Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Oct. 16, 2019 | |
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-15451 | ||
Entity Registrant Name | UNITED PARCEL SERVICE INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-2480149 | ||
Entity Address, Street Address | 55 Glenlake Parkway NE | ||
Entity Address, City | Atlanta, | ||
Entity Address, State | GA | ||
Entity Address, Postal Zip Code | 30328 | ||
City Area Code | 404 | ||
Local Phone Number | 828-6000 | ||
Title of 12(b) Security | Class B common stock, par value $0.01 per share | ||
Trading Symbol | UPS | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001090727 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Floating-Rate Senior Notes due 2020 | |||
Title of 12(b) Security | Floating-Rate Senior Notes due 2020 | ||
Trading Symbol | UPS20A | ||
Security Exchange Name | NYSE | ||
1.625% Senior Notes due 2025 | |||
Title of 12(b) Security | 1.625% Senior Notes due 2025 | ||
Trading Symbol | UPS25 | ||
Security Exchange Name | NYSE | ||
1% Senior Notes due 2028 | |||
Title of 12(b) Security | 1% Senior Notes due 2028 | ||
Trading Symbol | UPS28 | ||
Security Exchange Name | NYSE | ||
0.375% Senior Notes due 2023 | |||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | ||
Trading Symbol | UPS23A | ||
Security Exchange Name | NYSE | ||
1.500% Senior Notes due 2032 | |||
Title of 12(b) Security | 1.500% Senior Notes due 2032 | ||
Trading Symbol | UPS32 | ||
Security Exchange Name | NYSE | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 157,067,643 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 700,755,043 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 4,040 | $ 4,225 |
Marketable securities | 498 | 810 |
Accounts receivable, net | 7,951 | 8,958 |
Current income taxes receivable | 204 | 940 |
Other current assets | 1,491 | 1,277 |
Total Current Assets | 14,184 | 16,210 |
Property, Plant and Equipment, Net | 29,071 | 26,576 |
Operating Lease Right-Of-Use Assets | 2,504 | |
Goodwill | 3,783 | 3,811 |
Intangible Assets, Net | 2,131 | 2,075 |
Investments and Restricted Cash | 169 | 170 |
Deferred Income Tax Assets | 194 | 141 |
Other Non-Current Assets | 1,246 | 1,033 |
Total Assets | 53,282 | 50,016 |
Current Liabilities: | ||
Current maturities of long-term debt, commercial paper and finance leases | 2,161 | 2,805 |
Current maturities of operating leases | 500 | |
Accounts payable | 4,218 | 5,188 |
Accrued wages and withholdings | 2,483 | 3,047 |
Self-insurance reserves | 756 | 810 |
Accrued group welfare and retirement plan contributions | 705 | 715 |
Hedge margin liabilities | 713 | 325 |
Other current liabilities | 1,299 | 1,197 |
Total Current Liabilities | 12,835 | 14,087 |
Long-Term Debt and Finance Leases | 21,740 | 19,931 |
Non-Current Operating Leases | 2,063 | |
Pension and Postretirement Benefit Obligations | 6,443 | 8,347 |
Deferred Income Tax Liabilities | 1,886 | 1,619 |
Self-Insurance Reserves | 1,442 | 1,571 |
Other Non-Current Liabilities | 1,299 | 1,424 |
Shareowners' Equity: | ||
Additional paid-in capital | 129 | 0 |
Retained earnings | 10,037 | 8,006 |
Accumulated other comprehensive loss | (4,617) | (4,994) |
Deferred compensation obligations | 25 | 32 |
Less: Treasury stock (0.4 shares in 2019 and 0.6 shares in 2018) | (25) | (32) |
Total Equity for Controlling Interests | 5,558 | 3,021 |
Noncontrolling interests | 16 | 16 |
Total Shareowners’ Equity | 5,574 | 3,037 |
Total Liabilities and Shareowners’ Equity | 53,282 | 50,016 |
Common Class A [Member] | ||
Shareowners' Equity: | ||
Common stock | 2 | 2 |
Common Class B [Member] | ||
Shareowners' Equity: | ||
Common stock | $ 7 | $ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Treasury stock, shares | 0 | 1 |
Class A common stock | ||
Common stock, shares issued | 157 | |
Class B common stock | ||
Common stock, shares issued | 701 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | $ 18,318 | $ 17,444 | $ 53,526 | $ 52,013 |
Operating Expenses: | ||||
Compensation and benefits | 9,590 | 9,015 | 28,206 | 27,084 |
Depreciation and amortization | 587 | 524 | 1,730 | 1,662 |
Fuel | 824 | 867 | 2,451 | 2,469 |
Other occupancy | 346 | 321 | 1,039 | 1,003 |
Other expenses | 1,374 | 1,337 | 4,093 | 3,911 |
Total Operating Expenses | 16,190 | 15,717 | 47,861 | 46,993 |
Operating Profit | 2,128 | 1,727 | 5,665 | 5,020 |
Other Income and (Expense): | ||||
Investment income and other | 237 | 317 | 672 | 913 |
Interest expense | (159) | (155) | (487) | (457) |
Total Other Income and (Expense) | 78 | 162 | 185 | 456 |
Income Before Income Taxes | 2,206 | 1,889 | 5,850 | 5,476 |
Income Tax Expense | 456 | 381 | 1,304 | 1,138 |
Net Income | $ 1,750 | $ 1,508 | $ 4,546 | $ 4,338 |
Basic Earnings Per Share | $ 2.03 | $ 1.74 | $ 5.26 | $ 5.01 |
Diluted Earnings Per Share | $ 2.01 | $ 1.73 | $ 5.23 | $ 4.99 |
Repairs and maintenance | ||||
Operating Expenses: | ||||
Cost of goods sold | $ 485 | $ 437 | $ 1,392 | $ 1,294 |
Purchased transportation | ||||
Operating Expenses: | ||||
Cost of goods sold | $ 2,984 | $ 3,216 | $ 8,950 | $ 9,570 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,750 | $ 1,508 | $ 4,546 | $ 4,338 |
Change in foreign currency translation adjustment, net of tax | (48) | (28) | (28) | (112) |
Change in unrealized gain (loss) on marketable securities, net of tax | (3) | (1) | 6 | (4) |
Change in unrealized gain (loss) on cash flow hedges, net of tax | 206 | 49 | 270 | 315 |
Change in unrecognized pension and postretirement benefit costs, net of tax | 43 | 38 | 129 | 115 |
Comprehensive Income | $ 1,948 | $ 1,566 | $ 4,923 | $ 4,652 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 4,546 | $ 4,338 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 1,730 | 1,662 |
Pension and postretirement benefit expense | 566 | 461 |
Pension and postretirement benefit contributions | (2,321) | (137) |
Self-insurance reserves | (181) | (127) |
Deferred tax (benefit) expense | 43 | 218 |
Stock compensation expense | 716 | 507 |
Other (gains) losses | 46 | 243 |
Changes in assets and liabilities, net of effects of business acquisitions: | ||
Accounts receivable | 843 | 1,096 |
Other assets | 778 | 1,299 |
Accounts payable | (914) | (391) |
Accrued wages and withholdings | (506) | 200 |
Other liabilities | 393 | 35 |
Other liabilities | (46) | 18 |
Net cash from operating activities | 5,693 | 9,422 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (4,336) | (4,490) |
Proceeds from disposals of property, plant and equipment | 61 | 45 |
Purchases of marketable securities | (487) | (634) |
Sales and maturities of marketable securities | 817 | 612 |
Net change in finance receivables | 8 | (7) |
Cash paid for business acquisitions, net of cash and cash equivalents acquired | (6) | (2) |
Other investing activities | (84) | (23) |
Net cash used in investing activities | (4,027) | (4,499) |
Cash Flows From Financing Activities: | ||
Net change in short-term debt | (1,100) | (77) |
Proceeds from long-term borrowings | 4,802 | 1,052 |
Repayments of long-term borrowings | (2,411) | (2,122) |
Purchases of common stock | (751) | (770) |
Issuances of common stock | 161 | 176 |
Dividends | (2,397) | (2,260) |
Other financing activities | (158) | (259) |
Net cash used in financing activities | (1,854) | (4,260) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 6 | (57) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (182) | 606 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 4,367 | 3,769 |
End of period | $ 4,185 | $ 4,375 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Principles of Consolidation In our opinion, the accompanying interim, unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These interim, unaudited, consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly our financial position as of September 30, 2019 , our results of operations for the three and nine months ended September 30, 2019 and 2018 , and our cash flows for the nine months ended September 30, 2019 and 2018 . The results reported in these interim, unaudited, consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for any other period or the entire year. The interim, unaudited, consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of September 30, 2019 and December 31, 2018. The fair values of our investment securities are disclosed in note 5 , our recognized multiemployer pension withdrawal liabilities in note 7 , our short and long-term debt in note 9 and our derivative instruments in note 15 . We utilized Level 1 inputs in the fair value hierarchy of valuation techniques to determine the fair value of our cash and cash equivalents, and Level 2 inputs to determine the fair value of our accounts receivable, finance receivables and accounts payable. Use of Estimates The preparation of the accompanying interim, unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the interim, unaudited, consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information and actual results could differ materially from those estimates. For interim, unaudited, consolidated financial statement purposes, we provide for accruals under our various employee benefit plans for each three month period based on one quarter of the estimated annual expense. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2016-02, Leases (Topic 842) , which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with terms beyond twelve months. The new standard also requires enhanced disclosures that provide more transparency and information to financial statement users about lease portfolios. Effective January 1, 2019, we adopted the requirements of this ASU using the modified retrospective approach. The adoption on January 1, 2019 resulted in the recognition of right-of-use assets for operating leases of approximately $2.65 billion and operating lease liabilities of approximately $2.70 billion . The consolidated financial statements for the three and nine months ended September 30, 2019 are presented under the new standard, while comparative periods presented have not been adjusted and continue to be reported in accordance with the previous standard. We elected the transition package of practical expedients permitted within the standard. As a result, we did not reassess initial direct costs, lease classification, or whether our contracts contain or are leases. We also made an accounting policy election to not recognize right-of-use assets and liabilities for leases with an original lease term of twelve months or less, unless the leases include options to renew or purchase the underlying asset that are reasonably certain to be exercised. See note 10 for additional disclosures required by this ASU. In March 2017, the FASB issued an ASU requiring the premium on callable debt securities to be amortized to the earliest call date. We adopted this standard on January 1, 2019. It did not have a material impact on our consolidated financial position, results of operations or cash flows. In August 2017, the FASB issued an ASU to enhance recognition of the economic results of hedging activities in the financial statements. In addition, the update made certain targeted improvements to simplify the application of hedge accounting guidance and increase transparency regarding the scope and results of hedging activities. We adopted this standard on January 1, 2019. It did not have a material impact on our consolidated financial position, results of operations or cash flows but did require additional disclosures. See note 15 for required disclosures pertaining to this ASU. For accounting standards adopted in the period ended September 30, 2018 , refer to note 1 to our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018 . Other accounting pronouncements adopted during the periods covered by the consolidated financial statements did not have a material impact on our consolidated financial position, results of operations or cash flows. Accounting Standards Issued But Not Yet Effective In June 2016, the FASB issued an ASU introducing an expected credit loss methodology for the measurement of financial assets not accounted for at fair value. The methodology replaces the probable, incurred loss model for those assets. The standard will be effective for us in the first quarter of 2020. We are evaluating the impact of its adoption on our consolidated financial statements and internal control over financial reporting environment, but do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows. In January 2017, the FASB issued an ASU to simplify the accounting for goodwill impairment. The update removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard will be effective for us in the first quarter of 2020. We continue to evaluate this update to determine the impact of its adoption on our consolidated financial statements and internal control over financial reporting environment, but do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows. Other accounting pronouncements issued, but not effective until after September 30, 2019 , are not expected to have a material impact on our consolidated financial position, results of operations or cash flows. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue Recognition Substantially all of our revenues are from contracts associated with the pick-up, transportation and delivery of packages and freight (“transportation services”), whether carried out by or arranged by UPS, either domestically or internationally, which generally occurs over a short period of time. Additionally, we provide value-added logistics services to customers through our global network of company-owned and leased distribution centers and field stocking locations, both domestically and internationally. Disaggregation of Revenue Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue: Next Day Air $ 2,146 $ 1,896 $ 6,160 $ 5,510 Deferred 1,248 1,066 3,494 3,215 Ground 8,061 7,475 23,431 22,293 U.S. Domestic Package 11,455 10,437 33,085 31,018 Domestic 689 678 2,069 2,094 Export 2,673 2,654 7,972 8,073 Cargo & Other 132 146 417 446 International Package 3,494 3,478 10,458 10,613 Forwarding 1,472 1,672 4,384 4,936 Logistics 846 790 2,511 2,356 Freight 852 867 2,486 2,497 Other 199 200 602 593 Supply Chain & Freight 3,369 3,529 9,983 10,382 Consolidated revenue $ 18,318 $ 17,444 $ 53,526 $ 52,013 We account for a contract when both parties have approved the contract and are committed to perform their obligations, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the basis of revenue recognition in accordance with U.S. GAAP. To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires judgment, and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Within most of our contracts, the customer contracts with us to provide distinct services, such as transportation services. The vast majority of our contracts with customers for transportation services include only one performance obligation; the transportation services themselves. However, if a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We frequently sell standard transportation services with observable standalone sales prices. In these instances, the observable standalone sales are used to determine the standalone selling price. In certain business units, such as Logistics, we sell customized, customer-specific solutions in which we provide a significant service of integrating a complex set of tasks and components into a single capability (even if that single capability results in the delivery of multiple units). Hence, the entire contract is accounted for as one performance obligation. In these cases we typically use the expected cost plus a margin approach to estimate the standalone selling price of each performance obligation. Satisfaction of Performance Obligations We generally recognize revenue over time as we perform the services in the contract because of the continuous transfer of control to the customer. Our customers receive the benefit of our services as the goods are transported from one location to another. Further, if we were unable to complete delivery to the final location, another entity would not need to reperform the transportation service already performed. As control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost measure of progress for our package delivery contracts because it best depicts the transfer of control to the customer, which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including ancillary or accessorial fees and reductions for estimated customer incentives, are recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our freight and freight forwarding contracts, an output method of progress based on time-in-transit is utilized as the timing of costs incurred does not best depict the transfer of control to the customer. In our Logistics business, we have a right to consideration from customers in an amount that corresponds directly with the value to the customers of our performance completed to date, and as such we recognize revenue in the amount to which we have a right to invoice the customer. Variable Consideration It is common for our contracts to contain customer incentives, guaranteed service refunds or other provisions that can either increase or decrease the transaction price. These variable amounts are generally dependent upon achievement of certain incentive tiers or performance metrics. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts of revenue, which may be reduced by incentives or other contract provisions, in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of anticipated customer spending and all information (historical, current and forecasted) that is reasonably available to us. Contract Modifications Contracts are often modified to account for changes in the rates we charge our customers or to add additional distinct services. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Contract modifications that add additional distinct goods or services are treated as separate contracts. Contract modifications that do not add distinct goods or services typically change the price of existing services. These contract modifications are accounted for prospectively as the remaining performance obligations are distinct. Payment Terms Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (i.e., every 14 days, 30 days, 45 days, etc.) for shipments included on invoices received. Invoices are generated each week on the week-ending day, which is Saturday for the majority of our U.S. Domestic Package business, but could be another day depending on the business unit or the specific agreement with the customer. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our contracts with customers. Principal vs. Agent Considerations In our transportation businesses, we utilize independent contractors and third-party carriers in the performance of some transportation services. U.S. GAAP requires us to evaluate, using a control model, whether our businesses themselves promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent). Based on our evaluation of the control model, we determined that all of our major businesses act as the principal rather than the agent within their revenue arrangements. Revenue and the associated purchased transportation costs are both reported on a gross basis within our statements of consolidated income. Accounts Receivable, Net Accounts receivable, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. Losses on accounts receivable are recognized when they are incurred, which requires us to make our best estimate of the probable losses inherent in our customer receivables at each balance sheet date. These estimates require consideration of historical loss experience, adjusted for current conditions, trends in customer payment frequency, and judgments about the probable effects of relevant observable data, including present economic conditions and the financial health of specific customers and market sectors. Our risk management process includes standards and policies for reviewing major account exposures and concentrations of risk. Our total provision for doubtful accounts charged to expense before recoveries during the quarters ended September 30, 2019 and 2018 was $40 and $35 million , respectively, and $ 145 and $ 76 million during the nine months ended September 30, 2019 and 2018, respectively. Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit packages, as we have an unconditional right to payment only once all performance obligations have been completed (i.e., packages have been delivered), and our right to payment is not solely based on the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current and the full balance is converted each quarter based on the short-term nature of the transactions. Contract liabilities consist of advance payments and billings in excess of revenue as well as deferred revenue. Advance payments and billings in excess of revenue represent payments received from our customers that will be earned over the contract term. Deferred revenue represents the amount of consideration due from customers related to in-transit shipments that has not yet been recognized as revenue based on our selected measure of progress. We classify advance payments and billings in excess of revenue as either current or long-term, depending on the period over which the advance payment will be earned. We classify deferred revenue as current based on the timing of when we expect to recognize revenue, which typically occurs within a short window after period-end. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that deferred revenue balance. Contract assets related to in-transit packages were $264 and $234 million at September 30, 2019 and December 31, 2018, respectively, net of deferred revenue related to in-transit packages of $300 and $236 million at September 30, 2019 and December 31, 2018, respectively. Contract assets are included within "Other current assets" in the consolidated balance sheets. Short-term contract liabilities related to advanced payments from customers were $ 7 and $5 million at September 30, 2019 and December 31, 2018, respectively. Short-term contract liabilities are included within "Other current liabilities" in the consolidated balance sheets. Long-term contract liabilities related to advanced payments from customers were $26 million at each of September 30, 2019 and December 31, 2018. Long-term contract liabilities are included within "Other Non-Current Liabilities" in the consolidated balance sheets. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We issue employee share-based awards under various incentive compensation plans, which permit the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock and stock units, and restricted performance shares and performance units to eligible employees (restricted stock and stock units, restricted performance shares and performance units are herein referred to as "Restricted Units"). Upon vesting, Restricted Units result in the issuance of the equivalent number of UPS class A common shares after required tax withholdings. Dividends accrued on Restricted Units are reinvested in additional Restricted Units at each dividend payable date, and are subject to the same vesting and forfeiture conditions as the underlying Restricted Units upon which they are earned. The primary compensation programs offered under the UPS Incentive Compensation Plan include the UPS Management Incentive Award program, the UPS Long-Term Incentive Performance Award program and the UPS Stock Option program. We also maintain an employee stock purchase plan which allows eligible employees to purchase shares of UPS class A common stock at a discount. Additionally, our matching contributions to the primary employee defined contribution savings plan are made in shares of UPS class A common stock. Management Incentive Award Program ("MIP") We award Restricted Units under the MIP to certain eligible management employees. For Restricted Units granted under the MIP prior to 2019 , vesting generally occurs ratably over a five -year period on January 15th of each of the years following the grant date (except in the case of death or disability, in which case immediate vesting occurs). The grant value is expensed on a straight-line basis (less estimated forfeitures) ratably over the requisite service period (except in the case of death, disability or retirement, in which case immediate expensing occurs). These historical awards will continue to vest through 2023. Beginning with the MIP grant in the first quarter of 2019 , Restricted Units vest one year following the grant date (except in the case of death or disability, in which case immediate vesting occurs). The grant value is expensed on a straight-line basis (less estimated forfeitures) ratably over the requisite service period (except in the case of death, disability or retirement, in which case immediate expensing occurs). Based on the date that the eligible management population and performance targets were approved for the 2018 MIP award (granted in the first quarter of 2019), we determined the award measurement dates to be February 6, 2019 (for U.S.-based employees other than management committee employees), February 14, 2019 (for management committee employees) and March 25, 2019 (for international-based employees); therefore, the Restricted Units awarded were valued for stock compensation expense purposes using the closing New York Stock Exchange price of $108.82 , $111.80 and $106.90 on those dates, respectively. Long-Term Incentive Performance Award Program ("LTIP") We award Restricted Units under LTIP to certain eligible management employees. These Restricted Units generally vest at the end of a three -year period (except in the case of death, disability or retirement, in which case immediate vesting occurs on a prorated basis). The number of Restricted Units earned will be based on the percentage achievement of the performance targets established on the grant date. The performance targets are equally-weighted among consolidated operating return on invested capital ("ROIC"), growth in currency-constant consolidated revenue and total shareowner return ("RTSR") relative to a peer group of companies. For the two-thirds of the award related to ROIC and growth in currency-constant consolidated revenue, we recognize the grant date fair value of these Restricted Units (less estimated forfeitures) as compensation expense ratably over the vesting period, based on the number of awards expected to be earned. The remaining one-third of the award related to RTSR is valued using a Monte Carlo model. We recognize the grant date fair value of this portion of the award (less estimated forfeitures) as compensation expense ratably over the vesting period. Based on the date that the eligible management population and performance targets were approved for the 2019 LTIP award, we determined the award measurement date to be March 22, 2019; therefore, the target Restricted Units awarded for the ROIC and growth in currency-constant consolidated revenue portions of the award were valued for stock compensation expense using the closing New York Stock Exchange price of $107.35 on that date. During the third quarter of 2019, we awarded a one-time grant of Restricted Units that will vest over the same period as the 2019 LTIP award. Based on the date that the Compensation Committee approved this award, we determined the award measurement date to be July 1, 2019; therefore, the target Restricted Units awarded for the portion of the award related to consolidated operating return on invested capital and growth in consolidated revenue were valued for stock compensation expense using the closing New York Stock Exchange price of $102.97 on that date. The weighted-average assumptions used and the calculated weighted-average fair values of the RTSR portion of the LTIP awards granted in 2019 and 2018 are as follows: 2019 2018 Risk-free interest rate 2.23 % 2.61 % Expected volatility 19.64 % 16.51 % Weighted-average fair value of units granted $ 123.44 $ 137.57 Share payout 115.04 % 123.47 % There is no expected dividend yield as units earn dividend equivalents. Non-Qualified Stock Options We grant non-qualified stock option awards to a limited group of eligible senior management employees under the UPS Stock Option program. Stock option awards generally vest over a five -year period with approximately 20% of the award vesting at each anniversary of the grant date (except in the case of death or disability, in which case immediate vesting occurs). The options granted expire 10 years after the date of the grant. In the first quarter of 2019 , we granted 0.3 million stock options at a grant price of $111.80 , which is based on the closing New York Stock Exchange price on February 14, 2019. In the first quarter of 2018, we granted 0.3 million and 0.01 million stock options at a grant price of $ 106.43 and $ 104.45 , respectively, which is based on the closing New York Stock Exchange price on March 1, 2018 and March 22, 2018, respectively. The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the calculated weighted-average fair values of options granted in 2019 and 2018 are as follows: 2019 2018 Expected dividend yield 2.93 % 2.93 % Risk-free interest rate 2.60 % 2.84 % Expected life (in years) 7.5 7.5 Expected volatility 17.79 % 16.72 % Weighted-average fair value of options granted $ 16.39 $ 15.23 Compensation expense for share-based awards recognized in "Compensation and benefits" on the statements of consolidated income for the three months ended September 30, 2019 and 2018 was $ 203 and $ 129 million pre-tax, respectively. Compensation expense for share-based awards recognized in "Compensation and benefits" on the statements of consolidated income for the nine months ended September 30, 2019 and 2018 was $ 716 and $507 |
CASH AND INVESTMENTS
CASH AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Marketable Securities [Abstract] | |
CASH AND INVESTMENTS | CASH AND INVESTMENTS The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2019 and December 31, 2018 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value September 30, 2019: Current trading marketable securities: Corporate debt securities $ 109 $ — $ — $ 109 Equity securities 2 — — 2 Total trading marketable securities 111 — — 111 Current available-for-sale securities: U.S. government and agency debt securities 161 2 — 163 Mortgage and asset-backed debt securities 54 1 — 55 Corporate debt securities 150 3 — 153 Non-U.S. government debt securities 16 — — 16 Total available-for-sale marketable securities 381 6 — 387 Total current marketable securities $ 492 $ 6 $ — $ 498 Cost Unrealized Gains Unrealized Losses Estimated Fair Value December 31, 2018: Current trading marketable securities: Corporate debt securities $ 137 $ — $ — $ 137 Equity securities 2 — — 2 Total trading marketable securities 139 — — 139 Current available-for-sale securities: U.S. government and agency debt securities 297 1 (1 ) 297 Mortgage and asset-backed debt securities 82 — (1 ) 81 Corporate debt securities 275 — (2 ) 273 Non-U.S. government debt securities 20 — — 20 Total available-for-sale marketable securities 674 1 (4 ) 671 Total current marketable securities $ 813 $ 1 $ (4 ) $ 810 Investment Other-Than-Temporary Impairments We have concluded that no material other-than-temporary impairment losses existed as of September 30, 2019 . In making this determination, we considered the financial condition and prospects of each issuer, the magnitude of the losses compared with the investments’ cost, the probability that we will be unable to collect all amounts due according to the contractual terms of the security, the credit rating of the security and our ability and intent to hold these investments until the anticipated recovery in market value occurs. Maturity Information The amortized cost and estimated fair value of marketable securities at September 30, 2019 , by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations with or without prepayment penalties. Cost Estimated Fair Value Due in one year or less $ 121 $ 121 Due after one year through three years 318 321 Due after three years through five years 7 8 Due after five years 44 46 490 496 Equity securities 2 2 $ 492 $ 498 Non-Current Investments and Restricted Cash Non-current investments and restricted cash are primarily associated with our self-insurance programs. We entered into an escrow agreement with an insurance carrier to guarantee our self-insurance obligations. This agreement requires us to provide collateral to the insurance carrier, which is invested in various marketable securities and cash equivalents. Collateral provided is reflected in "Cash, Cash Equivalents and Restricted Cash" in the statements of consolidated cash flows. At September 30, 2019 and December 31, 2018 , we had $ 145 and $ 142 million, respectively, in self-insurance investments and restricted cash. We held a $20 and $19 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan at September 30, 2019 and December 31, 2018 , respectively. The quarterly change in investment fair value is recognized in "Investment income and other" in the statements of consolidated income. Additionally, we held escrowed cash related to the acquisition and disposition of certain assets of $3 and $ 9 million as of September 30, 2019 and December 31, 2018 , respectively. The amounts described above are classified as “Investments and Restricted Cash” in the consolidated balance sheets. A reconciliation of cash and cash equivalents and restricted cash from the consolidated balance sheets to the statements of consolidated cash flows is shown below (in millions): September 30, 2019 December 31, 2018 September 30, 2018 Cash and cash equivalents $ 4,040 $ 4,225 $ 4,097 Restricted cash 145 142 278 Total cash, cash equivalents and restricted cash $ 4,185 $ 4,367 $ 4,375 Fair Value Measurements Marketable securities valued utilizing Level 1 inputs include active exchange-traded equity securities and equity index funds, and most U.S. government debt securities, as these securities all have quoted prices in active markets. Marketable securities valued utilizing Level 2 inputs include asset-backed securities, corporate bonds and municipal bonds. These securities are valued using market corroborated pricing, matrix pricing or other models that utilize observable inputs such as yield curves. We maintain holdings in certain investment partnerships that are measured at fair value utilizing Level 3 inputs (classified as “Other non-current investments” in the tables below, and as “Other Non-Current Assets” in the consolidated balance sheets). These partnership holdings do not have quoted prices, nor can they be valued using inputs based on observable market data. These investments are valued internally using a discounted cash flow model with two significant inputs: (1) the after-tax cash flow projections for each partnership, and (2) a risk-adjusted discount rate consistent with the duration of the expected cash flows for each partnership. The weighted-average discount rates used to value these investments were 7.33% and 8.16% as of September 30, 2019 and December 31, 2018 , respectively. These inputs, and the resulting fair values, are updated on a quarterly basis. The level 3 instruments measured on a recurring basis totaled $2 million as of September 30, 2019 and December 31, 2018 , respectively. The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance September 30, 2019: Marketable Securities: U.S. government and agency debt securities $ 163 $ — $ — $ 163 Mortgage and asset-backed debt securities — 55 — 55 Corporate debt securities — 262 — 262 Equity securities — 2 — 2 Non-U.S. government debt securities — 16 — 16 Total marketable securities 163 335 — 498 Other non-current investments 20 — 2 22 Total $ 183 $ 335 $ 2 $ 520 December 31, 2018: Marketable Securities: U.S. government and agency debt securities $ 297 $ — $ — $ 297 Mortgage and asset-backed debt securities — 81 — 81 Corporate debt securities — 410 — 410 Equity securities — 2 — 2 Non-U.S. government debt securities — 20 — 20 Total marketable securities 297 513 — 810 Other non-current investments 19 — 2 21 Total $ 316 $ 513 $ 2 $ 831 There were no transfers of investments between Level 1 and Level 2 during the nine months ended September 30, 2019 or 2018 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of September 30, 2019 and December 31, 2018 consists of the following (in millions): 2019 2018 Vehicles $ 10,046 $ 9,820 Aircraft 18,481 17,499 Land 2,068 2,000 Buildings 4,920 4,808 Building and leasehold improvements 4,595 4,323 Plant equipment 12,369 11,833 Technology equipment 2,184 2,093 Construction-in-progress 3,195 2,112 57,858 54,488 Less: Accumulated depreciation and amortization (28,787 ) (27,912 ) $ 29,071 $ 26,576 As part of our ongoing investment in transformation, in 2018 we made prospective revisions to our estimates of useful lives for building improvements, vehicles and plant equipment which in general had the effect of lengthening the useful lives of these categories. In the third quarter of 2019, depreciation expense increased $ 94 million, and net income decreased by $ 75 million, or $ 0.09 per share on a basic and diluted basis, as a result of investments in property, plant and equipment, net of disposals and assets becoming fully depreciated. Depreciation expense decreased $ 31 million, and net income increased $ 26 million, or $ 0.03 per share on a basic and diluted basis, as a result of lengthening our estimated useful lives for various asset categories in the latter half of 2018. The combined effect of the foregoing was a net increase in depreciation expense of $ 63 million and a decrease in net income of $ 49 million, or $ 0.06 per share on a basic and diluted basis, for the quarter. For the year-to-date period of 2019, depreciation expense increased $ 280 million, and net income decreased by $ 218 million, or $ 0.25 per share on a basic and diluted basis, as a result of investments in property, plant and equipment, net of disposals and assets becoming fully depreciated. Depreciation expense decreased $ 212 million, and net income increased $ 165 million, or $ 0.19 per share on a basic and diluted basis, as a result of lengthening our estimated useful lives for various asset categories in the latter half of 2018. The combined effect of the foregoing was a net increase in depreciation expense of $68 million and a decrease in net income of $ 53 million, or $ 0.06 per share on a basic and diluted basis, for the nine month period. We continually monitor our aircraft fleet utilization in light of current and projected volume levels, aircraft fuel prices and other factors. Additionally, we monitor all other property, plant and equipment categories for any indicators that the carrying value of the assets may not be recoverable. No impairment charges on property, plant and equipment were recorded during the three and nine months ended September 30, 2019 or 2018 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Company-Sponsored Benefit Plans Information about net periodic benefit cost for our company-sponsored pension and postretirement benefit plans is as follows for the three and nine months ended September 30, 2019 and 2018 (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Three Months Ended September 30: Service cost $ 360 $ 415 $ 6 $ 7 $ 15 $ 15 Interest cost 516 450 27 26 12 11 Expected return on assets (782 ) (800 ) (2 ) (2 ) (19 ) (19 ) Amortization of prior service cost 55 48 2 2 — — Net periodic benefit cost $ 149 $ 113 $ 33 $ 33 $ 8 $ 7 U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Nine Months Ended September 30: Service cost $ 1,079 $ 1,246 $ 18 $ 21 $ 43 $ 47 Interest cost 1,550 1,349 81 78 35 34 Expected return on assets (2,347 ) (2,401 ) (6 ) (6 ) (57 ) (58 ) Amortization of prior service cost 164 145 5 6 1 — Net periodic benefit cost $ 446 $ 339 $ 98 $ 99 $ 22 $ 23 During the first nine months of 2019 , we contributed $2.065 billion and $256 million to our company-sponsored pension and U.S. postretirement medical benefit plans, respectively. We currently expect to contribute approximately $22 million over the remainder of the year to our pension benefit plans. Subject to market conditions, we continually evaluate opportunities for additional discretionary pension contributions. The components of net periodic benefit cost other than current service cost are presented within “Investment income and other” in the statements of consolidated income. Multiemployer Benefit Plans We contribute to a number of multiemployer defined benefit and health and welfare plans under the terms of collective bargaining agreements that cover our union-represented employees. Our current collective bargaining agreements set forth the annual contribution increases allotted to the plans that we participate in, and we are in compliance with these contribution rates. These limitations on annual contribution rates will remain in effect throughout the terms of the existing collective bargaining agreements. As of September 30, 2019 and December 31, 2018 we had $ 847 and $852 million , respectively, recorded in "Other Non-Current Liabilities" as well as $7 million as of September 30, 2019 and December 31, 2018 , recorded in "Other current liabilities" on our consolidated balance sheets associated with our previous withdrawal from a multiemployer pension plan. This liability is payable in equal monthly installments over a remaining term of approximately 43 years. Based on the borrowing rates currently available to us for long-term financing of a similar maturity, the fair value of this withdrawal liability as of September 30, 2019 and December 31, 2018 was $ 941 and $ 832 million , respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. UPS was a contributing employer to the Central States Pension Fund (“CSPF”) until 2007 when we withdrew from the CSPF and fully funded our allocable share of unfunded vested benefits by paying a $6.1 billion withdrawal liability. Under a collective bargaining agreement with the International Brotherhood of Teamsters (“IBT”), UPS agreed to provide coordinating benefits in the UPS/IBT Full Time Employee Pension Plan (“UPS/IBT Plan”) for UPS participants whose last employer was UPS and who had not retired as of January 1, 2008 (“the UPS Transfer Group”) in the event that benefits are lawfully reduced by the CSPF in the future consistent with the terms of our withdrawal agreement with the CSPF. Under our withdrawal agreement with the CSPF, benefits to the UPS Transfer Group cannot be reduced without our consent and can only be reduced in accordance with applicable law. In December 2014, Congress passed the Multiemployer Pension Reform Act (“MPRA”). This change in law for the first time permitted multiemployer pension plans to reduce benefit payments to retirees, subject to specific guidelines in the statute and government approval. In September 2015, the CSPF submitted a proposed pension benefit reduction plan to the U.S. Department of the Treasury (“Treasury”). In May 2016, Treasury rejected the proposed plan submitted by the CSPF. In the first quarter of 2018, Congress established a Joint Select Committee to develop a recommendation to improve the solvency of multiemployer plans and the Pension Benefit Guaranty Corporation (“PBGC”) before a November 30, 2018 deadline. While the Committee’s efforts failed to meet its deadline, the Committee made significant progress towards finding solutions that will address the long term solvency of multiemployer pension plans. In the third quarter of 2019, the U.S. House of Representatives passed the Rehabilitation for Multiemployer Pensions Act of 2019 to provide assistance to critical and declining multiemployer pension plans. This bill is now with the U.S. Senate for consideration. UPS will continue to work with all stakeholders, including legislators and regulators, to implement an acceptable solution. The CSPF has said that it believes a legislative solution to its funded status is necessary or that it will become insolvent in 2025, and we expect that the CSPF will continue to explore options to avoid insolvency. Numerous factors could affect the CSPF’s funded status and UPS’s potential obligation to pay coordinating benefits under the UPS/IBT Plan. Any obligation to pay coordinating benefits will be subject to a number of significant uncertainties, including whether the CSPF submits a revised MPRA filing and the terms thereof, or whether it otherwise seeks federal government assistance, as well as the terms of any applicable legislation, the extent to which benefits are paid by the PBGC and our ability to successfully defend legal positions we may take in the future under the MPRA, including the suspension ordering provisions, our withdrawal agreement and other applicable law. We account for the potential obligation to pay coordinating benefits to the UPS Transfer Group under Accounting Standards Codification Topic 715- Compensation- Retirement Benefits (“ASC 715”), which requires us to provide a best estimate of various actuarial assumptions, including the eventual outcome of this matter, in measuring our pension benefit obligation at the December 31st measurement date. While we currently believe the most likely outcome to this matter and the broader systemic problems facing multiemployer pension plans is intervention by the federal government, ASC 715 does not permit anticipation of changes in law in making a best estimate of pension liabilities. As such, our best estimate of the next most likely outcome at the December 31, 2018 measurement date was that the CSPF would submit and implement another benefit reduction plan under the MPRA during 2019. We believe any MPRA filing would be designed to forestall insolvency by reducing benefits to participants other than the UPS Transfer Group to the maximum extent permitted, and then reducing benefits to the UPS Transfer Group by a lesser amount. We evaluated this outcome using a deterministic cash flow projection, reflecting updated estimated CSPF cash flows and investment earnings, the lack of legislative action and the absence of a MPRA filing by the CSPF. As a result, at the December 31, 2018 measurement date, the best estimate of our projected benefit obligation increased by $1.6 billion for coordinating benefits that may be required to be directly provided by the UPS/IBT Plan to the UPS Transfer Group. The future value of this estimate will be influenced by the terms and timing of any MPRA filing, changes in our discount rate, rate of return on assets and other actuarial assumptions, presumed solvency of the PBGC, as well as potential solutions resulting from federal government intervention. Any such event may result in a decrease or an increase in the best estimate of our projected benefit obligation. If the uncertainties are not resolved, it is reasonably possible that our projected benefit obligation could increase by approximately $2.4 billion , resulting in a total obligation for coordinating benefits of approximately $4.0 billion as previously disclosed. If a future change in law occurs, it may be a significant event requiring an interim remeasurement of the UPS/IBT Plan at the date the law is enacted. We will continue to assess the impact of these uncertainties on our projected benefit obligation in accordance with ASC 715. Collective Bargaining Agreements We have approximately 283,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the Teamsters. The current National Master Agreement ("NMA") was ratified on April 28, 2019, and runs through July 31, 2023. Most of the economic provisions of the NMA are retroactive to August 1, 2018, which is the effective date of the NMA. 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. We have approximately 1,400 airline mechanics who are covered by a collective bargaining agreement with Teamsters Local 2727 which becomes 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”). On May 2, 2019, the IAM ratified a new collective bargaining agreement which runs through July 31, 2024. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table indicates the allocation of goodwill by reportable segment as of September 30, 2019 and December 31, 2018 (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated December 31, 2018: $ 715 $ 417 $ 2,679 $ 3,811 Acquired — 2 3 5 Currency / Other — (7 ) (26 ) (33 ) September 30, 2019: $ 715 $ 412 $ 2,656 $ 3,783 The change in goodwill for both the International Package and Supply Chain & Freight segments was primarily due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. Goodwill Impairment We completed our annual goodwill impairment assessment for all reporting units and indefinite-lived intangible assets as of July 1, 2019, and determined that goodwill is not impaired. There were no triggering events identified during the third quarter of 2019. We will continue to monitor each reporting unit for triggering events that might require an update to our annual impairment evaluation between the annual assessment date and December 31, 2019. The following is a summary of intangible assets as of September 30, 2019 and December 31, 2018 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value September 30, 2019: Capitalized software $ 4,004 $ (2,641 ) $ 1,363 Licenses 117 (57 ) 60 Franchise rights 146 (109 ) 37 Customer relationships 720 (261 ) 459 Trade name 200 — 200 Trademarks, patents and other 42 (30 ) 12 Total Intangible Assets, Net $ 5,229 $ (3,098 ) $ 2,131 December 31, 2018: Capitalized software $ 3,693 $ (2,478 ) $ 1,215 Licenses 117 (36 ) 81 Franchise rights 145 (105 ) 40 Customer relationships 736 (217 ) 519 Trade name 200 — 200 Trademarks, patents and other 52 (31 ) 20 Total Intangible Assets, Net $ 4,943 $ (2,867 ) $ 2,075 As of September 30, 2019 , we had a trade name with a carrying value of $ 200 million and licenses with a carrying value of $ 4 million, which are deemed to be indefinite-lived intangible assets and are included in the table above. Impairment tests for the finite-lived intangible assets are only performed when a triggering event occurs that may indicate that the carrying value of the intangible may not be recoverable. There was no impairment of finite-lived assets in 2019 and a $12 million impairment in 2018. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 10 . LEASES We adopted ASU 2016-02, Leases (Topic 842) , on January 1, 2019. The standard requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases. Some of our leases contain both lease and non-lease components, which we have elected to treat as a single lease component. We have also elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase options, of twelve months or less in our consolidated balance sheets for all classes of underlying assets. Lease costs for short-term leases are recognized on a straight-line basis over the lease term. We elected the package of transition practical expedients for existing contracts, which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and determination of initial direct costs. We lease property and equipment under finance and operating leases. We have finance and operating leases for package centers, airport facilities, warehouses, corporate office space, aircraft, aircraft engines, information technology equipment (primarily mainframes, servers and copiers), vehicles and various other equipment used in operating our business. Certain leases for real estate and aircraft contain options to purchase, extend or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease liability for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain, and if the optional period and payments should be included in the calculation of the associated ROU asset and liability. In making this determination, we consider all relevant economic factors that would compel us to exercise or not exercise an option. When available, we use the rate implicit in the lease to discount lease payments; however, the rate implicit in the lease is not readily determinable for substantially all of our leases. In such cases, we use an estimate of our incremental borrowing rate to discount lease payments based on information available at lease commencement. Aircraft In addition to the aircraft that we own, we have leases for 332 aircraft. Of these leased aircraft, 34 are classified as finance leases, 12 are classified as operating leases and the remaining 286 are classified as short-term leases. A majority of the obligations associated with the aircraft classified as finance leases have been legally defeased. The long-term aircraft operating leases are operated by a third party to handle package and cargo volume in geographic regions where, due to government regulations, we are restricted from operating an airline. In order to meet customers' needs, we charter aircraft to handle package and cargo volume on certain international trade lanes and domestic routes. Due to the nature of these agreements, primarily being that either party can cancel the agreement with short notice, we have classified these as short-term leases. Additionally, all of the lease payments associated with these charter agreements are variable in nature based on the number of hours flown. Real Estate We have operating and finance leases for package centers, airport facilities, warehouses, corporate office space and expansion facilities utilized during peak shipping periods. Many of our leases contain charges for common area maintenance or other miscellaneous expenses that are updated based on landlord estimates. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the ROU asset and associated lease liability. Some of our real estate leases contain options to renew or extend the lease or terminate the lease before the expiration date. These options are factored into the determination of the lease term and lease payments when their exercise is considered to be reasonably certain. From time to time, we enter into leases with the intention of purchasing the property, either through purchase options with a fixed price or a purchase agreement negotiated contemporaneously with the lease agreement. We classify these leases as finance leases and include the purchase date and purchase price in the lease term and lease payments, respectively, when the option to exercise or purchase is reasonably certain. Transportation equipment and other equipment We enter into both long-term and short-term leases for transportation equipment to supplement our capacity or meet contractual demands. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. The lease term for these types of leases is determined by the length of the underlying customer contract or based on the judgment of the business unit. We also enter into multi-year leases for trailers to increase capacity during periods of high demand, which are typically only used for 90-120 days during the year. These leases are treated as short-term as the cumulative right-of-use is less than 12 months over the term of the contract. The remainder of our leases are primarily related to equipment used in our air operations, vehicles required to meet capacity needs during periods of higher demand for our shipping services, technology equipment and office equipment used in our facilities. Some of our transportation and technology equipment leases require us to make additional lease payments based on the underlying usage of the assets. Due to the variable nature of these costs, these are expensed as incurred and are not included in the ROU asset and lease liability. The components of lease expense for the three and nine months ended September 30, 2019 are as follows (in millions): Three Months Ended Nine Months Ended 2019 2019 Operating lease costs $ 151 $ 474 Finance lease costs: Amortization of assets 18 $ 55 Interest on lease liabilities 5 14 Total finance lease costs 23 69 Variable lease costs 69 148 Short-term lease costs 194 633 Total lease costs $ 437 $ 1,324 Supplemental information related to leases and location within our consolidated balance sheets are as follows (in millions, except lease term and discount rate): September 30, 2019 Operating Leases: Operating lease right-of-use assets $ 2,504 Current maturities of operating leases $ 500 Non-current operating leases 2,063 Total operating lease liabilities $ 2,563 Finance Leases: Property, plant and equipment, at cost $ 2,541 Accumulated amortization (979 ) Property, plant and equipment, net $ 1,562 Current maturities of long-term debt, commercial paper and finance leases $ 102 Long-term debt and finance leases 364 Total finance lease liabilities $ 466 Weighted average remaining lease term (in years): Operating leases 9.1 Finance leases 9.8 Weighted average discount rate: Operating leases 2.77 % Finance leases 4.23 % Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 455 Operating cash flows from finance leases 11 Financing cash flows from finance leases 121 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 144 Maturities of lease liabilities as of September 30, 2019 are as follows (in millions): Finance Leases Operating Leases 2019 $ 26 $ 151 2020 149 546 2021 44 463 2022 39 384 2023 37 309 Thereafter 292 1,159 Total lease payments 587 3,012 Less: Imputed interest (121 ) (449 ) Total lease obligations 466 2,563 Less: Current obligations (102 ) (500 ) Long-term lease obligations $ 364 $ 2,063 As of September 30, 2019 , we have additional leases which have not commenced. These leases will commence when we are granted access to the property, such as when leasehold improvements are completed by the lessor or a certificate of occupancy is obtained. These leases will commence in 2019 and 2020. Disclosures related to periods prior to adoption of the new lease standard The following table sets forth the aggregate minimum lease payments under capital and operating leases (in millions) as of December 31, 2018 : Capital Leases Operating Leases 2019 $ 158 $ 578 2020 95 477 2021 42 399 2022 39 325 2023 36 262 After 2023 293 926 Total lease payments 663 2,967 Less: Imputed interest (129 ) Total lease obligations 534 Less: Current obligations (140 ) Long-term lease obligations $ 394 |
LEASES | NOTE 10 . LEASES We adopted ASU 2016-02, Leases (Topic 842) , on January 1, 2019. The standard requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases. Some of our leases contain both lease and non-lease components, which we have elected to treat as a single lease component. We have also elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase options, of twelve months or less in our consolidated balance sheets for all classes of underlying assets. Lease costs for short-term leases are recognized on a straight-line basis over the lease term. We elected the package of transition practical expedients for existing contracts, which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and determination of initial direct costs. We lease property and equipment under finance and operating leases. We have finance and operating leases for package centers, airport facilities, warehouses, corporate office space, aircraft, aircraft engines, information technology equipment (primarily mainframes, servers and copiers), vehicles and various other equipment used in operating our business. Certain leases for real estate and aircraft contain options to purchase, extend or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease liability for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain, and if the optional period and payments should be included in the calculation of the associated ROU asset and liability. In making this determination, we consider all relevant economic factors that would compel us to exercise or not exercise an option. When available, we use the rate implicit in the lease to discount lease payments; however, the rate implicit in the lease is not readily determinable for substantially all of our leases. In such cases, we use an estimate of our incremental borrowing rate to discount lease payments based on information available at lease commencement. Aircraft In addition to the aircraft that we own, we have leases for 332 aircraft. Of these leased aircraft, 34 are classified as finance leases, 12 are classified as operating leases and the remaining 286 are classified as short-term leases. A majority of the obligations associated with the aircraft classified as finance leases have been legally defeased. The long-term aircraft operating leases are operated by a third party to handle package and cargo volume in geographic regions where, due to government regulations, we are restricted from operating an airline. In order to meet customers' needs, we charter aircraft to handle package and cargo volume on certain international trade lanes and domestic routes. Due to the nature of these agreements, primarily being that either party can cancel the agreement with short notice, we have classified these as short-term leases. Additionally, all of the lease payments associated with these charter agreements are variable in nature based on the number of hours flown. Real Estate We have operating and finance leases for package centers, airport facilities, warehouses, corporate office space and expansion facilities utilized during peak shipping periods. Many of our leases contain charges for common area maintenance or other miscellaneous expenses that are updated based on landlord estimates. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the ROU asset and associated lease liability. Some of our real estate leases contain options to renew or extend the lease or terminate the lease before the expiration date. These options are factored into the determination of the lease term and lease payments when their exercise is considered to be reasonably certain. From time to time, we enter into leases with the intention of purchasing the property, either through purchase options with a fixed price or a purchase agreement negotiated contemporaneously with the lease agreement. We classify these leases as finance leases and include the purchase date and purchase price in the lease term and lease payments, respectively, when the option to exercise or purchase is reasonably certain. Transportation equipment and other equipment We enter into both long-term and short-term leases for transportation equipment to supplement our capacity or meet contractual demands. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. The lease term for these types of leases is determined by the length of the underlying customer contract or based on the judgment of the business unit. We also enter into multi-year leases for trailers to increase capacity during periods of high demand, which are typically only used for 90-120 days during the year. These leases are treated as short-term as the cumulative right-of-use is less than 12 months over the term of the contract. The remainder of our leases are primarily related to equipment used in our air operations, vehicles required to meet capacity needs during periods of higher demand for our shipping services, technology equipment and office equipment used in our facilities. Some of our transportation and technology equipment leases require us to make additional lease payments based on the underlying usage of the assets. Due to the variable nature of these costs, these are expensed as incurred and are not included in the ROU asset and lease liability. The components of lease expense for the three and nine months ended September 30, 2019 are as follows (in millions): Three Months Ended Nine Months Ended 2019 2019 Operating lease costs $ 151 $ 474 Finance lease costs: Amortization of assets 18 $ 55 Interest on lease liabilities 5 14 Total finance lease costs 23 69 Variable lease costs 69 148 Short-term lease costs 194 633 Total lease costs $ 437 $ 1,324 Supplemental information related to leases and location within our consolidated balance sheets are as follows (in millions, except lease term and discount rate): September 30, 2019 Operating Leases: Operating lease right-of-use assets $ 2,504 Current maturities of operating leases $ 500 Non-current operating leases 2,063 Total operating lease liabilities $ 2,563 Finance Leases: Property, plant and equipment, at cost $ 2,541 Accumulated amortization (979 ) Property, plant and equipment, net $ 1,562 Current maturities of long-term debt, commercial paper and finance leases $ 102 Long-term debt and finance leases 364 Total finance lease liabilities $ 466 Weighted average remaining lease term (in years): Operating leases 9.1 Finance leases 9.8 Weighted average discount rate: Operating leases 2.77 % Finance leases 4.23 % Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 455 Operating cash flows from finance leases 11 Financing cash flows from finance leases 121 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 144 Maturities of lease liabilities as of September 30, 2019 are as follows (in millions): Finance Leases Operating Leases 2019 $ 26 $ 151 2020 149 546 2021 44 463 2022 39 384 2023 37 309 Thereafter 292 1,159 Total lease payments 587 3,012 Less: Imputed interest (121 ) (449 ) Total lease obligations 466 2,563 Less: Current obligations (102 ) (500 ) Long-term lease obligations $ 364 $ 2,063 As of September 30, 2019 , we have additional leases which have not commenced. These leases will commence when we are granted access to the property, such as when leasehold improvements are completed by the lessor or a certificate of occupancy is obtained. These leases will commence in 2019 and 2020. Disclosures related to periods prior to adoption of the new lease standard The following table sets forth the aggregate minimum lease payments under capital and operating leases (in millions) as of December 31, 2018 : Capital Leases Operating Leases 2019 $ 158 $ 578 2020 95 477 2021 42 399 2022 39 325 2023 36 262 After 2023 293 926 Total lease payments 663 2,967 Less: Imputed interest (129 ) Total lease obligations 534 Less: Current obligations (140 ) Long-term lease obligations $ 394 |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt as of September 30, 2019 and December 31, 2018 consists of the following (in millions): Principal Amount Carrying Value Maturity 2019 2018 Commercial paper $ 2,054 2019-2020 $ 2,054 $ 2,662 Fixed-rate senior notes: 5.125% senior notes 1,000 2019 — 998 3.125% senior notes 1,500 2021 1,528 1,492 2.050% senior notes 700 2021 698 698 2.450% senior notes 1,000 2022 1,007 1,023 2.350% senior notes 600 2022 598 597 2.500% senior notes 1,000 2023 995 994 2.800% senior notes 500 2024 497 496 2.200% senior notes 400 2024 398 — 2.400% senior notes 500 2026 498 498 3.050% senior notes 1,000 2027 992 991 3.400% senior notes 750 2029 745 — 2.500% senior notes 400 2029 396 — 6.200% senior notes 1,500 2038 1,483 1,482 4.875% senior notes 500 2040 490 490 3.625% senior notes 375 2042 368 368 3.400% senior notes 500 2046 491 491 3.750% senior notes 1,150 2047 1,136 1,136 4.250% senior notes 750 2049 742 — 3.400% senior notes 700 2049 687 — Floating-rate senior notes: Floating-rate senior notes 350 2021 349 349 Floating-rate senior notes 400 2022 399 399 Floating-rate senior notes 500 2023 499 499 Floating-rate senior notes 1,041 2049-2067 1,028 1,029 8.375% Debentures: 8.375% debentures 424 2020 429 419 8.375% debentures 276 2030 281 274 Pound Sterling notes: 5.500% notes 82 2031 81 84 5.125% notes 559 2050 530 546 Euro senior notes: 0.375% notes 763 2023 759 797 1.625% notes 763 2025 759 798 1.000% notes 545 2028 542 570 1.500% notes 545 2032 541 569 Floating-rate senior notes 545 2020 544 572 Canadian senior notes: 2.125% notes 566 2024 564 548 Finance lease obligations 466 2019-3005 466 534 Facility notes and bonds 320 2029-2045 319 320 Other debt 8 2019-2022 8 13 Total debt $ 25,032 23,901 22,736 Less: Current maturities (2,161 ) (2,805 ) Long-term debt $ 21,740 $ 19,931 Commercial Paper We are authorized to borrow up to $ 10.0 billion under a U.S. commercial paper program and € 5.0 billion (in a variety of currencies) under a European commercial paper program. We had the following amounts outstanding under these programs as of September 30, 2019 : $ 1.020 billion with an average interest rate of 2.24% and € 949 million ($ 1.034 billion) with an average interest rate of - 0.37% . As of September 30, 2019 , we have classified the entire commercial paper balance as a current liability on our consolidated balance sheets. Debt Classification We have classified both our 8.375% debentures due April 2020 with a principal balance of $ 424 million, and our €500 million ( $545 million ) floating-rate senior notes due July 2020, as long-term debt based on our intent and ability to refinance the debt as of September 30, 2019. We have classified certain floating-rate senior notes that are putable by the note holders as long-term debt due to our intent and ability to refinance the debt if the put option is exercised by the note holders. Debt Issuance On March 13, 2019 we issued two series of notes, both in the principal amounts of $ 750 million . These fixed-rate notes bear interest at the rates of 3.40% and 4.25% and will mature on March 15, 2029 and March 15, 2049, respectively. Interest on the fixed-rate senior notes is payable semi-annually, beginning September 2019. The 3.40% fixed-rate senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of remaining scheduled payments of principal and interest due from the redemption date until three months prior to maturity, discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 15 basis points, plus accrued and unpaid interest. The 4.25% fixed-rate senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of remaining scheduled payments of principal and interest due from the redemption date until six months prior to maturity discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 20 basis points, plus accrued and unpaid interest. On August 13, 2019 we issued three series of notes, two with principal amounts of $ 400 million and one in the principal amount of $700 million . These notes bear interest at the rates of 2.20% , 2.50% and 3.40% , respectively, and will mature on September 1, 2024, September 1, 2029 and September 1, 2049, respectively. Interest on the notes is payable semi-annually, beginning March 2020. The 2.20% senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest due from the redemption date until one month prior to maturity, discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 10 basis points, plus accrued and unpaid interest. The 2.50% senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest due from the redemption date until three months prior to maturity discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 15 basis points, plus accrued and unpaid interest. The 3.40% senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest due from the redemption date until six months prior to maturity, discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 20 basis points, plus accrued and unpaid interest. Sources of Credit We maintain two credit agreements with a consortium of banks. One of these agreements provides a revolving credit facility of $1.5 billion and expires on December 10, 2019 . Generally, amounts outstanding under this facility bear interest at a periodic fixed rate equal to LIBOR for the applicable interest period and currency denomination, plus an applicable margin. Alternatively, a fluctuating rate of interest equal to the highest of (1) JPMorgan Chase Bank’s publicly announced prime rate; (2) the Federal Funds effective rate plus 0.50% ; and (3) LIBOR for a one month interest period plus 1.00% , plus an applicable margin, may be used at our discretion. The applicable margin is subject to a minimum rate of 0.10% and a maximum rate of 0.75% . The applicable margin for advances bearing interest based on the prime rate is 1.00% below the applicable margin for LIBOR advances (but not lower than 0.00% ). We are also able to request advances under this facility based on competitive bids for the applicable interest rate. There were no amounts outstanding under this facility as of September 30, 2019 . The second agreement provides a revolving credit facility of $ 3.0 billion, and expires on December 11, 2023 . Generally, amounts outstanding under this facility bear interest at a periodic fixed rate equal to LIBOR for the applicable interest period and currency denomination, plus an applicable margin. Alternatively, a fluctuating rate of interest equal to the highest of (1) JPMorgan Chase Bank’s publicly announced prime rate; (2) the Federal Funds effective rate plus 0.50% ; and (3) LIBOR for a one month interest period plus 1.00% , plus an applicable margin, may be used at our discretion. The minimum applicable margin rate is 0.10% and the maximum applicable margin rate is 0.75% per annum. The applicable margin for advances bearing interest based on the prime rate is 1.00% below the applicable margin for LIBOR advances (but not less than 0.00% ). We are also able to request advances under this facility based on competitive bids for the applicable interest rate. There were no amounts outstanding under this facility as of September 30, 2019 . Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of September 30, 2019 and for all periods presented, we were in compliance with all applicable financial covenants. These covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions, to 10% of net tangible assets. As of September 30, 2019 , 10% of net tangible assets was equivalent to $ 3.453 billion; however, we have no covered sale-leaseback transactions or secured indebtedness outstanding. We do not expect these covenants to have a material impact on our financial condition or liquidity. Fair Value of Debt Based on the borrowing rates currently available to us for debt with similar terms and maturities, the fair value of long-term debt, including current maturities, was approximately $ 25.668 and $ 23.293 billion as of September 30, 2019 and December 31, 2018 , respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of all of our debt instruments. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | LEGAL PROCEEDINGS We are involved in a number of judicial proceedings and other matters arising from the conduct of our business activities. Although there can be no assurance as to the ultimate outcome, we have generally denied, or believe we have a meritorious defense and will deny, liability in all pending matters, including (except as otherwise noted herein) the matters described below, and we intend to vigorously defend each matter. We accrue for legal claims when, and to the extent that, amounts associated with the claims become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for those claims. For those matters as to which we are not able to estimate a possible loss or range of loss, we are not able to determine whether the loss will have a material adverse effect on our business, financial condition, results of operations or liquidity. For matters in this category, we have indicated in the descriptions that follow the reasons that we are unable to estimate the possible loss or range of loss. Judicial Proceedings In February 2015, the State and City of New York filed suit against UPS in the U.S. District Court for the Southern District of New York, arising from alleged shipments of cigarettes to New York State and City residents. The complaint asserted claims under various federal and state laws. The complaint also included a claim that UPS violated the Assurance of Discontinuance it entered into with the New York Attorney General in 2005 concerning cigarette deliveries. On March 24, 2017, the District Court issued an opinion and order finding liability against UPS on each of the plaintiffs’ causes of action. On May 25, 2017, the District Court issued a corrected opinion and order on liability and an order awarding the plaintiffs damages of $ 9.4 million and penalties of $ 237.6 million. An accrual of $ 9.4 million with respect to the damages awarded by the court is included on our consolidated balance sheets at September 30, 2019 . We estimate that the amount of losses could be up to $ 247 million, plus interest; however, the amount of penalties ultimately payable, if any, is subject to a variety of complex factors and potential outcomes that remain to be determined in future legal proceedings. Consequently, we are unable to reasonably estimate a likely amount of loss within that range. We strongly disagree with the District Court's analysis and conclusions, and have appealed to the United States Court of Appeals for the Second Circuit. The briefing and oral argument are now complete. We await a ruling by the Court of Appeals. We are a defendant in a number of lawsuits filed in state and federal courts containing various class action allegations under state wage-and-hour laws. At this time, we do not believe that any loss associated with any matter would have a material adverse effect on our financial condition, results of operations or liquidity. One of these matters, Hughes v. UPS Supply Chain Solutions, Inc. and United Parcel Service, Inc. had previously been certified as a class action in Kentucky state court. In the second quarter of 2019, the court granted our motion for judgment on the pleadings related to the wage-and-hour claims. The plaintiffs have appealed this decision. Other Matters In October 2015, the Department of Justice ("DOJ") informed us of an industry-wide inquiry into the transportation of mail under the United States Postal Service International Commercial Air contracts. In October 2017, we received a Civil Investigative Demand seeking certain information relating to our contracts. The DOJ has indicated it is investigating potential violations of the False Claims Act or other statutes. We are cooperating with the DOJ. We are unable to predict what action, if any, might be taken in the future by any government authorities as a result of their investigation. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. In August 2016, Spain’s National Markets and Competition Commission (“CNMC”) announced an investigation into 10 companies in the commercial delivery and parcel industry, including UPS, related to alleged nonaggression agreements to allocate customers. In May 2017, UPS received a Statement of Objections issued by the CNMC. In July 2017, UPS received a Proposed Decision from the CNMC. On March 8, 2018, the CNMC adopted a final decision, finding an infringement and imposing a fine on UPS of € 19.2 million. UPS has appealed the decision and in September 2018, obtained a suspension of the implementation of the decision (including payment of the fine). The appeal is pending. There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from this matter including: (1) we are vigorously defending ourselves and believe that we have a number of meritorious legal defenses; and (2) there are unresolved questions of law and fact that could be important to the ultimate resolution of this matter. Accordingly, at this time we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. In February 2018, the Turkish Competition Authority (“Authority”) opened an investigation into nine companies, including UPS, in the small package industry related to alleged customer allocations in violation of Turkish competition law. In April 2018, the Authority consolidated this investigation with two other investigations involving similar allegations. The consolidated investigation involves over 30 companies. There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from this matter including: (1) we are vigorously defending ourselves and believe that we have a number of meritorious legal defenses; and (2) there are unresolved questions of law and fact that could be important to the ultimate resolution of this matter. Accordingly, at this time we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. We are a party in various other matters that arose in the normal course of business. We do not believe that the eventual resolution of these other matters (either individually or in the aggregate), including any reasonably possible losses in excess of current accruals, will have a material adverse effect on our financial condition, results of operations or liquidity. |
SHAREOWNERS' EQUITY
SHAREOWNERS' EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREOWNERS' EQUITY | SHAREOWNERS' EQUITY Capital Stock, Additional Paid-In Capital and Retained Earnings We maintain two classes of common stock, which are distinguished from each other primarily by their respective voting rights. Class A shares are entitled to 10 votes per share, whereas class B shares are entitled to one vote per share. Class A shares are primarily held by UPS employees and retirees, and these shares are convertible on a one-to-one basis into class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange under the symbol “UPS”. Class A and B shares both have a $0.01 par value, and as of September 30, 2019 , there were 4.6 billion class A shares and 5.6 billion class B shares authorized to be issued. Additionally, there are 200 million preferred shares, with a $0.01 par value, authorized to be issued. As of September 30, 2019 , no preferred shares had been issued. The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling minority interest accounts for the three and nine months ended September 30, 2019 and 2018 (in millions, except per share amounts): Three Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 161 $ 2 168 $ 2 Common stock purchases (1 ) — (1 ) — Stock award plans — — 1 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (4 ) — (4 ) — Class A shares issued at end of period 157 $ 2 165 $ 2 Class B Common Stock Balance at beginning of period 698 $ 7 693 $ 7 Common stock purchases (1 ) — (2 ) — Conversions of class A to class B common stock 4 — 4 — Class B shares issued at end of period 701 7 695 7 Additional Paid-In Capital Balance at beginning of period $ 102 $ — Stock award plans 202 137 Common stock purchases (251 ) (249 ) Common stock issuances 56 80 Option premiums received (paid) 20 32 Balance at end of period $ 129 $ — Retained Earnings Balance at beginning of period $ 9,109 7,665 Net income attributable to common shareowners 1,750 1,508 Dividends ($0.96 and $0.91 per share) (1) (825 ) (784 ) Common stock purchases — 4 Other 3 (16 ) Balance at end of period $ 10,037 $ 8,377 Non-Controlling Minority Interest Balance at beginning of period $ 18 $ 28 Change in non-controlling minority interest (2 ) — Balance at end of period $ 16 $ 28 (1) The dividend per share amount is the same for both class A and class B common stock Nine Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 163 $ 2 173 $ 2 Common stock purchases (3 ) (3 ) — Stock award plans 4 — 4 — Common stock issuances 2 — 3 — Conversions of class A to class B common stock (9 ) — (12 ) — Class A shares issued at end of period 157 $ 2 165 $ 2 Class B Common Stock Balance at beginning of period 696 $ 7 687 $ 7 Common stock purchases (4 ) — (4 ) — Conversions of class A to class B common stock 9 — 12 — Class B shares issued at end of period 701 7 695 7 Additional Paid-In Capital Balance at beginning of period $ — $ — Stock award plans 584 307 Common stock purchases (753 ) (632 ) Common stock issuances 277 312 Option premiums received (paid) 21 13 Balance at end of period $ 129 $ — Retained Earnings Balance at beginning of period $ 8,006 $ 5,852 Net income attributable to common shareowners 4,546 4,338 Dividends ($2.88 and $2.73 per share) (1) (2,518 ) (2,408 ) Common stock purchases — (124 ) Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 — 735 Other 3 (16 ) Balance at end of period $ 10,037 $ 8,377 Non-Controlling Minority Interest Balance at beginning of period $ 16 $ 30 Change in non-controlling minority interest — (2 ) Balance at end of period $ 16 $ 28 (1) The dividend per share amount is the same for both class A and class B common stock In May 2016, the Board of Directors approved a share repurchase authorization of $8.0 billion for shares of class A and class B common stock, which has no expiration date. As of September 30, 2019 , we had $2.586 billion of this share repurchase authorization available. Share repurchases may be in the form of accelerated share repurchase programs, open market purchases or other such methods as we deem appropriate. The timing of share repurchases will depend upon market conditions. Unless terminated earlier by the Board, the program will expire when we have purchased all shares authorized for repurchase under the program. We repurchased 2.2 million shares of class A and class B common stock in the three months ended September 30, 2019 and 2018 for $ 251 and $ 245 million, respectively. We repurchased 7.0 and 6.6 million shares of class A and class B common stock for $753 and $ 756 million during the nine months ended September 30, 2019 and 2018 ( $751 million and $770 million in repurchases for 2019 and 2018 , respectively, are reported on the statements of consolidated cash flows due to the timing of settlements). From time to time, we enter into share repurchase programs with large financial institutions to assist in our buyback of company stock. These programs may allow us to repurchase our shares at a price below the weighted average UPS share price for a given period. During the third quarter of 2019, we did not enter into any accelerated share repurchase transactions. In order to lower the average cost of acquiring shares in our ongoing share repurchase program, we periodically enter into structured repurchase agreements involving the use of capped call options for the purchase of UPS class B shares. We pay a fixed sum of cash upon execution of each agreement in exchange for the right to receive either a pre-determined amount of cash or stock. Upon expiration of each agreement, if the closing market price of our common stock is above the pre-determined price, we will have our initial investment returned with a premium in either cash or shares (at our election). If the closing market price of our common stock is at or below the pre-determined price, we will receive the number of shares specified in the agreement. We received net premiums of $ 20 and $32 million during the three months ended September 30, 2019 and 2018, respectively, related to entering into and settling capped call options for the purchase of class B shares. We received net premiums of $21 and $13 million during the first nine months of 2019 and 2018 , respectively. As of September 30, 2019 , we had no capped call options outstanding. Accumulated Other Comprehensive Income (Loss) We recognize activity in AOCI for unrealized holding gains and losses on available-for-sale securities, foreign currency translation adjustments, unrealized gains and losses from derivatives that qualify as hedges of cash flows and unrecognized pension and postretirement benefit costs. Additionally, effective January 1, 2018, we early adopted ASU 2018-02 that allowed a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The activity in AOCI for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended September 30: 2019 2018 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,106 ) $ (1,061 ) Translation adjustment (net of tax effect of $41 and $1) (48 ) (28 ) Balance at end of period (1,154 ) (1,089 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period 7 (5 ) Current period changes in fair value (net of tax effect of $1 and $(1)) 2 (2 ) Reclassification to earnings (net of tax effect of $(1) and $0) (5 ) 1 Balance at end of period 4 (6 ) Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 104 (179 ) Current period changes in fair value (net of tax effect of $79 and $14) 251 44 Reclassification to earnings (net of tax effect of $(14) and $1) (45 ) 5 Balance at end of period 310 (130 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,820 ) (4,101 ) Reclassification to earnings (net of tax effect of $14 and $12) 43 38 Balance at end of period (3,777 ) (4,063 ) Accumulated other comprehensive income (loss) at end of period $ (4,617 ) $ (5,288 ) Nine Months Ended September 30: 2019 2018 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,126 ) $ (930 ) Translation adjustment (net of tax effect of $43 and $26) (28 ) (112 ) Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (47 ) Balance at end of period (1,154 ) (1,089 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (2 ) (2 ) Current period changes in fair value (net of tax effect of $4 and $(2)) 11 (6 ) Reclassification to earnings (net of tax effect of $(1) and $1) (5 ) 2 Balance at end of period 4 (6 ) Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 40 (366 ) Current period changes in fair value (net of tax effect of $112 and $81) 355 254 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (79 ) Reclassification to earnings (net of tax effect of $(27) and $19) (85 ) 61 Balance at end of period 310 (130 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,906 ) (3,569 ) Reclassification to earnings (net of tax effect of $41 and $36) 129 115 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (609 ) Balance at end of period (3,777 ) (4,063 ) Accumulated other comprehensive income (loss) at end of period $ (4,617 ) $ (5,288 ) Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended September 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities $ 6 $ (1 ) Investment income and other Income tax (expense) benefit (1 ) — Income tax expense Impact on net income 5 (1 ) Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (3 ) (6 ) Interest expense Foreign exchange contracts 62 — Revenue Income tax (expense) benefit (14 ) 1 Income tax expense Impact on net income 45 (5 ) Net income Unrecognized pension and postretirement benefit costs: Prior service costs (57 ) (50 ) Investment income and other Income tax (expense) benefit 14 12 Income tax expense Impact on net income (43 ) (38 ) Net income Total amount reclassified for the period $ 7 $ (44 ) Net income Nine Months Ended September 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities $ 6 $ (3 ) Investment income and other Income tax (expense) benefit (1 ) 1 Income tax expense Impact on net income 5 (2 ) Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (12 ) (18 ) Interest expense Foreign exchange contracts 124 (62 ) Revenue Income tax (expense) benefit (27 ) 19 Income tax expense Impact on net income 85 (61 ) Net income Unrecognized pension and postretirement benefit costs: Prior service costs (170 ) (151 ) Investment income and other Income tax (expense) benefit 41 36 Income tax expense Impact on net income (129 ) (115 ) Net income Total amount reclassified for the period $ (39 ) $ (178 ) Net income Deferred Compensation Obligations and Treasury Stock Activity in the deferred compensation program for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 25 $ 31 Reinvested dividends — 1 Benefit payments — — Balance at end of period $ 25 $ 32 Treasury Stock: Balance at beginning of period — $ (25 ) (1 ) $ (31 ) Reinvested dividends — — — (1 ) Benefit payments — — — — Balance at end of period — (25 ) (1 ) (32 ) Nine Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 32 $ 37 Reinvested dividends 1 2 Benefit payments (8 ) (7 ) Balance at end of period $ 25 $ 32 Treasury Stock: Balance at beginning of period (1 ) $ (32 ) (1 ) $ (37 ) Reinvested dividends — (1 ) — (2 ) Benefit payments 1 8 — 7 Balance at end of period — (25 ) (1 ) (32 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We report our operations in three segments: U.S. Domestic Package, International Package and Supply Chain & Freight. Package operations represent our most significant business and are broken down into regional operations around the world. Regional operations managers are responsible for both domestic and export products within their geographic area. U.S. Domestic Package Domestic Package operations include the time-definite delivery of letters, documents and packages throughout the United States. International Package International Package operations include delivery to more than 220 countries and territories worldwide, including shipments wholly outside the United States, as well as shipments with either origin or destination outside the United States. Our International Package reporting segment includes the operations of our Europe, Asia, Americas and ISMEA (Indian Subcontinent, Middle East and Africa) operating segments. Supply Chain & Freight Supply Chain & Freight includes our Forwarding, Logistics, Coyote, Marken, UPS Mail Innovations, UPS Freight and other aggregated business units. Our Forwarding, Logistics and UPS Mail Innovations business units provide services in more than 200 countries and territories worldwide and include international air and ocean freight forwarding, customs brokerage, distribution and post-sales services, mail and consulting services. UPS Freight offers a variety of less-than-truckload ("LTL") and truckload ("TL") services to customers in North America. Coyote offers truckload brokerage services primarily in the United States. Marken is a global provider of supply chain solutions to the life sciences industry. Other aggregated business units within this segment include The UPS Store and UPS Capital. In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating profit is before investment income and other, interest expense and income taxes. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies included in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018 . Certain expenses are allocated between the segments using activity-based costing methods. Segment information for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue: U.S. Domestic Package $ 11,455 $ 10,437 $ 33,085 $ 31,018 International Package 3,494 3,478 10,458 10,613 Supply Chain & Freight 3,369 3,529 9,983 10,382 Consolidated $ 18,318 $ 17,444 $ 53,526 $ 52,013 Operating Profit: U.S. Domestic Package $ 1,216 $ 949 $ 3,090 $ 2,644 International Package 667 536 1,858 1,748 Supply Chain & Freight 245 242 717 628 Consolidated $ 2,128 $ 1,727 $ 5,665 $ 5,020 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The earnings per share amounts are the same for class A and class B common shares as the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 (in millions, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Numerator: Net income attributable to common shareowners $ 1,750 $ 1,508 $ 4,546 $ 4,338 Denominator: Weighted average shares 858 860 859 861 Deferred compensation obligations — 1 — 1 Vested portion of restricted units 6 4 6 4 Denominator for basic earnings per share 864 865 865 866 Effect of dilutive securities: Restricted units 6 5 4 4 Stock options — — — — Denominator for diluted earnings per share 870 870 869 870 Basic earnings per share $ 2.03 $ 1.74 $ 5.26 $ 5.01 Diluted earnings per share $ 2.01 $ 1.73 $ 5.23 $ 4.99 Diluted earnings per share for the three months ended September 30, 2019 excluded the effect of 0.3 million shares of common stock that may be issued upon the exercise of employee stock options, because such effect would be antidilutive. There were no antidilutive shares for the three months ended September 30, 2018. Antidilutive shares for the nine months ended September 30, 2019 and 2018 were 0.7 and 0.1 million, respectively. |
DERIVATIVE INSTRUMENTS AND RISK
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT Risk Management Policies Changes in fuel prices, interest rates and foreign currency exchange rates impact our results of operations. These exposures are actively monitored by management. To manage the impact of these exposures, we enter into a variety of derivative financial instruments. Our objective is to manage, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency rates, commodity prices and interest rates. It is our policy and practice to use derivative financial instruments only to the extent necessary to manage exposures. As we use price sensitive instruments to hedge a certain portion of our existing and anticipated transactions, we expect that any loss in value from those instruments generally would be offset by increases in the value of those hedged transactions. We do not hold or issue derivative financial instruments for trading or speculative purposes. Credit Risk Management The forward contracts, swaps and options discussed below contain an element of risk that the counterparties may be unable to meet the terms of the agreements; however, we seek to minimize such risk exposures for these instruments by limiting the counterparties to banks and financial institutions that meet established credit guidelines, and by monitoring counterparties to prevent concentrations of credit risk with any single counterparty. We have agreements with all of our active counterparties (covering the majority of our derivative positions) containing early termination rights and/or zero threshold bilateral collateral provisions whereby cash is required based on the net fair value of derivatives associated with those counterparties. At September 30, 2019 and December 31, 2018 , we held cash collateral of $ 713 and $ 325 million, respectively, under these agreements; this collateral is included in "Cash and cash equivalents" in the consolidated balance sheets and its use by UPS is not restricted. At each of September 30, 2019 and December 31, 2018 , respectively, no additional collateral was required to be posted with our counterparties. Events such as a counterparty credit rating downgrade (depending on the ultimate rating level) could also allow us to take additional protective measures such as the early termination of trades. Alternatively, we could be required to provide additional collateral or terminate transactions with certain counterparties in the event of a downgrade of our credit rating. The amount of collateral required would be determined by the net fair value of the associated derivatives with each counterparty. We have not historically incurred, and do not expect to incur in the future, any losses as a result of counterparty default. At September 30, 2019 and December 31, 2018 there were no instruments in a net liability position that were not covered by the zero threshold bilateral collateral provisions. Accounting Policy for Derivative Instruments We recognize all derivative instruments as assets or liabilities in the consolidated balance sheets at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the derivative, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge or a hedge of a net investment in a foreign operation. A cash flow hedge refers to hedging the exposure to variability in expected future cash flows that is attributable to a particular risk. For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of AOCI, and reclassified into earnings in the same period during which the hedged transaction affects earnings. A fair value hedge refers to hedging the exposure to changes in the fair value of an existing asset or liability in the consolidated balance sheets that is attributable to a particular risk. For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative instrument is recognized in the statements of consolidated income during the current period, as well as the offsetting gain or loss on the hedged item. A net investment hedge refers to the use of cross currency swaps, forward contracts or foreign currency denominated debt to hedge portions of our net investments in foreign operations. For hedges that meet the hedge accounting requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in the foreign currency translation adjustment within AOCI, and are recorded in the income statement when the hedged item affects earnings. Types of Hedges Commodity Risk Management Currently, the fuel surcharges that we apply to our domestic and international package and LTL services are the primary means of reducing the risk of adverse fuel price changes on our business. In order to mitigate the impact of fuel surcharges imposed on us by outside carriers, we regularly adjust the rates we charge for our freight brokerage, inter-modal and truckload services. We periodically enter into derivative contracts on energy commodity products to manage the price risk associated with forecasted transactions involving refined fuels, principally jet-A, diesel and unleaded gasoline. The objective of the hedges is to reduce the variability of cash flows, due to changing fuel prices, associated with the forecasted transactions involving those products. We normally designate and account for these contracts as cash flow hedges of the underlying forecasted transactions involving these fuel products and, therefore, the resulting gains and losses from these hedges are recognized as a component of fuel expense or revenue when the underlying transactions occur. Foreign Currency Risk Management To protect against the reduction in value of forecasted foreign currency cash flows from our international package business, we maintain a foreign currency cash flow hedging program. Our most significant foreign currency exposures relate to the Euro, British Pound Sterling, Canadian Dollar, Chinese Renminbi and Hong Kong Dollar. We hedge portions of our forecasted revenue denominated in foreign currencies with option and forward contracts. We normally designate and account for these contracts as cash flow hedges of anticipated foreign currency denominated revenue and, therefore, the resulting gains and losses from these hedges are recognized as a component of international package revenue when the underlying sales transactions occur. We also hedge portions of our anticipated cash settlements of intercompany transactions and interest payments on certain debt subject to foreign currency remeasurement using foreign currency forward contracts. We normally designate and account for these contracts as cash flow hedges of forecasted foreign currency denominated transactions; therefore, the resulting gains and losses from these hedges are recognized as a component of investment income and other when the underlying transactions are subject to currency remeasurement. We hedge our net investment in certain foreign operations with foreign currency denominated debt instruments. The use of foreign denominated debt as the hedging instrument allows the debt to be remeasured to foreign currency translation adjustment within AOCI to offset the translation risk from those investments. Balances in the cumulative translation adjustment accounts remain until the sale or substantially complete liquidation of the foreign entity, upon which they are recognized as a component of investment income and other. Interest Rate Risk Management Our indebtedness under our various financing arrangements creates interest rate risk. We use a combination of derivative instruments as part of our program to manage the fixed and floating interest rate mix of our total debt portfolio and related overall cost of borrowing. The notional amount, interest payment date and maturity date of the swaps match the terms of the associated debt being hedged. Interest rate swaps allow us to maintain a target range of floating-rate debt within our capital structure. We have designated and account for the majority of our interest rate swaps that convert fixed-rate interest payments into floating-rate interest payments as hedges of the fair value of the associated debt instruments. Therefore, the gains and losses resulting from fair value adjustments to the interest rate swaps and fair value adjustments to the associated debt instruments are recorded to interest expense in the period in which the gains and losses occur. We have designated and account for interest rate swaps that convert floating-rate interest payments into fixed-rate interest payments as cash flow hedges of the forecasted payment obligations. The gains and losses resulting from fair value adjustments to the interest rate swaps are recorded to AOCI. We periodically hedge the forecasted fixed-coupon interest payments associated with anticipated debt offerings by using forward starting interest rate swaps, interest rate locks or similar derivatives. These agreements effectively lock a portion of our interest rate exposure between the time the agreement is entered into and the date when the debt offering is completed, thereby mitigating the impact of interest rate changes on future interest expense. These derivatives are settled commensurate with the issuance of the debt, and any gain or loss upon settlement is amortized as an adjustment to the effective interest yield on the debt. Outstanding Positions As of September 30, 2019 and December 31, 2018 , the notional amounts of our outstanding derivative positions were as follows (in millions): September 30, 2019 December 31, 2018 Currency hedges: Euro EUR 4,850 EUR 4,924 British Pound Sterling GBP 1,660 GBP 2,037 Canadian Dollar CAD 1,438 CAD 1,443 Hong Kong Dollar HKD 3,670 HKD 3,642 Singapore Dollar SGD — SGD 20 Interest rate hedges: Fixed to Floating Interest Rate Swaps USD 3,674 USD 4,674 Floating to Fixed Interest Rate Swaps USD 778 USD 778 As of September 30, 2019 and December 31, 2018 , we had no outstanding commodity hedge positions. Balance Sheet Recognition and Fair Value Measurements The following table indicates the location in the consolidated balance sheets where our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives (in millions). We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded in the consolidated balance sheets. The columns labeled "Net Amounts if Right of Offset had been Applied" indicate the potential net fair value positions by type of contract and location in the consolidated balance sheets had we elected to apply the right of offset. Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Asset Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 203 $ 90 $ 203 $ 83 Interest rate contracts Other current assets Level 2 3 1 3 1 Foreign exchange contracts Other non-current assets Level 2 433 230 433 215 Interest rate contracts Other non-current assets Level 2 29 14 27 6 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 3 7 2 5 Foreign exchange contracts Other non-current assets Level 2 — 1 — 1 Interest rate contracts Other non-current assets Level 2 14 18 13 18 Total Asset Derivatives $ 685 $ 361 $ 681 $ 329 Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Liability Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current liabilities Level 2 $ — $ 7 $ — $ — Foreign exchange contracts Other non-current liabilities Level 2 — 15 — — Interest rate contracts Other non-current liabilities Level 2 13 41 11 33 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 2 3 1 1 Foreign exchange contracts Other non-current liabilities Level 2 — 1 1 Interest rate contracts Other non-current liabilities Level 2 3 — 2 — Total Liability Derivatives $ 18 $ 67 $ 14 $ 35 Our foreign exchange, interest rate and investment market price derivatives are largely comprised of over-the-counter derivatives, which are primarily valued using pricing models that rely on market observable inputs such as yield curves, currency exchange rates and investment forward prices; therefore, these derivatives are classified as Level 2. Balance Sheet Location of Hedged Item in Fair Value Hedges The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of September 30, 2019 and December 31, 2018 (in millions). Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedge Adjustments Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedge Adjustments Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included September 30, 2019 September 30, 2019 December 31, 2018 December 31, 2018 Long-term debt and finance leases 3,246 53 4,207 16 The cumulative amount of fair value hedging losses remaining for any hedged assets and liabilities for which hedge accounting has been discontinued as of September 30, 2019 is $ 21 million. These amounts will be recognized over the next 11 years. Income Statement and AOCI Recognition The following table indicates the amount of gains and losses that have been recognized in the income statement for the fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the three and nine months ended September 30, 2019 and 2018 (in millions): Three Months Ended Three Months Ended 2019 2018 Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Revenue Interest Expense Investment Income and Other Revenue Interest Expense Investment Income and Other Gain or (loss) on fair value hedging relationships: Interest Contracts: Hedged items $ — $ (2 ) $ — $ — $ 13 $ — Derivatives designated as hedging instruments — 2 — — (13 ) — Gains or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (3 ) — — (6 ) — Foreign Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 62 — — — — — Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded $ 62 $ (3 ) $ — $ — $ (6 ) $ — Nine Months Ended Nine Months Ended 2019 2018 Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Revenue Interest Expense Investment Income and Other Revenue Interest Expense Investment Income and Other Gain or (loss) on fair value hedging relationships: Interest Contracts: Hedged items $ — $ (47 ) $ — $ — $ 86 $ — Derivatives designated as hedging instruments — 47 — — (86 ) — Gains or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (12 ) — — (18 ) — Foreign Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 124 — — (62 ) — — Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded $ 124 $ (12 ) $ — $ (62 ) $ (18 ) $ — The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the three and nine months ended September 30, 2019 and 2018 for those derivatives designated as cash flow hedges (in millions): Three Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2019 2018 Interest rate contracts $ (1 ) $ 1 Foreign exchange contracts 331 57 Total $ 330 $ 58 Nine Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2019 2018 Interest rate contracts $ 10 $ 3 Foreign exchange contracts 457 332 Total $ 467 $ 335 As of September 30, 2019 , there are $ 255 million of pre-tax gains related to cash flow hedges that are currently deferred in AOCI that are expected to be reclassified to income over the 12 month period ending September 30, 2020 . The actual amounts that will be reclassified to income over the next 12 months will vary from this amount as a result of changes in market conditions. The maximum term over which we are hedging exposures to the variability of cash flows is approximately 13 years. The following table indicates the amount of gains and losses that have been recognized in AOCI within foreign currency translation adjustment for the three and nine months ended September 30, 2019 and 2018 for those instruments designated as net investment hedges (in millions): Three Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2019 2018 Foreign denominated debt $ 191 $ 10 Total $ 191 $ 10 Nine Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2019 2018 Foreign denominated debt $ 197 $ 148 Total $ 197 $ 148 Additionally, we maintain interest rate swaps, foreign exchange forwards and investment market price forward contracts that are not designated as hedges. The interest rate swap contracts are intended to provide an economic hedge of portions of our outstanding debt. The foreign exchange forward contracts are intended to provide an economic offset to foreign currency remeasurement and settlement risk for certain assets and liabilities on our consolidated balance sheets. The investment market price forward contracts are intended to provide an economic offset to fair value fluctuations of certain investments in marketable securities. We also periodically terminate interest rate swaps and foreign exchange options by entering into offsetting swap and foreign currency positions with different counterparties. As part of this process, we de-designate our original swap and foreign exchange contracts. These transactions provide an economic offset that effectively eliminates the effects of changes in market valuation. The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these interest rate swaps, foreign currency forward and investment market price forward contracts not designated as hedges for the three and nine months ended September 30, 2019 and 2018 (in millions): Derivative Instruments Not Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income 2019 2018 Three Months Ended September 30: Interest rate contracts Interest expense $ (2 ) $ (3 ) Foreign exchange contracts Investment income and other (39 ) (14 ) Total $ (41 ) $ (17 ) Nine Months Ended September 30: Interest rate contracts Interest expense $ (6 ) $ (7 ) Foreign exchange contracts Investment income and other (59 ) $ (73 ) Investment market price contracts Investment income and other — 16 Total $ (65 ) $ (64 ) |
INCOME TAXES
INCOME TAXES - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
INCOME TAXES | INCOME TAXES Our effective tax rate increased to 20.7% in the third quarter of 2019 from 20.2% in the same period of 2018 ( 22.3% year-to-date in 2019 compared to 20.8% in the same period of 2018). The recognition in income tax of excess tax benefits related to share-based compensation reduced our effective rate by 0.1% year-to-date in 2019 compared to 0.8% in the same period of 2018 (there was not a significant impact in the third quarter of 2019 or 2018). Other favorable items that impacted our effective tax rate in 2018, but did not recur in 2019, included resolutions of uncertain tax positions, tax provisions enacted in the Bipartisan Budget Act of 2018 and discrete tax credits associated with the filing of our 2017 U.S. federal income tax return. As discussed in our Annual Report on Form 10-K for the year ended December 31, 2018 , we have recognized liabilities for uncertain tax positions. We reevaluate these uncertain tax positions on a quarterly basis. A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be made. Items that may cause changes to unrecognized tax benefits include the timing of interest deductions and the allocation of income and expense between tax jurisdictions. These changes could result from the settlement of ongoing litigation, the completion of ongoing examinations, the expiration of the statutes of limitations, additional regulatory guidance on the Tax Cuts and Jobs Act or other unforeseen circumstances. As of June 30, 2019 and December 31, 2018, we maintained a valuation allowance against certain deferred tax assets, primarily related to foreign net operating loss carryforwards. As of each reporting date, we consider new evidence, both positive and negative, that could affect the future realization of deferred tax assets. During the third quarter of 2019, we determined that there was sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets related to certain foreign net operating loss carryforwards will be realized. This conclusion is primarily related to achieving cumulative three-year income and anticipated future earnings within the relevant jurisdiction. Accordingly, we reversed the related valuation allowance and recognized a discrete tax benefit of approximately $62 million. As discussed in note 17, we recognized pre-tax transformation strategy costs of $ 63 million in the third quarter of 2019 ($ 207 million year-to-date). As a result, we recorded an additional income tax benefit in the third quarter of $ 16 million ($ 50 million year-to-date). This benefit was generated at a higher average tax rate than the U.S. federal statutory tax rate primarily due to the effect of U.S. state and local taxes and foreign taxes. As discussed in note 17, we recognized pre-tax transformation strategy costs of $ 97 million in the third quarter of 2018 ($ 360 million year-to-date). As a result, we recorded an additional income tax benefit in the third quarter of $ 24 million ($ 87 million year-to-date). This benefit was generated at a higher average tax rate than the U.S. federal statutory tax rate primarily due to the effect of U.S. state and local taxes and foreign taxes. | |||
Transformation cost | $ 63 | $ 97 | $ 207 | $ 360 |
TRANSFORMATION STRATEGY (Notes)
TRANSFORMATION STRATEGY (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
TRANSFORMATION STRATEGY | TRANSFORMATION STRATEGY COSTS In the first quarter of 2018, we launched the first phase of a multi-year, enterprise-wide transformation strategy that is expected to impact our organization. Over the next few years additional phases will be implemented. The program includes investments, as well as changes in processes and technology, that impact global direct and indirect operating costs. The table below presents the transformation strategy costs for the three and nine months ended September 30, 2019 and 2018 (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Transformation Strategy Costs: Compensation and benefits $ 41 $ 70 $ 149 $ 262 Total other expenses 22 27 58 98 Total Transformation Strategy Costs $ 63 $ 97 $ 207 $ 360 Income Tax Benefit from Transformation Strategy Costs (16 ) (24 ) (50 ) (87 ) After Tax Transformation Strategy Costs $ 47 $ 73 $ 157 $ 273 The income tax effects of the transformation strategy costs are calculated by multiplying the amount of the adjustments by the statutory tax rates applicable in each tax jurisdiction. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation In our opinion, the accompanying interim, unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These interim, unaudited, consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly our financial position as of September 30, 2019 , our results of operations for the three and nine months ended September 30, 2019 and 2018 , and our cash flows for the nine months ended September 30, 2019 and 2018 . The results reported in these interim, unaudited, consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for any other period or the entire year. The interim, unaudited, consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of September 30, 2019 and December 31, 2018. The fair values of our investment securities are disclosed in note 5 , our recognized multiemployer pension withdrawal liabilities in note 7 , our short and long-term debt in note 9 and our derivative instruments in note 15 |
Accounting Estimates | Estimates The preparation of the accompanying interim, unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the interim, unaudited, consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information and actual results could differ materially from those estimates. For interim, unaudited, consolidated financial statement purposes, we provide for accruals under our various employee benefit plans for each three month period based on one quarter of the estimated annual expense. |
Change in Accounting Methodology | Use of Estimates The preparation of the accompanying interim, unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the interim, unaudited, consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information and actual results could differ materially from those estimates. For interim, unaudited, consolidated financial statement purposes, we provide for accruals under our various employee benefit plans for each three month period based on one quarter of the estimated annual expense. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2016-02, Leases (Topic 842) , which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with terms beyond twelve months. The new standard also requires enhanced disclosures that provide more transparency and information to financial statement users about lease portfolios. Effective January 1, 2019, we adopted the requirements of this ASU using the modified retrospective approach. The adoption on January 1, 2019 resulted in the recognition of right-of-use assets for operating leases of approximately $2.65 billion and operating lease liabilities of approximately $2.70 billion . The consolidated financial statements for the three and nine months ended September 30, 2019 are presented under the new standard, while comparative periods presented have not been adjusted and continue to be reported in accordance with the previous standard. We elected the transition package of practical expedients permitted within the standard. As a result, we did not reassess initial direct costs, lease classification, or whether our contracts contain or are leases. We also made an accounting policy election to not recognize right-of-use assets and liabilities for leases with an original lease term of twelve months or less, unless the leases include options to renew or purchase the underlying asset that are reasonably certain to be exercised. See note 10 for additional disclosures required by this ASU. In March 2017, the FASB issued an ASU requiring the premium on callable debt securities to be amortized to the earliest call date. We adopted this standard on January 1, 2019. It did not have a material impact on our consolidated financial position, results of operations or cash flows. In August 2017, the FASB issued an ASU to enhance recognition of the economic results of hedging activities in the financial statements. In addition, the update made certain targeted improvements to simplify the application of hedge accounting guidance and increase transparency regarding the scope and results of hedging activities. We adopted this standard on January 1, 2019. It did not have a material impact on our consolidated financial position, results of operations or cash flows but did require additional disclosures. See note 15 for required disclosures pertaining to this ASU. For accounting standards adopted in the period ended September 30, 2018 , refer to note 1 to our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018 . Other accounting pronouncements adopted during the periods covered by the consolidated financial statements did not have a material impact on our consolidated financial position, results of operations or cash flows. Accounting Standards Issued But Not Yet Effective In June 2016, the FASB issued an ASU introducing an expected credit loss methodology for the measurement of financial assets not accounted for at fair value. The methodology replaces the probable, incurred loss model for those assets. The standard will be effective for us in the first quarter of 2020. We are evaluating the impact of its adoption on our consolidated financial statements and internal control over financial reporting environment, but do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows. In January 2017, the FASB issued an ASU to simplify the accounting for goodwill impairment. The update removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard will be effective for us in the first quarter of 2020. We continue to evaluate this update to determine the impact of its adoption on our consolidated financial statements and internal control over financial reporting environment, but do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows. Other accounting pronouncements issued, but not effective until after September 30, 2019 , are not expected to have a material impact on our consolidated financial position, results of operations or cash flows. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue: Next Day Air $ 2,146 $ 1,896 $ 6,160 $ 5,510 Deferred 1,248 1,066 3,494 3,215 Ground 8,061 7,475 23,431 22,293 U.S. Domestic Package 11,455 10,437 33,085 31,018 Domestic 689 678 2,069 2,094 Export 2,673 2,654 7,972 8,073 Cargo & Other 132 146 417 446 International Package 3,494 3,478 10,458 10,613 Forwarding 1,472 1,672 4,384 4,936 Logistics 846 790 2,511 2,356 Freight 852 867 2,486 2,497 Other 199 200 602 593 Supply Chain & Freight 3,369 3,529 9,983 10,382 Consolidated revenue $ 18,318 $ 17,444 $ 53,526 $ 52,013 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair Value of Employee Stock Options Granted and Determined by Black-Scholes Valuation Model Assumptions | The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the calculated weighted-average fair values of options granted in 2019 and 2018 are as follows: 2019 2018 Expected dividend yield 2.93 % 2.93 % Risk-free interest rate 2.60 % 2.84 % Expected life (in years) 7.5 7.5 Expected volatility 17.79 % 16.72 % Weighted-average fair value of options granted $ 16.39 $ 15.23 The weighted-average assumptions used and the calculated weighted-average fair values of the RTSR portion of the LTIP awards granted in 2019 and 2018 are as follows: 2019 2018 Risk-free interest rate 2.23 % 2.61 % Expected volatility 19.64 % 16.51 % Weighted-average fair value of units granted $ 123.44 $ 137.57 Share payout 115.04 % 123.47 % |
CASH AND INVESTMENTS (Tables)
CASH AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities | The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2019 and December 31, 2018 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value September 30, 2019: Current trading marketable securities: Corporate debt securities $ 109 $ — $ — $ 109 Equity securities 2 — — 2 Total trading marketable securities 111 — — 111 Current available-for-sale securities: U.S. government and agency debt securities 161 2 — 163 Mortgage and asset-backed debt securities 54 1 — 55 Corporate debt securities 150 3 — 153 Non-U.S. government debt securities 16 — — 16 Total available-for-sale marketable securities 381 6 — 387 Total current marketable securities $ 492 $ 6 $ — $ 498 Cost Unrealized Gains Unrealized Losses Estimated Fair Value December 31, 2018: Current trading marketable securities: Corporate debt securities $ 137 $ — $ — $ 137 Equity securities 2 — — 2 Total trading marketable securities 139 — — 139 Current available-for-sale securities: U.S. government and agency debt securities 297 1 (1 ) 297 Mortgage and asset-backed debt securities 82 — (1 ) 81 Corporate debt securities 275 — (2 ) 273 Non-U.S. government debt securities 20 — — 20 Total available-for-sale marketable securities 674 1 (4 ) 671 Total current marketable securities $ 813 $ 1 $ (4 ) $ 810 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of marketable securities at September 30, 2019 , by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations with or without prepayment penalties. Cost Estimated Fair Value Due in one year or less $ 121 $ 121 Due after one year through three years 318 321 Due after three years through five years 7 8 Due after five years 44 46 490 496 Equity securities 2 2 $ 492 $ 498 |
Cash and Cash Equivalents and Restricted Cash | A reconciliation of cash and cash equivalents and restricted cash from the consolidated balance sheets to the statements of consolidated cash flows is shown below (in millions): September 30, 2019 December 31, 2018 September 30, 2018 Cash and cash equivalents $ 4,040 $ 4,225 $ 4,097 Restricted cash 145 142 278 Total cash, cash equivalents and restricted cash $ 4,185 $ 4,367 $ 4,375 |
Fair Value, Assets Measured on Recurring Basis | The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance September 30, 2019: Marketable Securities: U.S. government and agency debt securities $ 163 $ — $ — $ 163 Mortgage and asset-backed debt securities — 55 — 55 Corporate debt securities — 262 — 262 Equity securities — 2 — 2 Non-U.S. government debt securities — 16 — 16 Total marketable securities 163 335 — 498 Other non-current investments 20 — 2 22 Total $ 183 $ 335 $ 2 $ 520 December 31, 2018: Marketable Securities: U.S. government and agency debt securities $ 297 $ — $ — $ 297 Mortgage and asset-backed debt securities — 81 — 81 Corporate debt securities — 410 — 410 Equity securities — 2 — 2 Non-U.S. government debt securities — 20 — 20 Total marketable securities 297 513 — 810 Other non-current investments 19 — 2 21 Total $ 316 $ 513 $ 2 $ 831 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | There were no transfers of investments between Level 1 and Level 2 during the nine months ended September 30, 2019 or 2018 . |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment as of September 30, 2019 and December 31, 2018 consists of the following (in millions): 2019 2018 Vehicles $ 10,046 $ 9,820 Aircraft 18,481 17,499 Land 2,068 2,000 Buildings 4,920 4,808 Building and leasehold improvements 4,595 4,323 Plant equipment 12,369 11,833 Technology equipment 2,184 2,093 Construction-in-progress 3,195 2,112 57,858 54,488 Less: Accumulated depreciation and amortization (28,787 ) (27,912 ) $ 29,071 $ 26,576 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Information about net periodic benefit cost for our company-sponsored pension and postretirement benefit plans is as follows for the three and nine months ended September 30, 2019 and 2018 (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Three Months Ended September 30: Service cost $ 360 $ 415 $ 6 $ 7 $ 15 $ 15 Interest cost 516 450 27 26 12 11 Expected return on assets (782 ) (800 ) (2 ) (2 ) (19 ) (19 ) Amortization of prior service cost 55 48 2 2 — — Net periodic benefit cost $ 149 $ 113 $ 33 $ 33 $ 8 $ 7 U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Nine Months Ended September 30: Service cost $ 1,079 $ 1,246 $ 18 $ 21 $ 43 $ 47 Interest cost 1,550 1,349 81 78 35 34 Expected return on assets (2,347 ) (2,401 ) (6 ) (6 ) (57 ) (58 ) Amortization of prior service cost 164 145 5 6 1 — Net periodic benefit cost $ 446 $ 339 $ 98 $ 99 $ 22 $ 23 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table indicates the allocation of goodwill by reportable segment as of September 30, 2019 and December 31, 2018 (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated December 31, 2018: $ 715 $ 417 $ 2,679 $ 3,811 Acquired — 2 3 5 Currency / Other — (7 ) (26 ) (33 ) September 30, 2019: $ 715 $ 412 $ 2,656 $ 3,783 |
Schedule of Intangible Assets (Excluding Goodwill) | The following is a summary of intangible assets as of September 30, 2019 and December 31, 2018 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value September 30, 2019: Capitalized software $ 4,004 $ (2,641 ) $ 1,363 Licenses 117 (57 ) 60 Franchise rights 146 (109 ) 37 Customer relationships 720 (261 ) 459 Trade name 200 — 200 Trademarks, patents and other 42 (30 ) 12 Total Intangible Assets, Net $ 5,229 $ (3,098 ) $ 2,131 December 31, 2018: Capitalized software $ 3,693 $ (2,478 ) $ 1,215 Licenses 117 (36 ) 81 Franchise rights 145 (105 ) 40 Customer relationships 736 (217 ) 519 Trade name 200 — 200 Trademarks, patents and other 52 (31 ) 20 Total Intangible Assets, Net $ 4,943 $ (2,867 ) $ 2,075 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense for the three and nine months ended September 30, 2019 are as follows (in millions): Three Months Ended Nine Months Ended 2019 2019 Operating lease costs $ 151 $ 474 Finance lease costs: Amortization of assets 18 $ 55 Interest on lease liabilities 5 14 Total finance lease costs 23 69 Variable lease costs 69 148 Short-term lease costs 194 633 Total lease costs $ 437 $ 1,324 Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 455 Operating cash flows from finance leases 11 Financing cash flows from finance leases 121 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 144 |
Supplemental Balance Sheet | Supplemental information related to leases and location within our consolidated balance sheets are as follows (in millions, except lease term and discount rate): September 30, 2019 Operating Leases: Operating lease right-of-use assets $ 2,504 Current maturities of operating leases $ 500 Non-current operating leases 2,063 Total operating lease liabilities $ 2,563 Finance Leases: Property, plant and equipment, at cost $ 2,541 Accumulated amortization (979 ) Property, plant and equipment, net $ 1,562 Current maturities of long-term debt, commercial paper and finance leases $ 102 Long-term debt and finance leases 364 Total finance lease liabilities $ 466 Weighted average remaining lease term (in years): Operating leases 9.1 Finance leases 9.8 Weighted average discount rate: Operating leases 2.77 % Finance leases 4.23 % |
Operating Leases Maturity Schedule | Maturities of lease liabilities as of September 30, 2019 are as follows (in millions): Finance Leases Operating Leases 2019 $ 26 $ 151 2020 149 546 2021 44 463 2022 39 384 2023 37 309 Thereafter 292 1,159 Total lease payments 587 3,012 Less: Imputed interest (121 ) (449 ) Total lease obligations 466 2,563 Less: Current obligations (102 ) (500 ) Long-term lease obligations $ 364 $ 2,063 |
Finance Leases Maturity Schedule | Maturities of lease liabilities as of September 30, 2019 are as follows (in millions): Finance Leases Operating Leases 2019 $ 26 $ 151 2020 149 546 2021 44 463 2022 39 384 2023 37 309 Thereafter 292 1,159 Total lease payments 587 3,012 Less: Imputed interest (121 ) (449 ) Total lease obligations 466 2,563 Less: Current obligations (102 ) (500 ) Long-term lease obligations $ 364 $ 2,063 |
Contractual Obligation, Fiscal Year Maturity Schedule | The following table sets forth the aggregate minimum lease payments under capital and operating leases (in millions) as of December 31, 2018 : Capital Leases Operating Leases 2019 $ 158 $ 578 2020 95 477 2021 42 399 2022 39 325 2023 36 262 After 2023 293 926 Total lease payments 663 2,967 Less: Imputed interest (129 ) Total lease obligations 534 Less: Current obligations (140 ) Long-term lease obligations $ 394 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of our outstanding debt as of September 30, 2019 and December 31, 2018 consists of the following (in millions): Principal Amount Carrying Value Maturity 2019 2018 Commercial paper $ 2,054 2019-2020 $ 2,054 $ 2,662 Fixed-rate senior notes: 5.125% senior notes 1,000 2019 — 998 3.125% senior notes 1,500 2021 1,528 1,492 2.050% senior notes 700 2021 698 698 2.450% senior notes 1,000 2022 1,007 1,023 2.350% senior notes 600 2022 598 597 2.500% senior notes 1,000 2023 995 994 2.800% senior notes 500 2024 497 496 2.200% senior notes 400 2024 398 — 2.400% senior notes 500 2026 498 498 3.050% senior notes 1,000 2027 992 991 3.400% senior notes 750 2029 745 — 2.500% senior notes 400 2029 396 — 6.200% senior notes 1,500 2038 1,483 1,482 4.875% senior notes 500 2040 490 490 3.625% senior notes 375 2042 368 368 3.400% senior notes 500 2046 491 491 3.750% senior notes 1,150 2047 1,136 1,136 4.250% senior notes 750 2049 742 — 3.400% senior notes 700 2049 687 — Floating-rate senior notes: Floating-rate senior notes 350 2021 349 349 Floating-rate senior notes 400 2022 399 399 Floating-rate senior notes 500 2023 499 499 Floating-rate senior notes 1,041 2049-2067 1,028 1,029 8.375% Debentures: 8.375% debentures 424 2020 429 419 8.375% debentures 276 2030 281 274 Pound Sterling notes: 5.500% notes 82 2031 81 84 5.125% notes 559 2050 530 546 Euro senior notes: 0.375% notes 763 2023 759 797 1.625% notes 763 2025 759 798 1.000% notes 545 2028 542 570 1.500% notes 545 2032 541 569 Floating-rate senior notes 545 2020 544 572 Canadian senior notes: 2.125% notes 566 2024 564 548 Finance lease obligations 466 2019-3005 466 534 Facility notes and bonds 320 2029-2045 319 320 Other debt 8 2019-2022 8 13 Total debt $ 25,032 23,901 22,736 Less: Current maturities (2,161 ) (2,805 ) Long-term debt $ 21,740 $ 19,931 |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Stockholders Equity [Table Text Block] | Three Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 161 $ 2 168 $ 2 Common stock purchases (1 ) — (1 ) — Stock award plans — — 1 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (4 ) — (4 ) — Class A shares issued at end of period 157 $ 2 165 $ 2 Class B Common Stock Balance at beginning of period 698 $ 7 693 $ 7 Common stock purchases (1 ) — (2 ) — Conversions of class A to class B common stock 4 — 4 — Class B shares issued at end of period 701 7 695 7 Additional Paid-In Capital Balance at beginning of period $ 102 $ — Stock award plans 202 137 Common stock purchases (251 ) (249 ) Common stock issuances 56 80 Option premiums received (paid) 20 32 Balance at end of period $ 129 $ — Retained Earnings Balance at beginning of period $ 9,109 7,665 Net income attributable to common shareowners 1,750 1,508 Dividends ($0.96 and $0.91 per share) (1) (825 ) (784 ) Common stock purchases — 4 Other 3 (16 ) Balance at end of period $ 10,037 $ 8,377 Non-Controlling Minority Interest Balance at beginning of period $ 18 $ 28 Change in non-controlling minority interest (2 ) — Balance at end of period $ 16 $ 28 (1) The dividend per share amount is the same for both class A and class B common stock Nine Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 163 $ 2 173 $ 2 Common stock purchases (3 ) (3 ) — Stock award plans 4 — 4 — Common stock issuances 2 — 3 — Conversions of class A to class B common stock (9 ) — (12 ) — Class A shares issued at end of period 157 $ 2 165 $ 2 Class B Common Stock Balance at beginning of period 696 $ 7 687 $ 7 Common stock purchases (4 ) — (4 ) — Conversions of class A to class B common stock 9 — 12 — Class B shares issued at end of period 701 7 695 7 Additional Paid-In Capital Balance at beginning of period $ — $ — Stock award plans 584 307 Common stock purchases (753 ) (632 ) Common stock issuances 277 312 Option premiums received (paid) 21 13 Balance at end of period $ 129 $ — Retained Earnings Balance at beginning of period $ 8,006 $ 5,852 Net income attributable to common shareowners 4,546 4,338 Dividends ($2.88 and $2.73 per share) (1) (2,518 ) (2,408 ) Common stock purchases — (124 ) Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 — 735 Other 3 (16 ) Balance at end of period $ 10,037 $ 8,377 Non-Controlling Minority Interest Balance at beginning of period $ 16 $ 30 Change in non-controlling minority interest — (2 ) Balance at end of period $ 16 $ 28 (1) The dividend per share amount is the same for both class A and class B common stock |
Schedule of Deferred Compensation and Treasury Stock Activity [Table Text Block] | Activity in the deferred compensation program for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 25 $ 31 Reinvested dividends — 1 Benefit payments — — Balance at end of period $ 25 $ 32 Treasury Stock: Balance at beginning of period — $ (25 ) (1 ) $ (31 ) Reinvested dividends — — — (1 ) Benefit payments — — — — Balance at end of period — (25 ) (1 ) (32 ) Nine Months Ended September 30: 2019 2018 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 32 $ 37 Reinvested dividends 1 2 Benefit payments (8 ) (7 ) Balance at end of period $ 25 $ 32 Treasury Stock: Balance at beginning of period (1 ) $ (32 ) (1 ) $ (37 ) Reinvested dividends — (1 ) — (2 ) Benefit payments 1 8 — 7 Balance at end of period — (25 ) (1 ) (32 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The activity in AOCI for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended September 30: 2019 2018 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,106 ) $ (1,061 ) Translation adjustment (net of tax effect of $41 and $1) (48 ) (28 ) Balance at end of period (1,154 ) (1,089 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period 7 (5 ) Current period changes in fair value (net of tax effect of $1 and $(1)) 2 (2 ) Reclassification to earnings (net of tax effect of $(1) and $0) (5 ) 1 Balance at end of period 4 (6 ) Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 104 (179 ) Current period changes in fair value (net of tax effect of $79 and $14) 251 44 Reclassification to earnings (net of tax effect of $(14) and $1) (45 ) 5 Balance at end of period 310 (130 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,820 ) (4,101 ) Reclassification to earnings (net of tax effect of $14 and $12) 43 38 Balance at end of period (3,777 ) (4,063 ) Accumulated other comprehensive income (loss) at end of period $ (4,617 ) $ (5,288 ) Nine Months Ended September 30: 2019 2018 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,126 ) $ (930 ) Translation adjustment (net of tax effect of $43 and $26) (28 ) (112 ) Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (47 ) Balance at end of period (1,154 ) (1,089 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (2 ) (2 ) Current period changes in fair value (net of tax effect of $4 and $(2)) 11 (6 ) Reclassification to earnings (net of tax effect of $(1) and $1) (5 ) 2 Balance at end of period 4 (6 ) Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 40 (366 ) Current period changes in fair value (net of tax effect of $112 and $81) 355 254 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (79 ) Reclassification to earnings (net of tax effect of $(27) and $19) (85 ) 61 Balance at end of period 310 (130 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,906 ) (3,569 ) Reclassification to earnings (net of tax effect of $41 and $36) 129 115 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (609 ) Balance at end of period (3,777 ) (4,063 ) Accumulated other comprehensive income (loss) at end of period $ (4,617 ) $ (5,288 ) |
Schedule of Reclassifications from Accumulated Other Comprehensive Income (Loss) to Earnings [Table Text Block] | Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended September 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities $ 6 $ (1 ) Investment income and other Income tax (expense) benefit (1 ) — Income tax expense Impact on net income 5 (1 ) Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (3 ) (6 ) Interest expense Foreign exchange contracts 62 — Revenue Income tax (expense) benefit (14 ) 1 Income tax expense Impact on net income 45 (5 ) Net income Unrecognized pension and postretirement benefit costs: Prior service costs (57 ) (50 ) Investment income and other Income tax (expense) benefit 14 12 Income tax expense Impact on net income (43 ) (38 ) Net income Total amount reclassified for the period $ 7 $ (44 ) Net income Nine Months Ended September 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities $ 6 $ (3 ) Investment income and other Income tax (expense) benefit (1 ) 1 Income tax expense Impact on net income 5 (2 ) Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (12 ) (18 ) Interest expense Foreign exchange contracts 124 (62 ) Revenue Income tax (expense) benefit (27 ) 19 Income tax expense Impact on net income 85 (61 ) Net income Unrecognized pension and postretirement benefit costs: Prior service costs (170 ) (151 ) Investment income and other Income tax (expense) benefit 41 36 Income tax expense Impact on net income (129 ) (115 ) Net income Total amount reclassified for the period $ (39 ) $ (178 ) Net income |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue: U.S. Domestic Package $ 11,455 $ 10,437 $ 33,085 $ 31,018 International Package 3,494 3,478 10,458 10,613 Supply Chain & Freight 3,369 3,529 9,983 10,382 Consolidated $ 18,318 $ 17,444 $ 53,526 $ 52,013 Operating Profit: U.S. Domestic Package $ 1,216 $ 949 $ 3,090 $ 2,644 International Package 667 536 1,858 1,748 Supply Chain & Freight 245 242 717 628 Consolidated $ 2,128 $ 1,727 $ 5,665 $ 5,020 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 (in millions, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Numerator: Net income attributable to common shareowners $ 1,750 $ 1,508 $ 4,546 $ 4,338 Denominator: Weighted average shares 858 860 859 861 Deferred compensation obligations — 1 — 1 Vested portion of restricted units 6 4 6 4 Denominator for basic earnings per share 864 865 865 866 Effect of dilutive securities: Restricted units 6 5 4 4 Stock options — — — — Denominator for diluted earnings per share 870 870 869 870 Basic earnings per share $ 2.03 $ 1.74 $ 5.26 $ 5.01 Diluted earnings per share $ 2.01 $ 1.73 $ 5.23 $ 4.99 |
DERIVATIVE INSTRUMENTS AND RI_2
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Nine Months Ended Nine Months Ended 2019 2018 Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Revenue Interest Expense Investment Income and Other Revenue Interest Expense Investment Income and Other Gain or (loss) on fair value hedging relationships: Interest Contracts: Hedged items $ — $ (47 ) $ — $ — $ 86 $ — Derivatives designated as hedging instruments — 47 — — (86 ) — Gains or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (12 ) — — (18 ) — Foreign Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 124 — — (62 ) — — Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded $ 124 $ (12 ) $ — $ (62 ) $ (18 ) $ — The following table indicates the amount of gains and losses that have been recognized in the income statement for the fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the three and nine months ended September 30, 2019 and 2018 (in millions): Three Months Ended Three Months Ended 2019 2018 Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Revenue Interest Expense Investment Income and Other Revenue Interest Expense Investment Income and Other Gain or (loss) on fair value hedging relationships: Interest Contracts: Hedged items $ — $ (2 ) $ — $ — $ 13 $ — Derivatives designated as hedging instruments — 2 — — (13 ) — Gains or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (3 ) — — (6 ) — Foreign Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 62 — — — — — Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded $ 62 $ (3 ) $ — $ — $ (6 ) $ — |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of September 30, 2019 and December 31, 2018 , the notional amounts of our outstanding derivative positions were as follows (in millions): September 30, 2019 December 31, 2018 Currency hedges: Euro EUR 4,850 EUR 4,924 British Pound Sterling GBP 1,660 GBP 2,037 Canadian Dollar CAD 1,438 CAD 1,443 Hong Kong Dollar HKD 3,670 HKD 3,642 Singapore Dollar SGD — SGD 20 Interest rate hedges: Fixed to Floating Interest Rate Swaps USD 3,674 USD 4,674 Floating to Fixed Interest Rate Swaps USD 778 USD 778 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Asset Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 203 $ 90 $ 203 $ 83 Interest rate contracts Other current assets Level 2 3 1 3 1 Foreign exchange contracts Other non-current assets Level 2 433 230 433 215 Interest rate contracts Other non-current assets Level 2 29 14 27 6 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 3 7 2 5 Foreign exchange contracts Other non-current assets Level 2 — 1 — 1 Interest rate contracts Other non-current assets Level 2 14 18 13 18 Total Asset Derivatives $ 685 $ 361 $ 681 $ 329 Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Liability Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current liabilities Level 2 $ — $ 7 $ — $ — Foreign exchange contracts Other non-current liabilities Level 2 — 15 — — Interest rate contracts Other non-current liabilities Level 2 13 41 11 33 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 2 3 1 1 Foreign exchange contracts Other non-current liabilities Level 2 — 1 1 Interest rate contracts Other non-current liabilities Level 2 3 — 2 — Total Liability Derivatives $ 18 $ 67 $ 14 $ 35 The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of September 30, 2019 and December 31, 2018 (in millions). Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedge Adjustments Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedge Adjustments Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included September 30, 2019 September 30, 2019 December 31, 2018 December 31, 2018 Long-term debt and finance leases 3,246 53 4,207 16 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the three and nine months ended September 30, 2019 and 2018 for those derivatives designated as cash flow hedges (in millions): Three Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2019 2018 Interest rate contracts $ (1 ) $ 1 Foreign exchange contracts 331 57 Total $ 330 $ 58 Nine Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2019 2018 Interest rate contracts $ 10 $ 3 Foreign exchange contracts 457 332 Total $ 467 $ 335 The following table indicates the amount of gains and losses that have been recognized in AOCI within foreign currency translation adjustment for the three and nine months ended September 30, 2019 and 2018 for those instruments designated as net investment hedges (in millions): Three Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2019 2018 Foreign denominated debt $ 191 $ 10 Total $ 191 $ 10 Nine Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2019 2018 Foreign denominated debt $ 197 $ 148 Total $ 197 $ 148 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these interest rate swaps, foreign currency forward and investment market price forward contracts not designated as hedges for the three and nine months ended September 30, 2019 and 2018 (in millions): Derivative Instruments Not Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income 2019 2018 Three Months Ended September 30: Interest rate contracts Interest expense $ (2 ) $ (3 ) Foreign exchange contracts Investment income and other (39 ) (14 ) Total $ (41 ) $ (17 ) Nine Months Ended September 30: Interest rate contracts Interest expense $ (6 ) $ (7 ) Foreign exchange contracts Investment income and other (59 ) $ (73 ) Investment market price contracts Investment income and other — 16 Total $ (65 ) $ (64 ) |
TRANSFORMATION STRATEGY x (Tabl
TRANSFORMATION STRATEGY x (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below presents the transformation strategy costs for the three and nine months ended September 30, 2019 and 2018 (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Transformation Strategy Costs: Compensation and benefits $ 41 $ 70 $ 149 $ 262 Total other expenses 22 27 58 98 Total Transformation Strategy Costs $ 63 $ 97 $ 207 $ 360 Income Tax Benefit from Transformation Strategy Costs (16 ) (24 ) (50 ) (87 ) After Tax Transformation Strategy Costs $ 47 $ 73 $ 157 $ 273 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS - Narratives (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Operating lease right-of-use assets | $ 2,504 | |
Operating lease liability | $ 2,563 | |
2016-02 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Operating lease right-of-use assets | $ 2,650 | |
Operating lease liability | $ 2,700 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||||
Provisions for doubtful receivables | $ 40 | $ 35 | $ 145 | $ 76 | |
Contract with Customer, Liability, Current | 7 | 7 | $ 5 | ||
Revenues | 18,318 | 17,444 | 53,526 | 52,013 | |
Contract with Customer, Liability, Noncurrent | 26 | 26 | $ 26 | ||
Forwarding | |||||
Disaggregation of Revenue | |||||
Revenues | 1,472 | 1,672 | 4,384 | 4,936 | |
Logistics | |||||
Disaggregation of Revenue | |||||
Revenues | 846 | 790 | 2,511 | 2,356 | |
Freight | |||||
Disaggregation of Revenue | |||||
Revenues | 852 | 867 | 2,486 | 2,497 | |
Other | |||||
Disaggregation of Revenue | |||||
Revenues | 199 | 200 | 602 | 593 | |
U.S | Next Day Air | |||||
Disaggregation of Revenue | |||||
Revenues | 2,146 | 1,896 | 6,160 | 5,510 | |
U.S | Deferred | |||||
Disaggregation of Revenue | |||||
Revenues | 1,248 | 1,066 | 3,494 | 3,215 | |
U.S | Ground | |||||
Disaggregation of Revenue | |||||
Revenues | 8,061 | 7,475 | 23,431 | 22,293 | |
International | |||||
Disaggregation of Revenue | |||||
Revenues | 3,494 | 3,478 | 10,458 | 10,613 | |
International | Domestic | |||||
Disaggregation of Revenue | |||||
Revenues | 689 | 678 | 2,069 | 2,094 | |
International | Export | |||||
Disaggregation of Revenue | |||||
Revenues | 2,673 | 2,654 | 7,972 | 8,073 | |
International | Cargo & Other | |||||
Disaggregation of Revenue | |||||
Revenues | 132 | 146 | 417 | 446 | |
Supply Chain & Freight | Supply Chain & Freight | |||||
Disaggregation of Revenue | |||||
Revenues | 3,369 | 3,529 | 9,983 | 10,382 | |
U.S. Domestic Package | U.S | |||||
Disaggregation of Revenue | |||||
Revenues | $ 11,455 | $ 10,437 | $ 33,085 | $ 31,018 |
Revenue Recognition - Narrative
Revenue Recognition - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||||
Provisions for doubtful receivables | $ 40 | $ 35 | $ 145 | $ 76 | |
Contract assets | 264 | 264 | $ 234 | ||
Deferred revenue | 300 | 300 | 236 | ||
Contract with Customer, Liability, Noncurrent | $ 26 | $ 26 | $ 26 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 14, 2019 | Mar. 22, 2018 | Mar. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 01, 2019 | Mar. 25, 2019 | Mar. 22, 2019 | Feb. 06, 2019 |
Stockholders Equity Note [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Cycle Period | 3 years | ||||||||||
Stock compensation expense | $ 203 | $ 129 | $ 716 | $ 507 | |||||||
Management Incentive Award [Member] | |||||||||||
Stockholders Equity Note [Line Items] | |||||||||||
Closing New York Stock Exchange price | $ 111.80 | $ 106.90 | $ 108.82 | ||||||||
Award vesting period | 5 years | ||||||||||
Long-Term Incentive Performance Award | |||||||||||
Stockholders Equity Note [Line Items] | |||||||||||
Closing New York Stock Exchange price | $ 102.97 | $ 107.35 | |||||||||
Weighted-average fair value of options granted (usd per share) | $ 123.44 | $ 137.57 | |||||||||
Nonqualified Stock Options [Member] | |||||||||||
Stockholders Equity Note [Line Items] | |||||||||||
Percentage of the award vesting at each anniversary date of the grant | 20.00% | ||||||||||
Expiration period (in years) | 10 years | ||||||||||
Award vesting period | 5 years | ||||||||||
Stock options granted | 10 | 300 | 300 | ||||||||
Weighted-average fair value of options granted (usd per share) | $ 111.80 | $ 104.45 | $ 106.43 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Nonqualified Stock Options [Member] | ||
Stockholders Equity Note [Line Items] | ||
Risk-free interest rate | 2.60% | 2.84% |
Expected volatility | 17.79% | 16.72% |
Weighted-average fair value of options granted (usd per share) | $ 16.39 | $ 15.23 |
Expected dividend yield | 2.93% | 2.93% |
Expected life (in years) | 7 years 6 months | 7 years 6 months |
Long-Term Incentive Performance Award | ||
Stockholders Equity Note [Line Items] | ||
Risk-free interest rate | 2.23% | 2.61% |
Expected volatility | 19.64% | 16.51% |
Weighted-average fair value of options granted (usd per share) | $ 123.44 | $ 137.57 |
Expected dividend yield | 115.04% | 123.47% |
CASH AND INVESTMENTS - Summary
CASH AND INVESTMENTS - Summary of Marketable Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Trading, Amortized Cost | $ 111 | $ 139 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 111 | 139 |
Available-for-sale Securities, Amortized Cost Basis | 381 | 674 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 6 | 1 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (4) |
Available-for-sale Securities, Current | 387 | 671 |
Total Amortized Cost | 492 | 813 |
Marketable Securities, Gross Unrealized Gain | 6 | 1 |
Marketable Securities, Gross Unrealized Loss | 0 | (4) |
Total Estimated Fair Value | 498 | 810 |
Corporate debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Trading, Amortized Cost | 109 | 137 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 109 | 137 |
Available-for-sale Securities, Amortized Cost Basis | 150 | 275 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3 | 0 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (2) |
Available-for-sale Securities, Current | 153 | 273 |
U.S. government and agency debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 161 | 297 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2 | 1 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (1) |
Available-for-sale Securities, Current | 163 | 297 |
Mortgage and asset-backed debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 54 | 82 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 0 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (1) |
Available-for-sale Securities, Current | 55 | 81 |
Equity securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Trading, Amortized Cost | 2 | 2 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 2 | 2 |
Non-U.S. government debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 16 | 20 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities, Current | $ 16 | $ 20 |
CASH AND INVESTMENTS - Amortize
CASH AND INVESTMENTS - Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Cost | ||
Due in one year or less | $ 121 | |
Due after one year through three years | 318 | |
Due after three years through five years | 7 | |
Due after five years | 44 | |
Marketable Securities, Debt Maturities, Amortized Cost, Total | 490 | |
Equity securities | 2 | |
Total Amortized Cost | 492 | $ 813 |
Estimated Fair Value | ||
Due in one year or less | 121 | |
Due after one year through three years | 321 | |
Due after three years through five years | 8 | |
Due after five years | 46 | |
Marketable Securities, Debt Maturities, Fair Value, Total | 496 | |
Equity securities | 2 | |
Total Estimated Fair Value | $ 498 | $ 810 |
CASH AND INVESTMENTS - Addition
CASH AND INVESTMENTS - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Gain (Loss) on Securities [Line Items] | |||
Other than temporary impairment losses | $ 0 | ||
Investments and Restricted Cash | 169,000,000 | $ 170,000,000 | |
Fair value of unobservable assets measured on a recurring basis | 2,000,000 | 2,000,000 | |
Transfer between level 1 and level 2 | 0 | $ 0 | |
cash held in escrow [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Restricted Cash and Cash Equivalents, Noncurrent | 3,000,000 | 9,000,000 | |
Self-insurance requirements [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Investments and Restricted Cash | 145,000,000 | 142,000,000 | |
Variable life insurance policy | |||
Gain (Loss) on Securities [Line Items] | |||
Investments and Restricted Cash | $ 20,000,000 | $ 19,000,000 | |
Discount Rate | |||
Gain (Loss) on Securities [Line Items] | |||
Investments, measurement input | 0.0733 | 0.0816 |
CASH AND INVESTMENTS - Cash Det
CASH AND INVESTMENTS - Cash Details (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 4,040 | $ 4,225 | $ 4,097 | |
Restricted cash | 145 | 142 | 278 | |
Total cash, cash equivalents and restricted cash | $ 4,185 | $ 4,367 | $ 4,375 | $ 3,769 |
CASH AND INVESTMENTS - Investme
CASH AND INVESTMENTS - Investments Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 520 | $ 831 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 498 | 810 |
Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 163 | 297 |
Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 55 | 81 |
Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 262 | 410 |
Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2 | 2 |
Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 16 | 20 |
Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 22 | 21 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 183 | 316 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 163 | 297 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 163 | 297 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 20 | 19 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 335 | 513 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 335 | 513 |
Significant Other Observable Inputs (Level 2) | Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 55 | 81 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 262 | 410 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2 | 2 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 16 | 20 |
Significant Other Observable Inputs (Level 2) | Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2 | 2 |
Significant Unobservable Inputs (Level 3) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 2 | $ 2 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 57,858 | $ 57,858 | $ 54,488 | ||
Less: Accumulated depreciation and amortization | (28,787) | (28,787) | (27,912) | ||
Property, plant and equipment, net | 29,071 | 29,071 | 26,576 | ||
Net Income | $ 1,750 | $ 1,508 | $ 4,546 | $ 4,338 | |
Basic Earnings Per Share | $ 2.03 | $ 1.74 | $ 5.26 | $ 5.01 | |
Vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 10,046 | $ 10,046 | 9,820 | ||
Aircraft | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 18,481 | 18,481 | 17,499 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 2,068 | 2,068 | 2,000 | ||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 4,920 | 4,920 | 4,808 | ||
Building and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 4,595 | 4,595 | 4,323 | ||
Plant equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 12,369 | 12,369 | 11,833 | ||
Technology equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 2,184 | 2,184 | 2,093 | ||
Construction-in-progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 3,195 | $ 3,195 | $ 2,112 |
Property Plant and Equipment -
Property Plant and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Net Income | $ (1,750,000,000) | $ (1,508,000,000) | $ (4,546,000,000) | $ (4,338,000,000) |
Impairment charges on property plant and equipment | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted earnings per share (usd per share) | $ 2.01 | $ 1.73 | $ 5.23 | $ 4.99 |
Scenario, Adjustment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 63,000,000 | $ 68,000,000 | ||
Net Income | $ (49,000,000) | $ (53,000,000) | ||
Earnings Per Share, Basic and Diluted | $ 0.06 | $ 0.06 | ||
Scenario, Adjustment [Member] | Transformation Assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ (31,000,000) | $ (212,000,000) | ||
Net Income | $ (26,000,000) | $ (165,000,000) | ||
Earnings Per Share, Basic and Diluted | $ 0.03 | $ 0.19 | ||
Scenario, Adjustment [Member] | Capital Investments [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 94,000,000 | $ 280,000,000 | ||
Net Income | $ 75,000,000 | $ 218,000,000 | ||
Earnings Per Share, Basic and Diluted | $ 0.09 | $ 0.25 |
Net Periodic Benefit Cost for P
Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Pension Plan | U.S. Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | $ 360 | $ 415 | $ 1,079 | $ 1,246 |
Interest cost | 516 | 450 | 1,550 | 1,349 |
Expected return on assets | (782) | (800) | (2,347) | (2,401) |
Amortization of prior service cost | 55 | 48 | 164 | 145 |
Net periodic benefit cost | 149 | 113 | 446 | 339 |
Defined Benefit Pension Plan | International Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | 15 | 15 | 43 | 47 |
Interest cost | 12 | 11 | 35 | 34 |
Expected return on assets | (19) | (19) | (57) | (58) |
Amortization of prior service cost | 0 | 0 | 1 | 0 |
Net periodic benefit cost | 8 | 7 | 22 | 23 |
U.S. Postretirement Medical Benefits | U.S. Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | 6 | 7 | 18 | 21 |
Interest cost | 27 | 26 | 81 | 78 |
Expected return on assets | (2) | (2) | (6) | (6) |
Amortization of prior service cost | 2 | 2 | 5 | 6 |
Net periodic benefit cost | $ 33 | $ 33 | $ 98 | $ 99 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ in Millions | Dec. 31, 2007USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($)Employees |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plans, Payment Term | 43 years | ||
Number of employees under a national master agreement and various supplemental agreements with local unions affiliated with Teamsters | Employees | 283,000 | ||
Number of pilots under a collective bargaining agreement with the Independent Pilots Association | Employees | 2,800 | ||
Ground mechanics employed under Teamster Local 272 | Employees | 1,400 | ||
Majority of ground mechanics not employed under agreements | Employees | 3,100 | ||
Multiemployer Plans, Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer Plans, Withdrawal Obligation, Fair Value Disclosure | $ 941 | $ 832 | |
Multiemployer Plans, Pension [Member] | Central States Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment of withdrawal liability | $ 6,100 | ||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 1,600 | ||
Pension liability | 4,000 | ||
Long term debt | Multiemployer Plans, Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plans, Withdrawal Obligation, Present Value | 847 | 852 | |
Other current liabilities | Multiemployer Plans, Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plans, Withdrawal Obligation, Present Value | 7 | $ 7 | |
Defined Benefit Pension Plan | U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount contributed to company- sponsored benefit plans | 2,065 | ||
Estimated future employer contributions to defined benefit plan, current fiscal year | 22,000 | ||
U.S. Postretirement Medical Benefits | U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount contributed to company- sponsored benefit plans | 256 | ||
Pro Forma | Maximum [Member] | Multiemployer Plans, Pension [Member] | Central States Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | $ 2,400 |
Allocation of Goodwill by Repor
Allocation of Goodwill by Reportable Segment (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,811 |
Acquired | 5 |
Currency / Other | (33) |
Ending balance | 3,783 |
U.S. Domestic Package | |
Goodwill [Roll Forward] | |
Beginning balance | 715 |
Acquired | 0 |
Currency / Other | 0 |
Ending balance | 715 |
International Package | |
Goodwill [Roll Forward] | |
Beginning balance | 417 |
Acquired | 2 |
Currency / Other | (7) |
Ending balance | 412 |
Supply Chain & Freight | |
Goodwill [Roll Forward] | |
Beginning balance | 2,679 |
Acquired | 3 |
Currency / Other | (26) |
Ending balance | $ 2,656 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,229 | $ 4,943 |
Accumulated Amortization | (3,098) | (2,867) |
Net Carrying Value | 2,131 | 2,075 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying value | 4 | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying value | 200 | |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,004 | 3,693 |
Accumulated Amortization | (2,641) | (2,478) |
Net Carrying Value | 1,363 | 1,215 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 117 | 117 |
Accumulated Amortization | (57) | (36) |
Net Carrying Value | 60 | 81 |
Franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 146 | 145 |
Accumulated Amortization | (109) | (105) |
Net Carrying Value | 37 | 40 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 720 | 736 |
Accumulated Amortization | (261) | (217) |
Net Carrying Value | 459 | 519 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 200 | 200 |
Accumulated Amortization | 0 | 0 |
Net Carrying Value | 200 | 200 |
Trademarks, patents and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 42 | 52 |
Accumulated Amortization | (30) | (31) |
Net Carrying Value | $ 12 | $ 20 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narratives) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of finite lived intangible assets | $ 0 | $ 12,000,000 |
LEASES - Narratives (Details)
LEASES - Narratives (Details) | Sep. 30, 2019aircraft |
Leases [Abstract] | |
Number of lease aircrafts (aircraft) | 332 |
Number of lease aircrafts, finance (aircraft) | 34 |
Number of lease aircrafts, operating (aircraft) | 12 |
Number of lease aircrafts, short-term (aircraft) | 286 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 151 | $ 474 |
Finance lease costs: | ||
Amortization of assets | 18 | 55 |
Interest on lease liabilities | 5 | 14 |
Total finance lease costs | 23 | 69 |
Variable lease costs | 69 | 148 |
Short-term lease costs | 194 | 633 |
Total lease costs | $ 437 | $ 1,324 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases: | |
Operating lease right-of-use assets | $ 2,504 |
Current maturities of operating leases | 500 |
Non-current operating leases | 2,063 |
Total lease obligations | 2,563 |
Finance Leases: | |
Property, plant and equipment, at cost | 2,541 |
Accumulated amortization | (979) |
Finance Lease, Right-of-Use Asset | 1,562 |
Current maturities of long-term debt, commercial paper and finance leases | 102 |
Long-term debt and finance leases | 364 |
Total lease obligations | $ 466 |
Weighted average remaining lease term (in years): | |
Operating leases | 9 years 1 month 6 days |
Finance leases | 9 years 9 months 18 days |
Weighted average discount rate: | |
Operating leases | 2.77% |
Finance leases | 4.23% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Disclosures (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 455 |
Operating cash flows from finance leases | 11 |
Financing cash flows from finance leases | 121 |
Operating leases | $ 144 |
LEASES - Maturity Schedule Afte
LEASES - Maturity Schedule After Adoption (Details) $ in Millions | Sep. 30, 2019USD ($) |
Finance Leases | |
2019 | $ 26 |
2020 | 149 |
2021 | 44 |
2022 | 39 |
2023 | 37 |
Thereafter | 292 |
Total lease payments | 587 |
Less: Imputed interest | (121) |
Total lease obligations | 466 |
Less: Current obligations | (102) |
Long-term lease obligations | 364 |
Operating Leases | |
2019 | 151 |
2020 | 546 |
2021 | 463 |
2022 | 384 |
2023 | 309 |
Thereafter | 1,159 |
Total lease payments | 3,012 |
Less: Imputed interest | (449) |
Total lease obligations | 2,563 |
Less: Current obligations | (500) |
Long-term lease obligations | $ 2,063 |
LEASES - Maturity Schedule Prio
LEASES - Maturity Schedule Prior to Adoption (Details) $ in Millions | Dec. 31, 2018USD ($) |
Capital Leases | |
2019 | $ 158 |
2020 | 95 |
2021 | 42 |
2022 | 39 |
2023 | 36 |
After 2023 | 293 |
Total lease payments | 663 |
Less: Imputed interest | (129) |
Total lease obligations | 534 |
Less: Current obligations | (140) |
Long-term lease obligations | 394 |
Operating Leases | |
2019 | 578 |
2020 | 477 |
2021 | 399 |
2022 | 325 |
2023 | 262 |
After 2023 | 926 |
Total lease payments | $ 2,967 |
Carrying Value of Outstanding D
Carrying Value of Outstanding Debt (Detail) | 9 Months Ended | ||||
Sep. 30, 2019EUR (€) | Sep. 30, 2019USD ($) | Aug. 13, 2019USD ($) | Mar. 13, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 25,032,000,000 | ||||
Debt instrument, stated interest rate | 8.375% | 8.375% | |||
Total debt | $ 23,901,000,000 | $ 22,736,000,000 | |||
Less current maturities | (2,161,000,000) | (2,805,000,000) | |||
Long-Term Debt and Finance Leases | 21,740,000,000 | 19,931,000,000 | |||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 2,054,000,000 | ||||
Maturity - Minimum Date | Mar. 31, 2019 | ||||
Maturity - Maximum Date | Dec. 31, 2020 | ||||
Total debt | 2,054,000,000 | 2,662,000,000 | |||
Senior notes | 5.125% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2019 | ||||
Debt instrument, stated interest rate | 5.125% | 5.125% | |||
Total debt | $ 0 | 998,000,000 | |||
Senior notes | 3.125% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2021 | ||||
Debt instrument, stated interest rate | 3.125% | 3.125% | |||
Total debt | $ 1,528,000,000 | 1,492,000,000 | |||
Senior notes | 2.050% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 700,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2021 | ||||
Debt instrument, stated interest rate | 2.05% | 2.05% | |||
Total debt | $ 698,000,000 | 698,000,000 | |||
Senior notes | 2.450% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2022 | ||||
Debt instrument, stated interest rate | 2.45% | 2.45% | |||
Total debt | $ 1,007,000,000 | 1,023,000,000 | |||
Senior notes | 2.350% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 600,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2022 | ||||
Debt instrument, stated interest rate | 2.35% | 2.35% | |||
Total debt | $ 598,000,000 | 597,000,000 | |||
Senior notes | 2.500% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2023 | ||||
Debt instrument, stated interest rate | 2.50% | 2.50% | |||
Total debt | $ 995,000,000 | 994,000,000 | |||
Senior notes | 2.800% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2024 | ||||
Debt instrument, stated interest rate | 2.80% | 2.80% | |||
Total debt | $ 497,000,000 | 496,000,000 | |||
Senior notes | 2.200% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 400,000,000 | $ 400,000,000 | |||
Debt instrument, stated interest rate | 2.20% | ||||
Total debt | 398,000,000 | 0 | |||
Senior notes | 2.400% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2026 | ||||
Debt instrument, stated interest rate | 2.40% | 2.40% | |||
Total debt | $ 498,000,000 | 498,000,000 | |||
Senior notes | 3.050% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2027 | ||||
Debt instrument, stated interest rate | 3.05% | 3.05% | |||
Total debt | $ 992,000,000 | 991,000,000 | |||
Senior notes | 3.400% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 750,000,000 | $ 750,000,000 | |||
Maturity - Maximum Date | Dec. 31, 2029 | ||||
Debt instrument, stated interest rate | 3.40% | 3.40% | 3.40% | ||
Total debt | $ 745,000,000 | 0 | |||
Senior notes | 2.500% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 400,000,000 | $ 400,000,000 | |||
Maturity - Maximum Date | Dec. 31, 2029 | ||||
Debt instrument, stated interest rate | 2.50% | 2.50% | 2.50% | ||
Total debt | $ 396,000,000 | 0 | |||
Senior notes | 6.200% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2038 | ||||
Debt instrument, stated interest rate | 6.20% | 6.20% | |||
Total debt | $ 1,483,000,000 | 1,482,000,000 | |||
Senior notes | 4.875% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2040 | ||||
Debt instrument, stated interest rate | 4.875% | 4.875% | |||
Total debt | $ 490,000,000 | 490,000,000 | |||
Senior notes | 3.625% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 375,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2042 | ||||
Debt instrument, stated interest rate | 3.625% | 3.625% | |||
Total debt | $ 368,000,000 | 368,000,000 | |||
Senior notes | 3.400% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2046 | ||||
Debt instrument, stated interest rate | 3.40% | 3.40% | |||
Total debt | $ 491,000,000 | 491,000,000 | |||
Senior notes | 3.750% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,150,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2047 | ||||
Debt instrument, stated interest rate | 3.75% | 3.75% | |||
Total debt | $ 1,136,000,000 | 1,136,000,000 | |||
Senior notes | 3.400% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 750,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2049 | ||||
Debt instrument, stated interest rate | 4.25% | 4.25% | 4.25% | ||
Total debt | $ 742,000,000 | 0 | |||
Senior notes | 3.400% senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 700,000,000 | $ 700,000,000 | |||
Maturity - Maximum Date | Dec. 31, 2049 | ||||
Debt instrument, stated interest rate | 3.40% | 3.40% | 3.40% | ||
Total debt | $ 687,000,000 | 0 | |||
Senior notes | Floating-rate senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 350,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2021 | ||||
Total debt | 349,000,000 | 349,000,000 | |||
Senior notes | Floating-rate senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 400,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2022 | ||||
Total debt | 399,000,000 | 399,000,000 | |||
Senior notes | Floating-rate senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 500,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2023 | ||||
Total debt | 499,000,000 | 499,000,000 | |||
Senior notes | Floating-rate senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 1,041,000,000 | ||||
Maturity - Minimum Date | Dec. 31, 2049 | ||||
Maturity - Maximum Date | Dec. 31, 2067 | ||||
Total debt | 1,028,000,000 | 1,029,000,000 | |||
Senior notes | 8.375% debentures | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 424,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2020 | ||||
Debt instrument, stated interest rate | 8.375% | 8.375% | |||
Total debt | $ 429,000,000 | 419,000,000 | |||
Senior notes | 8.375% debentures | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 276,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2030 | ||||
Total debt | 281,000,000 | 274,000,000 | |||
Senior notes | Canadian senior note 2.125% | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 566,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2024 | ||||
Debt instrument, stated interest rate | 2.125% | 2.125% | |||
Total debt | $ 564,000,000 | 548,000,000 | |||
Capital Lease Obligations | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 466,000,000 | ||||
Maturity - Minimum Date | Dec. 31, 2019 | ||||
Maturity - Maximum Date | Dec. 31, 3005 | ||||
Total debt | 466,000,000 | 534,000,000 | |||
Pound Sterling notes | 5.500% notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 82,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2031 | ||||
Debt instrument, stated interest rate | 5.50% | 5.50% | |||
Total debt | $ 81,000,000 | 84,000,000 | |||
Pound Sterling notes | 5.125% notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 559,000,000 | ||||
Maturity - Maximum Date | Jan. 1, 2050 | ||||
Debt instrument, stated interest rate | 5.125% | 5.125% | |||
Total debt | $ 530,000,000 | 546,000,000 | |||
Euro Senior Notes | 0.375% notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 763,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2023 | ||||
Debt instrument, stated interest rate | 0.375% | 0.375% | |||
Total debt | $ 759,000,000 | 797,000,000 | |||
Euro Senior Notes | 1.625% notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 763,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2025 | ||||
Debt instrument, stated interest rate | 1.625% | 1.625% | |||
Total debt | $ 759,000,000 | 798,000,000 | |||
Euro Senior Notes | 1.000% notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 545,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2028 | ||||
Debt instrument, stated interest rate | 1.00% | 1.00% | |||
Total debt | $ 542,000,000 | 570,000,000 | |||
Euro Senior Notes | 1.500% notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 545,000,000 | ||||
Maturity - Maximum Date | Dec. 31, 2032 | ||||
Debt instrument, stated interest rate | 1.50% | 1.50% | |||
Total debt | $ 541,000,000 | 569,000,000 | |||
Euro Senior Notes | Floating-rate senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | € 500,000,000 | 545,000,000 | |||
Maturity - Maximum Date | Dec. 31, 2020 | ||||
Total debt | 544,000,000 | 572,000,000 | |||
Facility notes and bonds | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 320,000,000 | ||||
Maturity - Minimum Date | Dec. 31, 2029 | ||||
Maturity - Maximum Date | Dec. 31, 2045 | ||||
Total debt | 319,000,000 | 320,000,000 | |||
Other debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 8,000,000 | ||||
Maturity - Minimum Date | Dec. 31, 2019 | ||||
Maturity - Maximum Date | Dec. 31, 2022 | ||||
Total debt | $ 8,000,000 | $ 13,000,000 |
DEBT AND FINANCING ARRANGEMEN_3
DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) | Aug. 13, 2019USD ($) | Mar. 13, 2019USD ($) | Sep. 30, 2019EUR (€)Credit_Agreements | Sep. 30, 2019USD ($)Credit_Agreements | Apr. 04, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 8.375% | 8.375% | ||||
Face value of debt instrument | $ 25,032,000,000 | |||||
Number of credit agreements | Credit_Agreements | 2 | 2 | ||||
Covenants limit, amount of secured indebtedness and debt in sale-leaseback transactions, percentage of net tangible assets | 10.00% | 10.00% | ||||
Covenants that limit the amount of secured indebtedness and amount of attributable debt in sale-leaseback transactions, net tangible assets amount | $ 3,453,000,000 | |||||
Sale-lease back outstanding | 0 | |||||
Secured debt outstanding | 0 | |||||
Long-term debt fair value | 25,668,000,000 | $ 23,293,000,000 | ||||
U.S. Commercial Paper Program | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper program, authorized to borrow | 10,000,000,000 | |||||
Foreign Commercial Paper Program | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper program, authorized to borrow | € | € 5,000,000,000 | |||||
Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity | Dec. 10, 2019 | |||||
Revolving credit facilities | 1,500,000,000 | $ 1,500,000,000 | ||||
Applicable margin for base rate below LIBOR | 1.00% | |||||
Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity | Dec. 11, 2023 | |||||
Revolving credit facilities | $ 3,000,000,000 | |||||
Applicable margin for base rate below LIBOR | 1.00% | |||||
Revolving Credit Facility Expiring In 2017 | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin for base rate below LIBOR | 0.00% | |||||
Senior notes | 2.350% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.35% | 2.35% | ||||
Face value of debt instrument | $ 600,000,000 | |||||
Senior notes | 8.375% debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 8.375% | 8.375% | ||||
Face value of debt instrument | $ 424,000,000 | |||||
Senior notes | 3.050% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.05% | 3.05% | ||||
Face value of debt instrument | $ 1,000,000,000 | |||||
Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.40% | 3.40% | 3.40% | |||
Face value of debt instrument | $ 750,000,000 | $ 750,000,000 | ||||
Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 4.25% | 4.25% | 4.25% | |||
Face value of debt instrument | $ 750,000,000 | |||||
Senior notes | 5.125% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 5.125% | 5.125% | ||||
Face value of debt instrument | $ 1,000,000,000 | |||||
Senior notes | 2.500% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.50% | 2.50% | 2.50% | |||
Face value of debt instrument | $ 400,000,000 | $ 400,000,000 | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Senior notes | 2.200% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.20% | |||||
Face value of debt instrument | $ 400,000,000 | $ 400,000,000 | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.40% | 3.40% | 3.40% | |||
Face value of debt instrument | $ 700,000,000 | $ 700,000,000 | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Euro Senior Notes | Floating-rate senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face value of debt instrument | € 500,000,000 | 545,000,000 | ||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Face value of debt instrument | 2,054,000,000 | |||||
Commercial Paper | U.S. Commercial Paper Program | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | $ 1,020,000,000 | |||||
Debt, weighted average interest rate | 2.24% | 2.24% | ||||
Commercial Paper | Foreign Commercial Paper Program | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | € 949,000,000 | $ 1,034,000,000 | ||||
Debt, weighted average interest rate | 0.37% | 0.37% | ||||
LIBOR rate | Revolving Credit Facility Expiring In 2015 | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.10% | |||||
LIBOR rate | Revolving Credit Facility Expiring In 2015 | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.75% | |||||
LIBOR rate | Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 1.00% | |||||
LIBOR rate | Revolving Credit Facility Expiring In 2017 | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.10% | |||||
LIBOR rate | Revolving Credit Facility Expiring In 2017 | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.75% | |||||
Citibank base rate | Revolving Credit Facility Expiring In 2015 | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.00% | |||||
Citibank base rate | Revolving Credit Facility Expiring In 2015 | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 1.00% | |||||
Federal Funds Rate | Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.50% | |||||
Federal Funds Rate | Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.50% | |||||
LIBOR | Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.15% | |||||
LIBOR | Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.20% | |||||
Treasury rate | Senior notes | 2.500% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.15% | |||||
Treasury rate | Senior notes | 2.200% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.10% | |||||
Treasury rate | Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.20% |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Narratives) (Details) € in Millions, $ in Millions | Mar. 08, 2018EUR (€) | May 25, 2017USD ($) | Apr. 30, 2018Defendants | Aug. 31, 2016Defendants | Sep. 30, 2019USD ($) |
U.S. District Court for the Southern District of New York | |||||
Loss Contingencies | |||||
Settlement amount | $ 9.4 | ||||
Penalties related to settlement | $ 237.6 | ||||
Loss Contingency Accrual | $ 9.4 | ||||
Estimated losses | $ 247 | ||||
CNMC | |||||
Loss Contingencies | |||||
Settlement amount | € | € 19.2 | ||||
Number of defendants | Defendants | 10 | ||||
Turkish Competition Authority | |||||
Loss Contingencies | |||||
Number of defendants | Defendants | 30 |
SHAREOWNERS' EQUITY - Additiona
SHAREOWNERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($)VoteClasses_of_Common_Stock$ / sharesshares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)VoteClasses_of_Common_Stock$ / sharesshares | Sep. 30, 2018USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 01, 2016USD ($) | |
Stockholders Equity Note [Line Items] | |||||||
Classes of Common Stock, Number | Classes_of_Common_Stock | 2 | 2 | |||||
Preferred stock, shares authorized | shares | 200,000,000 | 200,000,000 | |||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||||
Preferred stock, issued | shares | 0 | 0 | |||||
Payments for Repurchase of Common Stock | $ 751 | $ 770 | |||||
Common stock authorized for purchase, amount | $ 8,000 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2,586 | 2,586 | |||||
Change in non-controlling minority interest | $ (2) | $ 0 | $ 0 | (2) | |||
Class A common stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Votes per common share | Vote | 10 | 10 | |||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | shares | 4,600,000,000 | 4,600,000,000 | |||||
Class B common stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Votes per common share | Vote | 1 | 1 | |||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | shares | 5,600,000,000 | 5,600,000,000 | |||||
Class A and B Common Stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Total of Class A and Class B common stock, repurchased, value | $ 251 | $ 245 | $ 753 | $ 756 | |||
Common stock purchases | shares | 2,200,000 | 2,200,000 | 7,000,000 | 6,600,000 | |||
Options Held [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Option premiums received | $ 20 | $ 32 | $ 21 | $ 13 | |||
Net Income [Member] [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | 7 | (44) | (39) | (178) | |||
Unrealized gain (loss) on cash flow hedges, net of tax: | |||||||
Stockholders Equity Note [Line Items] | |||||||
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 | $ 0 | $ (79) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (14) | 1 | 27 | 19 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (45) | 5 | 85 | (61) | |||
Unrealized gain (loss) on cash flow hedges, net of tax: | Income Tax Expense Benefit [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (14) | 1 | (27) | 19 | |||
Unrealized gain (loss) on cash flow hedges, net of tax: | Net Income [Member] [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 45 | (5) | 85 | (61) | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Reclassification to earnings (net of tax effect of $_ and $12) | 0 | (609) | |||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Income Tax Expense Benefit [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 14 | 12 | 41 | 36 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Net Income [Member] [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Reclassification to earnings (net of tax effect of $_ and $12) | (43) | (38) | (129) | (115) | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Labor and Related Expense [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (57) | (50) | (170) | (151) | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 1 | 0 | 1 | 1 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (5) | 1 | 5 | (2) | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Income Tax Expense Benefit [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (1) | 0 | (1) | 1 | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Net Income [Member] [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 5 | (1) | 5 | (2) | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Investment income and other | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 6 | (1) | 6 | (3) | |||
Foreign Exchange Contract [Member] | Unrealized gain (loss) on cash flow hedges, net of tax: | Interest Expense | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 62 | 0 | 124 | (62) | |||
Interest Rate Contract [Member] | Unrealized gain (loss) on cash flow hedges, net of tax: | Interest Expense | |||||||
Stockholders Equity Note [Line Items] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ (3) | $ (6) | $ (12) | $ (18) |
Roll-forward of Common Stock, A
Roll-forward of Common Stock, Additional Paid-in Capital, Retained Earnings Accounts and Noncontrolling Interest (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders Equity Note [Roll Forward] | ||||||
Balance at beginning of period | $ 3,021 | |||||
Net income attributable to common shareowners | $ 1,750 | $ 1,508 | 4,546 | $ 4,338 | ||
Balance at end of period | $ 5,558 | $ 5,558 | ||||
Common stock, cash paid for dividends, per share | $ 0.96 | $ 0.91 | $ 2.88 | $ 2.73 | ||
Non-Controlling Minority Interest | ||||||
Balance at beginning of period | $ 18 | $ 28 | $ 16 | $ 30 | ||
Change in non-controlling minority interest | (2) | 0 | 0 | (2) | ||
Balance at end of period | $ 16 | 28 | $ 16 | 28 | ||
Class A common stock | ||||||
Stockholders Equity Note [Roll Forward] | ||||||
Balance at end of period, shares | 157 | 157 | ||||
Class B common stock | ||||||
Stockholders Equity Note [Roll Forward] | ||||||
Balance at end of period, shares | 701 | 701 | ||||
Common Stock | Class A common stock | ||||||
Stockholders Equity Note [Roll Forward] | ||||||
Balance at beginning of period | $ 2 | $ 2 | $ 2 | $ 2 | ||
Balance at beginning of period, shares | 161 | 168 | 163 | 173 | ||
Common stock purchases | $ 0 | $ 0 | $ 0 | |||
Common stock purchases, shares | (1) | (1) | (3) | (3) | ||
Stock award plans | $ 0 | $ 0 | $ 0 | $ 0 | ||
Stock award plans, shares | 0 | 1 | 4 | 4 | ||
Common stock issuances | $ 0 | $ 0 | $ 0 | $ 0 | ||
Common stock issuances, shares | 1 | 1 | 2 | 3 | ||
Conversions of class A to class B common stock | $ 0 | $ 0 | $ 0 | $ 0 | ||
Conversions of Class A to Class B common stock, shares | 4 | 4 | (9) | (12) | ||
Balance at end of period | $ 2 | $ 2 | $ 2 | $ 2 | ||
Balance at end of period, shares | 157 | 165 | 157 | 165 | ||
Common Stock | Class B common stock | ||||||
Stockholders Equity Note [Roll Forward] | ||||||
Balance at beginning of period | $ 7 | $ 7 | $ 7 | $ 7 | ||
Balance at beginning of period, shares | 698 | 693 | 696 | 687 | ||
Common stock purchases | $ 0 | $ 0 | $ 0 | $ 0 | ||
Common stock purchases, shares | (1) | (2) | (4) | (4) | ||
Conversions of class A to class B common stock | $ 0 | $ 0 | $ 0 | $ 0 | ||
Conversions of Class A to Class B common stock, shares | (4) | (4) | (9) | (12) | ||
Balance at end of period | $ 7 | $ 7 | $ 7 | $ 7 | ||
Balance at end of period, shares | 701 | 695 | 701 | 695 | ||
Additional Paid-In Capital | ||||||
Stockholders Equity Note [Roll Forward] | ||||||
Balance at beginning of period | $ 102 | $ 0 | $ 0 | $ 0 | ||
Common stock purchases | (251) | (249) | (753) | (632) | ||
Stock award plans | 202 | 137 | 584 | 307 | ||
Common stock issuances | 56 | 80 | 277 | 312 | ||
Option premiums received (paid) | 20 | 32 | 21 | 13 | ||
Balance at end of period | 129 | 0 | 129 | 0 | ||
Retained Earnings | ||||||
Stockholders Equity Note [Roll Forward] | ||||||
Balance at beginning of period | 9,109 | 7,665 | 8,006 | 5,852 | ||
Common stock purchases | 0 | 4 | 0 | (124) | ||
Net income attributable to common shareowners | 1,750 | 1,508 | 4,546 | 4,338 | ||
Balance at end of period | 10,037 | 8,377 | 10,037 | 8,377 | ||
Dividends ($0.96 and $0.91 per share) (1) | (825) | (784) | (2,518) | (2,408) | ||
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 | $ 0 | $ 735 | ||||
Other | $ 3 | $ (16) | $ 3 | $ (16) |
Activity in Accumulated Other C
Activity in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | $ (4,994) | |||||
Translation adjustment (net of tax effect of $41 and $1) | $ (48) | $ (28) | (28) | $ (112) | ||
Current period changes in fair value (net of tax effect of $1 and $(1)) | (3) | (1) | 6 | (4) | ||
Current period changes in fair value (net of tax effect of $79 and $14) | 206 | 49 | 270 | 315 | ||
Balance at end of period | (4,617) | (5,288) | (4,617) | (5,288) | ||
Foreign currency translation gain (loss): | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | (1,106) | (1,061) | (1,126) | (930) | ||
Translation adjustment (net of tax effect of $41 and $1) | (48) | (28) | (28) | (112) | ||
Balance at end of period | (1,154) | (1,089) | (1,154) | (1,089) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | (47) | ||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 7 | (5) | (2) | (2) | ||
Current period changes in fair value (net of tax effect of $1 and $(1)) | 2 | (2) | 11 | (6) | ||
Balance at end of period | 4 | (6) | 4 | (6) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 1 | 0 | 1 | 1 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 5 | (1) | (5) | 2 | ||
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 104 | (179) | 40 | (366) | ||
Current period changes in fair value (net of tax effect of $79 and $14) | 251 | 44 | 355 | 254 | ||
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 | $ 0 | $ (79) | ||||
Reclassification to earnings (net of tax effect of $(14) and $1) | 45 | (5) | (85) | 61 | ||
Balance at end of period | 310 | (130) | 310 | (130) | ||
Reclassification to earnings, tax effect | (14) | 1 | 27 | 19 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | (3,820) | (4,101) | (3,906) | (3,569) | ||
Remeasurement of plan assets and liabilities (net of tax effect of $0 and $214) (1) | 43 | 38 | 129 | 115 | ||
Balance at end of period | (3,777) | (4,063) | (3,777) | (4,063) | ||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | (609) | ||||
Income Tax Expense Benefit [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (1) | 0 | (1) | 1 | ||
Income Tax Expense Benefit [Member] | Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification to earnings, tax effect | (14) | 1 | (27) | 19 | ||
Income Tax Expense Benefit [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 14 | 12 | 41 | 36 | ||
Net Income [Member] [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | 7 | (44) | (39) | (178) | ||
Net Income [Member] [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (5) | 1 | (5) | 2 | ||
Net Income [Member] [Member] | Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification to earnings (net of tax effect of $(14) and $1) | (45) | 5 | (85) | 61 | ||
Net Income [Member] [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | (43) | (38) | (129) | (115) | ||
Labor and Related Expense [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (57) | (50) | (170) | (151) | ||
Foreign exchange contracts | Interest Expense | Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 62 | 0 | 124 | (62) | ||
Interest rate contracts | Interest Expense | Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ (3) | $ (6) | $ (12) | $ (18) |
Activity in Accumulated Other_2
Activity in Accumulated Other Comprehensive Income (Loss) (Phantoms) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | $ (4,994) | |||||
Change in foreign currency translation adjustment, net of tax | $ (48) | $ (28) | (28) | $ (112) | ||
Balance at end of period | (4,617) | (5,288) | (4,617) | (5,288) | ||
Foreign currency translation gain (loss): | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (1,106) | (1,061) | (1,126) | (930) | ||
Change in foreign currency translation adjustment, net of tax | (48) | (28) | (28) | (112) | ||
Balance at end of period | (1,154) | (1,089) | (1,154) | (1,089) | ||
Aggregate adjustment for the period, tax | 41 | 1 | 43 | 26 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | 7 | (5) | (2) | (2) | ||
Balance at end of period | 4 | (6) | 4 | (6) | ||
Current period changes in fair value, tax effect | 1 | (1) | (4) | (2) | ||
Reclassification to earnings, tax effect | 1 | 0 | 1 | 1 | ||
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | 104 | (179) | 40 | (366) | ||
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 | $ 0 | $ (79) | ||||
Balance at end of period | 310 | (130) | 310 | (130) | ||
Current period changes in fair value, tax effect | 79 | 14 | 112 | 81 | ||
Reclassification to earnings, tax effect | (14) | 1 | 27 | 19 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (3,820) | (4,101) | (3,906) | (3,569) | ||
Balance at end of period | (3,777) | (4,063) | (3,777) | (4,063) | ||
Reclassification to earnings, tax effect | $ 14 | $ 12 | $ 41 | $ 36 |
Activity in Deferred Compensati
Activity in Deferred Compensation Program (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 3,021 | |||
Balance at beginning of period | 1 | |||
Balance at end of period | $ 5,558 | $ 5,558 | ||
Balance at end of period | 0 | 0 | ||
Treasury Stock [Member] | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ (25) | $ (31) | $ (32) | $ (37) |
Balance at beginning of period | 0 | (1) | (1) | (1) |
Reinvested dividends | $ 0 | $ (1) | $ (1) | $ (2) |
Reinvested dividends | 0 | 0 | 0 | 0 |
Benefit payments | 0 | 0 | 1 | 0 |
Benefit payments | $ 0 | $ 0 | $ (8) | $ (7) |
Balance at end of period | $ (25) | $ (32) | $ (25) | $ (32) |
Balance at end of period | 0 | 1 | 0 | 1 |
Deferred Compensation Obligations | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 25 | $ 31 | $ 32 | $ 37 |
Reinvested dividends | 0 | 1 | 1 | 2 |
Benefit payments | 0 | 0 | (8) | (7) |
Balance at end of period | $ 25 | $ 32 | $ 25 | $ 32 |
SHAREOWNERS' EQUITY Amounts Rec
SHAREOWNERS' EQUITY Amounts Reclassified from AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Income [Member] [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | $ 7 | $ (44) | $ (39) | $ (178) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 1 | 0 | 1 | 1 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (5) | 1 | 5 | (2) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Income Tax Expense Benefit [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (1) | 0 | (1) | 1 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Net Income [Member] [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 5 | (1) | 5 | (2) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Investment income and other | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 6 | (1) | 6 | (3) |
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification to earnings, tax effect | (14) | 1 | 27 | 19 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (45) | 5 | 85 | (61) |
Unrealized gain (loss) on cash flow hedges, net of tax: | Income Tax Expense Benefit [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification to earnings, tax effect | (14) | 1 | (27) | 19 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Net Income [Member] [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 45 | (5) | 85 | (61) |
Unrealized gain (loss) on cash flow hedges, net of tax: | Interest rate contracts | Interest Expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (3) | (6) | (12) | (18) |
Unrealized gain (loss) on cash flow hedges, net of tax: | Foreign exchange contracts | Interest Expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 62 | 0 | 124 | (62) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | (609) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Labor and Related Expense [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (57) | (50) | (170) | (151) |
Accumulated Defined Benefit Plans Adjustment [Member] | Income Tax Expense Benefit [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 14 | 12 | 41 | 36 |
Accumulated Defined Benefit Plans Adjustment [Member] | Net Income [Member] [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | $ (43) | $ (38) | $ (129) | $ (115) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019Countries_and_TerritoriesSegments | |
Segment Reporting Information [Line Items] | |
Operating Segments, Number | Segments | 3 |
International Package | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries and territories in which service is rendered | 220 |
Supply Chain & Freight | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries and territories in which service is rendered | 200 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 18,318 | $ 17,444 | $ 53,526 | $ 52,013 |
Operating Profit | 2,128 | 1,727 | 5,665 | 5,020 |
U.S. Domestic Package | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 1,216 | 949 | 3,090 | 2,644 |
International Package | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 667 | 536 | 1,858 | 1,748 |
Supply Chain & Freight | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 245 | 242 | 717 | 628 |
U.S | U.S. Domestic Package | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 11,455 | 10,437 | 33,085 | 31,018 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,494 | 3,478 | 10,458 | 10,613 |
Supply Chain & Freight | Supply Chain & Freight | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,369 | $ 3,529 | $ 9,983 | $ 10,382 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income attributable to common shareowners | $ 1,750 | $ 1,508 | $ 4,546 | $ 4,338 |
Denominator: | ||||
Weighted average shares | 858 | 860 | 859 | 861 |
Deferred compensation obligations | 0 | 1 | 0 | 1 |
Vested portion of restricted shares | 6 | 4 | 6 | 4 |
Denominator for basic earnings per share | 864 | 865 | 865 | 866 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share | 870 | 870 | 869 | 870 |
Basic earnings per share (usd per share) | $ 2.03 | $ 1.74 | $ 5.26 | $ 5.01 |
Diluted earnings per share (usd per share) | $ 2.01 | $ 1.73 | $ 5.23 | $ 4.99 |
Restricted performance units | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 6 | 5 | 4 | 4 |
Stock option plans | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 0 | 0 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share that may be issued upon the exercise of employee stock options because such effect would be antidilutive | 300,000 | 0 | 700,000 | 100,000 |
DERIVATIVE INSTRUMENTS AND RI_3
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Collateral received under contractual provisions | $ 713,000,000 | $ 325,000,000 |
Derivative net liability position | 0 | |
Pre-tax losses related to cash flow hedges that are currently deferred in AOCI and are expected to be reclassified to income within twelve months | $ 255,000,000 | |
Maximum term over hedging exposures to the variability of cash flow | 13 years | |
Change in Credit Rating | ||
Derivative [Line Items] | ||
Derivative, Additional Collateral, Obligation to Return Cash | $ 0 | $ 0 |
Long-term debt and finance leases | Designated as Hedging Instrument | Fair Value | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 21,000,000 |
Notional Amounts of Outstanding
Notional Amounts of Outstanding Derivative Positions (Detail) € in Millions, ₨ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2019EUR (€) | Sep. 30, 2019USD ($) | Sep. 30, 2019GBP (£) | Sep. 30, 2019SGD ($) | Sep. 30, 2019CAD ($) | Sep. 30, 2019INR (₨) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018SGD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018INR (₨) |
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | € 4,850 | £ 1,660 | $ 0 | $ 1,438 | ₨ 3,670 | € 4,924 | £ 2,037 | $ 20 | $ 1,443 | ₨ 3,642 | ||
Fixed to Floating Interest Rate Swaps | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 3,674 | $ 4,674 | ||||||||||
Floating to Fixed Interest Rate Swaps | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 778 | $ 778 |
Location on the Balance Sheet o
Location on the Balance Sheet of Derivative Assets and Liabilities (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Asset Derivatives | ||
Asset Derivatives | $ 685 | $ 361 |
Net Amounts if Right of Offset had been Applied | 681 | 329 |
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 18 | 67 |
Net Amounts if Right of Offset had been Applied | 14 | 35 |
Designated as Hedging Instrument | Foreign exchange contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 203 | 90 |
Net Amounts if Right of Offset had been Applied | 203 | 83 |
Designated as Hedging Instrument | Foreign exchange contracts | Other non-current assets | ||
Asset Derivatives | ||
Asset Derivatives | 433 | 230 |
Net Amounts if Right of Offset had been Applied | 433 | 215 |
Designated as Hedging Instrument | Foreign exchange contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 0 | 7 |
Net Amounts if Right of Offset had been Applied | 0 | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 0 | 15 |
Net Amounts if Right of Offset had been Applied | 0 | 0 |
Designated as Hedging Instrument | Interest rate contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 3 | 1 |
Net Amounts if Right of Offset had been Applied | 3 | 1 |
Designated as Hedging Instrument | Interest rate contracts | Other non-current assets | ||
Asset Derivatives | ||
Asset Derivatives | 29 | 14 |
Net Amounts if Right of Offset had been Applied | 27 | 6 |
Designated as Hedging Instrument | Interest rate contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 13 | 41 |
Net Amounts if Right of Offset had been Applied | 11 | 33 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 3 | 7 |
Net Amounts if Right of Offset had been Applied | 2 | 5 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other non-current assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 1 |
Net Amounts if Right of Offset had been Applied | 0 | 1 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 2 | 3 |
Net Amounts if Right of Offset had been Applied | 1 | 1 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 0 | 1 |
Net Amounts if Right of Offset had been Applied | 1 | |
Not Designated as Hedging Instrument | Interest rate contracts | Other non-current assets | ||
Asset Derivatives | ||
Asset Derivatives | 14 | 18 |
Net Amounts if Right of Offset had been Applied | 13 | 18 |
Not Designated as Hedging Instrument | Interest rate contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 3 | 0 |
Net Amounts if Right of Offset had been Applied | $ 2 | $ 0 |
DERIVATIVE INSTRUMENTS AND RI_4
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Fair Value Derivative Balance Sheet Location (Details) - Designated as Hedging Instrument - Long-term debt and finance leases - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 3,246 | $ 4,207 |
Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 21 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 53 | $ 16 |
DERIVATIVE INSTRUMENTS AND RI_5
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Income Statement and AOCI Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded | 62 | 0 | 124 | (62) |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | (2) | 13 | (47) | 86 |
Derivatives designated as hedging instruments | 2 | (13) | 47 | (86) |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded | (3) | (6) | (12) | (18) |
Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded | 0 | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 62 | 0 | 124 | (62) |
Foreign Exchange Contract [Member] | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Interest Rate Contract [Member] | Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Interest Rate Contract [Member] | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | (3) | (6) | (12) | (18) |
Interest Rate Contract [Member] | Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
Amount and Location in the Inco
Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments in Cash Flow Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 330 | $ 58 | $ 467 | $ 335 |
Derivative Instruments in Cash Flow Hedging Relationships | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | (1) | 1 | 10 | 3 |
Derivative Instruments in Cash Flow Hedging Relationships | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 331 | 57 | 457 | 332 |
Non-derivative Instruments in Net Investment Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 191 | 10 | 197 | 148 |
Non-derivative Instruments in Net Investment Hedging Relationships | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 191 | $ 10 | $ 197 | $ 148 |
Amount Recorded in Income State
Amount Recorded in Income Statements for Foreign Currency Forward Contracts Not Designated as Hedges (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (41) | $ (17) | $ (65) | $ (64) |
Interest rate contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (2) | (3) | (6) | (7) |
Foreign exchange contracts | Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (39) | $ (14) | (59) | (73) |
Investment market price contracts | Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 0 | $ 16 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax | ||||
Transformation cost | $ 63 | $ 97 | $ 207 | $ 360 |
Income tax benefit from transformation strategy | 16 | 24 | 50 | 87 |
Income tax benefit | (456) | $ (381) | $ (1,304) | $ (1,138) |
Decrease to valuation allowance | $ 62 |
TRANSFORMATION STRATEGY (Detail
TRANSFORMATION STRATEGY (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | ||||
Compensation and benefits | $ 41 | $ 70 | $ 149 | $ 262 |
Total other expenses | 22 | 27 | 58 | 98 |
Total Transformation Strategy Costs | 63 | 97 | 207 | 360 |
Income Tax Benefit from Transformation Strategy Costs | (16) | (24) | (50) | (87) |
After Tax Transformation Strategy Costs | $ 47 | $ 73 | $ 157 | $ 273 |