United Parcel Service, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>United Parcel Service, Inc. has filed its 2023 Form 10-K, detailing its financial performance and operational aspects for the fiscal year.</b>

AI Summary

UNITED PARCEL SERVICE INC (UPS) filed a Annual Report (10-K) with the SEC on February 20, 2024. The filing covers the fiscal year ending December 31, 2023. United Parcel Service Inc. is incorporated in Delaware. The company's principal executive offices are located at 55 Glenlake Parkway NE, Atlanta, GA 30328. The SIC code for the company is 4210 (Trucking & Courier Services (No Air)). The filing includes data related to various financial instruments and asset types, such as Senior Notes due 2025, 2028, and 2032, and details on flight equipment, buildings, and vehicles.

Why It Matters

For investors and stakeholders tracking UNITED PARCEL SERVICE INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of UPS's financial health, operational scale, and strategic positioning for the past fiscal year, which is crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed financial disclosures, including debt instruments and asset valuations, offer insights into the company's capital structure and investment strategies, enabling a deeper understanding of its financial stability and risk profile.

Risk Assessment

Risk Level: medium — UNITED PARCEL SERVICE INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not indicate any immediate or severe financial distress or significant new risks beyond those typically associated with a large, publicly traded company in the logistics sector.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand UPS's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-20 — Filing Date (Date of submission)
• 1.625% — Senior Notes Due 2025 Interest Rate (Debt instrument detail)
• 1.500% — Senior Notes Due 2032 Interest Rate (Debt instrument detail)

Key Players & Entities

• UNITED PARCEL SERVICE INC (company) — Filer name
• UPS (company) — Ticker symbol
• 55 Glenlake Parkway NE, Atlanta, GA 30328 (company) — Business address
• 4210 (company) — Standard Industrial Classification
• DE (company) — State of incorporation
• 2023-12-31 (date) — Fiscal year end
• 2024-02-20 (date) — Filing date

FAQ

Industry Context

United Parcel Service operates within the trucking and courier services industry, a critical component of the global supply chain and e-commerce infrastructure.

Regulatory Implications

As a publicly traded company, UPS is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Review the consolidated financial statements for the fiscal year ended December 31, 2023.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations section for insights into performance drivers.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-20: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023, following the previous year's filing.

Key Financial Figures

• $0.01 — stered Class B common stock, par value $0.01 per share UPS New York Stock Exchange
• $91.0 billion — ing the year. Total revenue in 2023 was $91.0 billion. Strategy Our well-defined strategy

Filing Documents

• ups-20231231.htm (10-K) — 4373KB
• ups-12312023xexhibit439.htm (EX-4.39) — 70KB
• ups-12312023xexhibit21.htm (EX-21) — 18KB
• ups-12312023xexhibit23.htm (EX-23) — 2KB
• ups-12312023xexhibit311.htm (EX-31.1) — 10KB
• ups-12312023xexhibit312.htm (EX-31.2) — 10KB
• ups-12312023xexhibit321.htm (EX-32.1) — 5KB
• ups-12312023xexhibit322.htm (EX-32.2) — 4KB
• ups-12312023xexhibit97.htm (EX-97) — 25KB
• ups-20231231_g1.jpg (GRAPHIC) — 11KB
• ups-20231231_g2.jpg (GRAPHIC) — 132KB
• 0001090727-24-000008.txt (&nbsp;) — 24498KB
• ups-20231231.xsd (EX-101.SCH) — 147KB
• ups-20231231_cal.xml (EX-101.CAL) — 159KB
• ups-20231231_def.xml (EX-101.DEF) — 833KB
• ups-20231231_lab.xml (EX-101.LAB) — 1710KB
• ups-20231231_pre.xml (EX-101.PRE) — 1157KB
• ups-20231231_htm.xml (XML) — 5273KB

Business

Item 1. Business 1 Overview 1 Strategy 1 Competitive Strengths 2 Products and Services; Reporting Segments 2 Human Capital 5 Customers 6 Competition 6 Government Regulation 6 Where You Can Find More Information 8

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 17 Item 1C. C ybersecurity 17

Properties

Item 2. Properties 18 Operating Facilities 18 Fleet 19

Legal Proceedings

Item 3. Legal Proceedings 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20 Shareowner Return Performance Graph 21

[Reserved]

Item 6. [Reserved] 22

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Overview 23 Supplemental Information - Items Affecting Comparability 25 U.S. Domestic Package Operations 29 International Package Operations 32 Supply Chain Solutions Operations 35 Consolidated Operating Expenses 38 Other Income and (Expense) 41 Income Tax Expense 42 Liquidity and Capital Resources 43 Collective Bargaining Agreements 50 New Accounting Pronouncements 50 Critical Accounting Estimates 51

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 57

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 59

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 132

Controls and Procedures

Item 9A. Controls and Procedures 132

Other Information

Item 9B. Other Information 134

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 134 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 135

Executive Compensation

Item 11. Executive Compensation 136

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 136

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 136

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 136 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 137

Form 10-K Summary

Item 16. Form 10-K Summary 137 PART I Cautionary Statement About Forward-Looking Statements This report and our other filings with the Securities and Exchange Commission ("SEC") contain and in the future may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Forward-looking statements are made subject to the safe harbor provisions of the federal securities laws pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Such 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 such 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, those described in Part I, "Item 1A. Risk Factors" and elsewhere in this report and may also be described from time to time in our future reports filed with the SEC. You should consider the limitations on, and risks associated with, forward-loo

Business

Item 1. Business Overview United Parcel Service, Inc. ("UPS"), founded in 1907, is the world's premier package delivery company and a leading provider of global supply chain management solutions. We offer a broad range of industry-leading products and services through our extensive global presence. Our services include transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage and insurance. We operate one of the largest airlines and one of the largest fleets of alternative fuel vehicles under a global UPS brand. We deliver packages each business day for approximately 1.6 million shipping customers to 10.2 million delivery recipients in over 200 countries and territories. In 2023, we delivered an average of 22.3 million packages per day, totaling 5.7 billion packages during the year. Total revenue in 2023 was $91.0 billion. Strategy Our well-defined strategy focuses on growing in the parts of our market that value our end-to-end network. We are continuing on the journey to execute our Customer First, People Led, Innovation Driven strategy as we evolve our business to be better and bolder. Customer First is about anticipating and solving for the needs of our customers. We strive to help our customers seize new opportunities, better compete and succeed by delivering the capabilities that they tell us matter the most: speed and ease. People Led specifically focuses on how likely an employee is to recommend UPS employment to a friend or family member. We know successful outcomes are built from a strong culture and we believe that when we take care of our people, they take care of our customers. 1 Innovation Driven is designed to optimize the volume that flows through our network to focus on increasing value share and to drive business growth from higher-yielding opportunities in our target markets. We continue to leverage data and automation to deliver improvements to our network and unlock additional value fo