8-KRegulation FD

UNITED PARCEL SERVICE INC 8-K Report, Regulation FD Disclosure (Apr 5, 2005)

Filed April 5, 2005For Securities:UPS

Summary

United Parcel Service Inc. (UPS) announced a significant change in its business reporting segments effective for the fiscal year beginning January 1, 2005. The company has updated its segment structure from U.S. Domestic Package, International Package, and Non-package to U.S. Domestic Package, International Package, and Supply Chain Solutions. This rebranding aims to better reflect the company's evolving business operations and provide a more cohesive view of its services. The company has also restated its consolidated financial information by segment for the four years ended December 31, 2004, to align with this new reporting structure. Notably, this change in segment reporting does not impact UPS's overall consolidated revenue, operating profit, net income, or cash flows, serving primarily as an internal organizational and reporting update. The revised segment information was made available on the investor relations website to ensure consistency with upcoming first-quarter 2005 reporting.

Key Highlights

  • 1UPS has revised its business reporting segments starting fiscal year 2005.
  • 2The new reporting segments are U.S. Domestic Package, International Package, and Supply Chain Solutions.
  • 3This replaces the prior segments of U.S. Domestic Package, International Package, and Non-package.
  • 4Financial information for the past four years (ended December 31, 2004) has been restated to reflect the new segment structure.
  • 5The change in segment reporting does not affect consolidated revenue, operating profit, net income, or cash flows.
  • 6The domestic portion of the former excess value package insurance business has been discontinued and replaced by a declared value product, with prior period results reclassified to the U.S. Domestic Package segment.
  • 7The international portion of the former excess value package insurance business has also been discontinued and replaced by a declared value product, with prior period results reclassified to the International Package segment.
  • 8Supply Chain Solutions now consolidates freight services, logistics operations (including acquired Menlo Worldwide Forwarding), Mail Boxes, Etc., UPS Capital, mail, and consulting services.

Frequently Asked Questions

The main change is the revision of UPS's business reporting segments. The company has moved from reporting on U.S. Domestic Package, International Package, and Non-package segments to U.S. Domestic Package, International Package, and Supply Chain Solutions, effective for the fiscal year beginning January 1, 2005.

No, the filing explicitly states that this change in segment reporting does not affect UPS's consolidated revenue, operating profit, net income, or cash flows. It is an organizational and reporting adjustment.

The Supply Chain Solutions segment encompasses UPS's freight services and logistics operations, which include former UPS Freight Services and UPS Logistics Group (including Menlo Worldwide Forwarding). It also aggregates other business units such as Mail Boxes, Etc., UPS Capital, mail, and consulting services.

The changes were made to better reflect recent shifts in UPS's business operations and to provide a more cohesive view of its service offerings. The restated historical data allows for a consistent comparison with future reporting periods.