Application No. 42924 Exhibit No. Witness Date ---------------足 Commissioner Examiner
--------
---------------
CALIFORNIA PUBLIC UTILITIES COMMISSION TRANSPORTATION DIVISION ENGINEERING ECONOMICS BRANCH
FREIGHT COST SECTION
REPORT OF STUDY
UNITED PARCEL SERVICE IN CALIFORNIA
RESULTS OF OPERATIONS
SYSTEM AND CERTIFICATED OPERATIONS
UNDER CURRENT MID PROPOSED RATES
APPLICATION NO. 42924
San Francisco, California April 28, 1961
A. R. Day Senior Transportation Engineer
INTRODUCTION Application No. 42924 is an application by United Parcel Service requesting an increase in rates applicable to the wholesale parcel delivery in Southern California.
After submission the matter was reopened for further
hearing. This study shows the results of operations of the United Parcel Service in California at current rates and rates as proposed.
The proposed
increase in rates would be applicable only to the Southern California certificated portion of the system operations. An important objective of this study is to segregate the certificated
operations from the system.
To achieve this objective a very careful review
was made of company allocation procedures.
The staff found the allocation
procedures to be reasonable, and were adopted for this study. Further, the staff has reviewed company accounting methods, and for the purposes of this study, has made the following modifications to reflect staff practices, generally based on past Commission decisions. a.
Management Fees:
This item, as shown in company books, has
been modified in this study to reflect an assignment of costs based upon underlying expenses, rather than as a percentage of gross revenue and a portion of net operating revenue. b.
Operating Rents:
For those facilities leased from affiliates
staff estimates reflect a substitution of expenses on a liAs owned basis" rather than intercompany rental charges appearing in company book expenses. c.
Depreciation Expense as Included in Operating Expenses:
This
expense is set up on company books on the basis of straight line depreciation.
For revenue equipment (trucks) this study
- 1 足
-
---- - - --
--
reflects an extended service life, from the end of 1960.
For
other depreciable property the service lives used by the company appear reasonable. d. Depreciation Expense for Income Tax:
The company computation
of this item is on the basis of accelerated depreciation.
All
computations in this study are on this same basis; that is, income taxes on the basis as paid. The following is the detail and development of this staff study in this matter, reflecting the foregoing, and for the following conditions. Results of Operations for: (1) Company books for the year 1960 (page 15). This statement shows the company books unadjusted for the System and for certificated operations.
The latter reflects revenue
at current rates and expenses as allocated from the system total. (2) Company books for the year 1960, adjusted for Management Fee, and Rentals from Affiliates (page 16).
This statement shows
the company books adjusted for the two named items; Management Fee was modified to reflect an allocation of cost, and Rentals from Affiliates on an "As owned basis!?
Otherwise as in 1 above.
(3) Estimate for a year Beginning July 1, 1961, at Current Rates
(page 17).
The purpose of this estimate is to show the results
of operation for a future period under current rates and estimated expenses for the future period.
The revenues in
Northern California reflect the level of rates effective in NOVember, 1960, and at current rates in Southern California. The expenses reflect the contract level wages for the period, ~funagement
Fee and Rentals from Affiliates as in 2 above, and
- 2 足
Depreciation Expense on a straight line basis, extended life from the end of 1960. (4) Estimate for a year Beginning July 1, 1961, at rates as Proposed in Application No o 42924 (page 18).
This is intended
to show the estimated results of operations under the proposed rates, and reflecting expenses as outlined in 3 above.
Computations have been made for alternatives to the proposed rates for Southern California, and show for the Certificated Operations the following results: Southern California Rate Alternatives to Proposed Piece Rates No Change in Other Proposed Conditions Increase Piece Increase Piece Rate by 2¢ Rate by let Rather Than 31 Rather Than 3¢ Operating Ratio Before Income Taxes After Income Taxes
91.6 95.1
92.6 95.6
Rate of Return
10.4
9.3
Associate Engineer E. M. Jennings assisted in the preparation of this study. Full cooperation was provided by the company in obtaining the basic data for this study.
- 3
路
.
.
DEV;;LOP!1?NT.-9FR6V~NUE
FCR UNITli:D PARCEL SE.'RVIC2: CALIFORNIA C::RTIFICAmD OP::;RATIONS
FOR TTlmLVE MONTHS AT CURRENT RATts AND AT RATES PROPOSLD IN APPLICATION NO. 42924
:Line:
No. :
Northern California 1 Rates Zone A
2 3 4 5 6 7 8 9 10
B
C 0 E
At Rates Effective November 1960
4,523,153 2,303,027 1,347,119 220,5 06
1 Total Weight Revenue Total Piece Revenue 8,393,806 C.O.D. Revenue 245,099 Service Charge Revenue Total Northern California
40,482,219 21,095,727 12,272,254 2,030,860 10 ---75,881,070
3-;< $ 1,214,467 843 , 829 4"c 5{c 613,613 T,;142,160 9-:<1 ~ 2,814,070 16~ &l9~ 1,365,555 20r &30 51,215 372,159 ~i; 4,602,999
3,122,580 3,457,744 677,464 1,136,017 1
11
12 13 14 15 16 17 18 19 20
12,176,042 110,071,420 1,848,684 18,135,59 0 2,422,778 24,542,741 C 143,201 D 1,371,866 E 6,233 793 Total Height Revenue 154,127,850 Total Piece Revenue 16,591,498 C.O.D. Revenue 691,865 B
245,099
At Proposed
Service Charge Revenue Total Southern California Total Operations ><
Rate in Cents per Pound.
# Rate in Cents per Piece.
p Rate
in Cents Each.
3* $ 3,302,143 4-:<725,424 5 ~<1,227,137 7~k
9* 路 l~
96,031
561
$ 5,351,296
2,654,640 138,373
2if
719,285 8,863,594 $13,466,593
~
10,800,881 3,223,845 895,732 1,670,247 793 10,591,498 691,865
31<4* 5-;,' T' 9-><-
~,
8,39),805
~ soutl:l_~Tn
california Rates-Zone A
27,947,091 31,391,107 6,171,697 10,371,165 10 75,881,07 0
97,639,964 30,567,045 9,073,7 65 16,840,843 6,233 154,127,850
838,413 1,255,644 308,585 725,982 1 qj> 3,128,625 1,594,823 73,530 372,159 $ 5,169,137 $
Rat~s
3* 4*
2,929,199 1,222,682 5~~ 453,688 7-;~ 1,178,859 9* 561. $ 5,784,989 ~
19ft
3,152,385
30P
207,560 719,285 $
9,864~219
$15,033 ,356
Sheet 1 of 3 NGRTHERN CALIFORNIA AREA OF UNITT::D PARCEL SERVICE 1960 SYSTEM 'B'OQK-fOTAL AND CERTIFICATED PORTION HITH ESTU1ATED SYSTEM AND CERTIFICATED FOR A YEAR BEGINNING JULY 1, 1961
:1ine:Acct. : : No.: No.
m
V1
1 2 3 4 5 6 7 8
4110 4120 4130 4145 4160 4180 4185
9 10 11 12 13 14 15 16 17 18
4210 4220 4230 4245 4250 4260 4270 4280 4285
System Per Books
Account Description
(3)
(2)
Equipment Maintenance Supervision Office Expense Repair & Service Rev. Equip. Employee Welfare Exp. Tires, etc. Other Maintenance Expense Operating Rents Total Transportation Supervision Office Expense Drivers and Helpers Employees Welfare Fuel Oil Purchased Transportation Other Expense Operating Rents Total
(Red Figure) (See footnot es on Sheet 3)
:t:stlIllate'd Year--136glnm.ng July I, 1961 Year 19bO :Certificated Portion :Northern California: Estimated Al1ocated:Relation. : Operations : Certificated Lmount :Cert. Sys.:Adjustment : Amount : Operations (5)
(6)
45,272 $ 24,966 965 520 621,254 338,037 16,767 9,170 85,586 47,198 25,915 14,283 28,197 15,549 $--52j,9S6 $ 449,723
55.1 53.9 54.4 54.7 55.1 55.1 55.1
$ 1,500
$
54.4 49.6 52.6 35.6 40.7 75.4 62.3 48.3 60.1
(4)
$
601,438 $ 327,101 72,066 145,402 3,913,002 2,058,872 203,001 72,283 182,356 74,213 9,869 7,438 4,988 3,109 71,267 147,574 174,214 104,673 $ 5,381,844 $2,791,022
CT~- --~lfJ
$
26,300
( 28(197) $ 397)
$ 50,~00 (I, 00) 209,900
t17g,2~) 8 ,60
46,772 $ 965 647,554 16,767 85,586 25,915 -짜,
~Z3~9
$
25,800 500 352,300 9,200 47,200 14,300
*
$
449,300
651,938 $ 143,902 4,122,902 203,001 182,356 9,869 4,988 147,574
354,700 71,400 2,168,600 72,300 74,200 7,400 3,100 71,300
~~~
rS-;466~30
* $ -- - z,-ff23 ,000
Sheet 2 of 3 CALIFORNIA AREA OF UNITED PARCEL SERVICE
1960 SYSTEIvl BOOK TOTAL AND CERTIFICATED PORTION v,[TH ESTIYtATED SYSTEM AND
CFBTIFICATED FOR A YEAR BEGINNING JULY 1, 1961
~TORTHERN
-. :Line:Acct. : No.: No.
Year 1960 ------- -- - --:-Xitimat"sa"Year Beginm_ng July I,I96T:
System :Certificated Portion: Northern California Estimated :
Allocatecl:Relation. : Operations :Certificated:
Per Books Amount :Cert. Sys.: Adjustment Amount Operations 0) (4) (ST (6) (7) (8)
Account Description
- 01
(2)
4311 4312 4313 4320 4340 4345 25 4350 26 4380 27 4385 28
Terminal Supervision Salaries - Bill & Collect Salaries - Other Office Expense Platform Salaries Employees "Jelfare Other Employees Other Expense Operating Rents Total
29 4410 30 4445 31
Traffic Supervision Employees II/elf are Expense Total
20,757 $ 1,104 ..... $ -.....,2=1..... , 8.....6.....1 $
Insurance and Safety Supervision Office Expense
$
19 20 21 22 23 24
0"
32 33 34 35 36 37 38 39 40
4510 4520 4530 4540 4545 4550 4560 4570
$
(Red Figure)
(See Footnotes on Sheet 3)
$
6,780
86,5~8
104,912 489 336,856 20,546 17,768 11,275 7,015 $ ---834";074 r592--;229 $
P.L. & P. D.
Workmer}s Compo Employees Welfare Cargo Loss & Damage Fire, Theft, etc. Other Expense Total
9,417 97,061 219,912 720 403,873 24,014 38,254 19,953 20,870
$
72.0
89.2 47.7 67.9 83.4 85.6 46.4 56.5 33.6
11,3 65 449 11, 814
54.8 40.7
104,687 $ 54,230 2,277 4,466 89,843 43,093 61,592 37,323 1,126 2,185 88,180 121,368 1,950 4,464 780 1,446 390,051 $22-5';-959
51.8 51.0 48.0 60.6 51.5
500
$
10,800
9,917 97,061 230,712 424,873 24,014 39,554 19,953
1,300
(20,870) * $12, 730 $--840,504 $
500
$
500
$ 3,100
~3;IOO
$
720
21,000
72.7
43.7 53.9
$
-x
$608,500
21,257 1,104 ,--2-2-;361
$
~p
$
$
107,787 4,466 89,843 61,592 2,185 121,3 68 4,464 1,446 $"--T93,I5I
7,100 86,600 · -110,000 500 354,300 20,600 18,400 11,300
$
11,600 400 12,000 55,8do 2,3 00 43,100 37,300 1,100 88,200
2,000 800
$ 230,506
i~ORTHERN CALlFOliNIA AREA OF UNITED PARCEL SERVICE 1960 SYSIDI BOOK TarAL AND CERTIFICATED PORTION \dTH ESTIJVIATED SYSTEM AND CERTIFICATED FOR A YEAR BEGINNING JULY 1, 1961
:Line:Accto: No.: No. (1)
-.,J
I
41 42 43 44 45 46 47 48 49 50 51 52 53
54 55 56 57 58 59
4613 4622 4623 4630 4635 4640 4645 4650 4660 4670 4680 4685
Account Description (2) Administrative and General Salaries, Other GenII Off. Emp $ II 11 II E>cpenses, " l Other Gen l. Off. E>cp. Law Exp. Audit Exp. Communication Exp. Employees Welfare Exp. Mana p. ement Fee Uncollectab1e Revenue Regulatory Exp. Other EXpense Operating Rents Total $
Year I900 :Estimated Year Beginning JUly l z 1961 System :Certificated Portion Northern California : Estimated Per :Allocated:Relation. Operations :Certificated Books : Amount :Cert. Sys. Adjustment Amount Operations (3) (7) (8) (6 ) (5 ) (4) 68,983 $ 2,261 28,238
46,690 1,135 17,979
67.7 50.2 63.7
1,400 67,614 1,665 560,712 1,564 28,623 6,947 9 2 838 777,845 $
757 33,978 1,047 207,134 876 15,343 3,809 72 828 336,576
54.1 50.3 62.9
Operating Expense
61 5000
Depreciation Expense (Pg.12)
62
5100
Depreciation Adjustment
63
5200
Operating Taxes
64
*
~8,229,631
$4;410,323
330,918
186,766
$
2,300
$
( 2'18 z643 ) 56.0 53.6 54.8 79.6
Co. Affi1itate Book Items of Operating Rent Exp. Lease from Non-Affiliates Affiliate expenses - Haintenance (Annual) - Insurance - Taxes - Depr. Exp. # Total
60
Sheet 3 of 3
56.4
(3,§0~)
(9 z 3 ) $(229,1§1)
71, 28 3 $ 2,261 28,238
48,300 1,100 18,000
1,400 67,614 1,665 342,069 1,564 28,623 3,947
800 34,000 1,000 187,400 900 15,300 2,200
.,'!
$
548,664 $
* 309,006
$ 68,400 19,300 1,500 45,800
$
68,400 $ 19,300 1,500 45,800
39,672 11,194 870 26,564
$IT5~ooo
$ -135;000 $
78,-300
~
$ 8,236,069 $ 4,511,000
6 ,r~38 ( 8,437)
3 22 ,481
181,879
10,360
508,880
284,246
5,100 498,520
273,886
$ 9,064,169 $4,870,975 $ 8,361 $ 9,067,430 $ 4,977,125 Total Expense See Substitute items Lines 54 to 58,Inclusive. # See DepreCiation Expense Page 12. (Red Figure) '
Sheet 1 of 3 SOUTHERN CALIFORNIA AREA OF UNITED PARCEL SERVICE 1960 SYSTEM BOOK TOTAL AND CERTIFICATED PORTION WITH ESTIMATED SYSTEM AND CERTIFICATED FOR A YEAR BEGINNING JULy 1, 1961
: Line: Acct.: No.: No. (1)
tion ~uiEment
System per Books 3
Year 1900 -- -_. : Estimat~J..i!ar Beginning ..JuJ,y_hJ9!21_: : Certificated Portion Suuthern California Estimated Allocated :Relation.: Operations : Certificated : Cert. ' 5)
Maintenance
$ 78,601 $ 24,941 1 4110 Supervision Office Expense 1.941 2,733 2 4120 Repair & Service Rev. EqUipment 866,803 5'93,511 4130 3 22,15 4 23,776 4 4145 Employee Welfare Expense Tires etc. 136,800 4160 43,409 5 ' 60,785 22,396 6 4180 Other Maintenance Expense 21 z 632 41 2 204 7 4185 Operating Rents Total $1,211,002 $ 729,984 8
31.7 71.0 68.5 93.2 31.7 36.8 52.1
$
1,500 $ 28,300
80,101 $ 25,400 1,900 2,733 613,100 895,103 22,200 23,775 43, L~OO 136,800 60,785 22,400
t412 50~~ * * $ 11.70 $1,199,298 ~~
~
9 10 11 12 13 14 15 16 17 18
4210 4220 4230 4245 4250 4260 4270 4280 4285
(Red
Transportation Supervision Office Expense Drivers and Helpers Employees Welfare Fuel Oil Purchased Transportation Other Expenses Operating Rents Total
$ 844,5 87 $ 472,628 160,138 92,606
6,981,407 3,928,623 303,176 113,976 234,859 74,525 4,922 15,513 8,208 1,315 108,294 215,995 385,722 239,226 $9,149,605 $5,036,115
56.0 57.8 56.3 37.6 31.7 31.7 16.0 50.1 62.0
$ 123 z 300 $ 967,881 $ 542,000
(1 2 500) 158,638 91,700 498,000 7,479,407 4,210,900 114,000 303,176 74,400 234,859 15,513 4,90 0 8,208 1,300 108,200 215,995 (385 , 722) * * $ 234,078 $9,383,683 $5,147,400
Figure)
(See footnotes on Sheet 3)
•
Sheet 2 of 3 SOUTHERN CALIFORNIA AREA OF UNITED PARCEL SERVICE
1960 SYSTDq BOOK TOTAL AND CERTIFICATED PORTION WITH ESTIMATED SYSTEM AND
CERTIFICATED FOR A YEAR BEGINNING JULY 1, 1961
System : Line: Acct .: : No.: No. :
tlJ"
-.0
19 20 21 22 23 24 25 26 27 28
4311 4312 4313 4320 4340 4345 4350 4380 4385
Account Description
Books
Amount
:Cert./Sys.: Adjustment
Amount
Operations
(2)
Terminal Supervision Salaries - Bill & Collect Salaries - Other Office Expense Platform Salaries Employees Welfare Other Employees Other Expenses Operating Rents Total
16,458 $ 5,142 319,672 143,953 142,390 331,837 40,199 90,259 660,597 397,873 34,082 21,500 路 126,573 62,539 85,708 55,645 29 z02O 97 z790 $1,762,9% $ 898,261
31.2 45.0 42.9 44.5 60.2 63.1 49.4 64.9 29路7
$
8,059 303 8,362
46.5 43.5
$
1,200 $
$ 108,850 $ 48,237 6,575 3,955 106,734 62,455 78,490 43,708 2,308 1,024 206,522 136,852 4,221 9,918 1 2 484 ~~057 $ 52 , 454 $ 301,936
44.3 60.2 58.5 55.7 44.4 66.3 42.6 48.5
$
1,300 $ 50,800 48,000 9,600
$
17,758 $ 319,672 382,637 90,259 708,597 34,082 136,173 85,708
\97 z790 ; * 11,910 $1,774,886 $
5,500 143,900 164,200 40,200 426,600 21,500 67,300 55,600
* 924,800
Traffic
29 4410 Supervision 30 4445 Employees Welfare Expense Total 31 32 33 34 35 36 37 38 39 40
4510 4520 4530 4540 4545 4550 4560 4570
Insurance and Safety Supervision Of'fice Expense P.L. & P.D. Workmens Compensatlon Employees Welfare Cargo Loss and Damage Fire, Theft etc. Other Expenses Total
(Red Figure)
(See footnotes on Sheet 3)
$
$
17,3 42 $ 696 18,038 $
8,600
$
1,200 $
18,542 $ 696 19,238 $
$
8,300 $ 117,150 $ 6,575 106,734 78,490 2,308 206,522 9,918 "'\ . 22掳:27 8,300 $ 530,754 $
51,900 4,000 62,400 43,700 1,000 136,900 4,200 1 2 200 305,600
$
~OO
8,900
SOUT~~ CALIFORNIA AREA OF Ul~ITED PARCEL SERVICE 1960 SYSTEM BOOK TOTAL AND CERTIFICATED PORTION WITH EST~~TED SYSTEM AND CERTIFICATED FOR A YEAR BEGINNING JULY 1, 1961
Sheet 3 of 3
: Estimated Year Beg:fiirilng Ju-ry:l, 1961 Certificated Portion : Southern California .t;stimated Allocated :Relat~_on. : Operations Certifiaated Amount Operations :cert.~sys.: Adjustment: Amount (4) (8) (5 (6) (7)
-~:--~~~-~~-Year1960-
System per Books. ( 3)
: Line: Acct.: No.: No. (I)
I
b I
Account DescriEtion (2) Administrative and General Salaries, Other Gen. Off. Emp. 41 4613 42 4622 Expenses, Other Gen. Off. Emp. Other Gen. Off. Expense 43 4623 Law Expense 44 4630 Audi t Expense 45 4635 Communication Expense 46 4640 Employees Welfare Expense 47 4645 Manage:m<;nt Fee 48 4650 49 4660 Uncollectible Revenue 50 4670 Regulatory Exp. Other Expense 51 4680 Operating Rents 52 4685 Total 53 Company Book Items of Lease from Non- filiatea 54 55 Affiliate Expenses - Maintenance (Annual) - Insurance 56 - Taxes 57 - Depr. Exp. 7f= 58 Total 59 Total Operating Expenses 60 61 5000 Depreciation Expense (Pg. 12 ) 62 5100 63 64
*
Depreciation Adjustment
Operating Taxes Total Expense
119,362 $ 48,219 234 95 38,122 15,497 304 637 1,675 798 44,178 78,701 880 1,978 1,847,588 398,861 l,So4 3,784 61,216 29,545 23,610 48,936 27,813 11,237 $ 2,230,046 $ 575,028
$
$
9,500 $
(lz251z98:z ) 47.7 48.3 48.2 40 .4
(20,000)
128,862 $ 52,000 100 234 38,122 15,500 637 300 Soo 1,675 44,200 78,701 1,978 900 327,500 595,603 l,SoO 3,784 61,216 29,600 28,936 13,900
*
{27 z 813)
* $[1,290,298) ~939,748 $ 486,600
ense 54.0 54.0 54.0 54.0
$
18,700 57,600 3,200
$
109~700
18,700 $ 57,600 3,200 109,700
10,100 31,104 1,728 59,238
,-~
$14,894,121 $7,549,686 $ 876,313 $ 532,128 $ $
60.7
$ 189,200 $W9,200 $ 102,170 $ $ (197,6bI) $ 678,652 $ 411,942
13,500 958,808 $ 515,529
$16~742,742 $8,597,343
See Substitute Items, Lines 54 to 58,Inclusive.
# See Depreciation Expense Page 12.
40.4 40.6 40.7 47.7 47.6 56.1 44.5
( Red
Figure )
$
18,311 $
977,119 $
533,840
$(1~6~~ยง~) $15,692,578 $8, 649,652
DEVELOPHENT OF MANAGEMENT COST
FOR CALIFORNIA OPERATIONS
Total Expenses Excluding lYianagement Fee
: Line:
:
Percent
0)
(2)
: Nanagement Cost
(4)
The following assignment of "Hanagement Costs" is on the basis of Total Expense exclusive of Management Fee. All Operating Subsidiaries of United Parcel Service of llmer. Inc. 1
Total Expense - Year 1960
$107,745,093
2
Less Hanagement Fees in Above
!iP (?, 335 , 231 )
3
Total Expense less l',1anagement Fees
:n;100, 409,862
100.0%
$4,024, 343~-
California System Operations 足 Year 1960
4
Northern California
5
Southern California Operations
6
$ 8,503,457
Oper~tions
Total
8.5% (1)
~
342,069 595,603
~
14,895,154
14.8% (1)
~
;j,'
23,398,6n
23.3% (1)
$ 937,672
California Certificated Operations Year 1960
7
Northern California Operations
~i
4,663,841
54.8% (2)
$
187,400
8
Southern California Operations
iI'
8,198,480
55.0% (3)
~
327,500
$ 12,862,321
54.9% (4)
~
514,900
9
Total
(Hed Figure) -l,C
Cost to United Parcel Service of America, Inc. and United Parcel Service General Services Co., both of Delaware.
(1) %of Line 3;
(2)
%of
Line
4;
- 11 足
(3)
%of
Line 5;
(4)
%of
Line 6.
DEPRECIATION EXPENSE
FOR OPERATIVE PROPERTY FOR YEAR 1960. AND YEAR BEGINNING
:Line: No. :
System Calendar Year 1960 Northern Southern Total California California (1) (2~ (3)
Item
J~LY_~1961
Estimate For Year Begirilllng 7/1/61 System Northern Southern Total California California: (4) (5) (6)
Depreciation Expense (Books) 1 2 3
Buildings~:-
Revenue Equipment Shop and Garage, Fixtures,
and Misc. Equipment Leasehold
$ 143,730* 878,337
$ 43,305* 240,307
$100,425*
638,030
277,367 51 2 527
65,652 24 2 959
~568
5 Book Total (L. 2,3,4)
$1,207,231
$330,918
$876,313
6 Books Adjusted (L. 1 to 4)
$1,350,961
$374,223
$976,738
4
211,715
f-J
I\)
Depreciation Expense (Extended Life From December 31, 1960)#
I
7 8
9 10
Buildings~C
Revenue Equipment Shop and Garage, Fixtures, and Misc. Equipment Leasehold
11 Total Depreciation Expense 12 13 14 15
Buildings* Revenue Equipment Shop and Garage, Fixtures and Misc. Equipment Leasehold
16 Total
*
~Accelerated
$ 172,400 460,910
$ 54,700 152,364
$ 117,700 308,546
316,572 512251 $1,001,133
90,612 24 z80 5 $322,481
225,960 26 z446 $ 678,652
$ 258,800 841,418
$ 79,200 247,233
$
367,626
109,120
258,506
$1,467,844
$435,553
$1,032,291
For Income Tax Purposes2
Amounts for facilities leased from Affiliated Companies.
# Extended life applied to Revenue Equipment only - otherwise as on company books.
179,600 594,185
INVESTMENT AND DEPRECIATION RESERVES FOR
OPERATIVE PROPERTY AS OF DECEMBER 31, 1960, AND DECEMBER 31, 1961
:Line : No.
Item
As of 12-31-60 System Total ( 1)
Estimated as of 12-31-61 System Total (2)
$ 1,147,826*
$ 1,416,826
4,931,440* 7,989,580
5,169,440 8,862,691
3;351,940 230 z 579
3,472,922 230,579
Investment 1 2 3 4 5 6 7 8
Land* BUildings* Revenue Equipment Shop & Garage, Fixtures, and Miscellaneous Equipment Leasehold Book
Total (L. 3, 4, 5)
Books Adjusted (41 to 5) Work in Progress
$ 11,572,099 $ 17,651,365
$ 19,152,458 $
515,518
Depreciation Reserve (Books} 9 10 11 12
Buildings* Revenue Equipment Shop & Garage, Fixtures, and Miscellaneous Equipment Leasehold Book Total (4
13 14
10~
11, 12)
Books Adjusted (L.9 to 12)
$
670,124* 5,514,030 1,767,514 1722 328
$ 7,460,872 $
8,130,996
DeEreciation Reserve (Extended Life from December 31 % 1960) 15 16 17 18 19
-)<
$
Buildings* Revenue Equipment Shop & Garage, Fixtures and Miscellaneous Equipment Leasehold
80 9,202 6,022,778 2,084,086 230 z579
$ 9,146,645
Total
Amounts for facilities leased from Affiliated Companies am not on operating company books.
- 13 足
RATE BASE DEVELOP}tIENT
System Total
Certificated Operations
Company Books - As Recorded Average for th e Year 1960 Investment Depreciation Reserve Material and Supplies Working Cash Total
$11,084,700
. $ 7,157,556
7,063,1l8
4,648,075
215,000
140 ,000
2 z049 z97~
lz0251000
$ 6,286,555
$ 3,674,481
$16,771,413
$10,531,549
7,697,310
5,019,994
215,000
140,000
1 2 893 z342
946 2 670
$11,182,445
$ 6,598,225
$19,152,458
$11,444,982
9,146,645
5,63 0 ,484
215,000
140 ,000
1 1979 190 6
12043z400
Company Books - As Adjusted* Average for the Year 1960 Investment Depreciation Reserve Materials and Supplies Working Cash Total Estimated* at December 31, 1961 Average for Year Beginning July 1, 1961 Investment Depreciation Reserve 11aterials and Supplies Working Cash Total
* Reflecting
$12,200,719
leased facilities on an VIAs owned basis!!.
-14足
$ 6,997,898
UNITED PARCEL SERVICE RESULTS OF OPERATIONS FROM COMPANY BOOKS FOR THE l~R 1960 FOR CALIFORNIA SYSTEl1 AN D CERTIFICATED OPERATIONS :Line: :No.
I
I-' V't
Item (1)
1
Operating Revenue
2 3 4 5 6 7 8
Operating Expenses Equipment Maintenance Tran sportation Terminal Traffic Insurance and Safety Admin. and General
9
Total Operating Expenses
S;ystem : No. Calif. : So. Calif. (4) (5)
:Page: : Ref.: (2)
Total (3 )
4
$26,956,105
$8,589,448
~18,366,657
~13,466,593
$4,602,999
$8,863,594
& 8 $ 2,034,958 & 8 14,53 1 ,449
$ 1,211,002 9,149,605 1,762,976 18,038 522,454 2,230,046
$ 1,179,707 7,827,137 1,490,490 20,176 530,895 911,604
$
$
2,597,050 39,899 912,505 3,007,891
$ 823,956 5,381,844 834,074 21,861 390,051 777,845
$23, 123,752
$8,229,631
$14,894.,121
$11,960,009
$4,410,323
$7,549,686
1,207,231
330,918
876,313
718,894
186,766
53 2,128
18,600
5,100
13,500
958,808
789,415
273,886
515,529
5 5 6 6 6 7
&
9
&9 &9 & 10
7 & 10
Certificated 0Eerations Onl;y Total : No. Calif. : So. Calif (6 ) (8) (7)
.
449,723 2,791,022 592,229 11,814 228,959 336,576
729,984 5,036,115 898,261 8,362 301,936 575,028
10
Depreciation Expense
11 12
Depreciation Adj. Operating Taxes
7 & 10
1,457,3 28
498,520 ---
13
Total Expense
7 & 10 $25,806,911
$9,064,169
$16,742,742
$13,468,3 18
$4,870,975
$8,597,343
14
Net Operating Revenue
$ 1,149,194
$ (474.721)
$ 1,623,915
$
(1.725)
$ (267 2 976)
$ 266,251
15
Corporate Income Taxes
$
547,422
16
Net Income After Taxes
$
601,772
$>
(1.725)
17 18
Operating Ratio-Before Taxes -After Taxes
105.8%
97 .0%
19
Rate Base
20
Rate of Return
I
(Red
Fi~re)
95.7% 97.8%
14
$ 6,286.1 600
9.6%
105.5%
91 â&#x20AC;˘2%
100.')% $ 3,674,500
UNITED PARCEL SERVICE
RESULTS OF OPERATIONS FOR THE YEAR 1960 FOR
COMPANY BOOKS ADJUSTED FOR MANAGEMENT FEE AND RENTALS FROM AFFILIATES
FOR CALIFORNIA SYSTEM AND CERTIFICATED OPERATIONS
:Line: No. :
Item
(1) 1
Operating Revenue
2
Operating Expenses
:Page: :Ref • :
Total
0)
(2) 4
Slstem : No. Calif.:So. Calif.
Certificated ~erations Onl~ ~ Total : No • alIT.: So. III (6) ( 8) (7 )
(5)
(4)
$26,956,105 $8,589,448 $18,366,657 $13,466,593 $4,602,999 $8,863,594
Equipment Maintenance Transportation Terminal Traffic Insurance and Safety Administration and General Affiliate Operating Expense Including Depreciation Exp.
$ 1,965,257 13,971,513 2,478,390 39,899 912,505 1,499,612
• 10
Total Operating Expense
$21,244,180 $7,927,439 $13,316,741 $11,642,301 $4,342,274 $7,300,027
11 12 13
Depreciation Expense Depreciation Adjustment Operating Taxes
3 4 5 6 7 8 9 I-' 0-.
377 ,004
1,207,231 18,600 1,457,328
Total Expense
14
186,766
532,128
789,!415
273~886
515,529
$23,9 27,339 $8,761,977 $15,165,362
$13,150~610
$
16
Corporate Income Taxes Net Income After Taxes Operating Ratio - Before Taxes - After Taxes
$ 1,424,761 $ 1,604,005
(-m'd
Rate Base Rate of Return F'~gure)
14
122. tll?
718,894
Net Operating Revenue
18 19 20 21
209.567 _ _8§..J2Q
227 ,434
149,570
876,313 13,500 958 2 808
1, l?
795,759 $ 1,169,498 $ 1,142,526 $ 434,174 $ 708,352 5,207,630 8,763,883 7,483,238 2,686,349 4,796,889 1,665,186 1,454,455 813,204 869,241 585,214 21,861 · 18,038 20,176 8,362 11,814 390,051 522,454 530,895 301,936 228,959 950,248 549,364 801,444 309,014 492,430
$>
330,918
5,100 498,!5 2o
3,028,766 $ (172,529)
88.8% 94.0% $11,182,445
14.3%
102.0%
~
3,201,295 $
$4,802,926 $8,347,684
315,983 $ (199,927) 72,831 $ $ 243,152 82.6% 104.3 % 97.6% 98.2 %
$ 6,598,225
3.7%
~
515,910
94.2 %
UNITED PARCEL SERVICE
RESULTS OF OPERATIONS
ESTll'lATE FOR A YEAR BEGINNING JULY 1, 1961 AT CURRENT RATES
FOR CALIFORNIA SYSTEH AND CERTIFICATED OPERATIONS
: Line : : No.:
I
Item
:Page: :Ref.:
(1)
(2)
1
Operating Revenue
2
Operating Expenses
3 4 5 6 7 8
~9
4
System No. Ca1if.:So. Calif.
Total Operating
11 12
Depreciation Expense Operating Taxes
E~ense
Total Expense
$ 449,300 $ 728,400 2,823,000 5,147,400 608,800 924,800 12,000 8,900 230,600 305,600 486,600 309,000
78,300
102.170
& &
10 10
593,821 799,775
181,879 __ 284,246
411,942 515.,529
7
&
10 $24,741,697 $9,067,430 $15,674,267 $13,608,466
$4,977,125
$8,631,341
Corporate Income Taxes
16
Net Income After Taxes Ope~ting Ratio - Before Taxes - After Taxes 14 Rate Base Rate of Return Figure)
$8,863,594
7 7
1,001,133 1,467,688
322,481 508,880
$12,214,870
$5,169,137
10 $22,272,876 $8,236,069 $14,036,807
15
(Re~
$14,032,731
(8)
&
$ 2,780,546 $
20
(7)
(6)
7
Net Operating Revenue
17
(5)
$27,522,243 $9,155,586 $18,366,657
14
18 19
(4)
Certificated Operations Only Total :No. calif. :So. Calif.
5 & 8 $ 2,022,857 $ 823,559 $ 1,199,298 $ 1,177,700 Equipment Maintenance 14,850,213 5,466,530 9,383,683 7,970,400 Transportation 5 &8 6 &9 2,621,690 846,804 1,774,886 1,533,600 Terminal 6 &9 22,361 19,238 20,900 Traffic 41,599 6& 9 536,200 Insurance and Safety 393,151 530,754 923,905 Administration and General 7 & 10 1,488,412 548,664 939,748 795,600 Affiliate Building Expense 7 & 10 180,470_ 324,2_90 _ 135,000 189!200 Excluding Depreciation Exp.
10
13
Total 0)
678,652 958,808
88,156 $ 2,692,390
$
424,265
$ 1,227,722
$
88,515
~.
$
1,552,824 89.9 ;& 94.4% $12,200,700 12.7%
99.0%
85.3%
335,750 97.0% 97.6% $ 6,997,900 4 8% 0
$4,511,000 $7,703,870
$ 192,012 $ 232,253
96.3%
97.4%
UNITBD PARCEL SERVICE
RESULTS OF OPERA TIONS
ESTIMATE. FOH A YEA.l'i BEGINNING JULY 1, 1961
A'T RA1'ES AS PROPOSED IN APPLICATION NO. 42924
FOR CALIFORNIA SYSTEJVi AND CERTIFICATED OPERATIONS
: Line: No. :
: Page: : Ref.: (2 )
Item
(i)
Total
0)
System : No. Calif. : So. Calif. (5) (4)
Certificated Operations Onlz Total : No. Calif. : So. Calif. (7) (6) (8)
~p19, 367,282
- $15,033 , 3"'6 ~
$5,169,137
$9,864,219
$ 823,559 5,466,530 846,804 22,361 393,151 548,664
$ 4-,199,298 9,383,683 1,774,886 19,238 530,754 939,748
$ 1,177,700 7,970,400 1,533,600 20,900 536,200 795,600
$ 449,300
608,800 12,000 230,600 309,000
$ 728,400 5,147,400 924,800 8,900 305,600 486,600
135,000
189,200
180 ,470
78,300
102,170
Total Operating Expenses
7 & 10 $22,272,87 6 $8,236,069
$14,036,807
$12,214, 870
$4,511,000
11
Depreciation Expense
7 & 10
1,001,133
322,481
678,652
593, 821
181,879
411,942
12
OperatingTaxes
7
1,485,999
508, 880
977 ,119
c1l8 z086
284~246
533 z840
13
Total Expense
7 & 10 $24,760,008
~p9 ,067 ,430
~15,692,578
$13,626,777
$4,977 ,125
~8,649,652
14
Net Operating Revenue
:jj)
88,156
$ 3,674,704
$
1,406,579
$ 192,012
!JPl,214,567
15
Corporate Income Taxes
$ 1,738,525
$
599,318
16
Ne t Income After Taxes
~
.jJi
807,261
17 18
~perating
19
Rate Base
20
Rate of Return
1
Operating Revenue
2 3 4 5 6 7 8 9
Operating Expenses Equipment Maintenance Transportation Terminal Traffic Insurance and Safety Admin. and General Affiliate Building Exp. Excl. Depr. Exp.
10
f-J
<:;,28,522,868 $9,155,586
4
5 5
6 6 6 7
& &
8 8
$ ?,022, 85"7 14,850,213 &9 2,621,690 &9 41,599 &9 923,905 & 10 1,488,412
7 & 10
324,200
2,8;0,000
())
I
â&#x20AC;˘
&
Ratio-Before Taxes -After Taxes
10
3,762,860
$
2,024,335 86.8% 92.9%
14
$12,200,700 16.6 %
99.0%
90~6%
81.0%
94.6% ~
6,997,900 11.5%
96.3%
~7,
703,870
87.7%