UPS Files 10-Q: Debt and Stock Details

TL;DR

UPS 10-Q out: Debt maturing 2025-2032, stock info updated. All good.

AI Summary

United Parcel Service Inc. (UPS) filed its 10-Q for the period ending June 30, 2024. The filing details financial information, including debt obligations such as Senior Notes due in 2025, 2028, and 2032. It also reports on common stock activity, with Class A and Class B shares noted.

Why It Matters

This filing provides investors with an update on UPS's financial health, specifically its debt structure and equity, which are crucial for assessing the company's stability and future performance.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• 2025 — Senior Notes Maturity (Indicates upcoming debt repayment obligation)
• 2028 — Senior Notes Maturity (Indicates upcoming debt repayment obligation)
• 2032 — Senior Notes Maturity (Indicates upcoming debt repayment obligation)

Key Players & Entities

• UNITED PARCEL SERVICE INC (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• Senior Notes 1.625 Due 2025 (dollar_amount) — Specific debt instrument
• Senior Notes 1 Due 2028 (dollar_amount) — Specific debt instrument
• Senior Notes 1.500 Due 2032 (dollar_amount) — Specific debt instrument
• Common Class A (dollar_amount) — Type of stock
• Common Class B (dollar_amount) — Type of stock

FAQ

Key Financial Figures

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

Filing Documents

• ups-20240630.htm (10-Q) — 2611KB
• ups-exhibit101xq22024.htm (EX-10.1) — 143KB
• ups-ex311xq22024.htm (EX-31.1) — 10KB
• ups-ex312xq22024.htm (EX-31.2) — 10KB
• ups-ex321xq22024.htm (EX-32.1) — 5KB
• ups-ex322xq22024.htm (EX-32.2) — 4KB
• ups-20240630_g1.jpg (GRAPHIC) — 11KB
• 0001090727-24-000045.txt ( ) — 13853KB
• ups-20240630.xsd (EX-101.SCH) — 78KB
• ups-20240630_cal.xml (EX-101.CAL) — 123KB
• ups-20240630_def.xml (EX-101.DEF) — 428KB
• ups-20240630_lab.xml (EX-101.LAB) — 931KB
• ups-20240630_pre.xml (EX-101.PRE) — 673KB
• ups-20240630_htm.xml (XML) — 2757KB

—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 22 Note 11—Legal Proceedings and Contingencies 25 Note 12—Shareowners' Equity 26 Note 13—Segment Information 32 Note 14—Earnings Per Share 33 Note 15—Derivative Instruments and Risk Management 34 Note 16—Income Taxes 39 Note 17—Transformation Costs 40 Note 18 — Assets Held for Sale 41 Note 19—Subsequent Events 42

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 43 Overview 43 Supplemental Information - Items Affecting Comparability 45 Results of Operations - Segment Review 47 U.S. Domestic Package Operations 48 International Package Operations 51 Supply Chain Solutions Operations 54 Consolidated Operating Expenses 57 Other Income (Expense) 60 Income Tax Expense 61 Liquidity and Capital Resources 62 Cash Flows From Operating Activities 62 Cash Flows From Investing Activities 63 Cash Flows From Financing Activities 64 Sources of Credit 65 Contractual Commitments 65 Legal Proceedings and Contingencies 65 Collective Bargaining Agreements 66 Recent Accounting Pronouncements 66

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 67

Controls and Procedures

Item 4. Controls and Procedures 68

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 69

Risk Factors

Item 1A. Risk Factors 69

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 70

Other Information

Item 5. Other Information 71

Exhibits

Item 6. Exhibits 72 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 June 30, 2024 (unaudited) and December 31, 2023 (in millions) June 30, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 6,319 $ 3,206 Marketable securities 213 2,866 Accounts receivable 9,174 11,342 Less: Allowance for credit losses ( 126 ) ( 126 ) Accounts receivable, net 9,048 11,216 Assets held for sale 1,183 — Other current assets 2,060 2,125 Total Current Assets 18,823 19,413 Property, Plant and Equipment, Net 37,129 36,945 Operating Lease Right-Of-Use Assets 4,088 4,308 Goodwill 4,350 4,872 Intangible Assets, Net 3,106 3,305 Deferred Income Tax Assets 123 126 Other Non-Current Assets 1,799 1,888 Total Assets $ 69,418 $ 70,857 LIABILITIES AND SHAREOWNERS' EQUITY Current Liabilities: Current maturities of long-term debt, commercial paper and finance leases $ 2,008 $ 3,348 Current maturities of operating leases 683 709 Accounts payable 5,299 6,340 Accrued wages and withholdings 3,308 3,224 Self-insurance reserves 1,273 1,320 Accrued group welfare and retirement plan contributions 1,202 1,479 Liabilities to be disposed of 373 — Other current liabilities 939 1,256 Total Current Liabilities 15,085 17,676 Long-Term Debt and Finance Leases 20,197 18,916 Non-Current Operating Leases 3,561 3,756 Pension and Postretirement Benefit Obligations 6,449 6,159 Deferred Income Tax Liabilities 3,841 3,772 Other Non-Current Liabilities 3,232 3,264 Shareowners' Equity: Class A common stock ( 125 and 127 shares issued in 2024 and 2023, respectively) 2 2 Class B common stock ( 732 and 726 shares issued in 2024 and 2023, respectively) 7 7 Additional paid-in capital 136 — Retained earnings 20,692 21,055 Accumulated other comprehensive loss ( 3,807 ) ( 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