XML 35 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

MULTIEMPLOYER EMPLOYEE BENEFIT PLANS | 12 Months Ended
--- | ---
Dec. 31, 2018
Multiemployer Plans [Abstract] |
Multiemployer Employee Benefit Plans | MULTIEMPLOYER EMPLOYEE BENEFIT PLANS We contribute to a number of multiemployer defined benefit plans under the terms of collective bargaining agreements that cover our union-represented employees. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:
• | Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
• | If we negotiate to cease participating in a multiemployer plan, we may be required to pay that plan an amount based on our allocable share of its underfunded status, referred to as a "withdrawal liability". However, cessation of participation in a multiemployer plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process.
• | If any of the multiemployer pension plans in which we participate enter critical status, and our contributions are not sufficient to satisfy any rehabilitation plan funding schedule, we could be required under the Pension Protection Act of 2006 to make additional surcharge contributions to the multiemployer pension plan in the amount of five to ten percent of the existing contributions required by our labor agreement. Such surcharges would cease upon the ratification of a new collective bargaining agreement, and could not recur unless a plan re-entered critical status at a later date.
The discussion that follows sets forth the financial impact on our results of operations and cash flows for the years ended December 31, 2018, 2017 and 2016, from our participation in multiemployer benefit plans. As part of the overall collective bargaining process for wage and benefit levels, we have agreed to contribute certain amounts to the multiemployer benefit plans during the contract period. The multiemployer benefit plans set benefit levels and are responsible for benefit delivery to participants. Future contribution amounts to multiemployer benefit plans are determined only through collective bargaining, and we have no additional legal or constructive obligation to increase contributions beyond the agreed-upon amounts (except potential surcharges under the Pension Protection Act of 2006 as described above). The number of employees covered by our multiemployer pension plans has remained consistent over the past three years, and there have been no significant changes that affect the comparability of 2018, 2017 and 2016 contributions. We recognize expense for the contractually-required contribution for each period, and we recognize a liability for any contributions due and unpaid at the end of a reporting period. Status of Collective Bargaining Agreements As of December 31, 2018, we had approximately 283,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the Teamsters. These agreements expired on July 31, 2018. On October 5, 2018, the Teamsters declared that the tentative national master agreement for the U.S. Domestic Package business unit was considered ratified, and will be implemented as soon as five remaining local and supplemental agreements are negotiated and ratified. We remain in the process of negotiating and ratifying four of these local and supplemental agreements which, when ratified, will be retroactive to August 1, 2018. The UPS Freight business unit national master agreement was ratified on November 11, 2018. We have approximately 2,800 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association ("IPA"), which becomes amendable on September 1, 2021. Our airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727. On February 8, 2019, the airline mechanics who are covered by this agreement voted to ratify a new contract which will become amendable November 1, 2023. In addition, approximately 3,100 of our auto and maintenance mechanics who are not employed under agreements with the Teamsters are employed under collective bargaining agreements with the International Association of Machinists and Aerospace Workers (“IAM”) that will expire on July 31, 2019. Multiemployer Pension Plans The following table outlines our participation in multiemployer pension plans for the periods ended December 31, 2018, 2017 and 2016, and sets forth our calendar year contributions and accruals for each plan. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act zone status available in 2018 and 2017 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that we received from the plans’ administrators and is certified by each plan’s actuary. Plans certified in the red zone are generally less than 65% funded, plans certified in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans certified in the yellow zone are less than 80% funded, and plans certified in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan (“FIP”) for yellow/orange zone plans, or a rehabilitation plan (“RP”) for red zone plans, is either pending or has been implemented. As of December 31, 2018, all plans that have either a FIP or RP requirement have had the respective plan implemented. Our collectively-bargained contributions satisfy the requirements of all implemented FIPs and RPs and do not currently require the payment of any surcharges. In addition, minimum contributions outside of the agreed upon contractual rates are not required. For the plans detailed in the following table, the expiration date of the associated collective bargaining agreements was July 31, 2018, with the exception of the Automotive Industries Pension Plan and the IAM National Pension Fund / National Pension Plan which both have a July 31, 2019 expiration date. For those plans covered by the collective bargaining agreement that expired on July 31, 2018, we have accrued a liability for the estimated contributions (which are included in the following table) under our new collective bargaining agreement that has been approved, but not yet implemented. For all plans detailed in the following table, we provided more than 5% of the total plan contributions from all employers for 2018, 2017 and 2016 (as disclosed in the annual filing with the Department of Labor for each respective plan). Certain plans have been aggregated in the “all other multiemployer pension plans” line in the following table, as the contributions to each of these individual plans are not material.
| EIN / Pension Plan |  | Pension Protection Act Zone Status |  | FIP / RP Status Pending / |  | (in millions) UPS Contributions and Accruals |  | Surcharge
Pension Fund | Number |  | 2018 |  | 2017 |  | Implemented |  | 2018 |  | 2017 |  | 2016 |  | Imposed
Alaska Teamster-Employer Pension Plan | 92-6003463-024 |  | Red |  | Red |  | Yes/Implemented |  | $ | 5 |  |  | $ | 5 |  |  | $ | 5 |  |  | No
Automotive Industries Pension Plan | 94-1133245-001 |  | Red |  | Red |  | Yes/Implemented |  | 5 |  |  | 5 |  |  | 4 |  |  | No
Central Pennsylvania Teamsters Defined Benefit Plan | 23-6262789-001 |  | Green |  | Green |  | No |  | 44 |  |  | 40 |  |  | 38 |  |  | No
Eastern Shore Teamsters Pension Fund | 52-0904953-001 |  | Green |  | Green |  | No |  | 6 |  |  | 5 |  |  | 5 |  |  | No
Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund | 55-6021850-001 |  | Red |  | Red |  | Yes/Implemented |  | 13 |  |  | 12 |  |  | 11 |  |  | No
Hagerstown Motor Carriers and Teamsters Pension Fund | 52-6045424-001 |  | Red |  | Red |  | Yes/Implemented |  | 9 |  |  | 8 |  |  | 7 |  |  | No
I.A.M. National Pension Fund / National Pension Plan | 51-6031295-002 |  | Green |  | Green |  | No |  | 38 |  |  | 35 |  |  | 31 |  |  | No
International Brotherhood of Teamsters Union Local No. 710 Pension Fund | 36-2377656-001 |  | Green |  | Green |  | No |  | 129 |  |  | 118 |  |  | 107 |  |  | No
Local 705, International Brotherhood of Teamsters Pension Plan | 36-6492502-001 |  | Yellow |  | Yellow |  | Yes/Implemented |  | 104 |  |  | 93 |  |  | 88 |  |  | No
Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan | 51-6117726-001 |  | Yellow |  | Yellow |  | Yes/Implemented |  | 116 |  |  | 110 |  |  | 103 |  |  | No
Milwaukee Drivers Pension Trust Fund | 39-6045229-001 |  | Green |  | Green |  | No |  | 42 |  |  | 38 |  |  | 36 |  |  | No
New England Teamsters & Trucking Industry Pension Fund | 04-6372430-001 |  | Red |  | Red |  | Yes/Implemented |  | 121 |  |  | 114 |  |  | 114 |  |  | No
New York State Teamsters Conference Pension and Retirement Fund | 16-6063585-074 |  | Red |  | Red |  | Yes/Implemented |  | 108 |  |  | 100 |  |  | 91 |  |  | No
Teamster Pension Fund of Philadelphia and Vicinity | 23-1511735-001 |  | Yellow |  | Yellow |  | Yes/Implemented |  | 66 |  |  | 60 |  |  | 56 |  |  | No
Teamsters Joint Council No. 83 of Virginia Pension Fund | 54-6097996-001 |  | Green |  | Green |  | No |  | 69 |  |  | 64 |  |  | 61 |  |  | No
Teamsters Local 639—Employers Pension Trust | 53-0237142-001 |  | Green |  | Green |  | No |  | 61 |  |  | 55 |  |  | 51 |  |  | No
Teamsters Negotiated Pension Plan | 43-6196083-001 |  | Green |  | Green |  | No |  | 34 |  |  | 32 |  |  | 31 |  |  | No
Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan | 52-6043608-001 |  | Green |  | Green |  | No |  | 22 |  |  | 20 |  |  | 19 |  |  | No
United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan | 13-1426500-419 |  | Red |  | Red |  | Yes/Implemented |  | 95 |  |  | 88 |  |  | 83 |  |  | No
Western Conference of Teamsters Pension Plan | 91-6145047-001 |  | Green |  | Green |  | No |  | 868 |  |  | 772 |  |  | 694 |  |  | No
Western Pennsylvania Teamsters and Employers Pension Fund | 25-6029946-001 |  | Red |  | Red |  | Yes/Implemented |  | 31 |  |  | 30 |  |  | 28 |  |  | No
All Other Multiemployer Pension Plans |  |  |  |  |  |  |  |  | 56 |  |  | 66 |  |  | 56 |  |  |
|  |  |  |  |  |  | Total Contributions |  | $ | 2,042 |  |  | $ | 1,870 |  |  | $ | 1,719 |  |  |
Agreement with the New England Teamsters and Trucking Industry Pension Fund In 2012, we reached an agreement with the New England Teamsters and Trucking Industry Pension Fund ("NETTI Fund"), a multiemployer pension plan in which UPS is a participant, to restructure the pension liabilities for approximately 10,200 UPS employees represented by the Teamsters. As of December 31, 2018 and 2017, we had $852 and $859 million, respectively, recognized in "Other non-current liabilities" as well as $7 million as of December 31, 2018 and 2017 recorded in "other current liabilities" on our consolidated balance sheets representing the remaining balance of the NETTI Fund withdrawal liability. This liability is payable in equal monthly installments over a remaining term of approximately 44 years. Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2018 and 2017 was $832 and $921 million, respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. Multiemployer Health and Welfare Plans We also contribute to several multiemployer health and welfare plans that cover both active and retired employees. Healthcare benefits are provided to participants who meet certain eligibility requirements as covered under the applicable collective bargaining unit. The following table sets forth our calendar year plan contributions and accruals. For those plans covered by the collective bargaining agreement that expired on July 31, 2018, we have accrued a liability for the estimated contributions (which are included in the following table) under our new collective bargaining agreement that has been approved, but not yet implemented. Certain plans have been aggregated in the “all other multiemployer health and welfare plans” line in the table, as the contributions to each of these individual plans are not material.
| (in millions) UPS Contributions and Accruals
Health and Welfare Fund | 2018 |  | 2017 |  | 2016
Central States, South East & South West Areas Health and Welfare Fund | $ | 2,530 |  |  | $ | 2,366 |  |  | $ | 2,268 |
Teamsters Western Region & Local 177 Health Care Plan | 656 |  |  | 605 |  |  | 571 |
Health & Welfare Insurance Fund Teamsters Local 653 | 8 |  |  | 7 |  |  | 6 |
Bay Area Delivery Drivers | 40 |  |  | 37 |  |  | 35 |
Central Pennsylvania Teamsters Health & Pension Fund | 29 |  |  | 27 |  |  | 25 |
Delta Health Systems—East Bay Drayage Drivers | 30 |  |  | 29 |  |  | 27 |
Employer—Teamster Local Nos. 175 & 505 | 12 |  |  | 11 |  |  | 11 |
General Teamsters Local 493 Health Services & Insurance Plan | 6 |  |  | 5 |  |  | 5 |
Joint Council #83 Health & Welfare Fund | 40 |  |  | 37 |  |  | 33 |
Local 191 Teamsters Health Fund | 13 |  |  | 13 |  |  | 12 |
Local 401 Teamsters Health & Welfare Fund | 10 |  |  | 9 |  |  | 8 |
Local 443 Transportation Health Services & Insurance Plan | 6 |  |  | 5 |  |  | 5 |
Local 804 Welfare Trust Fund | 90 |  |  | 84 |  |  | 79 |
Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund | 43 |  |  | 38 |  |  | 36 |
Montana Teamster Employers Trust | 9 |  |  | 8 |  |  | 8 |
New York State Teamsters Health & Hospital Fund | 62 |  |  | 59 |  |  | 56 |
North Coast Benefit Trust | 12 |  |  | 11 |  |  | 8 |
Northern California General Teamsters (DELTA) | 153 |  |  | 132 |  |  | 116 |
Northern New England Benefit Trust | 54 |  |  | 50 |  |  | 47 |
Oregon / Teamster Employers Trust | 43 |  |  | 38 |  |  | 34 |
Teamsters 170 Health & Welfare Fund | 18 |  |  | 17 |  |  | 16 |
Teamsters Benefit Trust | 48 |  |  | 46 |  |  | 43 |
Teamsters Local 251 Health & Insurance Plan | 17 |  |  | 15 |  |  | 14 |
Teamsters Local 404 Health & Insurance Plan | 8 |  |  | 8 |  |  | 7 |
Teamsters Local 638 Health Fund | 48 |  |  | 43 |  |  | 40 |
Teamsters Local 639—Employers Health & Pension Trust Funds | 29 |  |  | 27 |  |  | 27 |
Teamsters Local 671 Health Services & Insurance Plan | 19 |  |  | 17 |  |  | 17 |
Teamsters Union 25 Health Services & Insurance Plan | 56 |  |  | 52 |  |  | 50 |
Teamsters Union Local 677 Health Services & Insurance Plan | 12 |  |  | 11 |  |  | 10 |
Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund | 18 |  |  | 16 |  |  | 16 |
Utah-Idaho Teamsters Security Fund | 32 |  |  | 29 |  |  | 26 |
Washington Teamsters Welfare Trust | 57 |  |  | 52 |  |  | 47 |
All Other Multiemployer Health and Welfare Plans | 60 |  |  | 68 |  |  | 58 |
Total Contributions | $ | 4,268 |  |  | $ | 3,972 |  |  | $ | 3,761 |

X
- Definition Multiemployer Employee Benefit Plans + References No definition available. + Details
Name: | ups_MultiemployerEmployeeBenefitPlansTextBlock
Namespace Prefix: | ups_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_MultiemployerPlansAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration