1,498)		(1,242)
	Issuances of common stock	119		136
	Dividends	(2,693)		(2,567)
	Other financing activities	(417)		(508)
	Net cash from (used in) financing activities	(3,582)		(5,286)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash		57		(28)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(790)		1,480

Cash, Cash Equivalents and Restricted Cash:
	Beginning of period	5,602		10,255
	End of period	$	4,812	$	11,735

Prior year amounts may 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)	Six Months Ended
	June 30
	2023		2022
Cash flows from operating activities	$	5,594	$	8,293
Capital expenditures	(1,820)		(1,388)
Proceeds from disposals of property, plant and equipment	50		9
Other investing activities	12		(19)
Free Cash Flow (Non-GAAP measure)	$	3,836	$	6,895

Prior year amounts may 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) Ended		TTM(1) Ended
	June 30, 2023		June 30, 2022
Net income	$	10,013	$	10,933
Add back:
Income tax expense	2,965		3,111
Interest expense	738		695
Depreciation & amortization	3,324		3,018
EBITDA	17,040		17,757
Add back (deduct):
Incentive compensation program redesign	505		—
Transformation and other	232		231
Defined benefit plan (gains) and losses	(1,028)		(15)
Investment income and other pension income	(1,059)		(1,151)
Adjusted EBITDA	$	15,690	$	16,822

Debt and finance leases, including current maturities	$	20,763	$	20,576
Add back:
Non-current pension and postretirement benefit obligations	4,635		8,343
Adjusted total debt	$	25,398	$	28,919

Adjusted total debt/Net income	2.54		2.65

Adjusted total debt/adjusted EBITDA (Non-GAAP)	1.62		1.72

(1) Trailing twelve months.

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Reconciliation of Adjusted Return on Invested Capital (Non-GAAP measure)

(unaudited)



(amounts in millions)	TTM(1) Ended			TTM(1) Ended
	June 30, 2023			June 30, 2022
Net income	$	10,013		$	10,933
Add back (deduct):
Income tax expense	2,965			3,111
Interest expense	738			695
Other pension (income) expense	(1,754)			(1,181)
Investment (income) expense and other	(333)			15
Operating profit	$	11,629		$	13,573
Incentive compensation program redesign	505			—
Long-lived asset estimated residual value changes	76			—
Transformation and other	232			231
Adjusted operating profit	$	12,442		$	13,804

Average debt and finance leases, including current maturities	$	20,670		$	21,584
Average pension and postretirement benefit obligations	6,489			8,009
Average shareowners' equity	18,174			13,566
Average invested capital	$	45,333		$	43,159

Net income to average invested capital	22.1		%	25.3		%

Adjusted Return on Invested Capital (Non-GAAP)	27.4		%	32.0		%

(1) Trailing twelve months.

Prior year amounts may 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 June 30,
(in millions, except per share data)	2023						2022
	As Reported (GAAP)		Transformation & Other Adj.(1)		As Adjusted (Non-GAAP)		As Reported (GAAP)		Transformation & Other Adj.(2)		As Adjusted (Non-GAAP)		% Change As Rep. (GAAP)		% Change As Adj. (Non-GAAP)

U.S. Domestic Package	$	12,794	$	79	$	12,715	$	13,630	$	26	$	13,604	(6.1)	%	(6.5)	%
International Package	3,532		19		3,513		3,880		11		3,869		(9.0)	%	(9.2)	%
Supply Chain Solutions	2,949		41		2,908		3,721		4		3,717		(20.7)	%	(21.8)	%
Operating expense	19,275		139		19,136		21,231		41		21,190		(9.2)	%	(9.7)	%

U.S. Domestic Package	$	1,602	$	79	$	1,681	$	1,829	$	26	$	1,855	(12.4)	%	(9.4)	%
International Package	883		19		902		1,193		11		1,204		(26.0)	%	(25.1)	%
Supply Chain Solutions	295		41		336		513		4		517		(42.5)	%	(35.0)	%
Operating Profit	2,780		139		2,919		3,535		41		3,576		(21.4)	%	(18.4)	%
Other Income and (Expense):
Other pension income (expense)	66		—		66		298		—		298		(77.9)	%	(77.9)	%
Investment income (expense) and other	65		—		65		35		—		35		85.7	%	85.7	%
Interest expense	(191)		—		(191)		(171)		—		(171)		11.7	%	11.7	%
Total Other Income (Expense)	$	(60)	$	—	$	(60)	$	162	$	—	$	162	N/A		N/A
Income Before Income Taxes	2,720		139		2,859		3,697		41		3,738		(26.4)	%	(23.5)	%
Income Tax Expense	639		33		672		848		10		858		(24.6)	%	(21.7)	%
Net Income	$	2,081	$	106	$	2,187	$	2,849	$	31	$	2,880	(27.0)	%	(24.1)	%

Basic Earnings Per Share	$	2.42	$	0.12	$	2.54	$	3.26	$	0.04	$	3.30	(25.8)	%	(23.0)	%

Diluted Earnings Per Share	$	2.42	$	0.12	$	2.54	$	3.25	$	0.04	$	3.29	(25.5)	%	(22.8)	%

Weighted-average shares outstanding:
Basic	860						874
Diluted	861						876

(1) Reflects other employee benefits costs of $109 million and other costs of $30 million.

(2) Reflects other employee benefits costs of $23 million and other costs of $18 million.

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Reconciliation of GAAP and As Adjusted Income Statement Data

(unaudited)


	Six Months Ended June 30,
(in millions, except per share data)	2023						2022
	As Reported (GAAP)		Transformation & Other Adj.(1)		As Adjusted (Non-GAAP)		As Reported (GAAP)		Pension Adj.(2)		Transformation & Other Adj.(3)		As Adjusted (Non-GAAP)		% Change As Rep. (GAAP)		% Change As Adj. (Non-GAAP)

U.S. Domestic Package	$	26,315	$	101	$	26,214	$	27,092	$	—	$	69	$	27,023	(2.9)	%	(3.0)	%
International Package	7,247		(3)		7,250		7,640		—		15		7,625		(5.1)	%	(4.9)	%
Supply Chain Solutions	6,097		52		6,045		7,626		—		12		7,614		(20.0)	%	(20.6)	%
Operating expense	39,659		150		39,509		42,358		—		96		42,262		(6.4)	%	(6.5)	%

U.S. Domestic Package	$	3,068	$	101	$	3,169	$	3,491	$	—	$	69	$	3,560	(12.1)	%	(11.0)	%
International Package	1,711		(3)		1,708		2,309		—		15		2,324		(25.9)	%	(26.5)	%
Supply Chain Solutions	542		52		594		986		—		12		998		(45.0)	%	(40.5)	%
Operating Profit	5,321		150		5,471		6,786		—		96		6,882		(21.6)	%	(20.5)	%
Other Income and (Expense):
Other pension income (expense)	132		—		132		629		(33)		—		596		(79.0)	%	(77.9)	%
Investment income (expense) and other	168		—		168		19		—		—		19		784.2	%	784.2	%
Interest expense	(379)		—		(379)		(345)		—		—		(345)		9.9	%	9.9	%
Total Other Income (Expense)	$	(79)	$	—	$	(79)	$	303	$	(33)	$	—	$	270	N/A		N/A
Income Before Income Taxes	5,242		150		5,392		7,089		(33)		96		7,152		(26.1)	%	(24.6)	%
Income Tax Expense	1,266		35		1,301		1,578		(9)		22		1,591		(19.8)	%	(18.2)	%
Net Income	$	3,976	$	115	$	4,091	$	5,511	$	(24)	$	74	$	5,561	(27.9)	%	(26.4)	%

Basic Earnings Per Share	$	4.62	$	0.13	$	4.75	$	6.31	$	(0.03)	$	0.08	$	6.36	(26.8)	%	(25.3)	%

Diluted Earnings Per Share	$	4.61	$	0.13	$	4.74	$	6.28	$	(0.03)	$	0.08	$	6.33	(26.6)	%	(25.1)	%

Weighted-average shares outstanding:
Basic	861						874
Diluted	863						878

(1) Reflects a goodwill impairment charge of $8 million within Supply Chain Solutions, employee benefit benefits costs of $97 million and other costs of $45 million.

(2) Represents the impact of curtailment of benefits effective December 31, 2023, for the Canada LTD Retirement Plan.

(3) Reflects other employee benefits costs of $56 million and other costs of $40 million.

Prior year amounts may have been reclassified to conform to the current year presentation.

United Parcel Service, Inc.

Supplemental Analysis of Currency - Second Quarter

(unaudited)


Reconciliation of Currency Neutral Revenue Per Piece, Revenue and As Adjusted Operating Profit

	Three Months Ended								Currency
	June 30								Neutral
(in millions, except per piece data)	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Average Revenue Per Piece:
International Package:
Domestic	$	7.67	$	7.61	0.8	%	$	0.10	$	7.77	2.1	%
Export	33.70		36.91		(8.7)	%	0.23		33.93		(8.1)	%
Total International Package	$	20.91	$	22.17	(5.7)	%	$	0.17	$	21.08	(4.9)	%
Consolidated	$	13.92	$	13.72	1.5	%	$	0.03	$	13.95	1.7	%

	Three Months Ended								Currency
	June 30								Neutral
	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Revenue (in millions):
U.S. Domestic Package	$	14,396	$	15,459	(6.9)	%	$	—	$	14,396	(6.9)	%
International Package	4,415		5,073		(13.0)	%	34		4,449		(12.3)	%
Supply Chain Solutions	3,244		4,234		(23.4)	%	7		3,251		(23.2)	%
Total revenue	$	22,055	$	24,766	(10.9)	%	$	41	$	22,096	(10.8)	%

	Three Months Ended								Currency
	June 30								Neutral
	(Non-GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
As Adjusted Operating Profit (in millions)(2):
U.S. Domestic Package	$	1,681	$	1,855	(9.4)	%	$	—	$	1,681	(9.4)	%
International Package	902		1,204		(25.1)	%	32		934		(22.4)	%
Supply Chain Solutions	336		517		(35.0)	%	(3)		333		(35.6)	%
Total operating profit	$	2,919	$	3,576	(18.4)	%	$	29	$	2,948	(17.6)	%

(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.

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

	Six Months Ended								Currency
	June 30								Neutral
(in millions, except per piece data)	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Average Revenue Per Piece:
International Package:
Domestic	$	7.63	$	7.48	2.0	%	$	0.32	$	7.95	6.3	%
Export	33.34		35.47		(6.0)	%	0.60		33.94		(4.3)	%
Total International Package	$	20.69	$	21.29	(2.8)	%	$	0.46	$	21.15	(0.7)	%
Consolidated	$	13.83	$	13.49	2.5	%	$	0.07	$	13.90	3.0	%

	Six Months Ended								Currency
	June 30								Neutral
	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Revenue (in millions):
U.S. Domestic Package	$	29,383	$	30,583	(3.9)	%	$	—	$	29,383	(3.9)	%
International Package	8,958		9,949		(10.0)	%	195		9,153		(8.0)	%
Supply Chain Solutions	6,639		8,612		(22.9)	%	57		6,696		(22.2)	%
Total revenue	$	44,980	$	49,144	(8.5)	%	$	252	$	45,232	(8.0)	%

	Six Months Ended								Currency
	June 30								Neutral
	(Non-GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
As Adjusted Operating Profit (in millions)(2):
U.S. Domestic Package	$	3,169	$	3,560	(11.0)	%	$	—	$	3,169	(11.0)	%
International Package	1,708		2,324		(26.5)	%	83		1,791		(22.9)	%
Supply Chain Solutions	594		998		(40.5)	%	(8)		586		(41.3)	%
Total operating profit	$	5,471	$	6,882	(20.5)	%	$	75	$	5,546	(19.4)	%

(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.

United Parcel Service, Inc.

Aircraft Fleet - As of June 30, 2023

(unaudited)


Description	Owned and Finance Leases	Operating Leases & Charters from Others	On Order	Under Option
Operating:
Boeing 757-200	75	—	—	—
Boeing 767-300	75	—	24	—
Boeing 767-300BCF	6	—	—	—
Boeing 767-300BDSF	4	—	—	—
Airbus A300-600	52	—	—	—
Boeing MD-11(1)	40	—	—	—
Boeing 747-400F	11	—	—	—
Boeing 747-400BCF	2	—	—	—
Boeing 747-8F	28	—	2	—
Other	—	278	—	—
Total	293	278	26	—

(1) Three of the MD-11 aircraft shown above have been retired from operational use as of June 30, 2023. We expect to retire an additional two MD-11 aircraft during the remainder of 2023.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.