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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): January 30, 2025

g795027a09.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
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 January 30, 2025, United Parcel Service, Inc. (the “Company”) issued a press release containing information about the Company’s results of operations and financial condition for the quarter ended December 31, 2024. 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 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 is attached hereto as Exhibit 99.2.

Item 9.01 — Financial Statements and Exhibits.

(d) Exhibits

99.1       Press release dated January 30, 2025 "UPS RELEASES 4Q 2024 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: January 30, 2025By:/s/ BRIAN DYKES
Brian Dykes
Executive Vice President and Chief Financial Officer



Exhibit 99.1

UPS RELEASES 4Q 2024 EARNINGS
AND PROVIDES 2025 GUIDANCE
•Consolidated Revenues of $25.3B, Compared to $24.9B Last Year
•Consolidated Operating Margin of 11.6%; Non-GAAP Adjusted* Consolidated Operating Margin of 12.3%
•Diluted EPS of $2.01; Non-GAAP Adj. Diluted EPS of $2.75, Compared to $2.47 Last Year

ATLANTA – January 30, 2025 – UPS (NYSE:UPS) today announced fourth-quarter 2024 consolidated revenues of $25.3 billion, a 1.5% increase from the fourth quarter of 2023. Consolidated operating profit was $2.9 billion, up 18.1% compared to the fourth quarter of 2023, and up 11.2% on a non-GAAP adjusted basis. Diluted earnings per share were $2.01 for the quarter; non-GAAP adjusted diluted earnings per share were $2.75, 11.3% above the same period in 2023.

For the fourth quarter of 2024, GAAP results include a total charge of $639 million, or $0.74 per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $506 million, total after-tax transformation strategy costs of $73 million, after-tax asset impairment charges of $46 million, and after-tax cost of $14 million related to the withdrawal from a multiemployer pension plan.

“I want to thank all UPSers for their hard work and efforts as we closed out 2024 with an outstanding peak, delivering best-in-class service and strong financial results ahead of our targets for the quarter,” said Carol Tomé, UPS chief executive officer.

U.S. Domestic Segment†

4Q 2024
Non-GAAP
Adjusted
4Q 2024

4Q 2023
Non-GAAP
Adjusted
4Q 2023
Revenue
$17,312 M$16,939 M
Operating profit
$1,681 M$1,754 M$1,448 M$1,580 M

•Revenue increased 2.2%, driven by a 2.4% increase in revenue per piece and increases in air cargo.
•Operating margin was 9.7%; non-GAAP adjusted operating margin was 10.1%.

International Segment

4Q 2024
Non-GAAP
Adjusted
4Q 2024

4Q 2023
Non-GAAP
Adjusted
4Q 2023
Revenue
$4,923 M$4,606 M
Operating profit
$1,019 M$1,062 M$890 M$899 M

•Revenue increased 6.9%, driven by an 8.8% increase in average daily volume.
•Operating margin was 20.7%; non-GAAP adjusted operating margin was 21.6%.


Supply Chain Solutions1 †

4Q 2024
Non-GAAP
Adjusted
4Q 2024

4Q 2023
Non-GAAP
Adjusted
4Q 2023
Revenue
$3,066 M$3,372 M
Operating profit
$226 M$284 M$139 M$308 M
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

•Revenue declined 9.1%, due to a reduction in revenue following the divestiture of Coyote, partially offset by growth in air and ocean forwarding.
•Operating margin was 7.4%; non-GAAP adjusted operating margin was 9.3%.

Full-Year 2024 Consolidated Results
•Revenue was $91.1 billion.
•Operating profit of $8.5 billion; non-GAAP adjusted operating profit of $8.9 billion.
•Operating margin was 9.3%; non-GAAP adjusted operating margin was 9.8%.
•Diluted EPS totaled $6.75; non-GAAP adjusted diluted EPS of $7.72.
•Cash from operations was $10.1 billion and non-GAAP adjusted free cash flow was $6.3 billion.

In addition, the company returned $5.9 billion of cash to shareowners through dividends and share repurchases.

2025 Outlook
The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.

Today the company announces the following set of strategic actions: first, it has reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026; second, effective January 1, 2025, the company has insourced 100% of its UPS SurePost product; and third, in connection with these efforts, the company is reconfiguring its U.S. network, and launching multi-year “efficiency reimagined” initiatives to drive approximately $1.0 billion in savings through an end-to-end process redesign.

“We are making business and operational changes that, along with the foundational changes we’ve already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market,” said Tomé.

For the full year 2025, on a consolidated basis, UPS expects revenue to be approximately $89.0 billion and operating margin to be approximately 10.8%.

The company is planning capital expenditures of about $3.5 billion, dividend payments of around $5.5 billion, subject to board approval, and share repurchases of around $1.0 billion. The effective tax rate is expected to be around 23.5%.


* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.

† Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.




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 Dykes will discuss fourth-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, January 30, 2025. 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 furnished to 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 2023 revenue of $91.0 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 500,000 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. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Forward-Looking Statements
This release, our Annual Report on Form 10-K for the year ended December 31, 2023 and our other filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements”. 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.
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: changes in general economic conditions in the U.S. or internationally; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from 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, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or 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 regulations related 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, 2023, 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, except as required by law.
The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company’s Investors Relations website at www.investors.ups.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Company’s Investor Relations website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts. We do not incorporate the contents of any website into this or any other report we file with the SEC.

Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management.

Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Non-GAAP Adjusted Financial 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.

One-Time Payment for International Regulatory Matter

We supplement the presentation of operating profit, operating margin, interest expense, total other income (expense), income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of a second quarter of 2024 one-time payment of $94 million of previously restricted cash to settle a previously-disclosed challenge by Italian tax authorities to the deductibility of Value Added Tax payments by UPS to certain third-party service providers, a review of which was launched in the fourth quarter of 2023. We do not believe this is a component of our ongoing operations and we do not expect this or similar payments to recur.

Expense for Regulatory Matter

We supplement the presentation of operating profit, operating margin, interest expense, total other income (expense), income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of an expense to settle a regulatory matter that we consider to be unrelated to our ongoing operations and that we do not expect to recur.



Transformation Strategy Costs

We supplement the presentation of operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of charges related to activities within our transformation strategy. Our transformation activities have spanned several years to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio. While earlier stages of these transformation activities were complete in 2023 (Transformation 1.0), certain systems implementations and portfolio review activities (Transformation 2.0) are ongoing and expected to continue through 2025. We previously announced initiatives under Fit to Serve to right-size our business through a workforce reduction of approximately 12,000 positions throughout 2024 and create a more efficient operating model to enhance responsiveness to changing market dynamics. Various circumstances have precipitated these initiatives, including identification and prioritization of investments as a result of executive leadership changes, developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations.

As disclosed on January 30, 2025, we are beginning a network reconfiguration which is expected to lead to consolidations of our facilities and workforce as well as end-to-end process redesign from 2025 – 2027. Our network reconfiguration is expected to result in exit activities that could result in the closure of up to 10% of our buildings, a reduction in the size of our vehicle and aircraft fleets, and a decrease in the size of our workforce. These costs are in addition to operational costs that we may incur. We are not yet able to determine the specific assets or extent of our workforce that will be impacted by our network redesign, the timing of those future changes or the associated charges we will incur and therefore are not currently able to provide an estimate of the total cost or the cost by period. We expect that impacted assets will remain in use during some or all of the periods of our network reconfiguration.

We expect to partially offset incurred costs through end-to-end process redesign carried out during our network reconfiguration through our Efficiency Reimagined initiatives. These initiatives are being undertaken to align our organizational processes to the operational changes expected to occur in our network reconfiguration and drive organizational efficiency. These initiatives are expected to yield approximately $1.0 billion in annualized savings. We incurred related costs of $35 million for the three months ended December 31, 2024. We expect to incur related costs of approximately $300 to $400 million during 2025 primarily associated with outside professional services and severance. Upon the completion of our network reconfiguration and Efficiency Reimagined initiatives, we expect to realize further benefits in subsequent periods from lower expense, including depreciation, compensation, benefit and other, as well as lower capital requirements.

We do not consider the related costs to be ordinary because each program involves separate and distinct activities that may span multiple periods and are not expected to drive incremental revenue, and because the scope of the programs exceeded that of routine, ongoing efforts to enhance profitability. These initiatives are in addition to ordinary, ongoing efforts to enhance business performance.

Goodwill and Asset Impairments

We supplement the presentation of operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of goodwill and asset impairment charges. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.




Gains and Losses Related to Divestitures

We supplement the presentation of operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of gains (or losses) related to the divestiture of businesses. We do not consider these transactions when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

One-Time Compensation Payment

We supplement the presentation of operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of a one-time payment made to certain U.S.-based, non-union part-time supervisors following the ratification of our labor agreement with the Teamsters in 2023. We do not expect this or similar payments to recur.

Multiemployer Pension Plan Withdrawal

We supplement the presentation of operating profit, operating margin, income before income taxes, net income and earnings per share with non-GAAP measures that exclude the impact of a charge related to the withdrawal from a multiemployer pension plan within the United States. We do not consider these costs to be related to our ongoing operations nor do we expect them to recur.

Non-GAAP Adjusted Cost per Piece

We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece is calculated as non-GAAP adjusted operating expenses in a period divided by total volume for that period. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance.

Defined Benefit Pension and Postretirement Medical Plan Gains and Losses

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 curtailments and settlements, for our pension and postretirement defined benefit plans immediately as part of Investment income (expense) and other in the statements of consolidated income. 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 pension and postretirement 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.

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 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.

Non-GAAP adjusted Total Debt / Non-GAAP adjusted EBITDA

Non-GAAP adjusted total debt is defined as our long-term debt and finance leases, including current maturities, plus non-current pension and postretirement benefit obligations. Non-GAAP adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted for the


impacts of transformation strategy costs, a gain on divestiture of Coyote, a one-time payment for an international regulatory matter, goodwill and asset impairment charges, a one-time compensation payment, expense related to a regulatory matter, defined benefit plan gains and losses, investment income and other pension income, and a charge to withdraw from a multiemployer benefit plan. 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.

Non-GAAP Adjusted Return on Invested Capital

Non-GAAP Adjusted ROIC is calculated as the trailing twelve months (“TTM”) of non-GAAP 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 non-GAAP adjusted 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 non-GAAP adjusted ROIC to be a useful measure for evaluating the effectiveness and efficiency of our long-term capital investments.



United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Three Months Ended
December 31
(amounts in millions)20242024
Operating Profit (GAAP)$2,926 Operating Margin (GAAP)11.6 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Financial systems13 Financial systems0.1 %
Transformation 2.0 total13 Transformation 2.0 total0.1 %
Fit to Serve47 Fit to Serve0.2 %
Network Redesign and Efficiency Reimagined35 Network Redesign and Efficiency Reimagined0.1 %
Total Transformation Strategy Costs95 Total Transformation Strategy Costs0.4 %
Goodwill and Asset Impairment Charges (1)60 Goodwill and Asset Impairment Charges (1)0.2 %
Multiemployer Pension Plan Withdrawal (2)19 Multiemployer Pension Plan Withdrawal (2)0.1 %
Non-GAAP Adjusted Operating Profit$3,100 Non-GAAP Adjusted Operating Margin12.3 %
(amounts in millions)2024
Other Income (Expense) (GAAP)$(799)
Pension Adjustment (3)665
Non-GAAP Adjusted Other Income (Expense)$(134)
(1) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(2) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(3) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Three Months Ended
December 31
(amounts in millions)2024
Income Tax Expense (GAAP)$406 
Transformation Strategy Costs:
Transformation 2.0
Financial systems3 
Transformation 2.0 total3 
Fit to Serve11 
Network Redesign and Efficiency Reimagined8 
Total Transformation Strategy Costs22 
Goodwill and Asset Impairment Charges (1)14 
Multiemployer Pension Plan Withdrawal (2)5 
Pension Adjustment (3)159 
Non-GAAP Adjusted Income Tax Expense$606 
(1) Reflects the tax effect of a pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(2) Reflects the tax effect of a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(3) Reflects the tax effect of a net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)20242024
Net Income (GAAP)$1,721 Diluted Earnings Per Share (GAAP)$2.01 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Financial systems10 Financial systems0.01 
Transformation 2.0 total10 Transformation 2.0 total0.01 
Fit to Serve36 Fit to Serve0.04 
Network Redesign and Efficiency Reimagined27 Network Redesign and Efficiency Reimagined0.03 
Total Transformation Strategy Costs73 Total Transformation Strategy Costs0.08 
Goodwill and Asset Impairment Charges (1)46 Goodwill and Asset Impairment Charges (1)0.05 
Multiemployer Pension Plan Withdrawal (2)14 Multiemployer Pension Plan Withdrawal (2)0.02 
Pension Adjustment (3)506 Pension Adjustment (3)0.59 
Non-GAAP Adjusted Net Income$2,360 Non-GAAP Adjusted Diluted Earnings Per Share$2.75 
(1) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(2) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(3) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)20232023
Operating Profit (GAAP)$2,477 Diluted Earnings Per Share (GAAP)$1.87 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 1.03 Transformation 1.0— 
Transformation 2.0Transformation 2.0
Business portfolio review53 Business portfolio review0.05 
Financial systems6 Financial systems— 
Other initiatives1 Other initiatives— 
Transformation 2.0 total60 Transformation 2.0 total0.05 
Fit to Serve136 Fit to Serve0.13 
Total Transformation Strategy Costs199 Total Transformation Strategy Costs0.18 
Goodwill and Asset Impairment Charges (1)111 Goodwill and Asset Impairment Charges (1)0.10 
Pension Adjustment (2)
0.32 
Non-GAAP Adjusted Operating Profit$2,787 Non-GAAP Adjusted Diluted Earnings Per Share$2.47 
(1) Reflects a pre-tax indefinite-lived intangible asset impairment charge of $111 million within Supply Chain Solutions in 2023.
(2) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. 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
December 31
202420232024202320242023
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$15,631 $15,491 0.9 %$1,681 $1,448 16.1 %9.7 %8.5 %
Adjusted for:
Transformation Strategy Costs(54)(132)(59.1)%54 132 (59.1)%0.3 %0.8 %
Multiemployer Pension Plan Withdrawal(19)— N/A19 — N/A0.1 %— %
Non-GAAP Adjusted Measure$15,558 $15,359 1.3 %$1,754 $1,580 11.0 %10.1 %9.3 %
202420232024202320242023
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$3,904 $3,716 5.1 %$1,019 $890 14.5 %20.7 %19.3 %
Adjusted for:
Transformation Strategy Costs(43)(9)377.8 %43 9 377.8 %0.9 %0.2 %
Non-GAAP Adjusted Measure$3,861 $3,707 4.2 %$1,062 $899 18.1 %21.6 %19.5 %
202420232024202320242023
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$2,840 $3,233 (12.2)%$226 $139 62.6 %7.4 %4.1 %
Adjusted for:
Transformation Strategy Costs2 (58)N/A(2)58 N/A(0.1)%1.7 %
Goodwill and Asset Impairment Charges(60)(111)(45.9)%60 111 (45.9)%2.0 %3.3 %
Non-GAAP Adjusted Measure$2,782 $3,064 (9.2)%$284 $308 (7.8)%9.3 %9.1 %
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)20242024
Operating Profit (GAAP)$8,468 Operating Margin (GAAP)9.3 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Business portfolio review29 Business portfolio review— %
Financial systems54 Financial systems0.1 %
Transformation 2.0 total83 Transformation 2.0 total0.1 %
Fit to Serve204 Fit to Serve0.3 %
Network Redesign and Efficiency Reimagined35 Network Redesign and Efficiency Reimagined— %
Total Transformation Strategy Costs322 Total Transformation Strategy Costs0.4 %
Gain on Divestiture of Coyote (1)(156)Gain on Divestiture of Coyote (1)(0.2)%
One-Time Payment for Int'l Regulatory Matter (2)88 One-Time Payment for Int'l Regulatory Matter (2)0.1 %
Goodwill and Asset Impairment Charges (3)108 Goodwill and Asset Impairment Charges (3)0.2 %
Expense for Regulatory Matter (4)45 Expense for Regulatory Matter (4)— %
Multiemployer Pension Plan Withdrawal (5)19 Multiemployer Pension Plan Withdrawal (5)— %
Non-GAAP Adjusted Operating Profit$8,894 Non-GAAP Adjusted Operating Margin9.8 %
(amounts in millions)2024
Other Income (Expense) (GAAP)$(1,026)
One-Time Payment for Int'l Regulatory Matter (2)6 
Pension Adjustment (6)665
Non-GAAP Adjusted Other Income (Expense)$(355)
(1) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(2) Reflects a pre-tax one-time payment for an international regulatory matter and related interest of $94 million.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects the settlement of a regulatory matter.
(5) Reflects a pre-tax charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(6) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)2024
Income Tax Expense (GAAP)$1,660 
Transformation Strategy Costs:
Transformation 2.0
Business portfolio review7 
Financial systems13 
Transformation 2.0 total20 
Fit to Serve49 
Network Redesign and Efficiency Reimagined8 
Total Transformation Strategy Costs77 
Gain on Divestiture of Coyote (1)(4)
One-Time Payment for Int'l Regulatory Matter (2)— 
Goodwill and Asset Impairment Charges (3)27 
Expense for Regulatory Matter (4)— 
Multiemployer Pension Plan Withdrawal (5)5 
Pension Adjustment (6)159 
Non-GAAP Adjusted Income Tax Expense$1,924 
(1) Represents the tax effect of a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(2) Reflects the tax effect of a pre-tax one-time payment for an international regulatory matter and related interest of $94 million.
(3) Reflects the tax effect of pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects the tax effect of the settlement of a regulatory matter.
(5) Reflects the tax effect of a pre-tax charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(6) Reflects the tax effect of a net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)20242024
Net Income (GAAP)$5,782 Diluted Earnings Per Share (GAAP)$6.75 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Business portfolio review22 Business portfolio review0.03 
Financial systems41 Financial systems0.05 
Transformation 2.0 total63 Transformation 2.0 total0.08 
Fit to Serve155 Fit to Serve0.18 
Network Redesign and Efficiency Reimagined27 Network Redesign and Efficiency Reimagined0.03 
Total Transformation Strategy Costs245 Total Transformation Strategy Costs0.29 
Gain on Divestiture of Coyote (1)(152)Gain on Divestiture of Coyote (1)(0.18)
One-Time Payment for Int'l Regulatory Matter (2)94 One-Time Payment for Int'l Regulatory Matter (2)0.11 
Goodwill and Asset Impairment Charges (3)81 Goodwill and Asset Impairment Charges (3)0.09 
Expense for Regulatory Matter (4)45 Expense for Regulatory Matter (4)0.05 
Multiemployer Pension Plan Withdrawal (5)14 Multiemployer Pension Plan Withdrawal (5)0.02 
Pension Adjustment (6)506 Pension Adjustment (6)0.59 
Non-GAAP Adjusted Net Income$6,615 Non-GAAP Adjusted Diluted Earnings Per Share$7.72 
(1) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(2) Reflects a pre-tax one-time payment for an international regulatory matter and related interest of $94 million.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects the settlement of a regulatory matter.
(5) Reflects a pre-tax charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(6) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Twelve Months Ended
December 31
202420232024202320242023
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$56,031 $55,049 1.8 %$4,345 $5,156 (15.7)%7.2 %8.6 %
Adjusted for:
Transformation Strategy Costs(147)(266)(44.7)%147 266 (44.7)%0.3 %0.4 %
Goodwill and Asset Impairment Charges(5)— N/A5 — N/A— %— %
One-Time Compensation— (61)(100.0)%— 61 (100.0)%— %0.1 %
Multiemployer Pension Plan Withdrawal(19)— N/A19 — N/A— %— %
Non-GAAP Adjusted Measure$55,860 $54,722 2.1 %$4,516 $5,483 (17.6)%7.5 %9.1 %
202420232024202320242023
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$14,769 $14,600 1.2 %$3,191 $3,231 (1.2)%17.8 %18.1 %
Adjusted for:
Transformation Strategy Costs(79)(51)54.9 %79 51 54.9 %0.4 %0.3 %
One-Time Payment for Int'l Regulatory Matter(88)— N/A88 — N/A0.5 %— %
Asset Impairment Charges(2)— N/A2 — N/A— %— %
Non-GAAP Adjusted Measure$14,600 $14,549 0.4 %$3,360 $3,282 2.4 %18.7 %18.4 %
202420232024202320242023
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$11,802 $12,168 (3.0)%$932 $754 23.6 %7.3 %5.8 %
Adjusted for:
Transformation Strategy Costs(96)(118)(18.6)%96 118 (18.6)%0.8 %0.9 %
Gain on Divestiture of Coyote156 — N/A(156)— N/A(1.2)%— %
Goodwill and Asset Impairment Charges(101)(236)(57.2)%101 236 (57.2)%0.7 %1.9 %
Expense for Regulatory Matter
(45)— N/A45 — N/A0.4 %— %
Non-GAAP Adjusted Measure$11,716 $11,814 (0.8)%$1,018 $1,108 (8.1)%8.0 %8.6 %

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited):
Twelve Months Ended December 31
(amounts in millions)2024
Cash flows from operating activities$10,122 
Capital expenditures(3,909)
Proceeds from disposals of property, plant and equipment113 
Other investing activities(24)
   Free Cash Flow (Non-GAAP measure)$6,302 
















Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of Non-GAAP Adjusted Debt to Non-GAAP Adjusted EBITDA
(unaudited)
TTM (1) Ended
(amounts in millions)December 31,
2024
Net Income$5,782 
Add Back:
Income Tax Expense1,660 
Interest Expense866 
Depreciation and Amortization3,609 
Non-GAAP EBITDA11,917 
Add back (deduct):
Transformation Strategy Costs322 
Gain on Divestiture of Coyote(156)
One-Time Payment for International Regulatory Matter88 
Goodwill and Asset Impairment Charges108 
Expense for Regulatory Matter45 
Defined Benefit Plan (Gains) and Losses665 
Investment Income and Other Pension Income(505)
Multiemployer Pension Plan Withdrawal19
Non-GAAP Adjusted EBITDA$12,503 
Debt and Finance Leases, Including Current Maturities$21,284 
Add Back:
Non-Current Pension and Postretirement Benefit Obligations6,859 
Non-GAAP Adjusted Total Debt$28,143 
Non-GAAP Adjusted Total Debt/Net Income4.87
Non-GAAP Adjusted Total Debt/Non-GAAP Adjusted EBITDA2.25
(1) Trailing Twelve Months

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20242023Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$17,312 $16,939 $373 2.2 %
  International Package4,923 4,606 317 6.9 %
  Supply Chain Solutions3,066 3,372 (306)(9.1)%
  Total revenue25,301 24,917 384 1.5 %
Operating expenses:
  U.S. Domestic Package15,631 15,491 140 0.9 %
  International Package3,904 3,716 188 5.1 %
  Supply Chain Solutions2,840 3,233 (393)(12.2)%
  Total operating expenses22,375 22,440 (65)(0.3)%
Operating profit:
  U.S. Domestic Package1,681 1,448 233 16.1 %
  International Package1,019 890 129 14.5 %
  Supply Chain Solutions226 139 87 62.6 %
  Total operating profit2,926 2,477 449 18.1 %
Other income (expense):
 Other pension income (expense)(598)(293)(305)104.1 %
  Investment income (expense) and other28 88 (60)(68.2)%
  Interest expense(229)(209)(20)9.6 %
  Total other income (expense)(799)(414)(385)93.0 %
Income before income taxes2,127 2,063 64 3.1 %
Income tax expense406 458 (52)(11.4)%
Net income$1,721 $1,605 $116 7.2 %
Net income as a percentage of revenue6.8 %6.4 %
Per share amounts:
  Basic earnings per share$2.02 $1.88 $0.14 7.4 %
  Diluted earnings per share$2.01 $1.87 $0.14 7.5 %
Weighted-average shares outstanding:
  Basic854 856 (2)(0.2)%
  Diluted858 858 — 0.0 %
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $1,754 $1,580 $174 11.0 %
  International Package 1,062 899 163 18.1 %
  Supply Chain Solutions284 308 (24)(7.8)%
  Total operating profit 3,100 2,787 313 11.2 %
Total other income (expense)$(134)$(55)$(79)143.6 %
Income before income taxes $2,966 $2,732 $234 8.6 %
Net income $2,360 $2,117 $243 11.5 %
Basic earnings per share $2.76 $2.47 $0.29 11.7 %
Diluted earnings per share$2.75 $2.47 $0.28 11.3 %

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Selected Operating Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20242023Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,682 $2,654 $28 1.1 %
   Deferred1,385 1,602 (217)(13.5)%
   Ground12,937 12,659 278 2.2 %
Cargo and Other308 24 284 1183.3 %
      Total U.S. Domestic Package17,312 16,939 373 2.2 %
International Package:
   Domestic887 845 42 5.0 %
   Export3,873 3,616 257 7.1 %
   Cargo and Other163 145 18 12.4 %
      Total International Package4,923 4,606 317 6.9 %
Supply Chain Solutions:
   Forwarding826 1,317 (491)(37.3)%
Logistics1,799 1,656 143 8.6 %
   Other441 399 42 10.5 %
      Total Supply Chain Solutions3,066 3,372 (306)(9.1)%
Consolidated$25,301 $24,917 $384 1.5 %
Consolidated volume (in millions)1,619 1,630 (11)(0.7)%
Operating weekdays62 63 (1)(1.6)%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,863 1,933 (70)(3.6)%
   Deferred1,209 1,595 (386)(24.2)%
   Ground19,310 18,921 389 2.1 %
      Total U.S. Domestic Package22,382 22,449 (67)(0.3)%
International Package:
   Domestic1,749 1,653 96 5.8 %
   Export1,978 1,771 207 11.7 %
      Total International Package3,727 3,424 303 8.8 %
Consolidated26,109 25,873 236 0.9 %
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$23.22 $21.79 $1.43 6.6 %
   Deferred18.4815.942.5415.9 %
   Ground10.81 10.62 0.19 1.8 %
      Total U.S. Domestic Package12.25 11.96 0.29 2.4 %
International Package:
   Domestic8.18 8.11 0.07 0.9 %
   Export31.5832.41(0.83)(2.6)%
      Total International Package20.60 20.68 (0.08)(0.4)%
Consolidated$13.44 $13.11 $0.33 2.5 %
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Detail of Operating Expenses - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20242023Change% Change
(in millions)
Compensation and benefits$12,996 $12,904 $92 0.7 %
Repairs and maintenance775 702 73 10.4 %
Depreciation and amortization919 867 52 6.0 %
Purchased transportation3,695 3,814 (119)(3.1)%
Fuel1,112 1,282 (170)(13.3)%
Other occupancy544 529 15 2.8 %
Other expenses2,334 2,342 (8)(0.3)%
Total operating expenses$22,375 $22,440 $(65)(0.3)%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Twelve Months Ended
December 31
20242023Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$60,376 $60,205 $171 0.3 %
  International Package17,960 17,831 129 0.7 %
  Supply Chain Solutions12,734 12,922 (188)(1.5)%
  Total revenue91,070 90,958 112 0.1 %
Operating expenses:
  U.S. Domestic Package56,031 55,049 982 1.8 %
  International Package14,769 14,600 169 1.2 %
  Supply Chain Solutions11,802 12,168 (366)(3.0)%
  Total operating expenses82,602 81,817 785 1.0 %
Operating profit:
  U.S. Domestic Package4,345 5,156 (811)(15.7)%
  International Package3,191 3,231 (40)(1.2)%
  Supply Chain Solutions932 754 178 23.6 %
  Total operating profit8,468 9,141 (673)(7.4)%
Other income (expense):
 Other pension income (expense)(396)(95)(301)316.8 %
  Investment income (expense) and other236 314 (78)(24.8)%
  Interest expense(866)(787)(79)10.0 %
  Total other income (expense)(1,026)(568)(458)80.6 %
Income before income taxes7,442 8,573 (1,131)(13.2)%
Income tax expense1,660 1,865 (205)(11.0)%
Net income$5,782 $6,708 $(926)(13.8)%
Net income as a percentage of revenue6.3 %7.4 %
Per share amounts:
  Basic earnings per share$6.76 $7.81 $(1.05)(13.4)%
  Diluted earnings per share$6.75 $7.80 $(1.05)(13.5)%
Weighted-average shares outstanding:
  Basic855 859 (4)(0.5)%
  Diluted856 860 (4)(0.5)%
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $4,516 $5,483 $(967)(17.6)%
  International Package 3,360 3,282 78 2.4 %
  Supply Chain Solutions1,018 1,108 (90)(8.1)%
  Total operating profit 8,894 9,873 (979)(9.9)%
Total other income (expense)$(355)$(209)$(146)69.9 %
Income before income taxes $8,539 $9,664 $(1,125)(11.6)%
Net income $6,615 $7,554 $(939)(12.4)%
Basic earnings per share $7.73 $8.80 $(1.07)(12.2)%
Diluted earnings per share$7.72 $8.78 $(1.06)(12.1)%

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Twelve Months Ended
December 31
20242023Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$9,703 $9,894 $(191)(1.9)%
   Deferred4,757 5,093 (336)(6.6)%
   Ground45,347 44,971 376 0.8 %
Cargo and Other569 247 322 130.4 %
      Total U.S. Domestic Package60,376 60,205 171 0.3 %
International Package:
   Domestic3,186 3,144 42 1.3 %
   Export14,142 14,003 139 1.0 %
   Cargo and Other632 684 (52)(7.6)%
      Total International Package17,960 17,831 129 0.7 %
Supply Chain Solutions:
   Forwarding4,728 5,534 (806)(14.6)%
Logistics6,437 5,927 510 8.6 %
   Other1,569 1,461 108 7.4 %
      Total Supply Chain Solutions12,734 12,922 (188)(1.5)%
Consolidated$91,070 $90,958 $112 0.1 %
Consolidated volume (in millions)5,672 5,662 10 0.2 %
Operating weekdays253 254 (1)(0.4)%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,651 1,757 (106)(6.0)%
   Deferred1,058 1,224 (166)(13.6)%
   Ground16,452 16,049 403 2.5 %
      Total U.S. Domestic Package19,161 19,030 131 0.7 %
International Package:
   Domestic1,554 1,591 (37)(2.3)%
   Export1,703 1,669 34 2.0 %
      Total International Package3,257 3,260 (3)(0.1)%
Consolidated22,418 22,290 128 0.6 %
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$23.23 $22.17 $1.06 4.8 %
   Deferred17.7716.381.398.5 %
   Ground10.89 11.03 (0.14)(1.3)%
      Total U.S. Domestic Package12.34 12.40 (0.06)(0.5)%
International Package:
   Domestic8.10 7.78 0.32 4.1 %
   Export32.8233.03(0.21)(0.6)%
      Total International Package21.03 20.71 0.32 1.5 %
Consolidated$13.60 $13.62 $(0.02)(0.1)%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Twelve Months Ended
December 31
20242023Change% Change
(in millions)
Compensation and benefits$48,093 $47,092 $1,001 2.1 %
Repairs and maintenance2,940 2,828 112 4.0 %
Depreciation and amortization3,609 3,366 243 7.2 %
Purchased transportation13,589 13,640 (51)(0.4)%
Fuel4,366 4,775 (409)(8.6)%
Other occupancy2,117 2,019 98 4.9 %
Other expenses7,888 8,097 (209)(2.6)%
Total operating expenses$82,602 $81,817 $785 1.0 %
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Consolidated Balance Sheets
December 31, 2024 (unaudited) and December 31, 2023

December 31, 2024December 31, 2023
(amounts in millions)
ASSETS
Current Assets:
Cash and cash equivalents$6,112 $3,206 
Marketable securities206 2,866 
Accounts receivable11,007 11,342 
Less: Allowance for credit losses(136)(126)
Accounts receivable, net10,871 11,216 
Other current assets2,121 2,125 
 Total Current Assets19,310 19,413 
Property, Plant and Equipment, Net37,179 36,945 
Operating Lease Right-Of-Use Assets4,149 4,308 
Goodwill4,300 4,872 
Intangible Assets, Net3,064 3,305 
Deferred Income Tax Assets112 126 
Other Non-Current Assets1,956 1,888 
Total Assets $70,070 $70,857 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$1,838 $3,348 
Current maturities of operating leases733 709 
Accounts payable6,302 6,340 
Accrued wages and withholdings3,655 3,224 
Self-insurance reserves1,086 1,320 
Accrued group welfare and retirement plan contributions1,390 1,479 
Other current liabilities 1,437 1,256 
Total Current Liabilities16,441 17,676 
Long-Term Debt and Finance Leases19,446 18,916 
Non-Current Operating Leases3,635 3,756 
Pension and Postretirement Benefit Obligations6,859 6,159 
Deferred Income Tax Liabilities3,595 3,772 
Other Non-Current Liabilities3,351 3,264 
Shareowners' Equity:
Class A common stock2 2 
Class B common stock7 7 
Additional paid-in capital136 — 
Retained earnings20,882 21,055 
Accumulated other comprehensive loss(4,309)(3,758)
Deferred compensation obligations7 9 
Less: Treasury stock(7)(9)
Total Equity for Controlling Interests16,718 17,306 
Noncontrolling interests25 8 
Total Shareowners' Equity16,743 17,314 
Total Liabilities and Shareowners' Equity$70,070 $70,857 
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(unaudited)
(amounts in millions)Twelve Months Ended
December 31
20242023
Cash Flows From Operating Activities:
Net income$5,782 $6,708 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 3,609 3,366 
 Pension and postretirement benefit expense 1,698 1,330 
 Pension and postretirement benefit contributions (1,524)(1,393)
 Self-insurance reserves 44 57 
 Deferred tax (benefit) expense (15)199 
 Stock compensation expense 24 220 
 Other (gains) losses 262 265 
Changes in assets and liabilities, net of effects of business acquisitions and dispositions:
 Accounts receivable (566)1,256 
 Other assets 70 87 
 Accounts payable 262 (1,377)
 Accrued wages and withholdings 501 (296)
 Other liabilities (11)(42)
Other operating activities(14)(142)
 Net cash from operating activities 10,122 10,238 
Cash Flows From Investing Activities:
Capital expenditures(3,909)(5,158)
Proceeds from disposal of businesses, property, plant and equipment1,115 193 
Purchases of marketable securities(76)(3,521)
Sales and maturities of marketable securities2,748 2,701 
Acquisitions, net of cash acquired(71)(1,329)
Other investing activities(24)(19)
Net cash from (used in) investing activities(217)(7,133)
Cash Flows From Financing Activities:
Net change in short-term debt(1,272)1,272 
Proceeds from long-term borrowings2,785 3,429 
Repayments of long-term borrowings(2,487)(2,429)
Purchases of common stock(500)(2,250)
Issuances of common stock232 248 
Dividends(5,399)(5,372)
Other financing activities(209)(432)
Net cash used in financing activities(6,850)(5,534)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(149)33 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash2,906 (2,396)
Cash, Cash Equivalents and Restricted Cash:
Beginning of period3,206 5,602 
End of period$6,112 $3,206 
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited)
(amounts in millions)Twelve Months Ended
December 31
20242023
Cash flows from operating activities$10,122 $10,238 
Capital expenditures(3,909)(5,158)
Proceeds from disposals of property, plant and equipment113 193 
Other investing activities(24)(19)
   Free Cash Flow (Non-GAAP measure)$6,302 $5,254 
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of Non-GAAP Adjusted Debt to Non-GAAP Adjusted EBITDA
(unaudited)
TTM (1) Ended
(amounts in millions)December 31,
20242023
Net Income$5,782 $6,708 
Add Back:
Income Tax Expense1,660 1,865 
Interest Expense866 787 
Depreciation and Amortization3,609 3,366 
Non-GAAP EBITDA11,917 12,726 
Add back (deduct):
Transformation Strategy Costs322 435 
Gain on Divestiture of Coyote(156)— 
One-Time Payment for International Regulatory Matter88 — 
Goodwill and Asset Impairment Charges108 236 
One-Time Compensation Payment— 61 
Expense for Regulatory Matter45 — 
Defined Benefit Plan (Gains) and Losses665 359 
Investment Income and Other Pension Income(505)(578)
Multiemployer Pension Plan Withdrawal19— 
Non-GAAP Adjusted EBITDA$12,503 $13,239 
Debt and Finance Leases, Including Current Maturities$21,284 $22,264 
Add Back:
Non-Current Pension and Postretirement Benefit Obligations6,859 6,159 
Non-GAAP Adjusted Total Debt$28,143 $28,423 
Non-GAAP Adjusted Total Debt/Net Income4.874.24
Non-GAAP Adjusted Total Debt/Non-GAAP Adjusted EBITDA2.252.15
(1) Trailing Twelve Months

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of Non-GAAP Adjusted Return on Invested Capital
(unaudited)
TTM (1) Ended
(amounts in millions)December 31,
20242023
Net Income$5,782 $6,708 
Add Back (Deduct):
Income Tax Expense1,660 1,865 
Interest Expense866 787 
Other Pension (Income) Expense396 95 
Investment (Income) Expense and Other(236)(314)
Operating Profit$8,468 $9,141 
Transformation Strategy Costs322 435 
Gain on Divestiture of Coyote(156)— 
One-Time International Regulatory Matter88 — 
Goodwill and Asset Impairment Charges108 236 
Expense for Regulatory Matter45 — 
Multiemployer Pension Plan Withdrawal19 — 
One-Time Compensation— 61 
Non-GAAP Adjusted Operating Profit$8,894 $9,873 
Average Debt and Finance Leases, Including Current Maturities$21,774 $20,963 
Average Pension and Postretirement Benefit Obligations6,509 5,483 
Average Shareowners' Equity17,029 18,558 
Average Invested Capital$45,312 $45,004 
Non-GAAP Measure: Net Income to Average Invested Capital12.8 %14.9 %
Non-GAAP Adjusted Return on Invested Capital19.6 %21.9 %
(1) Trailing twelve months

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)2024202320242023
Operating Profit (GAAP)$2,926 $2,477 Operating Margin (GAAP)11.6 %9.9 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 1.0— 3 Transformation 1.0— %— %
Transformation 2.0Transformation 2.0
Business portfolio review— 53 Business portfolio review— %0.3 %
Financial systems13 6 Financial systems0.1 %— %
Other initiatives— 1 Other initiatives— %— %
Transformation 2.0 total13 60 Transformation 2.0 total0.1 %0.3 %
Fit to Serve47 136 Fit to Serve0.2 %0.5 %
Network Redesign and Efficiency Reimagined35 — Network Redesign and Efficiency Reimagined0.1 %— %
Total Transformation Strategy Costs95 199 Total Transformation Strategy Costs0.4 %0.8 %
Goodwill and Asset Impairment Charges (1) (2)60 111 Goodwill and Asset Impairment Charges (1) (2)0.2 %0.5 %
Multiemployer Pension Plan Withdrawal (3)19 — Multiemployer Pension Plan Withdrawal (3)0.1 %— %
Non-GAAP Adjusted Operating Profit$3,100 $2,787 Non-GAAP Adjusted Operating Margin12.3 %11.2 %
(amounts in millions)20242023
Other Income (Expense) (GAAP)$(799)$(414)
Pension Adjustment (4)665 359 
Non-GAAP Adjusted Other Income (Expense)$(134)$(55)
(1) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(2) Reflects a pre-tax indefinite-lived intangible asset impairment charge of $111 million within Supply Chain Solutions in 2023.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)20242023
Income Tax Expense (GAAP)$406 $458 
Transformation Strategy Costs:
Transformation 1.0— 1 
Transformation 2.0
Business portfolio review— 8 
Financial systems3 2 
Other initiatives— 1 
Transformation 2.0 total3 11 
Fit to Serve11 33 
Network Redesign and Efficiency Reimagined8 — 
Total Transformation Strategy Costs22 45 
Goodwill and Asset Impairment Charges (1) (2)14 27 
Multiemployer Pension Plan Withdrawal (3)5 — 
Pension Adjustment (4)159 85 
Non-GAAP Adjusted Income Tax Expense$606 $615 
(1) Reflects the tax effect of a pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(2) Reflects the tax effect of a pre-tax indefinite-lived intangible asset impairment charge of $111 million within Supply Chain Solutions in 2023.
(3) Reflects the tax effect of a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Reflects the tax effect of a net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Three Months Ended
December 31
(amounts in millions)2024202320242023
Net Income (GAAP)$1,721 $1,605 Diluted Earnings Per Share (GAAP)$2.01 $1.87 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 1.0— 2 Transformation 1.0— — 
Transformation 2.0Transformation 2.0
Business portfolio review— 45 Business portfolio review— 0.05 
Financial systems10 4 Financial systems0.01 — 
Other initiatives— — Other initiatives— — 
Transformation 2.0 total10 49 Transformation 2.0 total0.01 0.05 
Fit to Serve36 103 Fit to Serve0.04 0.13 
Network Redesign and Efficiency Reimagined27 — Network Redesign and Efficiency Reimagined0.03 — 
Total Transformation Strategy Costs73 154 Total Transformation Strategy Costs0.08 0.18 
Goodwill and Asset Impairment Charges (1) (2)46 84 Goodwill and Asset Impairment Charges (1) (2)0.05 0.10 
Multiemployer Pension Plan Withdrawal (3)14 — Multiemployer Pension Plan Withdrawal (3)0.02 — 
Pension Adjustment (4)506 274 Pension Adjustment (4)0.59 0.32 
Non-GAAP Adjusted Net Income$2,360 $2,117 Non-GAAP Adjusted Diluted Earnings Per Share$2.75 $2.47 
(1) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(2) Reflects a pre-tax indefinite-lived intangible asset impairment charge of $111 million within Supply Chain Solutions in 2023.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.



Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. 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
December 31
202420232024202320242023
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$15,631 $15,491 0.9 %$1,681 $1,448 16.1 %9.7 %8.5 %
Adjusted for:
Transformation Strategy Costs(54)(132)(59.1)%54 132 (59.1)%0.3 %0.8 %
Multiemployer Pension Plan Withdrawal(19)— N/A19 — N/A0.1 %— %
Non-GAAP Adjusted Measure$15,558 $15,359 1.3 %$1,754 $1,580 11.0 %10.1 %9.3 %
202420232024202320242023
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$3,904 $3,716 5.1 %$1,019 $890 14.5 %20.7 %19.3 %
Adjusted for:
Transformation Strategy Costs(43)(9)377.8 %43 9 377.8 %0.9 %0.2 %
Non-GAAP Adjusted Measure$3,861 $3,707 4.2 %$1,062 $899 18.1 %21.6 %19.5 %
202420232024202320242023
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$2,840 $3,233 (12.2)%$226 $139 62.6 %7.4 %4.1 %
Adjusted for:
Transformation Strategy Costs2 (58)N/A(2)58 N/A(0.1)%1.7 %
Goodwill and Asset Impairment Charges(60)(111)(45.9)%60 111 (45.9)%2.0 %3.3 %
Non-GAAP Adjusted Measure$2,782 $3,064 (9.2)%$284 $308 (7.8)%9.3 %9.1 %
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. 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
December 31
20242023% Change
Operating Days62 63 
Average Daily U.S. Domestic Package Volume (in thousands)22,382 22,449 
U.S. Domestic Package Cost Per Piece (GAAP)$11.00 $10.94 0.5 %
Transformation Strategy Costs(0.04)(0.09)(55.6)%
Multiemployer Pension Plan Withdrawal(0.01)— N/A
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$10.95 $10.85 0.9 %

Note: Cost per piece excludes expense associated with cargo and other activity.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)2024202320242023
Operating Profit (GAAP)$8,468 $9,141 Operating Margin (GAAP)9.3 %10.0 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 1.0— 13 Transformation 1.0— %— %
Transformation 2.0Transformation 2.0
Spans and layers— 86 Spans and layers— %0.2 %
Business portfolio review29 84 Business portfolio review— %0.1 %
Financial systems54 36 Financial systems0.1 %— %
Other initiatives— 4 Other initiatives— %— %
Transformation 2.0 total83 210 Transformation 2.0 total0.1 %0.3 %
Fit to Serve204 212 Fit to Serve0.3 %0.2 %
Network Redesign and Efficiency Reimagined35 — Network Redesign and Efficiency Reimagined— %— %
Total Transformation Strategy Costs322 435 Total Transformation Strategy Costs0.4 %0.5 %
Gain on Divestiture of Coyote (1)(156)— Gain on Divestiture of Coyote (1)(0.2)%— %
One-Time Payment for Int'l Regulatory Matter (2)88 — One-Time Payment for Int'l Regulatory Matter (2)0.1 %— %
Goodwill and Asset Impairment Charges (3) (4)108 236 Goodwill and Asset Impairment Charges (3) (4)0.2 %0.3 %
One-Time Compensation (5)— 61 One-Time Compensation (5)— %0.1 %
Expense for Regulatory Matter (6)45 — Expense for Regulatory Matter (6)— %— %
Multiemployer Pension Plan Withdrawal (7)19 — Multiemployer Pension Plan Withdrawal (7)— %— %
Non-GAAP Adjusted Operating Profit$8,894 $9,873 Non-GAAP Adjusted Operating Margin9.8 %10.9 %
(amounts in millions)20242023
Other Income (Expense) (GAAP)$(1,026)$(568)
One-Time Payment for Int'l Regulatory Matter (2)6 — 
Pension Adjustment (8)665359
Non-GAAP Adjusted Other Income (Expense)$(355)$(209)
(1) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(2) Reflects a pre-tax one-time payment for an international regulatory matter and related interest of $94 million.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects pre-tax impairment charges of $125 and $111 million in respect of goodwill and an indefinite-lived intangible asset, respectively within Supply Chain Solutions in 2023.
(5) Represents a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.
(6) Reflects the settlement of a regulatory matter.
(7) Reflects a pre-tax charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)20242023
Income Tax Expense (GAAP)$1,660 $1,865 
Transformation Strategy Costs:
Transformation 1.0— 3 
Transformation 2.0
Spans and layers— 21 
Business portfolio review7 15 
Financial systems13 10 
Other initiatives— 1 
Transformation 2.0 total20 47 
Fit to Serve49 52 
Network Redesign and Efficiency Reimagined8 — 
Total Transformation Strategy Costs77 102 
Gain on Divestiture of Coyote (1)(4)— 
One-Time Payment for Int'l Regulatory Matter (2)— — 
Goodwill and Asset Impairment Charges (3) (4)27 43 
One-Time Compensation (5)— 15 
Expense for Regulatory Matter (6)— — 
Multiemployer Pension Plan Withdrawal (7)5 — 
Pension Adjustment (8)159 85 
Non-GAAP Adjusted Income Tax Expense$1,924 $2,110 
(1) Represents the tax effect of a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(2) Reflects the tax effect of a pre-tax one-time payment for an international regulatory matter and related interest of $94 million.
(3) Reflects the tax effect of pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects the tax effect of pre-tax impairment charges of $125 and $111 million in respect of goodwill and an indefinite-lived intangible asset, respectively within Supply Chain Solutions in 2023.
(5) Represents the tax effect of a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.
(6) Reflects the tax effect of the settlement of a regulatory matter.
(7) Reflects the tax effect of a pre-tax charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(8) Reflects the tax effect of a net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Twelve Months Ended
December 31
(amounts in millions)2024202320242023
Net Income (GAAP)$5,782 $6,708 Diluted Earnings Per Share (GAAP)$6.75 $7.80 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 1.0— 10 Transformation 1.0— 0.01 
Transformation 2.0Transformation 2.0
Spans and layers— 65 Spans and layers— 0.08 
Business portfolio review22 69 Business portfolio review0.03 0.08 
Financial systems41 26 Financial systems0.05 0.03 
Other initiatives— 3 Other initiatives— — 
Transformation 2.0 total63 163 Transformation 2.0 total0.08 0.19 
Fit to Serve155 160 Fit to Serve0.18 0.19 
Network Redesign and Efficiency Reimagined27 — Network Redesign and Efficiency Reimagined0.03 — 
Total Transformation Strategy Costs245 333 Total Transformation Strategy Costs0.29 0.39 
Gain on Divestiture of Coyote (1)(152)— Gain on Divestiture of Coyote (1)(0.18)— 
One-Time Payment for Int'l Regulatory Matter (2)94 — One-Time Payment for Int'l Regulatory Matter (2)0.11 — 
Goodwill and Asset Impairment Charges (3) (4)81 193 Goodwill and Asset Impairment Charges (3) (4)0.09 0.22 
One-Time Compensation (5)— 46 One-Time Compensation (5)— 0.05 
Expense for Regulatory Matter (6)45 — Expense for Regulatory Matter (6)0.05 — 
Multiemployer Pension Plan Withdrawal (7)14 — Multiemployer Pension Plan Withdrawal (7)0.02 — 
Pension Adjustment (8)506 274 Pension Adjustment (8)0.59 0.32 
Non-GAAP Adjusted Net Income$6,615 $7,554 Non-GAAP Adjusted Diluted Earnings Per Share$7.72 $8.78 
(1) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(2) Reflects a pre-tax one-time payment for an international regulatory matter and related interest of $94 million.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects pre-tax impairment charges of $125 and $111 million in respect of goodwill and an indefinite-lived intangible asset, respectively within Supply Chain Solutions in 2023.
(5) Represents a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.
(6) Reflects the settlement of a regulatory matter.
(7) Reflects a pre-tax charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Twelve Months Ended
December 31
202420232024202320242023
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$56,031 $55,049 1.8 %$4,345 $5,156 (15.7)%7.2 %8.6 %
Adjusted for:
Transformation Strategy Costs(147)(266)(44.7)%147 266 (44.7)%0.3 %0.4 %
Goodwill and Asset Impairment Charges(5)— N/A5 — N/A— %— %
One-Time Compensation— (61)(100.0)%— 61 (100.0)%— %0.1 %
Multiemployer Pension Plan Withdrawal(19)— N/A19 — N/A— %— %
Non-GAAP Adjusted Measure$55,860 $54,722 2.1 %$4,516 $5,483 (17.6)%7.5 %9.1 %
202420232024202320242023
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$14,769 $14,600 1.2 %$3,191 $3,231 (1.2)%17.8 %18.1 %
Adjusted for:
Transformation Strategy Costs(79)(51)54.9 %79 51 54.9 %0.4 %0.3 %
One-Time Payment for Int'l Regulatory Matter(88)— N/A88 — N/A0.5 %— %
Asset Impairment Charges(2)— N/A2 — N/A— %— %
Non-GAAP Adjusted Measure$14,600 $14,549 0.4 %$3,360 $3,282 2.4 %18.7 %18.4 %
202420232024202320242023
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$11,802 $12,168 (3.0)%$932 $754 23.6 %7.3 %5.8 %
Adjusted for:
Transformation Strategy Costs(96)(118)(18.6)%96 118 (18.6)%0.8 %0.9 %
Gain on Divestiture of Coyote156 — N/A(156)— N/A(1.2)%— %
Goodwill and Asset Impairment Charges(101)(236)(57.2)%101 236 (57.2)%0.7 %1.9 %
Expense for Regulatory Matter(45)— N/A45 — N/A0.4 %— %
Non-GAAP Adjusted Measure$11,716 $11,814 (0.8)%$1,018 $1,108 (8.1)%8.0 %8.6 %


Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. 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)

Twelve Months Ended
December 31
20242023% Change
Operating Days253 254 
Average Daily U.S. Domestic Package Volume (in thousands)19,161 19,030 
U.S. Domestic Package Cost Per Piece (GAAP)$11.42 $11.35 0.6 %
Transformation Strategy Costs(0.04)(0.05)(20.0)%
One-Time Compensation— (0.01)(100.0)%
Multiemployer Pension Plan Withdrawal— — N/A
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$11.38 $11.29 0.8 %

Note: Cost per piece excludes expense associated with cargo and other activity.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..

United Parcel Service, Inc.
Aircraft Fleet - As of December 31, 2024
(unaudited)

DescriptionUPS Owned and/or OperatedCharters & Leases Operated by OthersOn OrderUnder Option
Operating:
Boeing 757-20075 — — — 
Boeing 767-30082 — 25 — 
Boeing 767-300BCF6 — — — 
Boeing 767-300BDSF4 — — — 
Airbus A300-60052 — — — 
Boeing MD-1129 — — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF2 — — — 
Boeing 747-8F30 — — — 
Other— 243 — — 
          Total291 243 25 — 














































Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo volume to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers..
v3.24.4
Cover Document
Jan. 30, 2025
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 Jan. 30, 2025
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
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