United Parcel Service
Q4 2022 Earnings Call
Jan 31, 2023, 8:30 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Ken Cook
Good morning and welcome to the UPS fourth-quarter 2022 earnings call. Joining me today are Carol Tome, our CEO; Brian Newman, our CFO; and a few additional members of our executive leadership team. Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements within the federal securities laws and to address our expectations for the future performance or operating results of our company. These statements are subject to risks and uncertainties which are described in our 2021 Form 10-K, subsequently filed Form 10-Qs, and other reports we filed with or furnished to the Securities and Exchange Commission.
These reports, when filed, are available on the UPS investor relations website and from the SEC. Unless stated otherwise, our discussion refers to adjusted results. For the fourth quarter of 2022, GAAP results include a noncash after-tax mark-to-market pension gain of $782 million; a onetime, noncash after-tax charge of $384 million resulting from accelerated vesting of restricted performance units in connection with a change in incentive compensation program design; a noncash, after-tax charge of $58 million from to a reduction in the residual value of our MD-11 aircraft; and after-tax transformation and other charges of $41 million. The after-tax total of these items is $299 million, a benefit to fourth-quarter 2022 EPS of $0.34 per diluted share.
Additional details regarding year-end pension adjustments are included in the appendix of our fourth-quarter 2022 earnings presentation that will be posted to the UPS investor relations website later today. A reconciliation to GAAP financial results is available on the UPS investor relations website, along with the webcast of today's call. Following our prepared remarks, we will take questions from those joining us via teleconference. [Operator instructions] Please ask only one question so that we may allow as many as possible to participate.
You may rejoin the queue for the opportunity to ask an additional question. And now, I'll turn the call over to Carol.
Carol Tome -- Chief Executive Officer
Thank you, Ken, and good morning. Let me begin by thanking you UPSers for delivering what matters to our customers this holiday season. In the quarter, we were faced with choppy demand, continued COVID lockdowns in China, a threat of a rail strike in the United States, and a bomb cyclone in North America. But no matter what came our way, our team delivered.