United Parcel Service, Inc. Files Quarterly Report (10-Q) for Period Ending March 31, 2024

TL;DR

<b>United Parcel Service, Inc. (UPS) has filed its Q1 2024 10-Q report, detailing financial performance and operational segments.</b>

AI Summary

UNITED PARCEL SERVICE INC (UPS) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. UPS filed a 10-Q report for the period ending March 31, 2024. The filing covers financial performance and operational details for the first quarter of 2024. Key financial data and segment performance are detailed within the report. The report includes information on debt obligations, including senior notes due in 2025, 2028, and 2032. Shareholder information regarding Common Class A and Class B is also presented.

Why It Matters

For investors and stakeholders tracking UNITED PARCEL SERVICE INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial results and operational insights for UPS, crucial for understanding the company's performance in the current quarter. The detailed segment information and financial metrics will help stakeholders assess the company's strategic direction and market position in the competitive logistics industry.

Risk Assessment

Risk Level: medium — UNITED PARCEL SERVICE INC shows moderate risk based on this filing. The company operates in a highly competitive and regulated industry, subject to economic fluctuations and evolving consumer demands, which could impact future financial performance.

Analyst Insight

Investors should review the detailed segment performance and financial health metrics in the 10-Q to assess UPS's operational efficiency and future growth prospects.

Key Numbers

• 2025 — Senior Notes Due (Debt maturity)
• 2028 — Senior Notes Due (Debt maturity)
• 2032 — Senior Notes Due (Debt maturity)
• 2024-01-01 — Reporting Period Start Date (Q1 2024)
• 2024-03-31 — Reporting Period End Date (Q1 2024)

Key Players & Entities

• UNITED PARCEL SERVICE INC (company) — Filer name
• UPS (company) — Ticker symbol
• 2024-05-03 (date) — Filing date
• 2024-03-31 (date) — Period of report
• Atlanta (location) — Business address city
• DE (location) — State of incorporation

FAQ

Industry Context

United Parcel Service operates in the trucking and courier services industry, a sector critical for global supply chains and e-commerce fulfillment.

Regulatory Implications

The company is subject to various transportation and labor regulations within the United States and internationally, impacting its operational costs and compliance requirements.

What Investors Should Do

1. Analyze the detailed financial statements and segment revenues for Q1 2024.
2. Review the company's debt structure and maturity dates for upcoming financial obligations.
3. Assess any disclosed risk factors that could impact future performance.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 10-Q for the first quarter of 2024, following the 10-K annual report filed previously.

Key Financial Figures

• $0.01 — stered Class B common stock, par value $0.01 per share UPS New York Stock Exchange

Filing Documents

• ups-20240331.htm (10-Q) — 1973KB
• ups-03312024xexhibit101.htm (EX-10.1) — 137KB
• ups-03312024xexhibit102.htm (EX-10.2) — 40KB
• ups-03312024xexhibit103.htm (EX-10.3) — 85KB
• ups-03312024xexhibit104.htm (EX-10.4) — 31KB
• ups-03312024xex311.htm (EX-31.1) — 10KB
• ups-03312024xex312.htm (EX-31.2) — 10KB
• ups-03312024xex321.htm (EX-32.1) — 5KB
• ups-03312024xex322.htm (EX-32.2) — 4KB
• ups-20240331_g1.jpg (GRAPHIC) — 11KB
• 0001090727-24-000028.txt (&nbsp;) — 11724KB
• ups-20240331.xsd (EX-101.SCH) — 73KB
• ups-20240331_cal.xml (EX-101.CAL) — 111KB
• ups-20240331_def.xml (EX-101.DEF) — 382KB
• ups-20240331_lab.xml (EX-101.LAB) — 850KB
• ups-20240331_pre.xml (EX-101.PRE) — 613KB
• ups-20240331_htm.xml (XML) — 2155KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Cautionary Statement About Forward-Looking Statements 1

Financial Statements

Item 1. Financial Statements 2 Consolidated Balance Sheets 2 Statements of Consolidated Income 3 Statements of Consolidated Comprehensive Income (Loss) 3 Statements of Consolidated Cash Flows 4 Notes to Unaudited, Consolidated Financial Statements 5 Note 1—Basis of Presentation and Accounting Policies 5 Note 2—Recent Accounting Pronouncements 6 Note 3—Revenue Recognition 7 Note 4—Stock-Based Compensation 9 Note 5—Marketable Securities and Non-Current Investments 11 Note 6—Property, Plant and Equipment 14 Note 7—Employee Benefit Plans 15 Note 8—Goodwill and Intangible Assets 17 Note 9—Debt and Financing Arrangements 19 Note 10—Leases 21 Note 11—Legal Proceedings and Contingencies 24 Note 12—Shareowners' Equity 25 Note 13—Segment Information 29 Note 14—Earnings Per Share 30 Note 15—Derivative Instruments and Risk Management 31 Note 16—Income Taxes 35 Note 17—Transformation Costs 36

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Overview 37 Supplemental Information - Items Affecting Comparability 39 Results of Operations - Segment Review 41 U.S. Domestic Package Operations 42 International Package Operations 45 Supply Chain Solutions Operations 48 Consolidated Operating Expenses 50 Other Income (Expense) 53 Income Tax Expense 54 Liquidity and Capital Resources 55 Cash Flows From Operating Activities 55 Cash Flows From Investing Activities 56 Cash Flows From Financing Activities 57 Sources of Credit 58 Contractual Commitments 58 Legal Proceedings and Contingencies 58 Collective Bargaining Agreements 59 Recent Accounting Pronouncements 59

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 60

Controls and Procedures

Item 4. Controls and Procedures 61

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 62

Risk Factors

Item 1A. Risk Factors 62

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63

Other Information

Item 5. Other Information 64

Exhibits

Item 6. Exhibits 65 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Cautionary Statement About Forward-Looking Statements This report, 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" 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 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 United States ("U.S.") or internationally; significant competition on a local, regional, national and international basis; changes in our relationship

Financial Statements

Item 1. Financial Statements UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, 2024 (unaudited) and December 31, 2023 (in millions) March 31, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 4,281 $ 3,206 Marketable securities 232 2,866 Accounts receivable 9,698 11,342 Less: Allowance for credit losses ( 144 ) ( 126 ) Accounts receivable, net 9,554 11,216 Materials and supplies 898 935 Other current assets 1,212 1,190 Total Current Assets 16,177 19,413 Property, Plant and Equipment, Net 37,168 36,945 Operating Lease Right-Of-Use Assets 4,223 4,308 Goodwill 4,846 4,872 Intangible Assets, Net 3,308 3,305 Deferred Income Tax Assets 126 126 Other Non-Current Assets 1,780 1,888 Total Assets $ 67,628 $ 70,857 LIABILITIES AND SHAREOWNERS' EQUITY Current Liabilities: Current maturities of long-term debt, commercial paper and finance leases $ 1,164 $ 3,348 Current maturities of operating leases 694 709 Accounts payable 5,397 6,340 Accrued wages and withholdings 3,217 3,224 Self-insurance reserves 1,325 1,320 Accrued group welfare and retirement plan contributions 1,573 1,479 Other current liabilities 1,326 1,256 Total Current Liabilities 14,696 17,676 Long-Term Debt and Finance Leases 18,849 18,916 Non-Current Operating Leases 3,690 3,756 Pension and Postretirement Benefit Obligations 6,323 6,159 Deferred Income Tax Liabilities 3,825 3,772 Other Non-Current Liabilities 3,312 3,264 Shareowners' Equity: Class A common stock ( 126 and 127 shares issued in 2024 and 2023, respectively) 2 2 Class B common stock ( 729 and 726 shares issued in 2024 and 2023, respectively) 7 7 Additional paid-in capital — — Retained earnings 20,681 21,055 Accumulated other comprehensive loss ( 3,781 ) ( 3,758 ) Deferred compensation obligations 6 9 Less: Treasury stock ( 0.1 and 0.2 shares in 2024 and 2023, respectively) ( 6 ) ( 9 ) Total Equity for Controlling Interests 16,909 17,306 Noncontr