Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 06, 2020 | Jun. 30, 2019 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity Registrant Name | United Parcel Service, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-2480149 | ||
Entity Address, Address Line One | 55 Glenlake Parkway, N.E | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30328 | ||
City Area Code | 404 | ||
Local Phone Number | 828-6000 | ||
Title of Each Class | Class B common stock, par value $.01 per share | ||
Trading Symbol | UPS | ||
Name of Each Exchange on Which Registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 72,097,367,231 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001090727 | ||
Current Fiscal Year End Date | --12-31 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its annual meeting of shareowners scheduled for May 14, 2020 are incorporated by reference into Part III of this report. | ||
Class A Common Stock: | |||
Entity Common Stock, Shares Outstanding | 156,399,660 | ||
Class B Common Stock: | |||
Entity Common Stock, Shares Outstanding | 702,088,016 | ||
Senior Notes 1.500% Due 2032 | |||
Title of Each Class | 1.500% Senior Notes due 2032 | ||
Trading Symbol | UPS32 | ||
Name of Each Exchange on Which Registered | NYSE | ||
Senior Notes 0.375% Due 2023 | |||
Title of Each Class | 0.375% Senior Notes due 2023 | ||
Trading Symbol | UPS23A | ||
Name of Each Exchange on Which Registered | NYSE | ||
Senior Notes 1% Due 2028 | |||
Title of Each Class | 1% Senior Notes due 2028 | ||
Trading Symbol | UPS28 | ||
Name of Each Exchange on Which Registered | NYSE | ||
Senior Notes 1.625% Due 2025 | |||
Title of Each Class | 1.625% Senior Notes due 2025 | ||
Trading Symbol | UPS25 | ||
Name of Each Exchange on Which Registered | NYSE | ||
Floating Rate Senior Notes Due 2020 | |||
Title of Each Class | Floating-Rate Senior Notes due 2020 | ||
Trading Symbol | UPS20A | ||
Name of Each Exchange on Which Registered | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 5,238 | $ 4,225 |
Marketable securities | 503 | 810 |
Accounts receivable, net | 9,552 | 8,958 |
Current income taxes receivable | 382 | 940 |
Other current assets | 1,428 | 1,277 |
Total Current Assets | 17,103 | 16,210 |
Property, Plant and Equipment, Net | 30,482 | 26,576 |
Operating Lease, Right-of-Use Asset | 2,856 | |
Goodwill | 3,813 | 3,811 |
Intangible Assets, Net | 2,167 | 2,075 |
Investments and Restricted Cash | 24 | 170 |
Deferred Income Tax Assets | 330 | 141 |
Other Non-Current Assets | 1,082 | 1,033 |
Total Assets | 57,857 | 50,016 |
Current Liabilities: | ||
Current maturities of long-term debt and commercial paper | 3,420 | 2,805 |
Operating Lease, Liability, Current | 538 | |
Accounts payable | 5,555 | 5,188 |
Accrued wages and withholdings | 2,552 | 3,047 |
Hedge margin liabilities | 495 | 325 |
Self-insurance reserves | 914 | 810 |
Accrued group welfare and retirement plan contributions | 793 | 715 |
Other current liabilities | 1,641 | 1,522 |
Total Current Liabilities | 15,413 | 14,087 |
Long-Term Debt and Finance Leases | 21,818 | 19,931 |
Operating Lease, Liability, Noncurrent | 2,391 | |
Pension and Postretirement Benefit Obligations | 10,601 | 8,347 |
Deferred Income Tax Liabilities | 1,632 | 1,619 |
Self-Insurance Reserves | 1,282 | 1,571 |
Other Non-Current Liabilities | 1,437 | 1,424 |
Shareowners' Equity: | ||
Additional paid-in capital | 150 | 0 |
Retained earnings | 9,105 | 8,006 |
Accumulated other comprehensive loss | (5,997) | (4,994) |
Deferred compensation obligations | 26 | 32 |
Less: Treasury stock (0.4 shares in 2019 and 0.6 shares in 2018) | (26) | (32) |
Total Equity for Controlling Interests | 3,267 | 3,021 |
Noncontrolling Interests | 16 | 16 |
Total Shareowners’ Equity | 3,283 | 3,037 |
Total Liabilities and Shareowners’ Equity | 57,857 | 50,016 |
Class A Common Stock: | ||
Shareowners' Equity: | ||
Common stock | 2 | 2 |
Class B Common Stock: | ||
Shareowners' Equity: | ||
Common stock | $ 7 | $ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Treasury stock, shares | 0 | 1 | ||
Common Stock | Class A Common Stock: | ||||
Common stock, shares issued | 156 | 163 | 173 | 180 |
Common Stock | Class B Common Stock: | ||||
Common stock, shares issued | 701 | 696 | 687 | 689 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
Operating Expenses: | |||||||||||
Compensation and benefits | 38,908 | 37,235 | 34,577 | ||||||||
Depreciation and amortization | 2,360 | 2,207 | 2,282 | ||||||||
Fuel | 3,289 | 3,427 | 2,690 | ||||||||
Other occupancy | 1,392 | 1,362 | 1,155 | ||||||||
Other expenses | 5,919 | 5,465 | 5,055 | ||||||||
Total Operating Expenses | 66,296 | 64,837 | 59,056 | ||||||||
Operating Profit | 2,133 | 2,128 | 2,143 | 1,394 | 2,004 | 1,727 | 1,773 | 1,520 | 7,798 | 7,024 | 7,529 |
Other Income and (Expense): | |||||||||||
Investment income (expense) and other | (1,493) | (400) | 61 | ||||||||
Interest expense | (653) | (605) | (453) | ||||||||
Total Other Income and (Expense) | (2,331) | 78 | 61 | 46 | (1,461) | 162 | 153 | 141 | (2,146) | (1,005) | (392) |
Income Before Income Taxes | 5,652 | 6,019 | 7,137 | ||||||||
Income Tax Expense | 1,212 | 1,228 | 2,232 | ||||||||
Net Income | $ (106) | $ 1,750 | $ 1,685 | $ 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | $ 4,791 | $ 4,905 |
Basic Earnings Per Share (in dollars per share) | $ (0.12) | $ 2.03 | $ 1.95 | $ 1.28 | $ 0.52 | $ 1.74 | $ 1.71 | $ 1.55 | $ 5.14 | $ 5.53 | $ 5.63 |
Diluted Earnings Per Share (in dollars per share) | $ (0.12) | $ 2.01 | $ 1.94 | $ 1.28 | $ 0.52 | $ 1.73 | $ 1.71 | $ 1.55 | $ 5.11 | $ 5.51 | $ 5.61 |
Repairs and maintenance | |||||||||||
Operating Expenses: | |||||||||||
Repairs and maintenance | $ 1,838 | $ 1,732 | $ 1,601 | ||||||||
Purchased transportation | |||||||||||
Operating Expenses: | |||||||||||
Repairs and maintenance | $ 12,590 | $ 13,409 | $ 11,696 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 4,440 | $ 4,791 | $ 4,905 |
Change in foreign currency translation adjustment, net of tax | 48 | (149) | 86 |
Change in unrealized gain (loss) on marketable securities, net of tax | 6 | 0 | (1) |
Change in unrealized gain (loss) on cash flow hedges, net of tax | 72 | 485 | (321) |
Change in unrecognized pension and postretirement benefit costs, net of tax | (1,129) | 272 | (148) |
Comprehensive Income (Loss) | $ 3,437 | $ 5,399 | $ 4,521 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 4,440 | $ 4,791 | $ 4,905 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 2,360 | 2,207 | 2,282 |
Pension and postretirement benefit expense | 3,141 | 2,242 | 1,643 |
Pension and postretirement benefit contributions | (2,362) | (186) | (7,794) |
Self-insurance reserves | (185) | (86) | 0 |
Deferred tax (benefit) expense | 100 | 758 | 1,224 |
Stock compensation expense | 915 | 634 | 584 |
Other (gains) losses | 74 | 293 | 37 |
Changes in assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | (717) | (421) | (1,022) |
Other assets | 698 | 754 | (984) |
Accounts payable | 419 | 1,034 | 599 |
Accrued wages and withholdings | (446) | 505 | 200 |
Other liabilities | 182 | 170 | (243) |
Other operating activities | 20 | 16 | 48 |
Net cash from operating activities | 8,639 | 12,711 | 1,479 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (6,380) | (6,283) | (5,227) |
Proceeds from disposals of property, plant and equipment | 65 | 37 | 24 |
Purchases of marketable securities | (561) | (973) | (1,630) |
Sales and maturities of marketable securities | 883 | 886 | 1,990 |
Net change in finance receivables | 13 | 4 | 5 |
Cash paid for business acquisitions, net of cash and cash equivalents acquired | (6) | (2) | (134) |
Other investing activities | (75) | 1 | 1 |
Net cash (used in) investing activities | (6,061) | (6,330) | (4,971) |
Cash Flows From Financing Activities: | |||
Net change in short-term debt | 310 | 63 | (250) |
Proceeds from long-term borrowings | 5,205 | 1,202 | 12,016 |
Repayments of long-term borrowings | (3,096) | (2,887) | (3,939) |
Purchases of common stock | (1,004) | (1,011) | (1,813) |
Issuances of common stock | 218 | 240 | 247 |
Dividends | (3,194) | (3,011) | (2,771) |
Other financing activities | (166) | (288) | (203) |
Net cash (used in)/from financing activities | (1,727) | (5,692) | 3,287 |
Effect Of Exchange Rate Changes On Cash, Cash Equivalents and Restricted Cash | 20 | (91) | 53 |
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash | 871 | 598 | (152) |
Cash And Cash Equivalents: | |||
Beginning of period | 4,367 | 3,769 | 3,921 |
End of period | 5,238 | 4,367 | 3,769 |
Cash Paid During The Period For: | |||
Interest (net of amount capitalized) | 628 | 595 | 428 |
Income taxes (net of refunds and overpayments) | $ 514 | $ 2 | $ 1,559 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 2 . 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 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, both domestically and internationally, through our global network of company-owned and leased distribution centers and field stocking locations. Disaggregation of Revenue Year Ended December 31, 2019 2018 2017 Revenue: Next Day Air $ 8,479 $ 7,618 $ 7,088 Deferred 5,180 4,752 4,422 Ground 32,834 31,223 29,251 U.S. Domestic Package $ 46,493 $ 43,593 $ 40,761 Domestic $ 2,836 $ 2,874 $ 2,646 Export 10,837 10,973 10,170 Cargo & Other 547 595 526 International Package $ 14,220 $ 14,442 $ 13,342 Forwarding $ 5,867 $ 6,580 $ 5,674 Logistics 3,435 3,234 3,017 Freight 3,265 3,218 3,000 Other 814 794 791 Supply Chain & Freight $ 13,381 $ 13,826 $ 12,482 Consolidated revenue $ 74,094 $ 71,861 $ 66,585 We account for a contract when both parties have approved the contract and are committed to perform their obligations, the rights of the parties are identified, 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 GAAP. To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as a 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 to 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 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. 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 allowance for doubtful accounts as of December 31, 2019 and 2018 was $93 and $94 million , respectively. Our total provision for doubtful accounts charged to expense before recoveries during the years ended December 31, 2019 and 2018 was $194 and $118 million, 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 $ 272 and $ 234 million at December 31, 2019 and 2018, respectively, net of deferred revenue related to in-transit packages of $ 264 and $ 236 million at December 31, 2019 and 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 December 31, 2019 and 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 December 31, 2019 and December 31, 2018. Long-term contract liabilities are included within "Other Non-Current Liabilities" in the consolidated balance sheets. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | SUMMARY OF ACCOUNTING POLICIES Basis of Financial Statements and Business Activities The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include the accounts of United Parcel Service, Inc., and all of its consolidated subsidiaries (collectively “UPS” or the “Company”). All intercompany balances and transactions have been eliminated. We provide transportation services, primarily domestic and international letter and package delivery. Through our Supply Chain & Freight subsidiaries, we are also a global provider of specialized transportation, logistics and financial services. Use of Estimates The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingencies. Estimates have been prepared on the basis of the most current and best information, and actual results could differ materially from those estimates. Revenue Recognition U.S. Domestic and International Package Operations —Revenue is recognized over time as we perform the services in the contract. Forwarding —Freight forwarding revenue and the expense related to the transportation of freight are recognized over time as we perform the services. Truckload brokerage revenue and related transportation costs are recognized over time as we perform the services. Customs brokerage revenue is recognized upon completing documents necessary for customs entry purposes. Logistics —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. UPS Freight —Revenue is recognized over time as we perform the services in the contract. Financial Services —Income on loans and direct finance leases is recognized on the effective interest method. Accrual of interest income is suspended at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days delinquent. Income on operating leases is recognized on the straight-line method over the terms of the underlying leases. Principal vs. Agent Considerations —We utilize independent contractors and third-party carriers in the performance of some transportation services. GAAP requires us to evaluate 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) using a control model. 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 reported on a gross basis within our statements of consolidated income. Refer to note 2 for further discussion of our revenue recognition policies. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments that are readily convertible into cash. We consider securities with maturities of three months or less, when purchased, to be cash equivalents. The carrying amount of these securities approximates fair value because of the short-term maturity of these instruments. Investments Debt securities are either classified as trading or available-for-sale securities and are carried at fair value. Unrealized gains and losses on trading securities are reported as investment income (expense) and other on the statements of consolidated income. Unrealized gains and losses on available-for-sale securities are reported as accumulated other comprehensive income (“AOCI”), a separate component of shareowners’ equity. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in investment income (expense) and other, along with interest and dividends. The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in investment income (expense) and other. We periodically review our available-for-sale investments for indications of other-than-temporary impairment considering many factors, including the extent and duration to which a security’s fair value has been less than its cost, overall economic and market conditions and the financial condition and specific prospects for the issuer. Impairment of available-for-sale securities results in a charge to income when a market decline below cost is other-than-temporary. Inventories Fuel and other materials and supplies inventories are recognized as inventory when purchased, and then charged to expense when used in our operations. Jet fuel, diesel and unleaded gasoline inventories are valued at the lower of average cost or net realizable value. Total inventories were $ 511 and $ 421 million as of December 31, 2019 and 2018 , respectively, and are included in “Other current assets” on the consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment are carried at cost. We evaluate the useful lives of our property, plant and equipment based on our usage, maintenance and replacement policies, and taking into account physical and economic factors that may affect the useful lives of the assets. As part of our ongoing investment in transformation in 2018, we revised our estimates of useful lives for building improvements, vehicles and plant equipment based on our current assessment of these factors. In 2019, we revised our estimates of useful lives and residual values for certain airframes, engines and related rotable parts. The changes in estimate had the effect of lengthening the useful lives of building improvements, vehicles, plant equipment and certain aircraft, and reduced the useful lives and residual values of the majority of our used aircraft. Depreciation and amortization are provided by the straight-line method over the estimated useful lives of the assets, which are as follows: • Aircraft: 12 to 40 years • Buildings: 20 to 40 years • Leasehold Improvements: lesser of asset useful life or lease term • Plant Equipment: 3 to 20 years • Technology Equipment: 3 to 5 years • Vehicles: 6 to 15 years For substantially all of our aircraft, the costs of major airframe and engine overhauls, as well as routine maintenance and repairs, are charged to expense as incurred. Interest incurred during the construction period of certain property, plant and equipment is capitalized until the underlying assets are placed in service, at which time amortization of the capitalized interest begins, straight-line, over the estimated useful lives of the related assets. Capitalized interest was $ 91 and $ 97 million in 2019 and 2018 , respectively. We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on its undiscounted future cash flows. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows or external appraisals, as appropriate. We review long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. Leased Assets For a discussion of our accounting policies related to leased assets, refer to note 10 . Goodwill and Intangible Assets Costs of purchased businesses in excess of net identifiable assets acquired (goodwill), and indefinite-lived intangible assets are tested for impairment at least annually, unless changes in circumstances indicate an impairment may have occurred sooner. We are required to test goodwill on a reporting unit basis. A reporting unit is the operating segment unless, for businesses within that operating segment, discrete financial information is prepared and regularly reviewed by management, in which case such a component business is the reporting unit. In assessing goodwill for impairment, we initially evaluate qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We consider several factors, including macroeconomic conditions, industry and market conditions, overall financial performance of the reporting unit, changes in management, strategy or customers and relevant reporting unit-specific events such as a change in the carrying amount of net assets, a more likely than not expectation of selling or disposing of all, or a portion of, a reporting unit, and the testing for recoverability of a significant asset group within a reporting unit. If this qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit. If the qualitative assessment is not conclusive and it is necessary to calculate the fair value of a reporting unit, then we utilize a two-step process to test goodwill for impairment. First, a comparison of the fair value of the applicable reporting unit with the aggregate carrying value, including goodwill, is performed. If the carrying amount of a reporting unit exceeds its calculated fair value, then the second step is performed, and an impairment charge is recognized for the amount, if any, by which the carrying amount of goodwill exceeds its implied fair value. We primarily determine the fair value of our reporting units using a discounted cash flow model and supplement this with observable valuation multiples for comparable companies, as appropriate. A trade name with a carrying value of $200 million and licenses with a carrying value of $ 4 million as of December 31, 2019 are considered to be indefinite-lived intangibles, and therefore are not amortized. Indefinite-lived intangible assets are reviewed for impairment at least annually. We determined that the income approach, specifically the relief from royalty method, is the most appropriate valuation method to estimate the fair value of the trade name. The estimated fair value of the trade name is compared to the carrying value of the asset. If the carrying value of the trade name exceeds its estimated fair value, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds its fair value. Finite-lived intangible assets, including trademarks, licenses, patents, customer lists, non-compete agreements and franchise rights are amortized on a straight-line basis over the estimated useful lives of the assets, which range from 2 to 22 years. Capitalized software is generally amortized over 7 years. Self-Insurance Accruals We self-insure costs associated with workers’ compensation claims, automobile liability, health and welfare and general business liabilities, up to certain limits. Insurance reserves are established for estimates of the loss that we will ultimately incur on reported claims, as well as estimates of claims that have been incurred but not yet reported. The expected ultimate cost for claims incurred is estimated based upon historical loss experience and judgments about the present and expected levels of cost per claim. Trends in actual experience are a significant factor in the determination of our reserves. Workers’ compensation, automobile liability and general liability insurance claims may take several years to completely settle. Consequently, actuarial estimates are required to project the ultimate cost that will be incurred to fully resolve a claim. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, trends in healthcare costs, the results of any related litigation and with respect to workers’ compensation claims, changes in legislation. Furthermore, claims may emerge in a future year for events that occurred in a prior year at a rate that differs from actuarial projections. All of these factors can result in revisions to actuarial projections and produce a material difference between estimated and actual operating results. Based on our historical experience, during 2019 we changed our self-insurance reserves from the central estimate to the low end of the actuarial range of losses. The principal result of this change was a decrease in expense of $94 million and an increase in net income of $72 million , or $0.08 per share on a basic and diluted basis. We believe our estimated reserves for such claims are adequate, but actual experience in claim frequency and/or severity could materially differ from our estimates and affect our results of operations. We sponsor a number of health and welfare insurance plans for our employees. These liabilities and related expenses are based on estimates of the number of employees and eligible dependents covered under the plans, anticipated medical usage by participants and overall trends in medical costs and inflation. Pension and Postretirement Benefits We incur certain employment-related expenses associated with pension and postretirement medical benefits. These pension and postretirement medical benefit costs for company-sponsored benefit plans are calculated using various actuarial assumptions and methodologies, including discount rates, expected returns on plan assets, healthcare cost trend rates, inflation, compensation increase rates, mortality rates and coordination of benefits with plans not sponsored by UPS. Actuarial assumptions are reviewed on an annual basis, unless circumstances require an interim remeasurement of any of our plans. We recognize changes in the fair value of plan assets and net actuarial gains or losses in excess of a corridor (defined as 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation) in net periodic benefit cost other than service cost annually at December 31st each year. The remaining components of pension expense, primarily service and interest costs and the expected return on plan assets, are recorded on a quarterly basis. For eligible employees hired after July 1, 2016, UPS contributes annually to a defined contribution plan. We recognize expense for the required contribution quarterly, and we recognize a liability for any contributions due and unpaid (included in “Other current liabilities”). During June 2017, we amended the UPS Retirement Plan and Excess Coordinating Plan to cease accrual of additional benefits for future service for non-union participants effective January 1, 2023. We remeasured plan assets and pension benefit obligations for the affected pension plans as of June 30, 2017 to recognize the impact of this change. We participate in a number of trustee-managed multiemployer pension and health and welfare plans for employees covered under collective bargaining agreements. Our contributions to these plans are determined in accordance with the respective collective bargaining agreements. We recognize expense for the contractually required contribution for each period, and we recognize a liability for any contributions due and unpaid within “Other current liabilities”. Income Taxes Income taxes are accounted for on an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than proposed changes in the tax law or rates. Valuation allowances are provided if it is more likely than not that a deferred tax asset will not be realized. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. Once it is determined that the position meets the recognition threshold, the second step requires us to estimate and measure the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement. The difference between the amount of recognizable tax benefit and the total amount of tax benefit from positions filed or to be filed with the tax authorities is recorded as a liability for uncertain tax benefits. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We reevaluate uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an additional charge to the tax provision. In January 2018, the Financial Accounting Standards Board ("FASB") released guidance on the accounting for tax on the Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Cuts and Jobs Act (the "Tax Act"). The GILTI provisions impose U.S. tax on certain foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. We elect to treat any potential GILTI inclusions as period costs. Foreign Currency Translation and Remeasurement We translate the results of operations of our foreign subsidiaries using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Balance sheet currency translation adjustments are recorded in AOCI. Pre-tax foreign currency transaction gains (losses) from remeasurement, net of hedging, included in investment income (expense) and other were $ (6) , $ (19) and $ 3 million in 2019 , 2018 and 2017 , respectively. Stock-Based Compensation All share-based awards to employees are measured based on their fair values and expensed over the period during which an employee is required to provide service in exchange for the award (the vesting period), less estimated forfeitures. We have issued employee share-based awards under the UPS Incentive Compensation Plan that are subject to specific vesting conditions, including service conditions, where the awards cliff vest or vest ratably over a one , three , or five year period (the "nominal vesting period”) or at the date the employee retires (as defined by the plan), if earlier. Compensation cost is generally recognized immediately for awards granted to retirement-eligible employees, or over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. We estimate forfeiture rates based on historical rates of forfeitures for awards with similar characteristics, historical rates of employee turnover and the nature and terms of the vesting conditions of the awards. We reevaluate our forfeiture rates on an annual basis. Fair Value Measurements Our financial assets and liabilities measured at fair value on a recurring basis have been categorized based upon a fair value hierarchy. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on other observable market data, such as quoted prices for similar assets and liabilities, and inputs other than quoted prices that are observable, such as interest rates and yield curves. Level 3 inputs are developed from unobservable data reflecting our own assumptions, and include situations where there is little or no market activity for the asset or liability. Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis, including property, plant, and equipment, goodwill and intangible assets. These assets are subject to fair value adjustments in certain circumstances, such as when there is evidence of an impairment. A general description of the valuation methodologies used for assets and liabilities measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy, is included in each footnote with fair value measurements present. For acquisitions, we allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets, including but are not limited to, future expected cash flows from acquired customers, acquired technology and trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. 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 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. Adoption of New Accounting Standards In May 2014, the FASB issued an accounting standards update ("ASU") that changes the revenue recognition for companies that enter into contracts with customers to transfer goods or services (" Revenue from Contracts with Customers") . The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner depicting the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB also issued a number of updates to this standard. Effective January 1, 2018, we adopted the requirements of this ASU using the full retrospective method. See note 2 for disclosures required by this ASU. In January 2016, the FASB issued an ASU which addresses certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. We adopted this standard on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued 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. 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. 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 year ended December 31, 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. See note 10 for additional disclosures required by this ASU. In August 2016, the FASB issued an ASU that addressed the classification and presentation of specific cash flow matters. The guidance also clarified how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance was applied retrospectively. We adopted this standard on January 1, 2018. This standard did not have a material impact on our statements of consolidated cash flows. In November 2016, the FASB issued an ASU intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows (" Restricted Cash") . Effective January 1, 2018, we adopted the requirements of this ASU retrospectively. As a result of this update, restricted cash is included within cash and cash equivalents on our statements of consolidated cash flows. In March 2017, the FASB issued an ASU to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost (" Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost") . The update requires employers to report the current service cost component in the same line item as other compensation costs arising from services rendered by employees during the period. The other components of net periodic benefit cost are required to be presented separately from service cost and outside of income from operations. Effective January 1, 2018, we adopted the requirements of this ASU retrospectively, as required. As a result of this update, the net amount of interest cost, prior service cost and expected return on plan assets is now presented as other income. 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 May 2017, the FASB issued an ASU to provide clarity and reduce complexity on when to apply modification accounting to existing share-based payment awards. We adopted this standard on January 1, 2018. This ASU 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 16 for disclosures required by this ASU. In February 2018, the FASB issued an ASU that allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act. Effective January 1, 2018, we early adopted this ASU and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. This resulted in a $ 735 million increase to retained earnings and a $735 million decrease to AOCI. Our current accounting policy for releasing income tax effects from other comprehensive income is based on a portfolio approach. In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension and postretirement plans. The update eliminates the disclosures for amounts in AOCI expected to be recognized as components of net periodic cost over the next fiscal year and the effects of a one percentage point change in the assumed healthcare cost trend rate. The update adds disclosure requirements to include the weighted-average interest crediting rates for cash balance plans and a narrative description of the significant gains and losses related to changes in the benefit obligation for the period. We early adopted this standard for the year ended December 31, 2018 with retrospective application. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations or cash flows. We have recast our consolidated financial statements from amounts previously reported due to the adoption of new revenue recognition, pension and restricted cash standards. The unaudited consolidated statements of operations, which reflect the adoption of the new ASUs, are as follows (in millions): Twelve months ended December 31, 2017 As Previously Reported Adjustments (a) Adjustments (b) Adjustments (c) As Recast Revenue $ 65,872 $ 713 $ — $ — $ 66,585 Operating Expenses: Compensation and benefits 34,588 — (11 ) — 34,577 Repairs and maintenance 1,600 1 — — 1,601 Depreciation and amortization 2,282 — — — 2,282 Purchased transportation 10,989 707 — — 11,696 Fuel 2,690 — — — 2,690 Other occupancy 1,155 — — — 1,155 Other expenses 5,039 16 — — 5,055 Total Operating Expenses 58,343 724 (11 ) — 59,056 Operating Profit 7,529 (11 ) 11 — 7,529 Other Income and (Expense): Investment income (expense) and other 72 — (11 ) — 61 Interest expense (453 ) — — — (453 ) Total Other Income and (Expense) (381 ) — (11 ) — (392 ) Income Before Income Taxes 7,148 (11 ) — — 7,137 Income Tax Expense (Benefit) 2,238 (6 ) — — 2,232 Net Income $ 4,910 $ (5 ) $ — $ — $ 4,905 Basic Earnings Per Share $ 5.64 $ (0.01 ) $ — $ — $ 5.63 Diluted Earnings Per Share $ 5.61 $ — $ — $ — $ 5.61 (a) Recast to reflect the adoption of Revenue from Contracts with Customers. (b) Recast to reflect the adoption of Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. (c) Recast to reflect the adoption of Restricted Cash. The unaudited impacted consolidated statement of cash flows line items, which reflect the adoption of the new ASUs, are as follows (in millions): Twelve Months Ended December 31, 2017 As Previously Reported Adjustments (a) Adjustments (b) Adjustments (c) As Recast Net Income $ 4,910 $ (5 ) $ — $ — $ 4,905 Adju |
INVESTMENTS AND RESTRICTED CASH
INVESTMENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
Investments and Cash [Abstract] | |
INVESTMENTS AND RESTRICTED CASH | INVESTMENTS AND RESTRICTED CASH The following is a summary of marketable securities classified as trading and available-for-sale at December 31, 2019 and 2018 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value 2019 Current trading marketable securities: Corporate debt securities $ 112 $ — $ — $ 112 Equity securities 2 — — 2 Total trading marketable securities 114 — — 114 Current available-for-sale securities: U.S. government and agency debt securities 191 2 — 193 Mortgage and asset-backed debt securities 46 1 — 47 Corporate debt securities 130 3 — 133 Non-U.S. government debt securities 16 — — 16 Total available-for-sale marketable securities 383 6 — 389 Total current marketable securities $ 497 $ 6 $ — $ 503 Cost Unrealized Gains Unrealized Losses Estimated Fair Value 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 Total current marketable securities that were pledged as collateral for our self-insurance requirements had an estimated fair value of $ 389 and $ 587 million at December 31, 2019 and 2018 , respectively. The gross realized gains on sales of available-for-sale securities totaled $ 8 million in 2019 . There were no gross realized gains on sales of available-for-sale securities in 2018 or 2017 . The gross realized losses on sales of available-for-sale securities totaled $ 2 , $ 4 and $2 million in 2019 , 2018 and 2017 , respectively. There were no material impairment losses recognized on marketable securities during 2019 , 2018 or 2017 . Investment Other-Than-Temporary Impairments We have concluded that no material other-than-temporary impairment losses existed as of December 31, 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. Unrealized Losses The following table presents the age of gross unrealized losses and fair value by investment category for all securities in a loss position as of December 31, 2019 (in millions): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government and agency debt securities $ 42 $ — $ — $ — $ 42 $ — Mortgage and asset-backed debt securities 3 — 5 — 8 — Corporate debt securities 6 — 2 — 8 — Non-U.S. government debt securities 9 — 2 — 11 — Total marketable securities $ 60 $ — $ 9 $ — $ 69 $ — The unrealized losses for the corporate debt securities, mortgage and asset-backed debt securities, and U.S. government and agency debt securities are primarily due to changes in market interest rates. We have both the intent and ability to hold these securities for a time necessary to recover the cost basis. Maturity Information The amortized cost and estimated fair value of marketable securities at December 31, 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 $ 118 $ 118 Due after one year through three years 328 332 Due after three years through five years 6 6 Due after five years 43 45 495 501 Equity securities 2 2 $ 497 $ 503 Non-Current Investments and Restricted Cash Non-current investments and restricted cash are primarily associated with our self-insurance obligations. We entered into an escrow agreement with an insurance carrier to guarantee these 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. In 2019 we liquidated our investment balance associated with this agreement and pledged the required collateral with a surety bond. At December 31, 2019 and 2018 , we had $0 and $ 142 million, respectively, in restricted cash. For additional information on surety bonds written at December 31, 2019, see note 8 . We held a $21 and $ 19 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan at December 31, 2019 and 2018 , respectively. The quarterly change in investment fair value is recognized in "Investment income (expense) 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 at December 31, 2019 and 2018 , respectively. These amounts 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): December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 5,238 $ 4,225 $ 3,320 Restricted cash $ — $ 142 $ 449 Total cash, cash equivalents and restricted cash $ 5,238 $ 4,367 $ 3,769 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 7.40% and 8.16% as of December 31, 2019 and 2018 , respectively. These inputs, and the resulting fair values, are updated on a quarterly basis. The following table presents information about our investments measured at fair value on a recurring basis as of December 31, 2019 and 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) Total 2019 Marketable Securities: U.S. government and agency debt securities $ 193 $ — $ — $ 193 Mortgage and asset-backed debt securities — 47 — 47 Corporate debt securities — 245 — 245 Equity securities — 2 — 2 Non-U.S. government debt securities — 16 — 16 Total marketable securities 193 310 — 503 Other non-current investments 21 — 1 22 Total $ 214 $ 310 $ 1 $ 525 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total 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 years ended December 31, 2019 or 2018 . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, including both owned assets as well as assets subject to finance leases, consists of the following as of December 31, 2019 and 2018 (in millions): 2019 2018 Vehicles $ 10,613 $ 9,820 Aircraft 19,045 17,499 Land 2,087 2,000 Buildings 5,046 4,808 Building and leasehold improvements 4,898 4,323 Plant equipment 13,849 11,833 Technology equipment 2,206 2,093 Construction-in-progress 1,983 2,112 59,727 54,488 Less: Accumulated depreciation and amortization (29,245 ) (27,912 ) $ 30,482 $ 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. For 2019, depreciation expense increased $365 million, and net income decreased by $287 million, or $0.33 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 $167 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 $153 million and a decrease in net income of $120 million, or $0.14 per share on a basic and diluted basis, for 2019. For 2018, this resulted in a decrease in depreciation expense and an increase in operating income of $286 million and an increase to net income of $228 million or $0.26 per share on a basic and diluted basis. Separately, capital investments in additional property, plant and equipment, net of disposals and fully-depreciated assets, resulted in an increase in depreciation expense of $257 million and a decrease to net income of $205 million or $0.24 per share on a basic and diluted basis in 2018. Combining both impacts resulted in a net decrease of $29 million to depreciation expense, and an increase to net income of $23 million or $0.03 per share on both a basic and diluted basis in 2018. We monitor our aircraft fleet utilization in light of current and projected volume levels, aircraft fuel prices and other factors. Additionally, we monitor our 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 in 2019 or 2018 |
COMPANY-SPONSORED EMPLOYEE BENE
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | COMPANY SPONSORED EMPLOYEE BENEFIT PLANS We sponsor various retirement and pension plans, including defined benefit and defined contribution plans which cover our employees worldwide. U.S. Pension Benefits In the U.S. we maintain the following single-employer defined benefit pension plans: the UPS Retirement Plan, the UPS Pension Plan, the UPS/IBT Full-Time Employee Pension Plan and the UPS Excess Coordinating Benefit Plan, a non-qualified plan. The UPS Retirement Plan is noncontributory and includes substantially all eligible employees of participating domestic subsidiaries hired prior to July 1, 2016 who are not members of a collective bargaining unit, as well as certain employees covered by a collective bargaining agreement. This plan generally provides for retirement benefits based on average compensation earned by employees prior to retirement. Benefits payable under this plan are subject to maximum compensation limits and the annual benefit limits for a tax-qualified defined benefit plan as prescribed by the Internal Revenue Service (“IRS”). The UPS Pension Plan is noncontributory and includes certain eligible employees of participating domestic subsidiaries and members of collective bargaining units that elect to participate in the plan. This plan generally provides for retirement benefits based on service credits earned by employees prior to retirement. The UPS/IBT Full Time Employee Pension Plan is noncontributory and includes employees that were previously members of the Central States Pension Fund ("CSPF"), a multiemployer pension plan, in addition to other eligible employees who are covered under certain collective bargaining agreements. This plan generally provides for retirement benefits based on service credits earned by employees prior to retirement. The UPS Excess Coordinating Benefit Plan is a non-qualified plan that provides benefits to certain participants in the UPS Retirement Plan, hired prior to July 1, 2016, for amounts that exceed the benefit limits described above. In the year ended December 31, 2017, we amended the UPS Retirement Plan and the UPS Excess Coordinating Benefit Plan to cease accruals of additional benefits for future service and compensation for non-union participants effective January 1, 2023. We remeasured plan assets and pension benefit obligations for the affected pension plans as of June 30, 2017, resulting in a net actuarial gain of $ 569 million. This reflected a curtailment gain of $ 1.525 billion resulting from the benefit plan changes that was partially offset by net actuarial losses of $ 956 million, driven by a reduction of approximately 32 basis points in the discount rate compared to December 31, 2016, offset by actual asset returns approximately 275 basis points above our expected return as of the remeasurement date. The net curtailment gain reduced the actuarial loss recorded in AOCI in the equity section of the consolidated balance sheets. As actuarial losses were within the corridor (defined as 10% of the greater of the fair value of plan assets and the plan's projected benefit obligation), there was no impact to the statement of consolidated income as a result of this remeasurement. During the fourth quarter of 2019, certain former U.S. employees were offered the option to receive a one-time payment of their vested pension benefit. Approximately 18,800 former employees accepted this option, accelerating $ 820 million in benefit payments during 2019 while reducing the number of participants who are due future payments from U.S. pension plans. As the cost of these settlements did not exceed the plans' service cost and interest cost for the year, the impact of the settlement was not recognized in earnings. International Pension Benefits We also sponsor various defined benefit plans covering certain of our international employees. The majority of our international obligations are for defined benefit plans in Canada and the United Kingdom. In addition, many of our international employees are covered by government-sponsored retirement and pension plans. We are not directly responsible for providing benefits to participants of government-sponsored plans. U.S. Postretirement Medical Benefits We also sponsor postretirement medical plans in the U.S. that provide healthcare benefits to our non-union retirees, as well as select union retirees who meet certain eligibility requirements and who are not otherwise covered by multiemployer plans. Generally, this includes employees with at least 10 years of service who have reached age 55 and employees who are eligible for postretirement medical benefits from a Company-sponsored plan pursuant to collective bargaining agreements. We have the right to modify or terminate certain of these plans. These benefits have been provided to certain retirees on a noncontributory basis; however, in many cases, retirees are required to contribute all or a portion of the total cost of the coverage. Defined Contribution Plans We also sponsor a defined contribution plan for employees not covered under collective bargaining agreements, and several smaller defined contribution plans for certain employees covered under collective bargaining agreements. The Company matches, in shares of UPS common stock or cash, a portion of the participating employees’ contributions. Matching contributions charged to expense were $ 130 , $ 127 and $ 119 million for 2019 , 2018 and 2017 , respectively. In addition to current benefits under the UPS 401(k) Savings Plan, non-union employees hired after July 1, 2016, receive a retirement contribution. UPS contributes 3% to 8% of eligible pay to the UPS 401(k) Savings Plan based on years of vesting service and business unit. Contributions under this plan are subject to maximum compensation and contribution limits for a tax-qualified defined contribution plan as prescribed by the IRS. Contributions charged to expense were $67 , $28 and $23 million for 2019, 2018 and 2017 respectively. Effective June 23, 2017, the Company amended the UPS 401(k) Savings Plan so that non-union employees who currently participate in the UPS Retirement Plan will, in addition to current benefits under the UPS 401(k) Savings Plan, earn a retirement contribution beginning January 1, 2023. UPS will contribute 5% to 8% of eligible compensation to the UPS 401(k) Savings Plan based on years of vesting service. The amendment also provides for transition contributions for certain participants. There was no impact to the statement of consolidated income for 2019, 2018 and 2017 as a result of this change. The UPS Restoration Savings Plan is a non-qualified plan that provides benefits to certain participants in the UPS 401(k) Savings Plan for amounts that exceed the benefit limits described above. Contributions are also made to defined contribution money purchase plans under certain collective bargaining agreements. Amounts charged to expense were $ 97 , $ 92 and $ 91 million for 2019 , 2018 and 2017 , respectively. Net Periodic Benefit Cost Information about net periodic benefit cost for the company-sponsored pension and postretirement defined benefit plans is as follows (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2017 2019 2018 2017 2019 2018 2017 Net Periodic Benefit Cost: Service cost $ 1,439 $ 1,661 $ 1,543 $ 23 $ 29 $ 29 $ 57 $ 62 $ 60 Interest cost 2,067 1,799 1,813 108 104 112 47 45 40 Expected return on assets (3,130 ) (3,201 ) (2,883 ) (8 ) (8 ) (7 ) (76 ) (77 ) (66 ) Amortization of prior service cost 218 193 192 7 7 7 2 1 1 Actuarial (gain) loss 2,296 1,603 729 37 — 53 54 24 18 Curtailment and settlement loss — — — — — — — — 2 Net periodic benefit cost $ 2,890 $ 2,055 $ 1,394 $ 167 $ 132 $ 194 $ 84 $ 55 $ 55 Actuarial Assumptions The table below provides the weighted-average actuarial assumptions used to determine the net periodic benefit cost. U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.50 % 3.84 % 4.41 % 4.51 % 3.82 % 4.23 % 2.94 % 2.78 % 2.75 % Rate of compensation increase 4.25 % 4.25 % 4.27 % N/A N/A N/A 3.24 % 3.22 % 3.17 % Expected return on assets 7.75 % 7.75 % 8.75 % 7.20 % 7.20 % 8.75 % 5.69 % 5.76 % 5.65 % Cash balance interest credit rate 2.98 % 2.50 % 2.91 % N/A N/A N/A 3.17 % 3.07 % 2.65 % The table below provides the weighted-average actuarial assumptions used to determine the benefit obligations of our plans. U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Discount rate 3.60 % 4.50 % 3.59 % 4.51 % 2.21 % 2.94 % Rate of compensation increase 4.22 % 4.25 % N/A N/A 3.00 % 3.24 % Cash balance interest credit rate 2.50 % 2.98 % N/A N/A 2.59 % 3.17 % A discount rate is used to determine the present value of our future benefit obligations. To determine the discount rate for our U.S. pension and postretirement benefit plans, we use a bond matching approach to select specific bonds that would satisfy our projected benefit payments. We believe the bond matching approach reflects the process we would employ to settle our pension and postretirement benefit obligations. In October 2019, we refined our bond matching approach by implementing advances in technology and modeling techniques. This refinement decreased the projected benefit obligation on our consolidated balance sheet for our U.S. pension and postretirement plans by approximately $ 900 million as of December 31, 2019. Additionally, we estimate that this refinement in method decreased our pre-tax mark-to-market charge by approximately $ 810 million and increased net income by $ 616 million, or $ 0.71 per share on a basic and diluted basis. For our international plans, the discount rate is determined by matching the expected cash flows of a sample plan of similar duration to a yield curve based on long-term, high quality fixed income debt instruments available as of the measurement date. These assumptions are updated each measurement date, which is typically annually. As of December 31, 2019 , the impact of each basis point change in the discount rate on the projected benefit obligation of our pension and postretirement medical benefit plans is as follows (in millions): Increase (Decrease) in the Projected Benefit Obligation Pension Benefits Postretirement Medical Benefits One basis point increase in discount rate $ (86 ) $ (2 ) One basis point decrease in discount rate 92 3 The Society of Actuaries ("SOA") published mortality tables and improvement scales are used in developing the best estimate of mortality for U.S. plans. In October 2019, the SOA published updated mortality tables and an updated improvement scale, both of which reduced expected mortality improvements from previously published tables and improvement scale. Based on our perspective of future longevity, we updated the mortality assumptions to incorporate these updated tables and improvement scale for purposes of measuring pension and other postretirement benefit obligations. Assumptions for the expected return on plan assets are used to determine a component of net periodic benefit cost for the year. The assumption for our U.S. plans is developed using a long-term projection of returns for each asset class. Our asset allocation targets are reviewed and, if necessary, updated taking into consideration plan changes, funded status and actual performance. The expected return for each asset class is a function of passive, long-term capital market assumptions and excess returns generated from active management. The capital market assumptions used are provided by independent investment advisors, while excess return assumptions are supported by historical performance, fund mandates and investment expectations. For plans outside the U.S., consideration is given to local market expectations of long-term returns. Strategic asset allocations are determined by plan, based on the nature of liabilities and considering the demographic composition of the plan participants. Actuarial Assumptions - Central States Pension Fund UPS was a contributing employer to the 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, 2019 measurement date is that the CSPF will submit and implement another benefit reduction plan under the MPRA during 2020. 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 in 2019. As a result, at the December 31, 2019 measurement date, the best estimate of our projected benefit obligation for coordinating benefits that may be required to be directly provided by the UPS/IBT Plan to the UPS Transfer Group is $2.6 billion. 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 $2.2 billion, resulting in a total obligation for coordinating benefits of approximately $4.8 billion. 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. Other Actuarial Assumptions Healthcare cost trends are used to project future postretirement medical benefits payable from our plans. For 2019 U.S. plan obligations, future postretirement medical benefit costs were forecasted assuming an initial annual rate of increase of 6.5% , decreasing to 4.5% by the year 2024 and with consistent annual increases at that ultimate level thereafter. Funded Status The following table discloses the funded status of our plans and the amounts recognized in our consolidated balance sheets as of December 31 st (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Funded Status: Fair value of plan assets $ 46,172 $ 39,554 $ 37 $ 26 $ 1,558 $ 1,284 Benefit obligation (54,039 ) (45,333 ) (2,616 ) (2,510 ) (1,906 ) (1,552 ) Funded status recognized at December 31 $ (7,867 ) $ (5,779 ) $ (2,579 ) $ (2,484 ) $ (348 ) $ (268 ) Funded Status Recognized in our Balance Sheet: Other non-current assets $ — $ — $ — $ — $ 34 $ 35 Other current liabilities (22 ) (20 ) (200 ) (195 ) (5 ) (4 ) Pension and postretirement benefit obligations (7,845 ) (5,759 ) (2,379 ) (2,289 ) (377 ) (299 ) Net liability at December 31 $ (7,867 ) $ (5,779 ) $ (2,579 ) $ (2,484 ) $ (348 ) $ (268 ) Amounts Recognized in AOCI: Unrecognized net prior service cost $ (800 ) $ (1,018 ) $ (16 ) $ (21 ) $ (12 ) $ (14 ) Unrecognized net actuarial gain (loss) (5,404 ) (3,967 ) (240 ) (32 ) (162 ) (100 ) Gross unrecognized cost at December 31 (6,204 ) (4,985 ) (256 ) (53 ) (174 ) (114 ) Deferred tax assets (liabilities) at December 31 1,497 1,205 62 13 40 28 Net unrecognized cost at December 31 $ (4,707 ) $ (3,780 ) $ (194 ) $ (40 ) $ (134 ) $ (86 ) The accumulated benefit obligation for our pension plans as of the measurement dates in 2019 and 2018 was $57.553 and $ 45.704 billion, respectively. Benefit payments under the pension plans include $27 and $ 23 million paid from employer assets in 2019 and 2018 , respectively. Benefit payments (net of participant contributions) under the postretirement medical benefit plans include $82 and $ 87 million paid from employer assets in 2019 and 2018 , respectively. Such benefit payments from employer assets are also categorized as employer contributions. At December 31, 2019 and 2018 , the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with benefit obligations in excess of plan assets were as follows (in millions): Projected Benefit Obligation Exceeds the Fair Value of Plan Assets Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets 2019 2018 2019 2018 U.S. Pension Benefits: Projected benefit obligation $ 54,039 $ 45,333 $ 54,039 $ 45,333 Accumulated benefit obligation 53,194 44,284 53,194 44,284 Fair value of plan assets 46,172 39,554 46,172 39,554 International Pension Benefits: Projected benefit obligation $ 1,319 $ 630 $ 1,319 $ 630 Accumulated benefit obligation 1,210 539 1,210 539 Fair value of plan assets 948 339 948 339 The accumulated postretirement benefit obligation presented in the funded status table exceeds plan assets for all U.S. postretirement medical benefit plans. Benefit Obligations and Fair Value of Plan Assets The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of plan assets as of the respective measurement dates in each year (in millions). U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Benefit Obligations: Projected benefit obligation at beginning of year $ 45,333 $ 45,847 $ 2,510 $ 2,792 $ 1,552 $ 1,651 Service cost 1,439 1,661 23 29 57 62 Interest cost 2,067 1,799 108 104 47 45 Gross benefits paid (2,394 ) (1,390 ) (288 ) (263 ) (40 ) (33 ) Plan participants’ contributions — — 30 26 3 3 Plan amendments — 331 — — 1 13 Actuarial (gain)/loss 7,594 (2,915 ) 233 (178 ) 213 (81 ) Foreign currency exchange rate changes — — — 47 (110 ) Curtailments and settlements — — — (2 ) (1 ) Other — — — 28 3 Projected benefit obligation at end of year $ 54,039 $ 45,333 $ 2,616 $ 2,510 $ 1,906 $ 1,552 U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Fair Value of Plan Assets: Fair value of plan assets at beginning of year $ 39,554 $ 41,932 $ 26 $ 183 $ 1,284 $ 1,333 Actual return on plan assets 6,991 (1,007 ) (5 ) (7 ) 171 (6 ) Employer contributions 2,021 19 274 87 67 80 Plan participants’ contributions — — 30 26 3 3 Gross benefits paid (2,394 ) (1,390 ) (288 ) (263 ) (40 ) (33 ) Foreign currency exchange rate changes — — — — 49 (92 ) Curtailments and settlements — — — — (2 ) (1 ) Other — — — — 26 — Fair value of plan assets at end of year $ 46,172 $ 39,554 $ 37 $ 26 $ 1,558 $ 1,284 2019 - $ 8.040 billion pre-tax actuarial loss related to benefit obligation: • Discount Rates ($ 7.477 billion pre-tax loss): The weighted-average discount rate for our pension and postretirement medical plans decreased from 4.45% at December 31, 2018 to 3.55% at December 31, 2019, primarily due to both a decline in U.S. treasury yields and a decrease in credit spreads on AA-rated corporate bonds in 2019. This was partially offset by a refinement to our bond matching approach from advances in technology and modeling techniques. • Coordinating benefits attributable to the Central States Pension Fund ( $603 million pre-tax loss): This represents our current best estimate of the additional potential coordinating benefits that may be required to be paid related to the Central States Pension Fund before taking into account the impact of the change in discount rates. • Demographic and Assumption Changes ($ 40 million pre-tax gain): This represents the difference between actual and estimated participant data and demographic factors, including items such as healthcare cost trends, compensation changes, rates of termination, retirement, mortality and other changes. 2018 - $3.174 billion pre-tax actuarial gain related to benefit obligation: • Discount Rates ( $4.829 billion pre-tax gain): The weighted-average discount rate for our pension and postretirement medical plans increased from 3.81% at December 31, 2017 to 4.45% at December 31, 2018, primarily due to both an increase in U.S. treasury yields and an increase in credit spreads on AA-rated corporate bonds in 2018. • Coordinating benefits attributable to the Central States Pension Fund ( $1.550 billion pre-tax loss): This represents our current best estimate of potential coordinating benefits that may be required to be paid related to the Central States Pension Fund. • Demographic and Assumption Changes ( $105 million pre-tax loss): This represents the difference between actual and estimated participant data and demographic factors, including items such as healthcare cost trends, compensation rate increases and rates of termination, retirement and mortality. Pension and Postretirement Plan Assets Under the governance of plan trustees, the Investment Committee establishes investment guidelines and strategies and regularly monitors the performance of investments and investment managers. The investment guidelines address items such as establishing appropriate governance provisions; defining investment objectives; determining strategic asset allocation; monitoring and reporting the investments on a regular basis; appointing/dismissing investment managers, custodians, consultants and advisors; risk management; determining/defining the mandates for investment managers; rebalancing of assets and determining investment restrictions/prohibited investments. Pension assets are invested in accordance with applicable laws and regulations. The primary long-term investment objectives for pension assets are to: (1) provide for a reasonable amount of long-term growth of capital given prudent levels of risk exposure while minimizing permanent loss of capital; (2) generate investment results that meet or exceed the long-term rate of return assumption for the plans and (3) match the duration of the liabilities and assets of the plans to reduce the need for large employer contributions in the future. In furtherance of these objectives, investment managers are engaged to actively manage assets within the guidelines and strategies set forth by the Investment Committee. Active managers are monitored regularly and their performance is compared to applicable benchmarks. Fair Value Measurements Pension assets valued utilizing Level 1 inputs include equity investments, corporate debt instruments and U.S. government securities. Fair values were determined by closing prices for those securities traded on national stock exchanges, while securities traded in the over-the-counter market and listed securities for which no sale was reported on the valuation date are valued at the mean between the last reported bid and asked prices. Level 2 assets include certain bonds that are valued based on yields currently available on comparable securities of other issues with similar credit ratings; mortgage-backed securities that are valued based on cash flow and yield models using acceptable modeling and pricing conventions; and certain investments that are pooled with other investments in a commingled fund. We value our investments in commingled funds by taking the percentage ownership of the underlying assets, each of which has a readily determinable fair value. Fair value estimates for certain investments are based on unobservable inputs that are not corroborated by observable market data and are thus classified as Level 3. Investments that do not have a readily determinable fair value, and which provide a net asset value ("NAV") or its equivalent developed consistent with FASB measurement principles, are valued using NAV as a practical expedient. These investments are not classified in Levels 1, 2, or 3 of the fair value hierarchy but instead included within the subtotals by asset category. Such investments include hedge funds, risk parity funds, real estate investments, private debt and private equity funds. Investments in hedge funds and risk parity funds are valued using the reported NAV as of December 31st. Real estate investments, private debt and private equity funds are valued at NAV per the most recent partnership audited financial reports, and adjusted, as appropriate, for investment activity between the date of the financial reports and December 31st. Due to the inherent limitations in obtaining a readily determinable fair value measurement for alternative investments, the fair values reported may differ from the values that would have been used had readily available market information for the alternative investments existed. These investments are described further below: • Hedge Funds: Plan assets are invested in hedge funds that pursue multiple strategies to diversify risk and reduce volatility. Most of these hedge funds allow redemptions either quarterly or semi-annually after a two to three month notice period, while others allow for redemption after only a brief notification period with no restriction on redemption frequency. No unfunded commitments existed with respect to hedge funds as of December 31, 2019 . • Risk Parity Funds: Plan assets are invested in risk parity strategies in order to provide diversification and balance risk/return objectives. These strategies reflect a multi-asset class balanced risk approach generally consisting of equity, interest rates, credit and commodities. These funds allow for monthly redemptions with only a brief notification period. No unfunded commitments existed with respect to risk parity funds as of December 31, 2019 . • Real Estate, Private Debt and Private Equity Funds: Plan assets are invested in limited partnership interests in various private equity, private debt and real estate funds. Limited provision exists for the redemption of these interests by the limited partners that invest in these funds until the end of the term of the partnerships, typically ranging between 10 and 15 years from the date of inception. An active secondary market exists for similar partnership interests, although no particular value (discount or premium) can be guaranteed. At December 31, 2019 , unfunded commitments to such limited partnerships totaling approximately $ 2.241 billion are expected to be contributed over the remaining investment period, typically ranging between three and six years. The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2019 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations. Total Assets (1) Level 1 Level 2 Level 3 Percentage of Plan Assets Target Allocation Asset Category (U.S. Plans): Cash and cash equivalents $ 964 $ 818 $ 146 $ — 2.1 % 1-5 Equity Securities: U.S. Large Cap 6,607 2,889 3,718 — U.S. Small Cap 505 376 129 — Emerging Markets 2,039 1,523 516 — Global Equity 2,892 2,553 339 — International Equity 4,591 2,499 2,092 — Total Equity Securities 16,634 9,840 6,794 — 36.0 25-55 Fixed Income Securities: U.S. Government Securities 14,077 12,980 1,097 — Corporate Bonds 5,051 — 5,051 — Global Bonds 50 — 50 — Municipal Bonds 24 — 24 — Total Fixed Income Securities 19,202 12,980 6,222 — 41.5 35-55 Other Investments: Hedge Funds 3,273 — 1,380 — 7.1 5-15 Private Equity 3,030 — — — 6.6 1-10 Private Debt 772 — — — 1.7 1-10 Real Estate 1,940 149 74 — 4.2 1-10 Structured Products (2) 153 — 153 — 0.3 1-5 Risk Parity Funds 241 — — — 0.5 1-10 Total U.S. Plan Assets $ 46,209 $ 23,787 $ 14,769 $ — 100.0 % Asset Category (International Plans): Cash and cash equivalents $ 72 $ 32 $ 40 — 4.6 1-10 Equity Securities: Local Markets Equity 209 — 209 — U.S. Equity 47 — 47 — Emerging Markets 33 33 — — International / Global Equity 441 179 262 — Total Equity Securities 730 212 518 — 46.8 30-60 Fixed Income Securities: Local Government Bonds 94 — 94 — Corporate Bonds 177 20 157 — Global Bonds 110 110 — — Total Fixed Income Securities 381 130 251 — 24.5 25-45 Other Investments: Real Estate 128 — 80 — 8.2 5-10 Other 247 — 218 12 15.9 1-20 Total International Plan Assets $ 1,558 $ 374 $ 1,107 $ 12 100.0 % Total Plan Assets $ 47,767 $ 24,161 $ 15,876 $ 12 ( 1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the category totals. (2) Represents mortgage and asset-backed securities. The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2018 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations. Total Assets (1) Level 1 Level 2 Level 3 P |
MULTIEMPLOYER EMPLOYEE BENEFIT
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Multiemployer Plans [Abstract] | |
Multiemployer Employee Benefit Plans | MULTIEMPLOYER EMPLOYEE BENEFIT PLANS We contribute to a number of multiemployer defined benefit plans under the terms of collective bargaining agreements that cover our union-represented employees. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If we negotiate to cease participating in a multiemployer plan, we may be required to pay that plan an amount based on our allocable share of its underfunded status, referred to as a "withdrawal liability". However, cessation of participation in a multiemployer plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. • If any of the multiemployer pension plans in which we participate enter critical status, and our contributions are not sufficient to satisfy any rehabilitation plan funding schedule, we could be required under the Pension Protection Act of 2006 to make additional surcharge contributions to the multiemployer pension plan in the amount of five to ten percent of the existing contributions required by our labor agreement. Such surcharges would cease upon the ratification of a new collective bargaining agreement, and could not recur unless a plan re-entered critical status at a later date. The discussion that follows sets forth the financial impact on our results of operations and cash flows for the years ended December 31, 2019 , 2018 and 2017 , from our participation in multiemployer benefit plans. As part of the overall collective bargaining process for wage and benefit levels, we have agreed to contribute certain amounts to the multiemployer benefit plans during the contract period. The multiemployer benefit plans set benefit levels and are responsible for benefit delivery to participants. Future contribution amounts to multiemployer benefit plans are determined only through collective bargaining, and we have no additional legal or constructive obligation to increase contributions beyond the agreed-upon amounts (except potential surcharges under the Pension Protection Act of 2006 as described above). The number of employees covered by our multiemployer pension plans has remained consistent over the past three years, and there have been no significant changes that affect the comparability of 2019 , 2018 and 2017 contributions. We recognize expense for the contractually-required contribution for each period, and we recognize a liability for any contributions due and unpaid at the end of a reporting period. Status of Collective Bargaining Agreements As of December 31, 2019, we had approximately 290,000 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 2,900 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association ("IPA"), which becomes amendable on September 1, 2021. On February 10, 2020, the Company and the IPA reached a tentative agreement on a two-year contract extension. Upon ratification, the extension will go into effect on September 1, 2021 and become amendable September 1, 2023. We have approximately 1,500 airline mechanics who are covered by a collective bargaining agreement with Teamsters Local 2727 which becomes amendable November 1, 2023. In addition, approximately 3,300 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. Multiemployer Pension Plans The following table outlines our participation in multiemployer pension plans for the periods ended December 31, 2019 , 2018 and 2017 , and sets forth our calendar year contributions and accruals for each plan. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act zone status available in 2019 and 2018 relates to the plans’ two most recent fiscal year ends. The zone status is based on information that we received from the plans’ administrators and is certified by each plan’s actuary. Plans certified in the red zone are generally less than 65% funded; plans certified in the orange zone are both less than 80% funded and have an accumulated funding deficiency, or are expected to have a deficiency in any of the next six plan years; plans certified in the yellow zone are less than 80% funded; and plans certified in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan (“FIP”) for yellow/orange zone plans, or a rehabilitation plan (“RP”) for red zone plans, is either pending or has been implemented. As of December 31, 2019 , all plans that have either a FIP or RP requirement have had the respective plan implemented. Our collectively-bargained contributions satisfy the requirements of all implemented FIPs and RPs and do not currently require the payment of any surcharges. In addition, minimum contributions outside of the agreed upon contractual rates are not required. For the plans detailed in the following table, the expiration date of the associated collective bargaining agreements is July 31, 2023 , with the exception of the Automotive Industries Pension Plan, the Automotive Machinists Pension Trust and the IAM National Pension Fund / National Pension Plan, which have a July 31, 2024 expiration date. For all plans detailed in the following table, we provided more than 5% of the total plan contributions from all employers for 2019 , 2018 and 2017 (as disclosed in the annual filing with the Department of Labor for each respective plan). Certain plans have been aggregated in the “all other multiemployer pension plans” line in the following table, as the contributions to each of these individual plans are not material. EIN / Pension Plan Pension Protection Act Zone Status FIP / RP Status Pending / (in millions) UPS Contributions and Accruals Surcharge Pension Fund Number 2019 2018 Implemented 2019 2018 2017 Imposed Central Pennsylvania Teamsters Defined Benefit Plan 23-6262789-001 Green Green No 48 44 40 No Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund 55-6021850-001 Red Red Yes/Implemented 14 13 12 No Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424-001 Red Red Yes/Implemented 10 9 8 No I.A.M. National Pension Fund / National Pension Plan 51-6031295-002 Green Green No 41 38 35 No International Brotherhood of Teamsters Union Local No. 710 Pension Fund 36-2377656-001 Green Green No 142 129 118 No Local 705, International Brotherhood of Teamsters Pension Plan 36-6492502-001 Yellow Yellow Yes/Implemented 113 104 93 No Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan 51-6117726-001 Yellow Yellow Yes/Implemented 112 116 110 No Milwaukee Drivers Pension Trust Fund 39-6045229-001 Green Green No 48 42 38 No New England Teamsters & Trucking Industry Pension Fund 04-6372430-001 Red Red Yes/Implemented 120 121 114 No New York State Teamsters Conference Pension and Retirement Fund 16-6063585-074 Red Red Yes/Implemented 119 108 100 No Teamster Pension Fund of Philadelphia and Vicinity 23-1511735-001 Yellow Yellow Yes/Implemented 74 66 60 No Teamsters Joint Council No. 83 of Virginia Pension Fund 54-6097996-001 Green Green No 75 69 64 No Teamsters Local 639—Employers Pension Trust 53-0237142-001 Green Green No 68 61 55 No Teamsters Negotiated Pension Plan 43-6196083-001 Green Green No 37 34 32 No Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan 52-6043608-001 Green Green No 24 22 20 No United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan 13-1426500-419 Red Red Yes/Implemented 100 95 88 No Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green No 939 868 772 No Western Pennsylvania Teamsters and Employers Pension Fund 25-6029946-001 Red Red Yes/Implemented 34 31 30 No All Other Multiemployer Pension Plans 102 72 81 Total Contributions $ 2,220 $ 2,042 $ 1,870 Agreement with the New England Teamsters and Trucking Industry Pension Fund In 2012, we reached an agreement with the New England Teamsters and Trucking Industry Pension Fund ("NETTI Fund"), a multiemployer pension plan in which UPS is a participant, to restructure the pension liabilities for approximately 10,200 UPS employees represented by the Teamsters. As of December 31, 2019 and 2018 , we had $ 845 and $ 852 million, respectively, recognized in "Other Non-Current Liabilities" as well as $ 7 million as of December 31, 2019 and 2018 recorded in "Other current liabilities" on our consolidated balance sheets representing the remaining balance of the NETTI Fund withdrawal liability. This liability is payable in equal monthly installments over a remaining term of approximately 43 years . Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2019 and 2018 was $ 929 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. Multiemployer Health and Welfare Plans We also contribute to a number of multiemployer health and welfare plans covering both active and retired employees. Healthcare benefits are provided to participants who meet certain eligibility requirements as covered under the applicable collective bargaining unit. The following table sets forth our calendar year plan contributions and accruals. Certain plans have been aggregated in the “all other multiemployer health and welfare plans” line, as the contributions to each of these individual plans are not material. (in millions) UPS Contributions and Accruals Health and Welfare Fund 2019 2018 2017 Bay Area Delivery Drivers 37 40 37 Central Pennsylvania Teamsters Health & Pension Fund 31 29 27 Central States, South East & South West Areas Health and Welfare Fund 2,899 2,530 2,366 Delta Health Systems—East Bay Drayage Drivers 30 30 29 Joint Council #83 Health & Welfare Fund 45 40 37 Local 804 Welfare Trust Fund 101 90 84 Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund 48 43 38 New York State Teamsters Health & Hospital Fund 71 62 59 Northern California General Teamsters (DELTA) 157 153 132 Northern New England Benefit Trust 59 54 50 Oregon / Teamster Employers Trust 51 43 38 Teamsters 170 Health & Welfare Fund 19 18 17 Teamsters Benefit Trust 47 48 46 Teamsters Local 251 Health & Insurance Plan 18 17 15 Teamsters Local 638 Health Fund 53 48 43 Teamsters Local 639—Employers Health & Pension Trust Funds 32 29 27 Teamsters Local 671 Health Services & Insurance Plan 20 19 17 Teamsters Union 25 Health Services & Insurance Plan 59 56 52 Teamsters Western Region & Local 177 Health Care Plan 769 656 605 Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund 19 18 16 Utah-Idaho Teamsters Security Fund 37 32 29 Washington Teamsters Welfare Trust 67 57 52 All Other Multiemployer Health and Welfare Plans 141 156 156 Total Contributions $ 4,810 $ 4,268 $ 3,972 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table indicates the allocation of goodwill by segment (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated Balance on January 1, 2018 $ 715 $ 435 $ 2,722 $ 3,872 Acquired — — — — Currency / Other — (18 ) (43 ) (61 ) Balance on December 31, 2018 $ 715 $ 417 $ 2,679 $ 3,811 Acquired — 2 3 5 Currency / Other — (3 ) — (3 ) Balance on December 31, 2019 $ 715 $ 416 $ 2,682 $ 3,813 2019 Goodwill Activity The goodwill acquired in the International Package segment is related to our January 2019 acquisition of Transmodal Services Private Limited in India. The goodwill acquired in the Supply Chain & Freight segment is primarily due to July 2019 acquisitions by Marken in Europe. The remaining change in goodwill for the International Package segment was due to immaterial purchase accounting adjustments and the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. 2018 Goodwill Activity The change in goodwill for both the Supply Chain & Freight and the International Package segments was due to immaterial purchase accounting adjustments and 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 evaluation, as of July 1st, on a reporting unit basis. For the periods presented, no triggering events were identified that required an interim impairment test. U.S. Domestic Package is our largest reporting segment and reporting unit. In our International Package reporting segment, we have the following reporting units: Europe, Asia, Americas and ISMEA. In our Supply Chain & Freight segment we have the following reporting units: Forwarding, Logistics, UPS Mail Innovations, UPS Freight, The UPS Store, UPS Capital, Marken and Coyote. In assessing our goodwill for impairment, we initially evaluate qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive and it is necessary to calculate the fair value of a reporting unit, then we utilize a two-step process to test goodwill for impairment. First, a comparison of the fair value of the applicable reporting unit with the aggregate carrying value, including goodwill, is performed. We primarily determine the fair value of our reporting units using a discounted cash flow model, and supplement this with observable valuation multiples for comparable companies, as applicable. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step includes comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. In 2019, we utilized a qualitative assessment to determine that it was more likely than not that the reporting unit fair value exceeded the carrying value for U.S. Domestic Package, Forwarding, Logistics, Coyote, UPS Mail Innovations and The UPS Store. For the remaining reporting units owned at the annual goodwill impairment testing date, we utilized the two-step process to test goodwill for impairment. We did not have any goodwill impairment charges in 2019 , 2018 or 2017 . Cumulatively, our Supply Chain & Freight segment has recorded $ 622 million of goodwill impairment charges, while our International and U.S. Domestic Package segments have not recorded any goodwill impairment charges. Intangible Assets The following is a summary of intangible assets at December 31, 2019 and 2018 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted-Average Amortization Period (in years) December 31, 2019 Capitalized software $ 4,125 $ (2,704 ) $ 1,421 6.9 Licenses 117 (64 ) 53 3.9 Franchise rights 146 (109 ) 37 20.0 Customer relationships 730 (282 ) 448 10.6 Trade name 200 — 200 N/A Trademarks, patents and other 29 (21 ) 8 7.7 Total Intangible Assets $ 5,347 $ (3,180 ) $ 2,167 7.7 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 $ 4,943 $ (2,867 ) $ 2,075 A trade name and licenses with carrying values of $200 and $ 4 million, respectively, as of December 31, 2019 are deemed to be indefinite-lived intangible assets, and therefore are not amortized. Impairment tests for indefinite-lived intangible assets are performed on an annual basis. All of our other recorded intangible assets are deemed to be finite-lived intangibles, and are thus amortized over their estimated useful lives. Impairment tests for these intangible assets are only performed when a triggering event occurs that may indicate that the carrying value of the intangible may not be recoverable. Impairments of finite-lived intangible assets were $ 2 and $12 million in 2019 and 2018 , respectively. Amortization of intangible assets was $ 377 , $ 339 and $ 287 million during 2019 , 2018 and 2017 , respectively. Expected amortization of finite-lived intangible assets recorded as of December 31, 2019 for the next five years is as follows (in millions): 2020 —$ 481 ; 2021 —$ 403 ; 2022 —$ 332 ; 2023 —$ 276 ; 2024 —$ 220 . Amortization expense in future periods will be affected by business acquisitions, software development, licensing agreements, franchise rights purchased and other factors. |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt obligations, as of December 31, 2019 and 2018 consists of the following (in millions) : Principal Carrying Value Amount Maturity 2019 2018 Commercial paper $ 3,243 2020 $ 3,234 $ 2,662 Fixed-rate senior notes: 5.125% senior notes 1,000 2019 — 998 3.125% senior notes 1,500 2021 1,524 1,492 2.050% senior notes 700 2021 699 698 2.450% senior notes 1,000 2022 1,003 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 397 — 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 688 — 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 426 419 8.375% debentures 276 2030 281 274 Pound Sterling Notes: 5.500% notes 87 2031 86 84 5.125% notes 597 2050 566 546 Euro Senior Notes: 0.375% senior notes 783 2023 779 797 1.625% senior notes 783 2025 779 798 1.000% senior notes 560 2028 556 570 1.500% senior notes 560 2032 556 569 Floating-rate senior notes 560 2020 559 572 Canadian senior notes: 2.125% senior notes 573 2024 571 548 Finance lease obligations 498 2020 – 2210 498 534 Facility notes and bonds 320 2029 – 2045 320 320 Other debt 8 2020 – 2025 8 13 Total debt $ 26,388 25,238 22,736 Less: current maturities (3,420 ) (2,805 ) Long-term debt $ 21,818 $ 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 December 31, 2019: $ 2.172 billion with an average interest rate of 1.90% and €949 million ( $1.062 billion ) with an average interest rate of -0.44% . As of December 31, 2019, we have classified the entire commercial paper balance as a current liability on our consolidated balance sheets. The amount of commercial paper outstanding under these programs in 2020 is expected to fluctuate. Debt Classification We have classified both our 8.375% debentures due April 2020 with a principal balance of $ 424 million, and our € 500 million ($ 560 million) floating-rate senior notes due July 2020, as long-term debt based on our intent and ability to refinance the debt as of December 31, 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 Issuances On March 15, 2019 we issued two series of notes, both in the principal amounts of $ 750 million . These fixed-rate notes bear interest at 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 16, 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 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. Fixed-Rate Senior Notes All of our fixed-rate notes pay interest semi-annually, and allow for redemption by UPS at any time by paying the greater of the principal amount or a “make-whole” amount, plus accrued interest. We subsequently entered into interest rate swaps on several of these notes, which effectively converted the fixed interest rates on the notes to variable LIBOR-based interest rates. The average interest rate payable on the notes where fixed interest rates were swapped to variable-based interest rates, including the impact of the interest rate swaps, for 2019 and 2018 were as follows: Principal Average Effective Interest Rate Value Maturity 2019 2018 5.50% senior notes $ 750 2018 — % 3.63 % 5.125% senior notes 1,000 2019 4.48 % 3.99 % 3.125% senior notes 1,500 2021 2.59 % 2.32 % 2.45% senior notes 1,000 2022 3.03 % 2.77 % On April 1, 2019, our $ 1.00 billion 5.125% senior notes matured and were repaid in full. 8.375 % Debentures The 8.375 % debentures consist of two separate tranches, as follows: • $ 276 million of the debentures have a maturity of April 1, 2030 . These debentures have an 8.375% interest rate until April 1, 2020 , and, thereafter, the interest rate will be 7.62% for the final 10 years. These debentures are redeemable in whole or in part at our option at any time. The redemption price is equal to the greater of 100% of the principal amount and accrued interest, or the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption (at a benchmark treasury yield plus five basis points) plus accrued interest. • $ 424 million of the debentures have a maturity of April 1, 2020 . These debentures are not subject to redemption prior to maturity. Interest is payable semi-annually in April and October for both tranches and neither tranche is subject to sinking fund requirements. We subsequently entered into interest rate swaps on the 2020 debentures, which effectively converted the fixed interest rates on the debentures to variable LIBOR-based interest rates. The average interest rate payable on the 2020 debentures, including the impact of the interest rate swaps, for 2019 and 2018 was 7.20% and 6.93% , respectively. Floating-Rate Senior Notes The floating-rate senior notes, with principal amounts totaling $ 1.041 billion, bear interest at either one or three-month LIBOR, less a spread ranging from 30 to 45 basis points. The average interest rate for 2019 and 2018 was 2.05% and 1.76% , respectively. These notes are callable at various times after 30 years at a stated percentage of par value, and putable by the note holders at various times after one year at a stated percentage of par value. The notes have maturities ranging from 2049 through 2067 . We classified the floating-rate senior notes that are putable by the note holder as long-term liabilities, due to our intent and ability to refinance the debt if the put option is exercised by the note holder. The remaining three floating-rate senior notes in the principal amounts of $ 350 , $ 400 , and $ 500 million, bear interest at three-month LIBOR, plus a spread ranging from 15 to 45 basis points. The average interest rate for 2019 and 2018 was 2.82% and 2.50% , respectively. These notes are not callable. The notes have maturities ranging from 2021 through 2023 . Finance Lease Obligations We have certain property, plant and equipment subject to finance leases. For additional information on finance lease obligations, see note 10 . Facility Notes and Bonds We have entered into agreements with certain municipalities or related entities to finance the construction of, or improvements to, facilities that support our operations in the United States. These facilities are located around airport properties in Louisville, Kentucky; Dallas, Texas; and Philadelphia, Pennsylvania. Under these arrangements, we enter into a lease or loan agreement that covers the debt service obligations on the bonds issued by these entities, as follows: • Bonds with a principal balance of $ 149 million issued by the Louisville Regional Airport Authority associated with our Worldport facility in Louisville, Kentucky. The bonds, which are due in January 2029 , bear interest at a variable rate, and the average interest rates for 2019 and 2018 were 1.49% and 1.43% , respectively. • Bonds with a principal balance of $ 42 million and due in November 2036 issued by the Louisville Regional Airport Authority associated with our air freight facility in Louisville, Kentucky. The bonds bear interest at a variable rate, and the average interest rates for 2019 and 2018 were 1.49% and 1.39% , respectively. • Bonds with a principal balance of $ 29 million issued by the Dallas / Fort Worth International Airport Facility Improvement Corporation associated with our Dallas, Texas airport facilities. The bonds are due in May 2032 and bear interest at a variable rate, however the variable cash flows on the obligation have been swapped to a fixed 5.11% . • Bonds with a principal balance of $100 million issued by the Delaware County, Pennsylvania Industrial Development Authority associated with our Philadelphia, Pennsylvania airport facilities. These bonds, which are due September 2045, bear interest at a variable rate. The average interest rate for 2019 and 2018 was 1.48% and 1.35% , respectively. Pound Sterling Notes The Pound Sterling notes consist of two separate tranches, as follows: • Notes with a principal amount of £66 million accrue interest at a 5.50% fixed rate, and are due in February 2031 . These notes are not callable. • Notes with a principal amount of £ 455 million accrue interest at a 5.125% fixed rate, and are due in February 2050 . These notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount and accrued interest, or the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark U.K. government bond yield plus 15 basis points, plus accrued interest. Canadian Dollar Senior Notes The Canadian Dollar notes consist of a single series a follows: • Notes in the principal amount of C $750 million , which bear interest at a 2.125% fixed interest rate and mature in May 2024. Interest on the notes is payable semi-annually. The notes are callable at our option, in whole or in part at the Government of Canada yield plus 21.5 basis points, and on or after the par call date, at par value. Euro Senior Notes The Euro notes consist of four separate issuances, as follows: • Notes in the principal amount of € 500 million accrue interest at a 1% fixed rate and are due in November 2028. Interest is payable annually on the notes. These 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 the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark comparable German government bond yield plus 15 basis points, plus accrued interest. • Notes with a principal amount of €500 million accrue interest at a variable rate equal to three-month EURIBOR plus 43 basis points and are due in July 2020. Interest is payable quarterly on the notes. These notes are not callable. The notes bear interest at a variable rate, and the average interest rates for 2019 and 2018 were 0.08% and 0.11% , respectively. • Notes with a principal amount of €700 million accrue interest at a 1.625% fixed rate and are due in November 2025. Interest is payable annually on the notes. These 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 the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark German government bond yield plus 20 basis points, plus accrued interest. • Notes with principal amounts of €700 million and €500 million accrue interest at 0.375% and 1.500% fixed rates, respectively, and are due in November 2023 and November 2032, respectively. Interest on these notes is payable annually. The 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 the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark comparable government bond yield plus 10 and 20 basis points, respectively, plus accrued interest. Contractual Commitments The following table sets forth the aggregate annual principal payments due under our long-term debt and the aggregate amounts expected to be spent for purchase commitments (in millions). Year Debt Principal Purchase Commitments (1) 2020 $ 4,232 3,569 2021 2,551 1,982 2022 2,001 966 2023 2,284 323 2024 1,474 261 After 2024 12,349 201 Total $ 24,891 $ 7,302 (1) Purchase commitments includes amounts due under aircraft leases that we entered into in 2019 and our January 29, 2020 announced commitment to purchase 10,000 electric vehicles. As of December 31, 2019 , we had outstanding letters of credit totaling approximately $ 1.267 billion issued in connection with our self-insurance reserves and other routine business requirements. We also issue surety bonds as an alternative to letters of credit in certain instances, and as of December 31, 2019 , we had $ 1.327 billion of surety bonds written. Sources of Credit We maintain two credit agreements with a consortium of banks. One of these agreements provides revolving credit facilities of $ 2.0 billion, and expires on December 8, 2020 . 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) the rate of interest last quoted by The Wall Street Journal as the prime rate in the United States; (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. In each case, the applicable margin for advances bearing interest based on LIBOR is a percentage determined by quotations from Markit Group Ltd. for our 1 -year credit default swap spread, subject to a minimum rate of 0.25% and a maximum rate of 1.00% . 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 December 31, 2019 . The second agreement provides revolving credit facilities of $ 2.5 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) the rate of interest last quoted by The Wall Street Journal as the prime rate in the United States; (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. In each case, the applicable margin for advances bearing interest based on LIBOR is a percentage determined by quotations from Markit Group Ltd. for our 1-year credit default swap spread, interpolated for a period from the date of determination of such credit default swap spread in connection with a new interest period until the latest maturity date of this facility then in effect (but not less than a period of one year). 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. There were no amounts outstanding under this facility as of December 31, 2019 . Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of December 31, 2019 and for all prior periods presented, we have satisfied these 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 December 31, 2019 , 10% of net tangible assets is equivalent to $ 3.646 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 the Company for long-term debt with similar terms and maturities, the fair value of long-term debt, including current maturities, is approximately $26.949 and $ 23.293 billion as of December 31, 2019 and 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 | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | LEGAL PROCEEDINGS AND CONTINGENCIES We are involved in a number of judicial proceedings and other matters arising from the conduct of our business. 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 amounts associated with legal proceedings when and to the extent a loss becomes probable and can be reasonably estimated. The actual costs of resolving legal proceedings may be substantially higher or lower than the amounts accrued on those claims. For matters as to which we are not able to estimate a possible loss or range of losses, we are not able to determine whether any such 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 losses. 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 million and penalties of $238 million . Following an appeal, on November 7, 2019, the U.S. Court of Appeals for the Second Circuit issued an order awarding the plaintiffs damages of $ 19 million and penalties of $ 79 million. An accrual of $100 million with respect to this matter is included on our consolidated balance sheets at December 31, 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 could be determined in future legal proceedings, which would include a petition for a writ of certiorari with the U.S. Supreme Court. 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 ("USPS") 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 losses 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 million . UPS 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 a possible loss or range of losses 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 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. In February 2018, the Turkish Competition Authority ("Authority") opened an investigation into nine companies in the small package industry, including UPS, 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. In January 2020, the Authority held a hearing and announced a summary decision, finding an infringement and imposing an immaterial fine on UPS. We do not believe that any loss associated with this matter will 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. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | 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 our leases contain future payments that are dependent on an index or rate, such as the consumer price index, we initially measure the lease liability and ROU asset using the index or rate at the commencement date. In subsequent periods, lease payments dependent on an index or rate are not remeasured. Rather, changes to payments due to a change in an index or rate are recognized in our statements of consolidated income in the period of the change. 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. For these leases, we use an estimate of our incremental borrowing rate to discount lease payments based on information available at lease commencement. The incremental borrowing rate is derived using multiple inputs including our credit rating, the impact of full collateralization, lease term and denominated currency. The remaining lease terms vary from 1 month to 190 years . Aircraft In addition to the aircraft that we own, we have leases for 342 aircraft. Of these leased aircraft, 31 are classified as finance leases, 14 are classified as operating leases and the remaining 297 are classified as short-term leases. A majority of the obligations associated with the aircraft classified as finance leases have been legally defeased. Most of our 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. We also enter into real estate leases that contain lease incentives, such as tenant improvement allowances or move-in allowances, that are received or receivable at lease commencement. These incentives reduce lease payments for classification purposes and reduce the initial ROU asset. When lease incentives are receivable at lease commencement, they also reduce the initial lease liability. 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 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 year ended December 31, 2019 are as follows (in millions): Year Ended December 31, 2019 Operating lease costs $ 643 Finance lease costs: Amortization of assets $ 73 Interest on lease liabilities 19 Total finance lease costs 92 Variable lease costs 206 Short-term lease costs 1,122 Total lease costs $ 2,063 Supplemental information related to leases and location within our consolidated balance sheets are as follows (in millions, except lease term and discount rate): December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 2,856 Current maturities of operating leases $ 538 Non-current operating leases 2,391 Total operating lease liabilities $ 2,929 Finance Leases: Aircraft $ 2,087 Buildings 272 Vehicles, plant equipment, technology equipment and other 27 Accumulated amortization (884 ) Property, plant and equipment, net $ 1,502 Current maturities of long-term debt, commercial paper and finance leases $ 181 Long-term debt and finance leases 317 Total finance lease liabilities $ 498 Weighted average remaining lease term (in years): Operating leases 9.7 Finance leases 8.9 Weighted average discount rate: Operating leases 2.78 % Finance leases 4.03 % Supplemental cash flow information related to leases is as follows (in millions): Year Ended December 31, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 620 Operating cash flows from finance leases 19 Financing cash flows from finance leases 140 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 810 Finance leases $ 110 Maturities of lease liabilities as of December 31, 2019 are as follows (in millions): Finance Leases Operating Leases 2020 $ 199 $ 619 2021 44 536 2022 39 451 2023 37 360 2024 35 256 Thereafter 259 1,267 Total lease payments 613 3,489 Less: Imputed interest (115 ) (560 ) Total lease obligations 498 2,929 Less: Current obligations (181 ) (538 ) Long-term lease obligations $ 317 $ 2,391 As of December 31, 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 2020. Disclosures related to periods prior to adoption of the new lease standard Rent expense related to our operating leases was $959 and $804 million for 2018 and 2017 , respectively. The following table sets forth the aggregate minimum lease payments under capital and operating leases as of December 31, 2018 (in millions): 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 | 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 our leases contain future payments that are dependent on an index or rate, such as the consumer price index, we initially measure the lease liability and ROU asset using the index or rate at the commencement date. In subsequent periods, lease payments dependent on an index or rate are not remeasured. Rather, changes to payments due to a change in an index or rate are recognized in our statements of consolidated income in the period of the change. 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. For these leases, we use an estimate of our incremental borrowing rate to discount lease payments based on information available at lease commencement. The incremental borrowing rate is derived using multiple inputs including our credit rating, the impact of full collateralization, lease term and denominated currency. The remaining lease terms vary from 1 month to 190 years . Aircraft In addition to the aircraft that we own, we have leases for 342 aircraft. Of these leased aircraft, 31 are classified as finance leases, 14 are classified as operating leases and the remaining 297 are classified as short-term leases. A majority of the obligations associated with the aircraft classified as finance leases have been legally defeased. Most of our 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. We also enter into real estate leases that contain lease incentives, such as tenant improvement allowances or move-in allowances, that are received or receivable at lease commencement. These incentives reduce lease payments for classification purposes and reduce the initial ROU asset. When lease incentives are receivable at lease commencement, they also reduce the initial lease liability. 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 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 year ended December 31, 2019 are as follows (in millions): Year Ended December 31, 2019 Operating lease costs $ 643 Finance lease costs: Amortization of assets $ 73 Interest on lease liabilities 19 Total finance lease costs 92 Variable lease costs 206 Short-term lease costs 1,122 Total lease costs $ 2,063 Supplemental information related to leases and location within our consolidated balance sheets are as follows (in millions, except lease term and discount rate): December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 2,856 Current maturities of operating leases $ 538 Non-current operating leases 2,391 Total operating lease liabilities $ 2,929 Finance Leases: Aircraft $ 2,087 Buildings 272 Vehicles, plant equipment, technology equipment and other 27 Accumulated amortization (884 ) Property, plant and equipment, net $ 1,502 Current maturities of long-term debt, commercial paper and finance leases $ 181 Long-term debt and finance leases 317 Total finance lease liabilities $ 498 Weighted average remaining lease term (in years): Operating leases 9.7 Finance leases 8.9 Weighted average discount rate: Operating leases 2.78 % Finance leases 4.03 % Supplemental cash flow information related to leases is as follows (in millions): Year Ended December 31, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 620 Operating cash flows from finance leases 19 Financing cash flows from finance leases 140 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 810 Finance leases $ 110 Maturities of lease liabilities as of December 31, 2019 are as follows (in millions): Finance Leases Operating Leases 2020 $ 199 $ 619 2021 44 536 2022 39 451 2023 37 360 2024 35 256 Thereafter 259 1,267 Total lease payments 613 3,489 Less: Imputed interest (115 ) (560 ) Total lease obligations 498 2,929 Less: Current obligations (181 ) (538 ) Long-term lease obligations $ 317 $ 2,391 As of December 31, 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 2020. Disclosures related to periods prior to adoption of the new lease standard Rent expense related to our operating leases was $959 and $804 million for 2018 and 2017 , respectively. The following table sets forth the aggregate minimum lease payments under capital and operating leases as of December 31, 2018 (in millions): 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 |
SHAREOWNERS' EQUITY
SHAREOWNERS' EQUITY | 12 Months Ended |
Dec. 31, 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 by their respective voting rights. Class A shares of UPS 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, as well as trusts and descendants of the Company’s founders, and these shares are fully convertible into class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange ("NYSE") under the symbol “UPS”. Class A and B shares both have a $ 0.01 par value, and as of December 31, 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 authorized to be issued, with a par value of $ 0.01 per share. As of December 31, 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 interests accounts for the year ended December 31, 2019 , 2018 and 2017 (in millions, except per share amounts): Year Ended December 31: 2019 2018 2017 Shares Dollars Shares Dollars Shares Dollars Class A Common Stock: Balance at beginning of year 163 $ 2 173 $ 2 180 $ 2 Common stock purchases (3 ) — (3 ) — (4 ) — Stock award plans 5 — 3 — 4 — Common stock issuances 3 — 4 — 3 — Conversions of class A to class B common stock (12 ) — (14 ) — (10 ) — Class A shares issued at end of year 156 $ 2 163 $ 2 173 $ 2 Class B Common Stock: Balance at beginning of year 696 $ 7 687 $ 7 689 $ 7 Common stock purchases (7 ) — (5 ) — (12 ) — Conversions of class A to class B common stock 12 — 14 — 10 — Class B shares issued at end of year 701 $ 7 696 $ 7 687 $ 7 Additional Paid-In Capital: Balance at beginning of year $ — $ — $ — Stock award plans 778 419 396 Common stock purchases (1,005 ) (859 ) (813 ) Common stock issuances 356 406 363 Option premiums received (paid) 21 34 54 Balance at end of year $ 150 $ — $ — Retained Earnings: Balance at beginning of year $ 8,006 $ 5,852 $ 4,880 Net income attributable to controlling interests 4,440 4,791 4,905 Dividends ($3.84, $3.64, and $3.32 per share) (1) (3,341 ) (3,189 ) (2,928 ) Common stock purchases — (141 ) (1,003 ) Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 — 735 — Other — (42 ) (2 ) Balance at end of year $ 9,105 $ 8,006 $ 5,852 Non-Controlling Interests Balance at beginning of year $ 16 $ 30 $ 24 Change in non-controlling interests — (14 ) 6 Balance at end of year $ 16 $ 16 $ 30 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $147 , $178 and $157 million for 2019, 2018 and 2017, respectively, that were settled in shares of class A 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 December 31, 2019 , we had 2.334 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. For the years ended December 31, 2019 , 2018 and 2017 , we repurchased a total of 9.1 , 8.9 and 16.1 million shares of class A and class B common stock for $ 1.005 , $ 1.000 and $ 1.816 billion, respectively ($ 1.004 , $ 1.011 and $ 1.813 billion in repurchases for 2019 , 2018 and 2017 , respectively, are reported on the cash flow statement 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. We did not enter into any such program during the years ended December 31, 2019 , 2018 or 2017 . 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 $21 , $34 and $54 million during the years ended December 31, 2019 , 2018 and 2017 , respectively, related to entering into and settling capped call options for the purchase of class B shares. As of December 31, 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 adopted an ASU that allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act (see note 1 for further information). The activity in AOCI for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): Year Ended December 31: 2019 2018 2017 Foreign Currency Translation Gain (Loss), Net of Tax: Balance at beginning of year $ (1,126 ) $ (930 ) $ (1,016 ) Translation adjustment (net of tax effect of $10, $37 and $(161)) 48 (149 ) 86 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (47 ) — Balance at end of year $ (1,078 ) $ (1,126 ) $ (930 ) Unrealized Gain (Loss) on Marketable Securities, Net of Tax: Balance at beginning of year $ (2 ) $ (2 ) $ (1 ) Current period changes in fair value (net of tax effect of $4, $(1) and $(1)) 11 (3 ) (2 ) Reclassification to earnings (net of tax effect of $(1), $1 and $1) (5 ) 3 1 Balance at end of year $ 4 $ (2 ) $ (2 ) Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: Balance at beginning of year $ 40 $ (366 ) $ (45 ) Current period changes in fair value (net of tax effect of $61, $135 and $(190)) 195 429 (316 ) Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (79 ) — Reclassification to earnings (net of tax effect of $(39), $18 and $(3)) (123 ) 56 (5 ) Balance at end of year $ 112 $ 40 $ (366 ) Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: Balance at beginning of year $ (3,906 ) $ (3,569 ) $ (3,421 ) Reclassification to earnings (net of tax effect of $626, $439 and $269) 1,988 1,389 731 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (609 ) — Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(979), $(355) and $(180)) (3,117 ) (1,117 ) (879 ) Balance at end of year $ (5,035 ) $ (3,906 ) $ (3,569 ) Accumulated other comprehensive income (loss) at end of year $ (5,997 ) $ (4,994 ) $ (4,867 ) Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): Year Ended December 31: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 2017 Unrealized Gain (Loss) on Marketable Securities: Realized gain (loss) on sale of securities 6 (4 ) (2 ) Investment income (expense) and other Income tax (expense) benefit (1 ) 1 1 Income tax expense Impact on net income 5 (3 ) (1 ) Net income Unrealized Gain (Loss) on Cash Flow Hedges: Interest rate contracts (15 ) (24 ) (27 ) Interest expense Foreign exchange contracts 177 (50 ) 35 Revenue Income tax (expense) benefit (39 ) 18 (3 ) Income tax expense Impact on net income 123 (56 ) 5 Net income Unrecognized Pension and Postretirement Benefit Costs: Prior service costs (227 ) (201 ) (200 ) Investment income (expense) and other Remeasurement of benefit obligation (2,387 ) (1,627 ) (800 ) Investment income (expense) and other Income tax (expense) benefit 626 439 269 Income tax expense Impact on net income (1,988 ) (1,389 ) (731 ) Net income Total amount reclassified for the year $ (1,860 ) $ (1,448 ) $ (727 ) Net income Deferred Compensation Obligations and Treasury Stock We maintain a deferred compensation plan whereby certain employees were previously able to elect to defer the gains on stock option exercises by deferring the shares received upon exercise into a rabbi trust. The shares held in this trust are classified as treasury stock, and the liability to participating employees is classified as “Deferred compensation obligations” in the shareowners’ equity section of the consolidated balance sheets. The number of shares needed to settle the liability for deferred compensation obligations is included in the denominator in both the basic and diluted earnings per share calculations. Employees are generally no longer able to defer the gains from stock options exercised subsequent to December 31, 2004 . Activity in the deferred compensation program for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): Year Ended December 31: 2019 2018 2017 Shares Dollars Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of year $ 32 $ 37 $ 45 Reinvested dividends 2 2 2 Benefit payments (8 ) (7 ) (10 ) Balance at end of year $ 26 $ 32 $ 37 Treasury Stock: Balance at beginning of year (1 ) $ (32 ) (1 ) $ (37 ) (1 ) $ (45 ) Reinvested dividends — (2 ) — (2 ) — (2 ) Benefit payments 1 8 — 7 — 10 Balance at end of year — $ (26 ) (1 ) $ (32 ) (1 ) $ (37 ) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK - BASED COMPENSATION The UPS Incentive Compensation Plan permits the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock and stock units, and restricted performance shares and units to eligible employees. On May 14, 2018 our shareholders approved our 2018 Omnibus Incentive Compensation Plan under which we are authorized to issue an additional 26 million shares. Each share issued in the form of restricted stock units and restricted performance units (collectively referred to as "Restricted Units"), stock options and other permitted awards reduces the share reserve by one share. We had 13 million shares available to be issued under the Incentive Compensation Plan as of December 31, 2019 . The primary compensation programs offered under the UPS Incentive Compensation Plan include the UPS Management Incentive Award program, the Coyote Restricted Stock Award, the UPS Long-Term Incentive Performance Award program and the UPS Stock Option program. These awards are discussed in the following paragraphs. The total expense recognized in our income statement under all stock compensation award programs was $915 , $634 and $ 584 million during 2019 , 2018 and 2017 , respectively. The associated income tax benefit recognized in our statements of consolidated income was $ 216 , $ 186 and $ 227 million during 2019 , 2018 and 2017 , respectively. The cash income tax benefit received from the exercise of stock options and the lapsing of Restricted Units was $ 148 , $ 175 and $ 276 million during 2019 , 2018 and 2017 , respectively. Management Incentive Award Program ("MIP") Non-executive management earning the right to receive MIP awards is determined annually by the Salary Committee, which is comprised of executive officers of UPS. Awards granted to executive officers are determined annually by the Compensation Committee of the UPS Board of Directors. Our MIP provides, with certain exceptions, that one-half to two-thirds of the annual award will be made in Restricted Units, depending upon the level of management involved. The remaining one-third to one-half of the award is electable in the form of cash or unrestricted shares of class A common stock, and is fully vested at the time of grant. Upon vesting, Restricted Units result in the issuance of the equivalent number of UPS class A common shares after required tax withholdings. Except in the case of death, Restricted Units granted under the MIP prior to 2019 vest over a five -year period with approximately 20% of the award vesting at each anniversary date of the grant. The grant value, less estimated forfeitures, is expensed on a straight-line basis 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 award in the first quarter of 2019 , Restricted Units vest one year following the grant date, except in the case of death, disability or retirement, in which case immediate vesting occurs. The grant value, less estimated forfeitures, is expensed on a straight-line basis over the requisite service period, except in the case of death, disability or retirement, in which case immediate expensing occurs. All Restricted Units granted are subject to early cancellation or vesting under certain conditions. Dividends earned on Restricted Units are reinvested in additional Restricted Units at each dividend payable date until they have fully vested. Coyote Restricted Stock Award In August 2015 we acquired Coyote, a U.S.-based truckload brokerage company. During the third quarter of 2015, we granted Restricted Units to eligible Coyote management employees. The vesting of Restricted Units granted under this award varied between one and four years with an equal number of restricted units vesting at each anniversary date, except in the case of death or disability, in which case immediate vesting occurred. The entire grant was expensed on a straight-line basis over the requisite service period, except in the case of death or disability, in which case immediate expensing occurred. All Restricted Units granted under this award had vested as of December 31, 2019. As of December 31, 2019 , we had the following outstanding Restricted Units, including reinvested dividends, granted under the MIP: Shares (in thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Nonvested at January 1, 2019 10,139 $ 104.47 Vested (5,100 ) 102.54 Granted 5,516 108.78 Reinvested Dividends 410 N/A Forfeited / Expired (226 ) 107.22 Nonvested at December 31, 2019 10,739 $ 106.94 0.71 $ 1,257 Restricted Units Expected to Vest 12,690 $ 106.59 0.74 $ 1,485 The fair value of each Restricted Unit is the NYSE closing price of class B common stock on the date of grant. The weighted-average grant date fair value of Restricted Units granted during 2019 , 2018 and 2017 was $ 108.78 , $ 110.95 and $ 105.62 , respectively. The total fair value of Restricted Units vested was $ 457 , $ 596 and $ 534 million in 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was $ 341 million of total unrecognized compensation cost related to nonvested Restricted Units. That cost is expected to be recognized over a weighted-average period of two years and one month. Long-Term Incentive Performance ("LTIP") Program We award Restricted Units in conjunction with our LTIP program to certain eligible employees. Performance targets are equally-weighted among consolidated operating return on invested capital, growth in currency-constant consolidated revenue and total shareowner return relative to a peer group of companies ("RTSR"). The Restricted Units granted under this award 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 set forth on the grant date. The range of percentage achievement can vary from 0% to 200% of the target award. For the two-thirds of the award related to consolidated operating return on invested capital and growth in currency-constant consolidated revenue, we recognize the grant date fair value of these 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. This portion of the award, less estimated forfeitures, is recognized as compensation expense ratably over the vesting period. The weighted-average assumptions used by year, and the calculated weighted-average fair values of the RTSR portion of the grants, are as follows: 2019 2018 2017 Risk-free interest rate 2.23 % 2.61 % 1.46 % Expected volatility 19.64 % 16.51 % 16.59 % Weighted-average fair value of units granted $ 123.44 $ 137.57 $ 119.29 Share payout 115.04 % 123.47 % 113.55 % There is no expected dividend yield as units earn dividend equivalents. As of December 31, 2019 , we had the following Restricted Units outstanding, including reinvested dividends, that were granted under our LTIP program: Shares (in thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Nonvested at January 1, 2019 1,701 $ 108.63 Vested (898 ) 106.12 Granted 974 107.30 Reinvested Dividends 83 N/A Forfeited / Expired (169 ) 108.60 Nonvested at December 31, 2019 1,691 $ 109.18 1.54 $ 198 Restricted Units Expected to Vest 1,677 $ 109.16 1.55 $ 196 The fair value of each Restricted Unit is the NYSE closing price of class B common stock on the date of grant. The weighted-average grant date fair value of Restricted Units granted during 2019 , 2018 and 2017 was $107.30 , $111.42 and $ 105.65 , respectively. The total fair value of Restricted Units vested was $ 71 , $ 97 and $ 71 million in 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was $ 103 million of total unrecognized compensation cost related to nonvested Restricted Units. That cost is expected to be recognized over a weighted-average period of one year and eight months . Non-qualified Stock Options We maintain stock option plans, under which options are granted to purchase shares of UPS class A common stock. Stock options granted in connection with the UPS Incentive Compensation Plan must have an exercise price at least equal to the NYSE closing price of UPS class B common stock on the date the option is granted. Executive officers and certain senior managers receive a non-qualified stock option grant annually, in which the value granted is determined as a percentage of salary. Options granted generally vest over a five -year period with approximately 20% of the award vesting at each anniversary date of the grant. All options granted are subject to earlier cancellation or vesting under certain conditions. The options granted will expire ten years after the date of the grant. Option holders may exercise their options via the payment of cash or class A common stock and new class A shares are issued upon exercise. The following is an analysis of options to purchase shares of class A common stock issued and outstanding: Shares (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2019 1,384 $ 95.36 Exercised (147 ) 69.33 Granted 261 111.68 Forfeited / Expired — — Outstanding at December 31, 2019 1,498 $ 100.74 6.37 $ 24 Options Vested and Expected to Vest 1,498 $ 100.74 6.37 $ 24 Exercisable at December 31, 2019 915 $ 96.12 5.25 $ 19 The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used, by year, and the calculated weighted-average fair values of options, are as follows: 2019 2018 2017 Expected dividend yield 2.94 % 2.93 % 2.89 % Risk-free interest rate 2.60 % 2.84 % 2.15 % Expected life in years 7.5 7.5 7.5 Expected volatility 17.79 % 16.72 % 17.81 % Weighted-average fair value of options granted $ 16.34 $ 15.23 $ 14.70 Expected volatilities are based on the historical returns on our stock and the implied volatility of our publicly-traded options. The expected dividend yield is based on the recent historical dividend yields for our stock, taking into account changes in dividend policy. The risk-free interest rate is based on the term structure of interest rates at the time of the option grant. The expected life represents an estimate of the period of time options are expected to remain outstanding, and we have relied upon a combination of the observed exercise behavior of our prior grants with similar characteristics, the vesting schedule of the grants and an index of peer companies with similar grant characteristics in estimating this variable. We received cash of $ 7 , $ 12 and $ 41 million during 2019 , 2018 and 2017 , respectively, from option holders resulting from the exercise of stock options. The total intrinsic value of options exercised during 2019 , 2018 and 2017 was $5 , $6 and $22 million, respectively. As of December 31, 2019 , there was $ 2 million of total unrecognized compensation cost related to nonvested options. That cost is expected to be recognized over a weighted-average period of three years and five months . The following table summarizes information about stock options outstanding and exercisable at December 31, 2019 : Options Outstanding Options Exercisable Exercise Price Range Shares (in thousands) Weighted-Average Remaining Contractual Term (in years) Weighted-Average Exercise Price Shares (in thousands) Weighted-Average Exercise Price $65.01 - $80.00 157 1.52 $ 74.06 157 $ 74.06 $80.01 - $95.00 100 3.17 82.89 100 82.89 $95.01 - $110.00 985 6.75 103.93 635 103.09 $110.01 - $125.00 256 9.13 111.80 23 111.80 1,498 6.37 $ 100.74 915 $ 96.12 Discounted Employee Stock Purchase Plan We maintain an employee stock purchase plan for all eligible employees. Under this plan, shares of UPS class A common stock may be purchased at quarterly intervals at 95% of the NYSE closing price of UPS class B common stock on the last day of each quarterly period. Employees purchased 1 , 0.9 and 0.9 million shares at average prices of $102.11 , $105.53 and $108.98 |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION We report our operations in three segments: U.S. Domestic Package operations, International Package operations and Supply Chain & Freight operations. 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 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 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 and truckload 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 healthcare and 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 (expense) and other, interest expense and income taxes. The accounting policies of the segments are the same as those described in the "Supplemental Information - Items Affecting Comparability" section of Management's Discussion and Analysis, with certain expenses allocated between the segments using activity-based costing methods. As we operate an integrated, global multimodal network, we evaluate many of our capital expenditure decisions at a network level. Accordingly, expenditures on property, plant and equipment by segment are not presented. Unallocated assets are comprised primarily of cash, marketable securities and certain investment partnerships. In 2018, we changed the segment allocation methodology for certain shared assets. All prior periods have been recast to reflect this change in methodology. Segment information for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): 2019 2018 2017 Revenue: U.S. Domestic Package $ 46,493 $ 43,593 $ 40,761 International Package 14,220 14,442 13,342 Supply Chain & Freight 13,381 13,826 12,482 Consolidated $ 74,094 $ 71,861 $ 66,585 Operating Profit: U.S. Domestic Package $ 4,164 $ 3,643 $ 4,303 International Package 2,657 2,529 2,429 Supply Chain & Freight 977 852 797 Consolidated $ 7,798 $ 7,024 $ 7,529 Assets: U.S. Domestic Package $ 32,795 $ 28,216 $ 25,449 International Package 14,044 12,070 10,361 Supply Chain & Freight 9,045 8,411 8,267 Unallocated 1,973 1,319 1,497 Consolidated $ 57,857 $ 50,016 $ 45,574 Depreciation and Amortization Expense: U.S. Domestic Package $ 1,520 $ 1,375 $ 1,479 International Package 547 526 509 Supply Chain & Freight 293 306 294 Consolidated $ 2,360 $ 2,207 $ 2,282 Revenue by product type for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): 2019 2018 2017 U.S. Domestic Package: Next Day Air $ 8,479 $ 7,618 $ 7,088 Deferred 5,180 4,752 4,422 Ground 32,834 31,223 29,251 Total U.S. Domestic Package 46,493 43,593 40,761 International Package: Domestic 2,836 2,874 2,646 Export 10,837 10,973 10,170 Cargo 547 595 526 Total International Package 14,220 14,442 13,342 Supply Chain & Freight: Forwarding 5,867 6,580 5,674 Logistics 3,435 3,234 3,017 Freight 3,265 3,218 3,000 Other 814 794 791 Total Supply Chain & Freight 13,381 13,826 12,482 Consolidated $ 74,094 $ 71,861 $ 66,585 Geographic information for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): 2019 2018 2017 United States: Revenue $ 58,699 $ 56,115 $ 52,080 Long-lived assets $ 27,976 $ 24,918 $ 21,141 International: Revenue $ 15,395 $ 15,746 $ 14,505 Long-lived assets $ 9,567 $ 8,577 $ 7,966 Consolidated: Revenue $ 74,094 $ 71,861 $ 66,585 Long-lived assets $ 37,543 $ 33,495 $ 29,107 Long-lived assets include property, plant and equipment, pension and postretirement benefit assets, long-term investments, goodwill and intangible assets. No countries outside of the United States provided 10% or more of consolidated revenue for the years ended December 31, 2019 , 2018 or 2017 . For the year ended December 31, 2019, Amazon.com, Inc. and its affiliates ("Amazon") represented 11.6% of our consolidated revenues. Substantially all of this revenue was attributed to our U.S. Domestic Package segment. As of December 31, 2019, Amazon accounted for approximately 16.9% of accounts receivable, net, included within the consolidated balance sheets. No single customer represented 10% or more of our consolidated revenues for the years ended December 31, 2018 or 2017. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 consists of the following (in millions): 2019 2018 2017 Current: U.S. Federal $ 570 $ 89 $ 671 U.S. State and Local 183 7 49 Non-U.S. 359 374 288 Total Current 1,112 470 1,008 Deferred: U.S. Federal 255 668 1,115 U.S. State and Local (93 ) 75 118 Non-U.S. (62 ) 15 (9 ) Total Deferred 100 758 1,224 Total Income Tax Expense $ 1,212 $ 1,228 $ 2,232 Income before income taxes includes the following components (in millions): 2019 2018 2017 United States $ 3,972 $ 4,307 $ 5,987 Non-U.S. 1,680 1,712 1,150 Total Income Before Income Taxes: $ 5,652 $ 6,019 $ 7,137 A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31, 2019 , 2018 and 2017 consists of the following: 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % U.S. state and local income taxes (net of federal benefit) 1.4 1.4 1.5 Non-U.S. tax rate differential 0.3 0.2 (2.0 ) U.S. federal tax credits (1.4 ) (1.1 ) (1.8 ) Income tax benefit from the Tax Cuts and Jobs Act and other non-U.S. tax law changes — — (3.6 ) Defined benefit plans mark-to-market charge tax rate differential (1) — — 1.5 Non-U.S. valuation allowance release (1.2 ) — — Other 1.3 (1.1 ) 0.7 Effective income tax rate 21.4 % 20.4 % 31.3 % (1) Impact of applying Tax Act corporate rate enacted of 21% versus 35% Our effective tax rate is affected by recurring factors, such as statutory tax rates in the jurisdictions in which we operate and the relative amounts of taxable income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year, but may not be consistent from year to year. Our effective tax rate was 21.4% in 2019 , compared with 20.4% in 2018 and 31.3% in 2017 , primarily due to the effects of the aforementioned recurring factors and the following discrete tax items. Tax Cuts and Jobs Act On December 22, 2017, the United States enacted into law the Tax Act. The Tax Act made broad and complex changes to the U.S. tax code, including a permanent corporate rate reduction to 21% and a transition to a territorial international system effective in 2018. The Tax Act includes provisions that affected 2017, including: (1) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries (“Transition Tax”) that is payable over eight years; (2) requiring a remeasurement of all U.S. deferred tax assets and liabilities to the newly enacted corporate tax rate of 21% and (3) providing for additional first-year depreciation that allows full expensing of qualified property placed into service after September 27, 2017. In late December 2017, the SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provided a measurement period up to one year from the Tax Act enactment date for companies to complete the related accounting under GAAP. We recorded a $ 272 million provisional benefit inclusive of our Transition Tax liability, the change in our indefinite reinvestment assertion for certain foreign subsidiaries and the remeasurement of our U.S. net deferred tax liabilities for the year ended December 31, 2017. During the fourth quarter of 2018, we completed our accounting for the Tax Act based on the current regulatory guidance available at the end of the SAB 118 measurement period and recorded no material net adjustments to our provisional estimate. The Tax Act also enacted provisions that took effect in 2018 including but not limited to: (1) a provision that imposes U.S. tax on certain foreign subsidiary income known as GILTI, (2) a new deduction for Foreign-Derived Intangible Income ("FDII"), (3) additional limitations on tax deductions for expenses such as interest and executive compensation and (4) a new minimum tax based on certain payments from a U.S. company to foreign related parties known as the Base Erosion and Anti-Abuse Tax ("BEAT"). We included the impact of each of the newly effective Tax Act provisions in our computation of the 2018 and 2019 income tax expense. Throughout 2018 and 2019, the U.S. Department of the Treasury and IRS issued regulatory guidance clarifying certain provisions of the Tax Act, and we anticipate additional regulatory guidance and technical clarifications during future years. When additional guidance is issued, we will recognize the related tax impact in the quarter of enactment. 2019 Discrete Items In the fourth quarter of 2019, we recognized an income tax benefit of $571 million related to pre-tax mark-to-market losses of $2.387 billion on our pension and postretirement defined benefit plans. This income tax benefit was generated at a higher average tax rate than the 2019 U.S. federal statutory tax rate because it included the effect of U.S. state and local and foreign taxes. We recorded pre-tax transformation strategy costs of $ 255 million during the year ended December 31, 2019. As a result, we recorded an additional income tax benefit of $ 59 million. This income tax benefit was generated at a higher average tax rate than the 2019 U.S. federal statutory tax rate due to the effect of U.S. state and local and foreign taxes. As discussed in note 9 , $ 97 million of legal contingencies and expenses were accrued during 2019 in respect of certain legal proceedings for which we recorded an additional income tax benefit of $6 million. This income tax benefit was generated at a lower average tax rate than the U.S. federal statutory tax rate due to the portion of the accrual related to penalties, which are not deductible for tax purposes. As of 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 2019, we determined that there is 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 $ 68 million. Other factors that impacted our 2019 effective tax rate include favorable tax provisions enacted in the Taxpayer Certainty and Disaster Tax Relief Act of 2019. 2018 Discrete Items The decrease in our effective tax rate from 2017 to 2018 was primarily due to the impact of the Tax Act which reduced the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018. In the fourth quarter of 2018, we recognized an income tax benefit of $ 390 million related to pre-tax mark-to-market losses of $ 1.627 billion on our pension and postretirement defined benefit plans. This income tax benefit was generated at a higher average tax rate than the 2018 U.S. federal statutory tax rate because it included the effect of U.S. state and local and foreign taxes. We recorded pre-tax transformation strategy costs of $ 360 million during the year ended December 31, 2018. As a result, we recorded an additional income tax benefit of $ 87 million. This income tax benefit was generated at a higher average tax rate than the 2018 U.S. federal statutory tax rate due to the effect of U.S. state and local and foreign taxes. The recognition of excess tax benefits and deficiencies related to share-based compensation in income tax expense resulted in a net tax benefit of $ 38 million and reduced our effective tax rate by 0.6% during the year ended December 31, 2018. Other factors that impacted our 2018 effective tax rate include favorable resolutions of uncertain tax positions, favorable U.S. state and local tax law changes, favorable 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. 2017 Discrete Item s In addition to the impact of the Tax Act described above, the following discrete items were recorded during the year ended December 31, 2017. In the fourth quarter of 2017, we recognized an income tax benefit of $ 193 million related to pre-tax mark-to-market losses of $ 800 million on our pension and postretirement defined benefit plans. This income tax benefit was generated at a lower average tax rate than the 2017 U.S. federal statutory tax rate due to future tax rate changes enacted by the Tax Act and differences between U.S. and foreign statutory rates, which was partially offset by the effect of U.S. state and local taxes. In the fourth quarter of 2017, tax law changes were enacted in certain non-U.S. jurisdictions in which we operate. As a result, we recorded a decrease to our foreign net deferred tax assets of $ 14 million with a corresponding net increase to deferred tax expense of $ 14 million. In the first quarter of 2017, we adopted a new accounting standard that requires the recognition of excess tax benefits related to share-based compensation in income tax expense, which resulted in tax benefits for the year ended December 31, 2017 of $ 71 million and reduced our effective tax rate by 1.0% . Other Items Beginning in 2012, we were granted a tax incentive for certain of our non-U.S. operations, which is effective through December 31, 2021. The tax incentive is conditional upon our meeting specific employment and investment thresholds. The impact of this tax incentive decreased non-U.S. tax expense by $ 27 million, $ 27 million and $ 24 million (increased diluted earnings per share by $ 0.03 , $ 0.03 and $ 0.03 ) for 2019, 2018 and 2017, respectively. Deferred income tax assets and liabilities are comprised of the following at December 31, 2019 and 2018 (in millions): 2019 2018 Fixed assets and capitalized software $ (4,720 ) $ (4,010 ) Operating lease right-of-use assets (685 ) — Other (538 ) (493 ) Deferred tax liabilities (5,943 ) (4,503 ) Pension and postretirement benefits 2,522 1,743 Loss and credit carryforwards 328 298 Insurance reserves 413 437 Stock compensation 249 189 Accrued employee compensation 287 274 Operating lease liabilities 691 — Other 205 196 Deferred tax assets 4,695 3,137 Deferred tax assets valuation allowance (54 ) (112 ) Deferred tax asset (net of valuation allowance) 4,641 3,025 Net deferred tax asset (liability) $ (1,302 ) $ (1,478 ) Amounts recognized in the consolidated balance sheets: Deferred tax assets $ 330 $ 141 Deferred tax liabilities (1,632 ) (1,619 ) Net deferred tax asset (liability) $ (1,302 ) $ (1,478 ) The valuation allowance changed by $( 58 ), $( 14 ) and $( 33 ) million during the years ended December 31, 2019 , 2018 and 2017 , respectively. We have a U.S. federal capital loss carryforward of $ 21 million as of December 31, 2019, $ 20 million of which expires on December 31, 2021, and the remainder of which expires on December 31, 2022. In addition, we have U.S. federal tax credit carryforwards of $ 3 million, which can be carried forward for periods ranging from ten years to twenty years. Further, we have U.S. state and local operating loss and credit carryforwards as follows (in millions): 2019 2018 U.S. state and local operating loss carryforwards $ 1,374 $ 1,014 U.S. state and local credit carryforwards $ 110 $ 80 The U.S. state and local operating loss carryforwards and credits can be carried forward for periods ranging from one year to indefinitely. We also have non-U.S. loss carryforwards of $ 670 million as of December 31, 2019, the majority of which may be carried forward indefinitely. As indicated in the table above, we have established a valuation allowance for certain U.S. federal, state and non-U.S. carryforwards due to the uncertainty resulting from a lack of previous taxable income within the applicable tax jurisdictions and other limitations. Undistributed earnings and profits ("E&P") of our foreign subsidiaries amounted to $6.060 billion at December 31, 2019. As a result of the Tax Act, during the year ended December 31, 2017, we changed our indefinite reinvestment assertion with respect to the earnings of certain foreign subsidiaries. For all other foreign subsidiaries, we continue to assert that these earnings are indefinitely reinvested. $1.597 billion of the undistributed E&P of our foreign subsidiaries is considered to be indefinitely reinvested and, accordingly, no deferred income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to U.S. state and local taxes and withholding taxes payable in various jurisdictions. Determination of the amount of unrecognized deferred income tax liability is not practicable because of the complexities associated with its hypothetical calculation. The following table summarizes the activity related to our uncertain tax positions (in millions): Tax Interest Penalties Balance at January 1, 2017 $ 144 $ 50 $ 6 Additions for tax positions of the current year 16 — — Additions for tax positions of prior years 33 14 3 Reductions for tax positions of prior years for: Changes based on facts and circumstances (24 ) (18 ) — Settlements during the period (6 ) (3 ) — Lapses of applicable statute of limitations (3 ) — — Balance at December 31, 2017 160 43 9 Additions for tax positions of the current year 47 — 1 Additions for tax positions of prior years 7 10 — Reductions for tax positions of prior years for: Changes based on facts and circumstances (43 ) (8 ) (5 ) Settlements during the period (1 ) (1 ) — Lapses of applicable statute of limitations (3 ) — — Balance at December 31, 2018 167 44 5 Additions for tax positions of the current year 6 — — Additions for tax positions of prior years 51 13 — Reductions for tax positions of prior years for: Changes based on facts and circumstances (45 ) (4 ) (1 ) Settlements during the period (3 ) (1 ) — Lapses of applicable statute of limitations (4 ) — — Balance at December 31, 2019 $ 172 $ 52 $ 4 The total amount of gross uncertain tax positions as of December 31, 2019 , 2018 and 2017 that, if recognized, would affect the effective tax rate was $ 171 , $ 165 and $ 159 million, respectively. Our continuing policy is to recognize interest and penalties associated with income tax matters as a component of income tax expense. We file income tax returns in the U.S. federal jurisdiction, most U.S. state and local jurisdictions, and many non-U.S. jurisdictions. We have substantially resolved all U.S. federal income tax matters for tax years prior to 2015. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 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 (in millions, except per share amounts): 2019 2018 2017 Numerator: Net income attributable to common shareowners $ 4,440 $ 4,791 $ 4,905 Denominator: Weighted-average shares 859 860 865 Deferred compensation obligations — 1 1 Vested portion of restricted shares 5 5 5 Denominator for basic earnings per share 864 866 871 Effect of Dilutive Securities: Restricted performance units 5 4 3 Stock options — — 1 Denominator for diluted earnings per share 869 870 875 Basic Earnings Per Share $ 5.14 $ 5.53 $ 5.63 Diluted Earnings Per Share $ 5.11 $ 5.51 $ 5.61 Diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 exclude the effect of 0.5 , 0.2 and 0.1 million shares, respectively, of common stock that may be issued upon the exercise of employee stock options because such effect would be antidilutive. |
DERIVATIVE INSTRUMENTS AND RISK
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018 , we held cash collateral of $ 495 and $ 325 million, respectively, under these agreements; this collateral is included in "Cash and cash equivalents" on the consolidated balance sheets and its use by UPS is not restricted. At December 31, 2019 and 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 December 31, 2019 , there were no instruments in a net liability position that were not covered by the zero threshold bilateral collateral provisions. Types of Hedges Commodity Risk Management Currently, the fuel surcharges that we apply to our domestic and international package and less-than-truckload 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 The notional amounts of our outstanding derivative positions were as follows as of December 31, 2019 and 2018 (in millions): 2019 2018 Currency Hedges: Euro EUR 4,571 4,924 British Pound Sterling GBP 1,494 2,037 Canadian Dollar CAD 1,402 1,443 Hong Kong Dollar HKD 3,327 3,642 Singapore Dollar SGD — 20 Interest Rate Hedges: Fixed to Floating Interest Rate Swaps USD 3,674 4,674 Floating to Fixed Interest Rate Swaps USD 778 778 As of December 31, 2019 and 2018, we had no outstanding commodity hedge positions. Balance Sheet Recognition 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. Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Asset Derivatives Balance Sheet Location Fair Value Hierarchy Level 2019 2018 2019 2018 Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 138 $ 90 $ 131 $ 83 Interest rate contracts Other current assets Level 2 2 1 2 1 Foreign exchange contracts Other non-current assets Level 2 252 230 236 215 Interest rate contracts Other non-current assets Level 2 21 14 20 6 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 7 7 7 5 Foreign exchange contracts Other non-current assets Level 2 — 1 — 1 Interest rate contracts Other non-current assets Level 2 12 18 11 18 Total Asset Derivatives $ 432 $ 361 $ 407 $ 329 Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Liability Derivatives Balance Sheet Location Fair Value Hierarchy Level 2019 2018 2019 2018 Derivatives designated as hedges: Foreign exchange contracts Other current liabilities Level 2 $ 7 $ 7 $ — $ — Foreign exchange contracts Other non-current liabilities Level 2 16 15 — — Interest rate contracts Other non-current liabilities Level 2 11 41 10 33 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 — 3 — 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 $ 37 $ 67 $ 12 $ 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. At December 31, 2019 and 2018 we did not have any derivatives that were classified as Level 1 (valued using quoted prices in active markets for identical assets) or Level 3 (valued using significant unobservable inputs). 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 December 31, 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 December 31, 2019 December 31, 2019 December 31, 2018 December 31, 2018 Long-Term Debt and Finance Leases 3,234 40 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 December 31, 2019 is $17 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 years ended December 31, 2019 and 2018 (in millions): Year Ended December 31, Year Ended December 31, 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 $ — $ (38 ) $ — $ — $ 57 $ — Derivatives designated as hedging instruments — 38 — — (57 ) — Gains or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (15 ) — — (24 ) — Foreign Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 177 — — (50 ) — — 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 $ 177 $ (15 ) $ — $ (50 ) $ (24 ) $ — The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the years ended December 31, 2019 and 2018 for those derivatives designated as cash flow hedges (in millions): Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2019 2018 Interest rate contracts $ 6 $ 1 Foreign exchange contracts 250 563 Total $ 256 $ 564 As of December 31, 2019 , there were $ 162 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 ended December 31, 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 years ended December 31, 2019 and 2018 for those instruments designated as net investment hedges (in millions): Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2019 2018 Foreign denominated debt $ 75 $ 211 Total $ 75 $ 211 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 years ended December 31, 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 Interest rate contracts Interest expense $ (9 ) $ (9 ) Foreign exchange contracts Investment income and other (1 ) (102 ) Investment market price contracts Investment income and other — 16 Total $ (10 ) $ (95 ) |
TRANSFORMATION STRATEGY
TRANSFORMATION STRATEGY | 12 Months Ended |
Dec. 31, 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 impacting our organization. Over the next several 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 years ended December 31, 2019 and 2018 (in millions): Year Ended December 31, Transformation Strategy Costs 2019 2018 Compensation and benefits $ 166 $ 262 Total other expenses 89 98 Total Transformation Strategy Costs $ 255 $ 360 Income Tax Benefit from Transformation Strategy Costs (59 ) (87 ) After Tax Transformation Strategy Costs $ 196 $ 273 |
QUARTERLY INFORMATION (unaudite
QUARTERLY INFORMATION (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY INFORMATION (unaudited) | QUARTERLY INFORMATION (UNAUDITED) Our revenue, segment operating profit, other income and (expense), net income, basic and diluted earnings per share on a quarterly basis are presented below (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2019 2018 2019 2018 2019 2018 2019 2018 Revenue: U.S. Domestic Package $ 10,480 $ 10,227 $ 11,150 $ 10,354 $ 11,455 $ 10,437 $ 13,408 $ 12,575 International Package 3,459 3,533 3,505 3,602 3,494 3,478 3,762 3,829 Supply Chain & Freight 3,221 3,353 3,393 3,500 3,369 3,529 3,398 3,444 Total revenue 17,160 17,113 18,048 17,456 18,318 17,444 20,568 19,848 Operating Profit: U.S. Domestic Package 666 756 1,208 939 1,216 949 1,074 999 International Package 528 594 663 618 667 536 799 781 Supply Chain & Freight 200 170 272 216 245 242 260 224 Total operating profit 1,394 1,520 2,143 1,773 2,128 1,727 2,133 2,004 Total Other Income and (Expense) $ 46 $ 141 $ 61 $ 153 $ 78 $ 162 $ (2,331 ) $ (1,461 ) Net Income $ 1,111 $ 1,345 $ 1,685 $ 1,485 $ 1,750 $ 1,508 $ (106 ) $ 453 Net Income Per Share: Basic $ 1.28 $ 1.55 $ 1.95 $ 1.71 $ 2.03 $ 1.74 $ (0.12 ) $ 0.52 Diluted $ 1.28 $ 1.55 $ 1.94 $ 1.71 $ 2.01 $ 1.73 $ (0.12 ) $ 0.52 Our quarterly results were impacted by transformation strategy costs, legal contingencies and expenses and defined benefit plan mark-to-market charges. The table below presents the impact on operating profit and other income and (expense) for each period. (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2019 2018 2019 2018 2019 2018 2019 2018 Impact to Operating Profit Transformation Strategy - Employee Benefits $ 106 $ — $ 2 $ 192 $ 41 $ 70 $ 17 $ — Transformation Strategy - Other Costs 17 — 19 71 22 27 31 — Legal Contingencies and Expenses — — — — — — 97 — Allocation of Matters Impacting Operating Profit to Segments U.S. Domestic Package $ 28 — 18 196 26 39 133 — International Package 84 — 2 36 26 40 10 — Supply Chain & Freight 11 — 1 31 11 18 2 — Impact to Other Income and (Expense) Defined Benefit Plan Mark-to-Market Charges $ — $ — $ — $ — $ — $ — $ 2,387 $ 1,627 |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Financial Statements and Business Activities | Basis of Financial Statements and Business Activities The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include the accounts of United Parcel Service, Inc., and all of its consolidated subsidiaries (collectively “UPS” or the “Company”). All intercompany balances and transactions have been eliminated. We provide transportation services, primarily domestic and international letter and package delivery. Through our Supply Chain & Freight subsidiaries, we are also a global provider of specialized transportation, logistics and financial services. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingencies. Estimates have been prepared on the basis of the most current and best information, and actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition U.S. Domestic and International Package Operations —Revenue is recognized over time as we perform the services in the contract. Forwarding —Freight forwarding revenue and the expense related to the transportation of freight are recognized over time as we perform the services. Truckload brokerage revenue and related transportation costs are recognized over time as we perform the services. Customs brokerage revenue is recognized upon completing documents necessary for customs entry purposes. Logistics —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. UPS Freight —Revenue is recognized over time as we perform the services in the contract. Financial Services —Income on loans and direct finance leases is recognized on the effective interest method. Accrual of interest income is suspended at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days delinquent. Income on operating leases is recognized on the straight-line method over the terms of the underlying leases. Principal vs. Agent Considerations —We utilize independent contractors and third-party carriers in the performance of some transportation services. GAAP requires us to evaluate 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) using a control model. 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 reported on a gross basis within our statements of consolidated income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments that are readily convertible into cash. We consider securities with maturities of three months or less, when purchased, to be cash equivalents. The carrying amount of these securities approximates fair value because of the short-term maturity of these instruments. |
Investments | Investments Debt securities are either classified as trading or available-for-sale securities and are carried at fair value. Unrealized gains and losses on trading securities are reported as investment income (expense) and other on the statements of consolidated income. Unrealized gains and losses on available-for-sale securities are reported as accumulated other comprehensive income (“AOCI”), a separate component of shareowners’ equity. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in investment income (expense) and other, along with interest and dividends. The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in investment income (expense) and other. We periodically review our available-for-sale investments for indications of other-than-temporary impairment considering many factors, including the extent and duration to which a security’s fair value has been less than its cost, overall economic and market conditions and the financial condition and specific prospects for the issuer. Impairment of available-for-sale securities results in a charge to income when a market decline below cost is other-than-temporary. |
Inventories | Inventories Fuel and other materials and supplies inventories are recognized as inventory when purchased, and then charged to expense when used in our operations. Jet fuel, diesel and unleaded gasoline inventories are valued at the lower of average cost or net realizable value. Total inventories were $ 511 and $ 421 million as of December 31, 2019 and 2018 , respectively, and are included in “Other current assets” on the consolidated balance sheets. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. We evaluate the useful lives of our property, plant and equipment based on our usage, maintenance and replacement policies, and taking into account physical and economic factors that may affect the useful lives of the assets. As part of our ongoing investment in transformation in 2018, we revised our estimates of useful lives for building improvements, vehicles and plant equipment based on our current assessment of these factors. In 2019, we revised our estimates of useful lives and residual values for certain airframes, engines and related rotable parts. The changes in estimate had the effect of lengthening the useful lives of building improvements, vehicles, plant equipment and certain aircraft, and reduced the useful lives and residual values of the majority of our used aircraft. Depreciation and amortization are provided by the straight-line method over the estimated useful lives of the assets, which are as follows: • Aircraft: 12 to 40 years • Buildings: 20 to 40 years • Leasehold Improvements: lesser of asset useful life or lease term • Plant Equipment: 3 to 20 years • Technology Equipment: 3 to 5 years • Vehicles: 6 to 15 years For substantially all of our aircraft, the costs of major airframe and engine overhauls, as well as routine maintenance and repairs, are charged to expense as incurred. Interest incurred during the construction period of certain property, plant and equipment is capitalized until the underlying assets are placed in service, at which time amortization of the capitalized interest begins, straight-line, over the estimated useful lives of the related assets. Capitalized interest was $ 91 and $ 97 million in 2019 and 2018 , respectively. We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on its undiscounted future cash flows. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows or external appraisals, as appropriate. We review long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Costs of purchased businesses in excess of net identifiable assets acquired (goodwill), and indefinite-lived intangible assets are tested for impairment at least annually, unless changes in circumstances indicate an impairment may have occurred sooner. We are required to test goodwill on a reporting unit basis. A reporting unit is the operating segment unless, for businesses within that operating segment, discrete financial information is prepared and regularly reviewed by management, in which case such a component business is the reporting unit. In assessing goodwill for impairment, we initially evaluate qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We consider several factors, including macroeconomic conditions, industry and market conditions, overall financial performance of the reporting unit, changes in management, strategy or customers and relevant reporting unit-specific events such as a change in the carrying amount of net assets, a more likely than not expectation of selling or disposing of all, or a portion of, a reporting unit, and the testing for recoverability of a significant asset group within a reporting unit. If this qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit. If the qualitative assessment is not conclusive and it is necessary to calculate the fair value of a reporting unit, then we utilize a two-step process to test goodwill for impairment. First, a comparison of the fair value of the applicable reporting unit with the aggregate carrying value, including goodwill, is performed. If the carrying amount of a reporting unit exceeds its calculated fair value, then the second step is performed, and an impairment charge is recognized for the amount, if any, by which the carrying amount of goodwill exceeds its implied fair value. We primarily determine the fair value of our reporting units using a discounted cash flow model and supplement this with observable valuation multiples for comparable companies, as appropriate. A trade name with a carrying value of $200 million and licenses with a carrying value of $ 4 million as of December 31, 2019 are considered to be indefinite-lived intangibles, and therefore are not amortized. Indefinite-lived intangible assets are reviewed for impairment at least annually. We determined that the income approach, specifically the relief from royalty method, is the most appropriate valuation method to estimate the fair value of the trade name. The estimated fair value of the trade name is compared to the carrying value of the asset. If the carrying value of the trade name exceeds its estimated fair value, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds its fair value. Finite-lived intangible assets, including trademarks, licenses, patents, customer lists, non-compete agreements and franchise rights are amortized on a straight-line basis over the estimated useful lives of the assets, which range from 2 to 22 years. Capitalized software is generally amortized over 7 years. |
Self-Insurance Accruals | Self-Insurance Accruals We self-insure costs associated with workers’ compensation claims, automobile liability, health and welfare and general business liabilities, up to certain limits. Insurance reserves are established for estimates of the loss that we will ultimately incur on reported claims, as well as estimates of claims that have been incurred but not yet reported. The expected ultimate cost for claims incurred is estimated based upon historical loss experience and judgments about the present and expected levels of cost per claim. Trends in actual experience are a significant factor in the determination of our reserves. Workers’ compensation, automobile liability and general liability insurance claims may take several years to completely settle. Consequently, actuarial estimates are required to project the ultimate cost that will be incurred to fully resolve a claim. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, trends in healthcare costs, the results of any related litigation and with respect to workers’ compensation claims, changes in legislation. Furthermore, claims may emerge in a future year for events that occurred in a prior year at a rate that differs from actuarial projections. All of these factors can result in revisions to actuarial projections and produce a material difference between estimated and actual operating results. Based on our historical experience, during 2019 we changed our self-insurance reserves from the central estimate to the low end of the actuarial range of losses. The principal result of this change was a decrease in expense of $94 million and an increase in net income of $72 million , or $0.08 per share on a basic and diluted basis. We believe our estimated reserves for such claims are adequate, but actual experience in claim frequency and/or severity could materially differ from our estimates and affect our results of operations. We sponsor a number of health and welfare insurance plans for our employees. These liabilities and related expenses are based on estimates of the number of employees and eligible dependents covered under the plans, anticipated medical usage by participants and overall trends in medical costs and inflation. |
Pension and Postretirement Benefits | Pension and Postretirement Benefits We incur certain employment-related expenses associated with pension and postretirement medical benefits. These pension and postretirement medical benefit costs for company-sponsored benefit plans are calculated using various actuarial assumptions and methodologies, including discount rates, expected returns on plan assets, healthcare cost trend rates, inflation, compensation increase rates, mortality rates and coordination of benefits with plans not sponsored by UPS. Actuarial assumptions are reviewed on an annual basis, unless circumstances require an interim remeasurement of any of our plans. We recognize changes in the fair value of plan assets and net actuarial gains or losses in excess of a corridor (defined as 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation) in net periodic benefit cost other than service cost annually at December 31st each year. The remaining components of pension expense, primarily service and interest costs and the expected return on plan assets, are recorded on a quarterly basis. For eligible employees hired after July 1, 2016, UPS contributes annually to a defined contribution plan. We recognize expense for the required contribution quarterly, and we recognize a liability for any contributions due and unpaid (included in “Other current liabilities”). During June 2017, we amended the UPS Retirement Plan and Excess Coordinating Plan to cease accrual of additional benefits for future service for non-union participants effective January 1, 2023. We remeasured plan assets and pension benefit obligations for the affected pension plans as of June 30, 2017 to recognize the impact of this change. We participate in a number of trustee-managed multiemployer pension and health and welfare plans for employees covered under collective bargaining agreements. Our contributions to these plans are determined in accordance with the respective collective bargaining agreements. We recognize expense for the contractually required contribution for each period, and we recognize a liability for any contributions due and unpaid within “Other current liabilities”. |
Income Taxes | Income Taxes Income taxes are accounted for on an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than proposed changes in the tax law or rates. Valuation allowances are provided if it is more likely than not that a deferred tax asset will not be realized. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. Once it is determined that the position meets the recognition threshold, the second step requires us to estimate and measure the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement. The difference between the amount of recognizable tax benefit and the total amount of tax benefit from positions filed or to be filed with the tax authorities is recorded as a liability for uncertain tax benefits. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We reevaluate uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an additional charge to the tax provision. In January 2018, the Financial Accounting Standards Board ("FASB") released guidance on the accounting for tax on the Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Cuts and Jobs Act (the "Tax Act"). The GILTI provisions impose U.S. tax on certain foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. We elect to treat any potential GILTI inclusions as period costs. |
Foreign Currency Translation | Foreign Currency Translation and Remeasurement We translate the results of operations of our foreign subsidiaries using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Balance sheet currency translation adjustments are recorded in AOCI. Pre-tax foreign currency transaction gains (losses) from remeasurement, net of hedging, included in investment income (expense) and other were $ (6) , $ (19) and $ 3 million in 2019 , 2018 and 2017 , respectively. |
Stock-Based Compensation | Stock-Based Compensation All share-based awards to employees are measured based on their fair values and expensed over the period during which an employee is required to provide service in exchange for the award (the vesting period), less estimated forfeitures. We have issued employee share-based awards under the UPS Incentive Compensation Plan that are subject to specific vesting conditions, including service conditions, where the awards cliff vest or vest ratably over a one , three , or five year period (the "nominal vesting period”) or at the date the employee retires (as defined by the plan), if earlier. Compensation cost is generally recognized immediately for awards granted to retirement-eligible employees, or over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. We estimate forfeiture rates based on historical rates of forfeitures for awards with similar characteristics, historical rates of employee turnover and the nature and terms of the vesting conditions of the awards. We reevaluate our forfeiture rates on an annual basis. |
Fair Value Measurements | Fair Value Measurements Our financial assets and liabilities measured at fair value on a recurring basis have been categorized based upon a fair value hierarchy. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on other observable market data, such as quoted prices for similar assets and liabilities, and inputs other than quoted prices that are observable, such as interest rates and yield curves. Level 3 inputs are developed from unobservable data reflecting our own assumptions, and include situations where there is little or no market activity for the asset or liability. Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis, including property, plant, and equipment, goodwill and intangible assets. These assets are subject to fair value adjustments in certain circumstances, such as when there is evidence of an impairment. A general description of the valuation methodologies used for assets and liabilities measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy, is included in each footnote with fair value measurements present. For acquisitions, we allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets, including but are not limited to, future expected cash flows from acquired customers, acquired technology and trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. |
Derivative Instruments | 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 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. |
Recently Adopted Accounting Standards | Adoption of New Accounting Standards In May 2014, the FASB issued an accounting standards update ("ASU") that changes the revenue recognition for companies that enter into contracts with customers to transfer goods or services (" Revenue from Contracts with Customers") . The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner depicting the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB also issued a number of updates to this standard. Effective January 1, 2018, we adopted the requirements of this ASU using the full retrospective method. See note 2 for disclosures required by this ASU. In January 2016, the FASB issued an ASU which addresses certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. We adopted this standard on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued 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. 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. 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 year ended December 31, 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. See note 10 for additional disclosures required by this ASU. In August 2016, the FASB issued an ASU that addressed the classification and presentation of specific cash flow matters. The guidance also clarified how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance was applied retrospectively. We adopted this standard on January 1, 2018. This standard did not have a material impact on our statements of consolidated cash flows. In November 2016, the FASB issued an ASU intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows (" Restricted Cash") . Effective January 1, 2018, we adopted the requirements of this ASU retrospectively. As a result of this update, restricted cash is included within cash and cash equivalents on our statements of consolidated cash flows. In March 2017, the FASB issued an ASU to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost (" Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost") . The update requires employers to report the current service cost component in the same line item as other compensation costs arising from services rendered by employees during the period. The other components of net periodic benefit cost are required to be presented separately from service cost and outside of income from operations. Effective January 1, 2018, we adopted the requirements of this ASU retrospectively, as required. As a result of this update, the net amount of interest cost, prior service cost and expected return on plan assets is now presented as other income. 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 May 2017, the FASB issued an ASU to provide clarity and reduce complexity on when to apply modification accounting to existing share-based payment awards. We adopted this standard on January 1, 2018. This ASU 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 16 for disclosures required by this ASU. In February 2018, the FASB issued an ASU that allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act. Effective January 1, 2018, we early adopted this ASU and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. This resulted in a $ 735 million increase to retained earnings and a $735 million decrease to AOCI. Our current accounting policy for releasing income tax effects from other comprehensive income is based on a portfolio approach. In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension and postretirement plans. The update eliminates the disclosures for amounts in AOCI expected to be recognized as components of net periodic cost over the next fiscal year and the effects of a one percentage point change in the assumed healthcare cost trend rate. The update adds disclosure requirements to include the weighted-average interest crediting rates for cash balance plans and a narrative description of the significant gains and losses related to changes in the benefit obligation for the period. We early adopted this standard for the year ended December 31, 2018 with retrospective application. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations or cash flows. We have recast our consolidated financial statements from amounts previously reported due to the adoption of new revenue recognition, pension and restricted cash standards. The unaudited consolidated statements of operations, which reflect the adoption of the new ASUs, are as follows (in millions): Twelve months ended December 31, 2017 As Previously Reported Adjustments (a) Adjustments (b) Adjustments (c) As Recast Revenue $ 65,872 $ 713 $ — $ — $ 66,585 Operating Expenses: Compensation and benefits 34,588 — (11 ) — 34,577 Repairs and maintenance 1,600 1 — — 1,601 Depreciation and amortization 2,282 — — — 2,282 Purchased transportation 10,989 707 — — 11,696 Fuel 2,690 — — — 2,690 Other occupancy 1,155 — — — 1,155 Other expenses 5,039 16 — — 5,055 Total Operating Expenses 58,343 724 (11 ) — 59,056 Operating Profit 7,529 (11 ) 11 — 7,529 Other Income and (Expense): Investment income (expense) and other 72 — (11 ) — 61 Interest expense (453 ) — — — (453 ) Total Other Income and (Expense) (381 ) — (11 ) — (392 ) Income Before Income Taxes 7,148 (11 ) — — 7,137 Income Tax Expense (Benefit) 2,238 (6 ) — — 2,232 Net Income $ 4,910 $ (5 ) $ — $ — $ 4,905 Basic Earnings Per Share $ 5.64 $ (0.01 ) $ — $ — $ 5.63 Diluted Earnings Per Share $ 5.61 $ — $ — $ — $ 5.61 (a) Recast to reflect the adoption of Revenue from Contracts with Customers. (b) Recast to reflect the adoption of Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. (c) Recast to reflect the adoption of Restricted Cash. The unaudited impacted consolidated statement of cash flows line items, which reflect the adoption of the new ASUs, are as follows (in millions): Twelve Months Ended December 31, 2017 As Previously Reported Adjustments (a) Adjustments (b) Adjustments (c) As Recast Net Income $ 4,910 $ (5 ) $ — $ — $ 4,905 Adjustments to reconcile net income to net cash from operating activities: Deferred tax (benefit) expense 1,230 (6 ) — — 1,224 Other assets (982 ) (2 ) — — (984 ) Accounts payable 592 7 — — 599 Accrued wages and withholdings 193 7 — — 200 Other liabilities (241 ) (2 ) — — (243 ) Other operating activities 47 1 48 Cash flows from operating activities 1,479 — — — 1,479 Purchase of marketable securities (1,634 ) — — 4 (1,630 ) Net cash used in investing activities (4,975 ) — — 4 (4,971 ) Net decrease in cash, cash equivalents and restricted cash (156 ) — — 4 (152 ) Cash, cash equivalents and restricted cash at the beginning of period 3,476 — — 445 3,921 Cash, cash equivalents and restricted cash at the end of period $ 3,320 $ — $ — $ 449 $ 3,769 (a) Recast to reflect the adoption of Revenue from Contracts with Customers. (b) Recast to reflect the adoption of Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. (c) Recast to reflect the adoption of Restricted Cash. 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 | 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 substantially complete with our evaluation of the adoption on our consolidated financial statements and internal controls over financial reporting. This adoption will not have a material impact on our consolidated financial position, results of operations or cash flows. We will update our process for calculating our allowance for doubtful accounts to include reasonable and supportable forecasts that could affect expected collectability. 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 do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows. In December 2019, the FASB issued an ASU to simplify the accounting for income taxes. The update removes certain exceptions to the general income tax principles. The standard will be effective for us in the first quarter of 2021. 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. Other accounting pronouncements issued, but not effective until after December 31, 2019, are not expected to have a material impact on our consolidated financial position, results of operations or cash flows. |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | We have recast our consolidated financial statements from amounts previously reported due to the adoption of new revenue recognition, pension and restricted cash standards. The unaudited consolidated statements of operations, which reflect the adoption of the new ASUs, are as follows (in millions): Twelve months ended December 31, 2017 As Previously Reported Adjustments (a) Adjustments (b) Adjustments (c) As Recast Revenue $ 65,872 $ 713 $ — $ — $ 66,585 Operating Expenses: Compensation and benefits 34,588 — (11 ) — 34,577 Repairs and maintenance 1,600 1 — — 1,601 Depreciation and amortization 2,282 — — — 2,282 Purchased transportation 10,989 707 — — 11,696 Fuel 2,690 — — — 2,690 Other occupancy 1,155 — — — 1,155 Other expenses 5,039 16 — — 5,055 Total Operating Expenses 58,343 724 (11 ) — 59,056 Operating Profit 7,529 (11 ) 11 — 7,529 Other Income and (Expense): Investment income (expense) and other 72 — (11 ) — 61 Interest expense (453 ) — — — (453 ) Total Other Income and (Expense) (381 ) — (11 ) — (392 ) Income Before Income Taxes 7,148 (11 ) — — 7,137 Income Tax Expense (Benefit) 2,238 (6 ) — — 2,232 Net Income $ 4,910 $ (5 ) $ — $ — $ 4,905 Basic Earnings Per Share $ 5.64 $ (0.01 ) $ — $ — $ 5.63 Diluted Earnings Per Share $ 5.61 $ — $ — $ — $ 5.61 (a) Recast to reflect the adoption of Revenue from Contracts with Customers. (b) Recast to reflect the adoption of Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. (c) Recast to reflect the adoption of Restricted Cash. The unaudited impacted consolidated statement of cash flows line items, which reflect the adoption of the new ASUs, are as follows (in millions): Twelve Months Ended December 31, 2017 As Previously Reported Adjustments (a) Adjustments (b) Adjustments (c) As Recast Net Income $ 4,910 $ (5 ) $ — $ — $ 4,905 Adjustments to reconcile net income to net cash from operating activities: Deferred tax (benefit) expense 1,230 (6 ) — — 1,224 Other assets (982 ) (2 ) — — (984 ) Accounts payable 592 7 — — 599 Accrued wages and withholdings 193 7 — — 200 Other liabilities (241 ) (2 ) — — (243 ) Other operating activities 47 1 48 Cash flows from operating activities 1,479 — — — 1,479 Purchase of marketable securities (1,634 ) — — 4 (1,630 ) Net cash used in investing activities (4,975 ) — — 4 (4,971 ) Net decrease in cash, cash equivalents and restricted cash (156 ) — — 4 (152 ) Cash, cash equivalents and restricted cash at the beginning of period 3,476 — — 445 3,921 Cash, cash equivalents and restricted cash at the end of period $ 3,320 $ — $ — $ 449 $ 3,769 (a) Recast to reflect the adoption of Revenue from Contracts with Customers. (b) Recast to reflect the adoption of Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. (c) Recast to reflect the adoption of Restricted Cash. |
INVESTMENTS AND RESTRICTED CA_2
INVESTMENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments and Cash [Abstract] | |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following table presents the age of gross unrealized losses and fair value by investment category for all securities in a loss position as of December 31, 2019 (in millions): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government and agency debt securities $ 42 $ — $ — $ — $ 42 $ — Mortgage and asset-backed debt securities 3 — 5 — 8 — Corporate debt securities 6 — 2 — 8 — Non-U.S. government debt securities 9 — 2 — 11 — Total marketable securities $ 60 $ — $ 9 $ — $ 69 $ — |
Summary of Marketable Securities | The following is a summary of marketable securities classified as trading and available-for-sale at December 31, 2019 and 2018 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value 2019 Current trading marketable securities: Corporate debt securities $ 112 $ — $ — $ 112 Equity securities 2 — — 2 Total trading marketable securities 114 — — 114 Current available-for-sale securities: U.S. government and agency debt securities 191 2 — 193 Mortgage and asset-backed debt securities 46 1 — 47 Corporate debt securities 130 3 — 133 Non-U.S. government debt securities 16 — — 16 Total available-for-sale marketable securities 383 6 — 389 Total current marketable securities $ 497 $ 6 $ — $ 503 Cost Unrealized Gains Unrealized Losses Estimated Fair Value 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 |
Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity | The amortized cost and estimated fair value of marketable securities at December 31, 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 $ 118 $ 118 Due after one year through three years 328 332 Due after three years through five years 6 6 Due after five years 43 45 495 501 Equity securities 2 2 $ 497 $ 503 |
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): December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 5,238 $ 4,225 $ 3,320 Restricted cash $ — $ 142 $ 449 Total cash, cash equivalents and restricted cash $ 5,238 $ 4,367 $ 3,769 |
Investments Measured at Fair Value on a Recurring Basis | The following table presents information about our investments measured at fair value on a recurring basis as of December 31, 2019 and 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) Total 2019 Marketable Securities: U.S. government and agency debt securities $ 193 $ — $ — $ 193 Mortgage and asset-backed debt securities — 47 — 47 Corporate debt securities — 245 — 245 Equity securities — 2 — 2 Non-U.S. government debt securities — 16 — 16 Total marketable securities 193 310 — 503 Other non-current investments 21 — 1 22 Total $ 214 $ 310 $ 1 $ 525 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total 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 |
Changes in Level 3 Instruments Measured on a Recurring Basis | There were no transfers of investments between Level 1 and Level 2 during the years ended December 31, 2019 or 2018 . |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, including both owned assets as well as assets subject to finance leases, consists of the following as of December 31, 2019 and 2018 (in millions): 2019 2018 Vehicles $ 10,613 $ 9,820 Aircraft 19,045 17,499 Land 2,087 2,000 Buildings 5,046 4,808 Building and leasehold improvements 4,898 4,323 Plant equipment 13,849 11,833 Technology equipment 2,206 2,093 Construction-in-progress 1,983 2,112 59,727 54,488 Less: Accumulated depreciation and amortization (29,245 ) (27,912 ) $ 30,482 $ 26,576 |
COMPANY-SPONSORED EMPLOYEE BE_2
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans | Information about net periodic benefit cost for the company-sponsored pension and postretirement defined benefit plans is as follows (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2017 2019 2018 2017 2019 2018 2017 Net Periodic Benefit Cost: Service cost $ 1,439 $ 1,661 $ 1,543 $ 23 $ 29 $ 29 $ 57 $ 62 $ 60 Interest cost 2,067 1,799 1,813 108 104 112 47 45 40 Expected return on assets (3,130 ) (3,201 ) (2,883 ) (8 ) (8 ) (7 ) (76 ) (77 ) (66 ) Amortization of prior service cost 218 193 192 7 7 7 2 1 1 Actuarial (gain) loss 2,296 1,603 729 37 — 53 54 24 18 Curtailment and settlement loss — — — — — — — — 2 Net periodic benefit cost $ 2,890 $ 2,055 $ 1,394 $ 167 $ 132 $ 194 $ 84 $ 55 $ 55 |
Weighted Average Actuarial Assumptions Used Disclosure | The table below provides the weighted-average actuarial assumptions used to determine the net periodic benefit cost. U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.50 % 3.84 % 4.41 % 4.51 % 3.82 % 4.23 % 2.94 % 2.78 % 2.75 % Rate of compensation increase 4.25 % 4.25 % 4.27 % N/A N/A N/A 3.24 % 3.22 % 3.17 % Expected return on assets 7.75 % 7.75 % 8.75 % 7.20 % 7.20 % 8.75 % 5.69 % 5.76 % 5.65 % Cash balance interest credit rate 2.98 % 2.50 % 2.91 % N/A N/A N/A 3.17 % 3.07 % 2.65 % The table below provides the weighted-average actuarial assumptions used to determine the benefit obligations of our plans. U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Discount rate 3.60 % 4.50 % 3.59 % 4.51 % 2.21 % 2.94 % Rate of compensation increase 4.22 % 4.25 % N/A N/A 3.00 % 3.24 % Cash balance interest credit rate 2.50 % 2.98 % N/A N/A 2.59 % 3.17 % |
Reconciliation of the Changes in the Plans' Benefit Obligations and Fair Value of Plan Assets | The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of plan assets as of the respective measurement dates in each year (in millions). U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Benefit Obligations: Projected benefit obligation at beginning of year $ 45,333 $ 45,847 $ 2,510 $ 2,792 $ 1,552 $ 1,651 Service cost 1,439 1,661 23 29 57 62 Interest cost 2,067 1,799 108 104 47 45 Gross benefits paid (2,394 ) (1,390 ) (288 ) (263 ) (40 ) (33 ) Plan participants’ contributions — — 30 26 3 3 Plan amendments — 331 — — 1 13 Actuarial (gain)/loss 7,594 (2,915 ) 233 (178 ) 213 (81 ) Foreign currency exchange rate changes — — — 47 (110 ) Curtailments and settlements — — — (2 ) (1 ) Other — — — 28 3 Projected benefit obligation at end of year $ 54,039 $ 45,333 $ 2,616 $ 2,510 $ 1,906 $ 1,552 U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Fair Value of Plan Assets: Fair value of plan assets at beginning of year $ 39,554 $ 41,932 $ 26 $ 183 $ 1,284 $ 1,333 Actual return on plan assets 6,991 (1,007 ) (5 ) (7 ) 171 (6 ) Employer contributions 2,021 19 274 87 67 80 Plan participants’ contributions — — 30 26 3 3 Gross benefits paid (2,394 ) (1,390 ) (288 ) (263 ) (40 ) (33 ) Foreign currency exchange rate changes — — — — 49 (92 ) Curtailments and settlements — — — — (2 ) (1 ) Other — — — — 26 — Fair value of plan assets at end of year $ 46,172 $ 39,554 $ 37 $ 26 $ 1,558 $ 1,284 |
Funded Status as of the Respective Measurement Dates in Each Year and the Amounts Recognized in Balance Sheet | The following table discloses the funded status of our plans and the amounts recognized in our consolidated balance sheets as of December 31 st (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2019 2018 2019 2018 2019 2018 Funded Status: Fair value of plan assets $ 46,172 $ 39,554 $ 37 $ 26 $ 1,558 $ 1,284 Benefit obligation (54,039 ) (45,333 ) (2,616 ) (2,510 ) (1,906 ) (1,552 ) Funded status recognized at December 31 $ (7,867 ) $ (5,779 ) $ (2,579 ) $ (2,484 ) $ (348 ) $ (268 ) Funded Status Recognized in our Balance Sheet: Other non-current assets $ — $ — $ — $ — $ 34 $ 35 Other current liabilities (22 ) (20 ) (200 ) (195 ) (5 ) (4 ) Pension and postretirement benefit obligations (7,845 ) (5,759 ) (2,379 ) (2,289 ) (377 ) (299 ) Net liability at December 31 $ (7,867 ) $ (5,779 ) $ (2,579 ) $ (2,484 ) $ (348 ) $ (268 ) Amounts Recognized in AOCI: Unrecognized net prior service cost $ (800 ) $ (1,018 ) $ (16 ) $ (21 ) $ (12 ) $ (14 ) Unrecognized net actuarial gain (loss) (5,404 ) (3,967 ) (240 ) (32 ) (162 ) (100 ) Gross unrecognized cost at December 31 (6,204 ) (4,985 ) (256 ) (53 ) (174 ) (114 ) Deferred tax assets (liabilities) at December 31 1,497 1,205 62 13 40 28 Net unrecognized cost at December 31 $ (4,707 ) $ (3,780 ) $ (194 ) $ (40 ) $ (134 ) $ (86 ) |
Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets for Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets | At December 31, 2019 and 2018 , the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with benefit obligations in excess of plan assets were as follows (in millions): Projected Benefit Obligation Exceeds the Fair Value of Plan Assets Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets 2019 2018 2019 2018 U.S. Pension Benefits: Projected benefit obligation $ 54,039 $ 45,333 $ 54,039 $ 45,333 Accumulated benefit obligation 53,194 44,284 53,194 44,284 Fair value of plan assets 46,172 39,554 46,172 39,554 International Pension Benefits: Projected benefit obligation $ 1,319 $ 630 $ 1,319 $ 630 Accumulated benefit obligation 1,210 539 1,210 539 Fair value of plan assets 948 339 948 339 |
Fair Values of U.S. Pension and Postretirement Benefit Plan Assets by Asset Category as Well as the Percentage That Each Category Comprises of Total Plan Assets and the Respective Target Allocations | The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2019 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations. Total Assets (1) Level 1 Level 2 Level 3 Percentage of Plan Assets Target Allocation Asset Category (U.S. Plans): Cash and cash equivalents $ 964 $ 818 $ 146 $ — 2.1 % 1-5 Equity Securities: U.S. Large Cap 6,607 2,889 3,718 — U.S. Small Cap 505 376 129 — Emerging Markets 2,039 1,523 516 — Global Equity 2,892 2,553 339 — International Equity 4,591 2,499 2,092 — Total Equity Securities 16,634 9,840 6,794 — 36.0 25-55 Fixed Income Securities: U.S. Government Securities 14,077 12,980 1,097 — Corporate Bonds 5,051 — 5,051 — Global Bonds 50 — 50 — Municipal Bonds 24 — 24 — Total Fixed Income Securities 19,202 12,980 6,222 — 41.5 35-55 Other Investments: Hedge Funds 3,273 — 1,380 — 7.1 5-15 Private Equity 3,030 — — — 6.6 1-10 Private Debt 772 — — — 1.7 1-10 Real Estate 1,940 149 74 — 4.2 1-10 Structured Products (2) 153 — 153 — 0.3 1-5 Risk Parity Funds 241 — — — 0.5 1-10 Total U.S. Plan Assets $ 46,209 $ 23,787 $ 14,769 $ — 100.0 % Asset Category (International Plans): Cash and cash equivalents $ 72 $ 32 $ 40 — 4.6 1-10 Equity Securities: Local Markets Equity 209 — 209 — U.S. Equity 47 — 47 — Emerging Markets 33 33 — — International / Global Equity 441 179 262 — Total Equity Securities 730 212 518 — 46.8 30-60 Fixed Income Securities: Local Government Bonds 94 — 94 — Corporate Bonds 177 20 157 — Global Bonds 110 110 — — Total Fixed Income Securities 381 130 251 — 24.5 25-45 Other Investments: Real Estate 128 — 80 — 8.2 5-10 Other 247 — 218 12 15.9 1-20 Total International Plan Assets $ 1,558 $ 374 $ 1,107 $ 12 100.0 % Total Plan Assets $ 47,767 $ 24,161 $ 15,876 $ 12 ( 1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the category totals. (2) Represents mortgage and asset-backed securities. The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2018 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations. Total Assets (1) Level 1 Level 2 Level 3 Percentage of Plan Assets Target Allocation Asset Category (U.S. Plans): Cash and cash equivalents $ 157 $ 108 $ 49 $ — 0.4 % 1-5 Equity Securities: U.S. Large Cap 5,276 2,155 3,121 — U.S. Small Cap 542 386 156 — Emerging Markets 1,859 1,436 423 — Global Equity 2,320 2,056 264 — International Equity 3,670 2,189 1,481 — Total Equity Securities 13,667 8,222 5,445 — 34.5 25-55 Fixed Income Securities: U.S. Government Securities 12,295 11,922 373 — Corporate Bonds 4,303 — 4,301 2 Global Bonds 55 — 55 — Municipal Bonds 16 — 16 — Total Fixed Income Securities 16,669 11,922 4,745 2 42.1 35-55 Other Investments: Hedge Funds 3,154 — 1,185 — 8.0 5-15 Private Equity 2,763 — — — 7.0 1-10 Private Debt 836 — 178 — 2.1 1-10 Real Estate 1,989 152 53 — 5.0 1-10 Structured Products (2) 138 — 138 — 0.4 1-5 Risk Parity Funds 207 — — — 0.5 1-10 Total U.S. Plan Assets $ 39,580 $ 20,404 $ 11,793 $ 2 100.0 % Asset Category (International Plans): Cash and cash equivalents $ 45 $ 4 $ 41 — 3.5 1-10 Equity Securities: Local Markets Equity 171 — 171 — U.S. Equity 34 — 34 — Emerging Markets 33 33 — — International / Global Equity 348 150 198 — Total Equity Securities 586 183 403 — 45.6 30-60 Fixed Income Securities: Local Government Bonds 102 24 78 — Corporate Bonds 195 54 141 — Global Bonds 27 27 — — Total Fixed Income Securities 324 105 219 — 25.2 25-45 Other Investments: Real Estate 121 — 76 — 9.4 5-10 Other 208 — 191 4 16.3 1-20 Total International Plan Assets $ 1,284 $ 292 $ 930 $ 4 100.0 % Total Plan Assets $ 40,864 $ 20,696 $ 12,723 $ 6 (1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the category totals. (2) Represents mortgage and asset-backed securities. |
Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs (Level 3) | The following table presents the changes in the Level 3 instruments measured on a recurring basis for the years ended December 31, 2019 and 2018 (in millions). Corporate Bonds Other Total Balance on January 1, 2018 $ 8 $ — $ 8 Actual Return on Assets: Assets Held at End of Year — — — Assets Sold During the Year (7 ) — (7 ) Purchases 11 9 20 Sales (10 ) (5 ) (15 ) Transfers Into (Out of) Level 3 — — — Balance on December 31, 2018 $ 2 $ 4 $ 6 Actual Return on Assets: Assets Held at End of Year — 1 1 Assets Sold During the Year (4 ) — (4 ) Purchases 4 7 11 Sales (2 ) (2 ) Transfers Into (Out of) Level 3 — — — Balance on December 31, 2019 $ — $ 12 $ 12 |
Expected Cash Flows for Pension and Postretirement Benefit Plans | Information about expected cash flows for the pension and postretirement benefit plans is as follows (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits Expected Employer Contributions: 2020 to plan trusts $ 1,000 $ 186 $ 62 2020 to plan participants 21 11 5 2020 $ 1,645 $ 241 $ 32 2021 1,802 225 36 2022 1,942 215 41 2023 2,085 206 46 2024 2,230 196 52 2025 - 2029 13,293 857 353 |
schedule of one basis point change in discount rate on the projected benefit obligation [Table Text Block] | As of December 31, 2019 , the impact of each basis point change in the discount rate on the projected benefit obligation of our pension and postretirement medical benefit plans is as follows (in millions): Increase (Decrease) in the Projected Benefit Obligation Pension Benefits Postretirement Medical Benefits One basis point increase in discount rate $ (86 ) $ (2 ) One basis point decrease in discount rate 92 3 |
MULTIEMPLOYER EMPLOYEE BENEFI_2
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Multiemployer Plans, Pension | |
Multiemployer Plans | Certain plans have been aggregated in the “all other multiemployer pension plans” line in the following table, as the contributions to each of these individual plans are not material. EIN / Pension Plan Pension Protection Act Zone Status FIP / RP Status Pending / (in millions) UPS Contributions and Accruals Surcharge Pension Fund Number 2019 2018 Implemented 2019 2018 2017 Imposed Central Pennsylvania Teamsters Defined Benefit Plan 23-6262789-001 Green Green No 48 44 40 No Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund 55-6021850-001 Red Red Yes/Implemented 14 13 12 No Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424-001 Red Red Yes/Implemented 10 9 8 No I.A.M. National Pension Fund / National Pension Plan 51-6031295-002 Green Green No 41 38 35 No International Brotherhood of Teamsters Union Local No. 710 Pension Fund 36-2377656-001 Green Green No 142 129 118 No Local 705, International Brotherhood of Teamsters Pension Plan 36-6492502-001 Yellow Yellow Yes/Implemented 113 104 93 No Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan 51-6117726-001 Yellow Yellow Yes/Implemented 112 116 110 No Milwaukee Drivers Pension Trust Fund 39-6045229-001 Green Green No 48 42 38 No New England Teamsters & Trucking Industry Pension Fund 04-6372430-001 Red Red Yes/Implemented 120 121 114 No New York State Teamsters Conference Pension and Retirement Fund 16-6063585-074 Red Red Yes/Implemented 119 108 100 No Teamster Pension Fund of Philadelphia and Vicinity 23-1511735-001 Yellow Yellow Yes/Implemented 74 66 60 No Teamsters Joint Council No. 83 of Virginia Pension Fund 54-6097996-001 Green Green No 75 69 64 No Teamsters Local 639—Employers Pension Trust 53-0237142-001 Green Green No 68 61 55 No Teamsters Negotiated Pension Plan 43-6196083-001 Green Green No 37 34 32 No Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan 52-6043608-001 Green Green No 24 22 20 No United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan 13-1426500-419 Red Red Yes/Implemented 100 95 88 No Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green No 939 868 772 No Western Pennsylvania Teamsters and Employers Pension Fund 25-6029946-001 Red Red Yes/Implemented 34 31 30 No All Other Multiemployer Pension Plans 102 72 81 Total Contributions $ 2,220 $ 2,042 $ 1,870 |
Health and Welfare Fund | |
Multiemployer Plans | (in millions) UPS Contributions and Accruals Health and Welfare Fund 2019 2018 2017 Bay Area Delivery Drivers 37 40 37 Central Pennsylvania Teamsters Health & Pension Fund 31 29 27 Central States, South East & South West Areas Health and Welfare Fund 2,899 2,530 2,366 Delta Health Systems—East Bay Drayage Drivers 30 30 29 Joint Council #83 Health & Welfare Fund 45 40 37 Local 804 Welfare Trust Fund 101 90 84 Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund 48 43 38 New York State Teamsters Health & Hospital Fund 71 62 59 Northern California General Teamsters (DELTA) 157 153 132 Northern New England Benefit Trust 59 54 50 Oregon / Teamster Employers Trust 51 43 38 Teamsters 170 Health & Welfare Fund 19 18 17 Teamsters Benefit Trust 47 48 46 Teamsters Local 251 Health & Insurance Plan 18 17 15 Teamsters Local 638 Health Fund 53 48 43 Teamsters Local 639—Employers Health & Pension Trust Funds 32 29 27 Teamsters Local 671 Health Services & Insurance Plan 20 19 17 Teamsters Union 25 Health Services & Insurance Plan 59 56 52 Teamsters Western Region & Local 177 Health Care Plan 769 656 605 Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund 19 18 16 Utah-Idaho Teamsters Security Fund 37 32 29 Washington Teamsters Welfare Trust 67 57 52 All Other Multiemployer Health and Welfare Plans 141 156 156 Total Contributions $ 4,810 $ 4,268 $ 3,972 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Allocation of Goodwill by Reportable Segment | The following table indicates the allocation of goodwill by segment (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated Balance on January 1, 2018 $ 715 $ 435 $ 2,722 $ 3,872 Acquired — — — — Currency / Other — (18 ) (43 ) (61 ) Balance on December 31, 2018 $ 715 $ 417 $ 2,679 $ 3,811 Acquired — 2 3 5 Currency / Other — (3 ) — (3 ) Balance on December 31, 2019 $ 715 $ 416 $ 2,682 $ 3,813 |
Summary of Intangible Assets | The following is a summary of intangible assets at December 31, 2019 and 2018 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted-Average Amortization Period (in years) December 31, 2019 Capitalized software $ 4,125 $ (2,704 ) $ 1,421 6.9 Licenses 117 (64 ) 53 3.9 Franchise rights 146 (109 ) 37 20.0 Customer relationships 730 (282 ) 448 10.6 Trade name 200 — 200 N/A Trademarks, patents and other 29 (21 ) 8 7.7 Total Intangible Assets $ 5,347 $ (3,180 ) $ 2,167 7.7 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 $ 4,943 $ (2,867 ) $ 2,075 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Carrying Value of Debt Obligations | The carrying value of our outstanding debt obligations, as of December 31, 2019 and 2018 consists of the following (in millions) : Principal Carrying Value Amount Maturity 2019 2018 Commercial paper $ 3,243 2020 $ 3,234 $ 2,662 Fixed-rate senior notes: 5.125% senior notes 1,000 2019 — 998 3.125% senior notes 1,500 2021 1,524 1,492 2.050% senior notes 700 2021 699 698 2.450% senior notes 1,000 2022 1,003 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 397 — 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 688 — 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 426 419 8.375% debentures 276 2030 281 274 Pound Sterling Notes: 5.500% notes 87 2031 86 84 5.125% notes 597 2050 566 546 Euro Senior Notes: 0.375% senior notes 783 2023 779 797 1.625% senior notes 783 2025 779 798 1.000% senior notes 560 2028 556 570 1.500% senior notes 560 2032 556 569 Floating-rate senior notes 560 2020 559 572 Canadian senior notes: 2.125% senior notes 573 2024 571 548 Finance lease obligations 498 2020 – 2210 498 534 Facility notes and bonds 320 2029 – 2045 320 320 Other debt 8 2020 – 2025 8 13 Total debt $ 26,388 25,238 22,736 Less: current maturities (3,420 ) (2,805 ) Long-term debt $ 21,818 $ 19,931 |
Debt Instruments, Average Effective Interest Rate | The average interest rate payable on the notes where fixed interest rates were swapped to variable-based interest rates, including the impact of the interest rate swaps, for 2019 and 2018 were as follows: Principal Average Effective Interest Rate Value Maturity 2019 2018 5.50% senior notes $ 750 2018 — % 3.63 % 5.125% senior notes 1,000 2019 4.48 % 3.99 % 3.125% senior notes 1,500 2021 2.59 % 2.32 % 2.45% senior notes 1,000 2022 3.03 % 2.77 % |
Aggregate Minimum Lease Payments, Annual Principal Payments and Amounts Expected to be Spent for Purchase Commitments | The following table sets forth the aggregate annual principal payments due under our long-term debt and the aggregate amounts expected to be spent for purchase commitments (in millions). Year Debt Principal Purchase Commitments (1) 2020 $ 4,232 3,569 2021 2,551 1,982 2022 2,001 966 2023 2,284 323 2024 1,474 261 After 2024 12,349 201 Total $ 24,891 $ 7,302 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Supplemental cash flow information related to leases is as follows (in millions): Year Ended December 31, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 620 Operating cash flows from finance leases 19 Financing cash flows from finance leases 140 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 810 Finance leases $ 110 The components of lease expense for the year ended December 31, 2019 are as follows (in millions): Year Ended December 31, 2019 Operating lease costs $ 643 Finance lease costs: Amortization of assets $ 73 Interest on lease liabilities 19 Total finance lease costs 92 Variable lease costs 206 Short-term lease costs 1,122 Total lease costs $ 2,063 |
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): December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 2,856 Current maturities of operating leases $ 538 Non-current operating leases 2,391 Total operating lease liabilities $ 2,929 Finance Leases: Aircraft $ 2,087 Buildings 272 Vehicles, plant equipment, technology equipment and other 27 Accumulated amortization (884 ) Property, plant and equipment, net $ 1,502 Current maturities of long-term debt, commercial paper and finance leases $ 181 Long-term debt and finance leases 317 Total finance lease liabilities $ 498 Weighted average remaining lease term (in years): Operating leases 9.7 Finance leases 8.9 Weighted average discount rate: Operating leases 2.78 % Finance leases 4.03 % |
Operating Leases Maturity Schedule | Maturities of lease liabilities as of December 31, 2019 are as follows (in millions): Finance Leases Operating Leases 2020 $ 199 $ 619 2021 44 536 2022 39 451 2023 37 360 2024 35 256 Thereafter 259 1,267 Total lease payments 613 3,489 Less: Imputed interest (115 ) (560 ) Total lease obligations 498 2,929 Less: Current obligations (181 ) (538 ) Long-term lease obligations $ 317 $ 2,391 |
Finance Leases Maturity Schedule | Maturities of lease liabilities as of December 31, 2019 are as follows (in millions): Finance Leases Operating Leases 2020 $ 199 $ 619 2021 44 536 2022 39 451 2023 37 360 2024 35 256 Thereafter 259 1,267 Total lease payments 613 3,489 Less: Imputed interest (115 ) (560 ) Total lease obligations 498 2,929 Less: Current obligations (181 ) (538 ) Long-term lease obligations $ 317 $ 2,391 |
Contractual Obligation, Fiscal Year Maturity Schedule | The following table sets forth the aggregate minimum lease payments under capital and operating leases as of December 31, 2018 (in millions): 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 |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Roll-forward of Common Stock, Additional Paid-in Capital, and Retained Earnings Accounts | The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling interests accounts for the year ended December 31, 2019 , 2018 and 2017 (in millions, except per share amounts): Year Ended December 31: 2019 2018 2017 Shares Dollars Shares Dollars Shares Dollars Class A Common Stock: Balance at beginning of year 163 $ 2 173 $ 2 180 $ 2 Common stock purchases (3 ) — (3 ) — (4 ) — Stock award plans 5 — 3 — 4 — Common stock issuances 3 — 4 — 3 — Conversions of class A to class B common stock (12 ) — (14 ) — (10 ) — Class A shares issued at end of year 156 $ 2 163 $ 2 173 $ 2 Class B Common Stock: Balance at beginning of year 696 $ 7 687 $ 7 689 $ 7 Common stock purchases (7 ) — (5 ) — (12 ) — Conversions of class A to class B common stock 12 — 14 — 10 — Class B shares issued at end of year 701 $ 7 696 $ 7 687 $ 7 Additional Paid-In Capital: Balance at beginning of year $ — $ — $ — Stock award plans 778 419 396 Common stock purchases (1,005 ) (859 ) (813 ) Common stock issuances 356 406 363 Option premiums received (paid) 21 34 54 Balance at end of year $ 150 $ — $ — Retained Earnings: Balance at beginning of year $ 8,006 $ 5,852 $ 4,880 Net income attributable to controlling interests 4,440 4,791 4,905 Dividends ($3.84, $3.64, and $3.32 per share) (1) (3,341 ) (3,189 ) (2,928 ) Common stock purchases — (141 ) (1,003 ) Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 — 735 — Other — (42 ) (2 ) Balance at end of year $ 9,105 $ 8,006 $ 5,852 Non-Controlling Interests Balance at beginning of year $ 16 $ 30 $ 24 Change in non-controlling interests — (14 ) 6 Balance at end of year $ 16 $ 16 $ 30 (1) |
Activity in Accumulated Other Comprehensive Income (Loss) | The activity in AOCI for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): Year Ended December 31: 2019 2018 2017 Foreign Currency Translation Gain (Loss), Net of Tax: Balance at beginning of year $ (1,126 ) $ (930 ) $ (1,016 ) Translation adjustment (net of tax effect of $10, $37 and $(161)) 48 (149 ) 86 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (47 ) — Balance at end of year $ (1,078 ) $ (1,126 ) $ (930 ) Unrealized Gain (Loss) on Marketable Securities, Net of Tax: Balance at beginning of year $ (2 ) $ (2 ) $ (1 ) Current period changes in fair value (net of tax effect of $4, $(1) and $(1)) 11 (3 ) (2 ) Reclassification to earnings (net of tax effect of $(1), $1 and $1) (5 ) 3 1 Balance at end of year $ 4 $ (2 ) $ (2 ) Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: Balance at beginning of year $ 40 $ (366 ) $ (45 ) Current period changes in fair value (net of tax effect of $61, $135 and $(190)) 195 429 (316 ) Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (79 ) — Reclassification to earnings (net of tax effect of $(39), $18 and $(3)) (123 ) 56 (5 ) Balance at end of year $ 112 $ 40 $ (366 ) Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: Balance at beginning of year $ (3,906 ) $ (3,569 ) $ (3,421 ) Reclassification to earnings (net of tax effect of $626, $439 and $269) 1,988 1,389 731 Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 — (609 ) — Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(979), $(355) and $(180)) (3,117 ) (1,117 ) (879 ) Balance at end of year $ (5,035 ) $ (3,906 ) $ (3,569 ) Accumulated other comprehensive income (loss) at end of year $ (5,997 ) $ (4,994 ) $ (4,867 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): Year Ended December 31: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 2017 Unrealized Gain (Loss) on Marketable Securities: Realized gain (loss) on sale of securities 6 (4 ) (2 ) Investment income (expense) and other Income tax (expense) benefit (1 ) 1 1 Income tax expense Impact on net income 5 (3 ) (1 ) Net income Unrealized Gain (Loss) on Cash Flow Hedges: Interest rate contracts (15 ) (24 ) (27 ) Interest expense Foreign exchange contracts 177 (50 ) 35 Revenue Income tax (expense) benefit (39 ) 18 (3 ) Income tax expense Impact on net income 123 (56 ) 5 Net income Unrecognized Pension and Postretirement Benefit Costs: Prior service costs (227 ) (201 ) (200 ) Investment income (expense) and other Remeasurement of benefit obligation (2,387 ) (1,627 ) (800 ) Investment income (expense) and other Income tax (expense) benefit 626 439 269 Income tax expense Impact on net income (1,988 ) (1,389 ) (731 ) Net income Total amount reclassified for the year $ (1,860 ) $ (1,448 ) $ (727 ) Net income |
Activity in Deferred Compensation Program | Activity in the deferred compensation program for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): Year Ended December 31: 2019 2018 2017 Shares Dollars Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of year $ 32 $ 37 $ 45 Reinvested dividends 2 2 2 Benefit payments (8 ) (7 ) (10 ) Balance at end of year $ 26 $ 32 $ 37 Treasury Stock: Balance at beginning of year (1 ) $ (32 ) (1 ) $ (37 ) (1 ) $ (45 ) Reinvested dividends — (2 ) — (2 ) — (2 ) Benefit payments 1 8 — 7 — 10 Balance at end of year — $ (26 ) (1 ) $ (32 ) (1 ) $ (37 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following is an analysis of options to purchase shares of class A common stock issued and outstanding: Shares (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2019 1,384 $ 95.36 Exercised (147 ) 69.33 Granted 261 111.68 Forfeited / Expired — — Outstanding at December 31, 2019 1,498 $ 100.74 6.37 $ 24 Options Vested and Expected to Vest 1,498 $ 100.74 6.37 $ 24 Exercisable at December 31, 2019 915 $ 96.12 5.25 $ 19 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | As of December 31, 2019 , we had the following outstanding Restricted Units, including reinvested dividends, granted under the MIP: Shares (in thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Nonvested at January 1, 2019 10,139 $ 104.47 Vested (5,100 ) 102.54 Granted 5,516 108.78 Reinvested Dividends 410 N/A Forfeited / Expired (226 ) 107.22 Nonvested at December 31, 2019 10,739 $ 106.94 0.71 $ 1,257 Restricted Units Expected to Vest 12,690 $ 106.59 0.74 $ 1,485 |
Share-based Payment Arrangement, Performance Shares, Outstanding Activity [Table Text Block] | As of December 31, 2019 , we had the following Restricted Units outstanding, including reinvested dividends, that were granted under our LTIP program: Shares (in thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Nonvested at January 1, 2019 1,701 $ 108.63 Vested (898 ) 106.12 Granted 974 107.30 Reinvested Dividends 83 N/A Forfeited / Expired (169 ) 108.60 Nonvested at December 31, 2019 1,691 $ 109.18 1.54 $ 198 Restricted Units Expected to Vest 1,677 $ 109.16 1.55 $ 196 |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | The following table summarizes information about stock options outstanding and exercisable at December 31, 2019 : Options Outstanding Options Exercisable Exercise Price Range Shares (in thousands) Weighted-Average Remaining Contractual Term (in years) Weighted-Average Exercise Price Shares (in thousands) Weighted-Average Exercise Price $65.01 - $80.00 157 1.52 $ 74.06 157 $ 74.06 $80.01 - $95.00 100 3.17 82.89 100 82.89 $95.01 - $110.00 985 6.75 103.93 635 103.09 $110.01 - $125.00 256 9.13 111.80 23 111.80 1,498 6.37 $ 100.74 915 $ 96.12 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted-average assumptions used by year, and the calculated weighted-average fair values of the RTSR portion of the grants, are as follows: 2019 2018 2017 Risk-free interest rate 2.23 % 2.61 % 1.46 % Expected volatility 19.64 % 16.51 % 16.59 % Weighted-average fair value of units granted $ 123.44 $ 137.57 $ 119.29 Share payout 115.04 % 123.47 % 113.55 % The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used, by year, and the calculated weighted-average fair values of options, are as follows: 2019 2018 2017 Expected dividend yield 2.94 % 2.93 % 2.89 % Risk-free interest rate 2.60 % 2.84 % 2.15 % Expected life in years 7.5 7.5 7.5 Expected volatility 17.79 % 16.72 % 17.81 % Weighted-average fair value of options granted $ 16.34 $ 15.23 $ 14.70 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Segment Information | Segment information for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): 2019 2018 2017 Revenue: U.S. Domestic Package $ 46,493 $ 43,593 $ 40,761 International Package 14,220 14,442 13,342 Supply Chain & Freight 13,381 13,826 12,482 Consolidated $ 74,094 $ 71,861 $ 66,585 Operating Profit: U.S. Domestic Package $ 4,164 $ 3,643 $ 4,303 International Package 2,657 2,529 2,429 Supply Chain & Freight 977 852 797 Consolidated $ 7,798 $ 7,024 $ 7,529 Assets: U.S. Domestic Package $ 32,795 $ 28,216 $ 25,449 International Package 14,044 12,070 10,361 Supply Chain & Freight 9,045 8,411 8,267 Unallocated 1,973 1,319 1,497 Consolidated $ 57,857 $ 50,016 $ 45,574 Depreciation and Amortization Expense: U.S. Domestic Package $ 1,520 $ 1,375 $ 1,479 International Package 547 526 509 Supply Chain & Freight 293 306 294 Consolidated $ 2,360 $ 2,207 $ 2,282 |
Revenue by Product Type | Revenue by product type for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): 2019 2018 2017 U.S. Domestic Package: Next Day Air $ 8,479 $ 7,618 $ 7,088 Deferred 5,180 4,752 4,422 Ground 32,834 31,223 29,251 Total U.S. Domestic Package 46,493 43,593 40,761 International Package: Domestic 2,836 2,874 2,646 Export 10,837 10,973 10,170 Cargo 547 595 526 Total International Package 14,220 14,442 13,342 Supply Chain & Freight: Forwarding 5,867 6,580 5,674 Logistics 3,435 3,234 3,017 Freight 3,265 3,218 3,000 Other 814 794 791 Total Supply Chain & Freight 13,381 13,826 12,482 Consolidated $ 74,094 $ 71,861 $ 66,585 |
Geographic Information | Geographic information for the years ended December 31, 2019 , 2018 and 2017 is as follows (in millions): 2019 2018 2017 United States: Revenue $ 58,699 $ 56,115 $ 52,080 Long-lived assets $ 27,976 $ 24,918 $ 21,141 International: Revenue $ 15,395 $ 15,746 $ 14,505 Long-lived assets $ 9,567 $ 8,577 $ 7,966 Consolidated: Revenue $ 74,094 $ 71,861 $ 66,585 Long-lived assets $ 37,543 $ 33,495 $ 29,107 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense Benefit | The income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 consists of the following (in millions): 2019 2018 2017 Current: U.S. Federal $ 570 $ 89 $ 671 U.S. State and Local 183 7 49 Non-U.S. 359 374 288 Total Current 1,112 470 1,008 Deferred: U.S. Federal 255 668 1,115 U.S. State and Local (93 ) 75 118 Non-U.S. (62 ) 15 (9 ) Total Deferred 100 758 1,224 Total Income Tax Expense $ 1,212 $ 1,228 $ 2,232 |
Income Before Income Taxes | Income before income taxes includes the following components (in millions): 2019 2018 2017 United States $ 3,972 $ 4,307 $ 5,987 Non-U.S. 1,680 1,712 1,150 Total Income Before Income Taxes: $ 5,652 $ 6,019 $ 7,137 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31, 2019 , 2018 and 2017 consists of the following: 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % U.S. state and local income taxes (net of federal benefit) 1.4 1.4 1.5 Non-U.S. tax rate differential 0.3 0.2 (2.0 ) U.S. federal tax credits (1.4 ) (1.1 ) (1.8 ) Income tax benefit from the Tax Cuts and Jobs Act and other non-U.S. tax law changes — — (3.6 ) Defined benefit plans mark-to-market charge tax rate differential (1) — — 1.5 Non-U.S. valuation allowance release (1.2 ) — — Other 1.3 (1.1 ) 0.7 Effective income tax rate 21.4 % 20.4 % 31.3 % |
Deferred Tax Liabilities and Assets | Deferred income tax assets and liabilities are comprised of the following at December 31, 2019 and 2018 (in millions): 2019 2018 Fixed assets and capitalized software $ (4,720 ) $ (4,010 ) Operating lease right-of-use assets (685 ) — Other (538 ) (493 ) Deferred tax liabilities (5,943 ) (4,503 ) Pension and postretirement benefits 2,522 1,743 Loss and credit carryforwards 328 298 Insurance reserves 413 437 Stock compensation 249 189 Accrued employee compensation 287 274 Operating lease liabilities 691 — Other 205 196 Deferred tax assets 4,695 3,137 Deferred tax assets valuation allowance (54 ) (112 ) Deferred tax asset (net of valuation allowance) 4,641 3,025 Net deferred tax asset (liability) $ (1,302 ) $ (1,478 ) Amounts recognized in the consolidated balance sheets: Deferred tax assets $ 330 $ 141 Deferred tax liabilities (1,632 ) (1,619 ) Net deferred tax asset (liability) $ (1,302 ) $ (1,478 ) |
U.S. State and Local Operating Loss and Credit Carryforwards | , we have U.S. state and local operating loss and credit carryforwards as follows (in millions): 2019 2018 U.S. state and local operating loss carryforwards $ 1,374 $ 1,014 U.S. state and local credit carryforwards $ 110 $ 80 |
Summarized Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our uncertain tax positions (in millions): Tax Interest Penalties Balance at January 1, 2017 $ 144 $ 50 $ 6 Additions for tax positions of the current year 16 — — Additions for tax positions of prior years 33 14 3 Reductions for tax positions of prior years for: Changes based on facts and circumstances (24 ) (18 ) — Settlements during the period (6 ) (3 ) — Lapses of applicable statute of limitations (3 ) — — Balance at December 31, 2017 160 43 9 Additions for tax positions of the current year 47 — 1 Additions for tax positions of prior years 7 10 — Reductions for tax positions of prior years for: Changes based on facts and circumstances (43 ) (8 ) (5 ) Settlements during the period (1 ) (1 ) — Lapses of applicable statute of limitations (3 ) — — Balance at December 31, 2018 167 44 5 Additions for tax positions of the current year 6 — — Additions for tax positions of prior years 51 13 — Reductions for tax positions of prior years for: Changes based on facts and circumstances (45 ) (4 ) (1 ) Settlements during the period (3 ) (1 ) — Lapses of applicable statute of limitations (4 ) — — Balance at December 31, 2019 $ 172 $ 52 $ 4 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share amounts): 2019 2018 2017 Numerator: Net income attributable to common shareowners $ 4,440 $ 4,791 $ 4,905 Denominator: Weighted-average shares 859 860 865 Deferred compensation obligations — 1 1 Vested portion of restricted shares 5 5 5 Denominator for basic earnings per share 864 866 871 Effect of Dilutive Securities: Restricted performance units 5 4 3 Stock options — — 1 Denominator for diluted earnings per share 869 870 875 Basic Earnings Per Share $ 5.14 $ 5.53 $ 5.63 Diluted Earnings Per Share $ 5.11 $ 5.51 $ 5.61 |
DERIVATIVE INSTRUMENTS AND RI_2
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position | 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 years ended December 31, 2019 and 2018 (in millions): Year Ended December 31, Year Ended December 31, 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 $ — $ (38 ) $ — $ — $ 57 $ — Derivatives designated as hedging instruments — 38 — — (57 ) — Gains or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (15 ) — — (24 ) — Foreign Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 177 — — (50 ) — — 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 $ 177 $ (15 ) $ — $ (50 ) $ (24 ) $ — |
Notional Amounts of Outstanding Derivative Positions | The notional amounts of our outstanding derivative positions were as follows as of December 31, 2019 and 2018 (in millions): 2019 2018 Currency Hedges: Euro EUR 4,571 4,924 British Pound Sterling GBP 1,494 2,037 Canadian Dollar CAD 1,402 1,443 Hong Kong Dollar HKD 3,327 3,642 Singapore Dollar SGD — 20 Interest Rate Hedges: Fixed to Floating Interest Rate Swaps USD 3,674 4,674 Floating to Fixed Interest Rate Swaps USD 778 778 |
Balance sheet location of derivative assets and liabilities and their related fair values | 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. Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Asset Derivatives Balance Sheet Location Fair Value Hierarchy Level 2019 2018 2019 2018 Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 138 $ 90 $ 131 $ 83 Interest rate contracts Other current assets Level 2 2 1 2 1 Foreign exchange contracts Other non-current assets Level 2 252 230 236 215 Interest rate contracts Other non-current assets Level 2 21 14 20 6 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 7 7 7 5 Foreign exchange contracts Other non-current assets Level 2 — 1 — 1 Interest rate contracts Other non-current assets Level 2 12 18 11 18 Total Asset Derivatives $ 432 $ 361 $ 407 $ 329 Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Liability Derivatives Balance Sheet Location Fair Value Hierarchy Level 2019 2018 2019 2018 Derivatives designated as hedges: Foreign exchange contracts Other current liabilities Level 2 $ 7 $ 7 $ — $ — Foreign exchange contracts Other non-current liabilities Level 2 16 15 — — Interest rate contracts Other non-current liabilities Level 2 11 41 10 33 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 — 3 — 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 $ 37 $ 67 $ 12 $ 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 December 31, 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 December 31, 2019 December 31, 2019 December 31, 2018 December 31, 2018 Long-Term Debt and Finance Leases 3,234 40 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 years ended December 31, 2019 and 2018 for those derivatives designated as cash flow hedges (in millions): Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2019 2018 Interest rate contracts $ 6 $ 1 Foreign exchange contracts 250 563 Total $ 256 $ 564 The following table indicates the amount of gains and losses that have been recognized in AOCI within foreign currency translation adjustment for the years ended December 31, 2019 and 2018 for those instruments designated as net investment hedges (in millions): Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2019 2018 Foreign denominated debt $ 75 $ 211 Total $ 75 $ 211 |
Not Designated as Hedging Instrument | |
Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges | 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 years ended December 31, 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 Interest rate contracts Interest expense $ (9 ) $ (9 ) Foreign exchange contracts Investment income and other (1 ) (102 ) Investment market price contracts Investment income and other — 16 Total $ (10 ) $ (95 ) |
TRANSFORMATION STRATEGY COSTS (
TRANSFORMATION STRATEGY COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below presents the transformation strategy costs for the years ended December 31, 2019 and 2018 (in millions): Year Ended December 31, Transformation Strategy Costs 2019 2018 Compensation and benefits $ 166 $ 262 Total other expenses 89 98 Total Transformation Strategy Costs $ 255 $ 360 Income Tax Benefit from Transformation Strategy Costs (59 ) (87 ) After Tax Transformation Strategy Costs $ 196 $ 273 |
QUARTERLY INFORMATION (unaudi_2
QUARTERLY INFORMATION (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Our revenue, segment operating profit, other income and (expense), net income, basic and diluted earnings per share on a quarterly basis are presented below (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2019 2018 2019 2018 2019 2018 2019 2018 Revenue: U.S. Domestic Package $ 10,480 $ 10,227 $ 11,150 $ 10,354 $ 11,455 $ 10,437 $ 13,408 $ 12,575 International Package 3,459 3,533 3,505 3,602 3,494 3,478 3,762 3,829 Supply Chain & Freight 3,221 3,353 3,393 3,500 3,369 3,529 3,398 3,444 Total revenue 17,160 17,113 18,048 17,456 18,318 17,444 20,568 19,848 Operating Profit: U.S. Domestic Package 666 756 1,208 939 1,216 949 1,074 999 International Package 528 594 663 618 667 536 799 781 Supply Chain & Freight 200 170 272 216 245 242 260 224 Total operating profit 1,394 1,520 2,143 1,773 2,128 1,727 2,133 2,004 Total Other Income and (Expense) $ 46 $ 141 $ 61 $ 153 $ 78 $ 162 $ (2,331 ) $ (1,461 ) Net Income $ 1,111 $ 1,345 $ 1,685 $ 1,485 $ 1,750 $ 1,508 $ (106 ) $ 453 Net Income Per Share: Basic $ 1.28 $ 1.55 $ 1.95 $ 1.71 $ 2.03 $ 1.74 $ (0.12 ) $ 0.52 Diluted $ 1.28 $ 1.55 $ 1.94 $ 1.71 $ 2.01 $ 1.73 $ (0.12 ) $ 0.52 Our quarterly results were impacted by transformation strategy costs, legal contingencies and expenses and defined benefit plan mark-to-market charges. The table below presents the impact on operating profit and other income and (expense) for each period. (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2019 2018 2019 2018 2019 2018 2019 2018 Impact to Operating Profit Transformation Strategy - Employee Benefits $ 106 $ — $ 2 $ 192 $ 41 $ 70 $ 17 $ — Transformation Strategy - Other Costs 17 — 19 71 22 27 31 — Legal Contingencies and Expenses — — — — — — 97 — Allocation of Matters Impacting Operating Profit to Segments U.S. Domestic Package $ 28 — 18 196 26 39 133 — International Package 84 — 2 36 26 40 10 — Supply Chain & Freight 11 — 1 31 11 18 2 — Impact to Other Income and (Expense) Defined Benefit Plan Mark-to-Market Charges $ — $ — $ — $ — $ — $ — $ 2,387 $ 1,627 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||||||||||
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
U.S. Domestic Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 58,699 | 56,115 | 52,080 | ||||||||
International Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 15,395 | 15,746 | 14,505 | ||||||||
Next Day Air | U.S. Domestic Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 8,479 | 7,618 | 7,088 | ||||||||
Deferred | U.S. Domestic Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 5,180 | 4,752 | 4,422 | ||||||||
Ground | U.S. Domestic Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 32,834 | 31,223 | 29,251 | ||||||||
Domestic | International Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 2,836 | 2,874 | 2,646 | ||||||||
Export | International Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 10,837 | 10,973 | 10,170 | ||||||||
Cargo & Other | International Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 547 | 595 | 526 | ||||||||
Forwarding | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 5,867 | 6,580 | 5,674 | ||||||||
Logistics | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 3,435 | 3,234 | 3,017 | ||||||||
Freight | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 3,265 | 3,218 | 3,000 | ||||||||
Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 814 | 794 | 791 | ||||||||
U.S. Domestic Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 46,493 | 43,593 | 40,761 | ||||||||
U.S. Domestic Package | U.S. Domestic Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 46,493 | 43,593 | 40,761 | ||||||||
Supply Chain & Freight | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 13,381 | 13,826 | 12,482 | ||||||||
Supply Chain & Freight | Supply Chain & Freight | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | 13,381 | 13,826 | 12,482 | ||||||||
International Package | |||||||||||
Disaggregation of Revenue | |||||||||||
Revenue | $ 14,220 | $ 14,442 | $ 13,342 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Allowance for receivables | $ 93 | $ 94 |
Provisions for doubtful receivables | 194 | 118 |
Contract assets | 272 | 234 |
Deferred revenue | 264 | 236 |
Contract liability, current | 7 | 5 |
Contract liability, noncurrent | $ 26 | $ 26 |
SUMMARY OF ACCOUNTING POLICIE_3
SUMMARY OF ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
Significant Accounting Policies [Line Items] | ||||||||||||||
Investments and Restricted Cash | $ 24 | $ 170 | $ 24 | $ 170 | ||||||||||
Provision for doubtful accounts expense | 194 | 118 | ||||||||||||
Inventories | 511 | 421 | 511 | 421 | ||||||||||
Capitalized interest | $ 91 | 97 | ||||||||||||
Net actuarial gains or losses in excess of market-related value of plan assets or the plans' projected benefit obligations | 10.00% | |||||||||||||
Net currency transaction gains and (losses), pre-tax | $ (6) | (19) | $ 3 | |||||||||||
Income tax benefit | (1,212) | (1,228) | (2,232) | |||||||||||
Decrease in other financing activities | 1,727 | 5,692 | (3,287) | |||||||||||
Increase in operating activities | 8,639 | 12,711 | 1,479 | |||||||||||
Operating lease, future minimal payments | 2,967 | 2,967 | ||||||||||||
Revenues | (20,568) | $ (18,318) | $ (18,048) | $ (17,160) | (19,848) | $ (17,444) | $ (17,456) | $ (17,113) | (74,094) | (71,861) | (66,585) | |||
Costs and Expenses | 66,296 | 64,837 | 59,056 | |||||||||||
Retained earnings | 9,105 | 8,006 | 9,105 | 8,006 | ||||||||||
Decrease to AOCI | 5,997 | 4,994 | 5,997 | 4,994 | 4,867 | |||||||||
Net Income | (106) | $ 1,750 | $ 1,685 | $ 1,111 | 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | 4,791 | 4,905 | |||
Nominal vesting period | 3 years | |||||||||||||
Operating Lease, Right-of-Use Asset | 2,856 | $ 2,856 | $ 2,650 | |||||||||||
Operating lease liability | 2,929 | 2,929 | $ 2,700 | |||||||||||
Licenses | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Indefinite-lived intangible assets | 4 | 4 | ||||||||||||
Trade Names | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Indefinite-lived intangible assets | 200 | 200 | ||||||||||||
Self Insurance Assumptions | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Costs and Expenses | (94) | |||||||||||||
Net Income | $ 72 | |||||||||||||
Earnings Per Share, Basic and Diluted | $ 0.08 | |||||||||||||
Minimum | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Employee share-based awards, Vesting Period | 1 year | |||||||||||||
Minimum | Other Intangible Assets | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Finite-lived intangible assets, estimated useful lives range, Minimum | 2 years | |||||||||||||
Minimum | Capitalized software | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Finite-lived intangible assets, estimated useful lives range, Minimum | 7 years | |||||||||||||
Minimum | Vehicles | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 6 years | |||||||||||||
Minimum | Aircraft | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 12 years | |||||||||||||
Minimum | Buildings | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 20 years | |||||||||||||
Minimum | Plant Equipment | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 3 years | |||||||||||||
Minimum | Technology equipment | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 3 years | |||||||||||||
Maximum | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Employee share-based awards, Vesting Period | 5 years | |||||||||||||
Maximum | Other Intangible Assets | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Finite-lived intangible assets, estimated useful lives range, Minimum | 22 years | |||||||||||||
Maximum | Vehicles | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 15 years | |||||||||||||
Maximum | Aircraft | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 40 years | |||||||||||||
Maximum | Buildings | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 40 years | |||||||||||||
Maximum | Plant Equipment | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 20 years | |||||||||||||
Maximum | Technology equipment | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, estimated useful lives range | 5 years | |||||||||||||
Self-insurance requirements [Member] | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Investments and Restricted Cash | 0 | 142 | $ 0 | 142 | ||||||||||
cash held in escrow [Member] | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Restricted Cash and Cash Equivalents, Noncurrent | $ 3 | $ 9 | 3 | 9 | ||||||||||
Adjustments | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Income tax benefit | $ 71 | |||||||||||||
Adjustments | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Retained earnings | $ 735 | |||||||||||||
Decrease to AOCI | $ 735 | |||||||||||||
Net Income | $ (120) | $ 23 | ||||||||||||
Earnings Per Share, Basic and Diluted | $ (0.14) | $ 0.03 |
SUMMARY OF ACCOUNTING POLICIE_4
SUMMARY OF ACCOUNTING POLICIES - Balance Sheet Impact (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | |||
Other current assets | $ 1,428 | $ 1,277 | |
Total Current Assets | 17,103 | 16,210 | |
Deferred income tax assets | 330 | 141 | |
Total Assets | 57,857 | 50,016 | $ 45,574 |
Liabilities: | |||
Accounts payable | 5,555 | 5,188 | |
Accrued wages and withholdings | 2,552 | 3,047 | |
Total Current Liabilities | 15,413 | 14,087 | |
Deferred income tax liabilities | 1,632 | 1,619 | |
Shareowners' Equity: | |||
Retained earnings | 9,105 | 8,006 | |
Total Shareowners’ Equity | 3,283 | 3,037 | |
Total Liabilities and Shareowners’ Equity | $ 57,857 | $ 50,016 |
SUMMARY OF ACCOUNTING POLICIE_5
SUMMARY OF ACCOUNTING POLICIES - Income Statement Impact (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
Operating Expenses: | |||||||||||
Compensation and benefits | 38,908 | 37,235 | 34,577 | ||||||||
Depreciation and amortization | 2,360 | 2,207 | 2,282 | ||||||||
Fuel | 3,289 | 3,427 | 2,690 | ||||||||
Other occupancy | 1,392 | 1,362 | 1,155 | ||||||||
Other expenses | 5,919 | 5,465 | 5,055 | ||||||||
Total Operating Expenses | 66,296 | 64,837 | 59,056 | ||||||||
Operating Profit | 2,133 | 2,128 | 2,143 | 1,394 | 2,004 | 1,727 | 1,773 | 1,520 | 7,798 | 7,024 | 7,529 |
Other Income and (Expense): | |||||||||||
Investment income (expense) and other | (1,493) | (400) | 61 | ||||||||
Interest expense | (653) | (605) | (453) | ||||||||
Total Other Income and (Expense) | (2,331) | 78 | 61 | 46 | (1,461) | 162 | 153 | 141 | (2,146) | (1,005) | (392) |
Income Before Income Taxes | 5,652 | 6,019 | 7,137 | ||||||||
Income Tax Expense | 1,212 | 1,228 | 2,232 | ||||||||
Net Income | $ (106) | $ 1,750 | $ 1,685 | $ 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | $ 4,791 | $ 4,905 |
Basic Earnings Per Share (in dollars per share) | $ (0.12) | $ 2.03 | $ 1.95 | $ 1.28 | $ 0.52 | $ 1.74 | $ 1.71 | $ 1.55 | $ 5.14 | $ 5.53 | $ 5.63 |
Diluted Earnings Per Share (in dollars per share) | $ (0.12) | $ 2.01 | $ 1.94 | $ 1.28 | $ 0.52 | $ 1.73 | $ 1.71 | $ 1.55 | $ 5.11 | $ 5.51 | $ 5.61 |
As Previously Reported | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 65,872 | ||||||||||
Operating Expenses: | |||||||||||
Compensation and benefits | 34,588 | ||||||||||
Depreciation and amortization | 2,282 | ||||||||||
Fuel | 2,690 | ||||||||||
Other occupancy | 1,155 | ||||||||||
Other expenses | 5,039 | ||||||||||
Total Operating Expenses | 58,343 | ||||||||||
Operating Profit | 7,529 | ||||||||||
Other Income and (Expense): | |||||||||||
Investment income (expense) and other | 72 | ||||||||||
Interest expense | (453) | ||||||||||
Total Other Income and (Expense) | (381) | ||||||||||
Income Before Income Taxes | 7,148 | ||||||||||
Income Tax Expense | 2,238 | ||||||||||
Net Income | $ 4,910 | ||||||||||
Basic Earnings Per Share (in dollars per share) | $ 5.64 | ||||||||||
Diluted Earnings Per Share (in dollars per share) | $ 5.61 | ||||||||||
Adjustments | |||||||||||
Other Income and (Expense): | |||||||||||
Income Tax Expense | $ (71) | ||||||||||
ASU 2014-09 | Adjustments | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | 713 | ||||||||||
Operating Expenses: | |||||||||||
Other expenses | 16 | ||||||||||
Total Operating Expenses | 724 | ||||||||||
Operating Profit | (11) | ||||||||||
Other Income and (Expense): | |||||||||||
Income Before Income Taxes | (11) | ||||||||||
Income Tax Expense | (6) | ||||||||||
Net Income | $ (5) | ||||||||||
Basic Earnings Per Share (in dollars per share) | $ (0.01) | ||||||||||
Diluted Earnings Per Share (in dollars per share) | $ 0 | ||||||||||
ASU 2017-07 | Adjustments | |||||||||||
Operating Expenses: | |||||||||||
Compensation and benefits | $ (11) | ||||||||||
Total Operating Expenses | (11) | ||||||||||
Operating Profit | 11 | ||||||||||
Other Income and (Expense): | |||||||||||
Investment income (expense) and other | (11) | ||||||||||
Total Other Income and (Expense) | (11) | ||||||||||
Repairs and maintenance | |||||||||||
Other Income and (Expense): | |||||||||||
Repairs and maintenance | $ 1,838 | $ 1,732 | 1,601 | ||||||||
Repairs and maintenance | As Previously Reported | |||||||||||
Other Income and (Expense): | |||||||||||
Repairs and maintenance | 1,600 | ||||||||||
Repairs and maintenance | ASU 2014-09 | Adjustments | |||||||||||
Other Income and (Expense): | |||||||||||
Repairs and maintenance | 1 | ||||||||||
Purchased transportation | |||||||||||
Other Income and (Expense): | |||||||||||
Repairs and maintenance | $ 12,590 | $ 13,409 | 11,696 | ||||||||
Purchased transportation | As Previously Reported | |||||||||||
Other Income and (Expense): | |||||||||||
Repairs and maintenance | 10,989 | ||||||||||
Purchased transportation | ASU 2014-09 | Adjustments | |||||||||||
Other Income and (Expense): | |||||||||||
Repairs and maintenance | $ 707 |
SUMMARY OF ACCOUNTING POLICIE_6
SUMMARY OF ACCOUNTING POLICIES - Cash Flows Impact (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net Income | $ (106) | $ 1,750 | $ 1,685 | $ 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | $ 4,791 | $ 4,905 |
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Deferred tax (benefit) expense | 100 | 758 | 1,224 | ||||||||
Other assets | 698 | 754 | (984) | ||||||||
Accounts payable | 419 | 1,034 | 599 | ||||||||
Accrued wages and withholdings | (446) | 505 | 200 | ||||||||
Other liabilities | 182 | 170 | (243) | ||||||||
Other operating activities | 20 | 16 | 48 | ||||||||
Net cash from operating activities | 8,639 | 12,711 | 1,479 | ||||||||
Purchases of marketable securities | (561) | (973) | (1,630) | ||||||||
Net cash (used in) investing activities | (6,061) | (6,330) | (4,971) | ||||||||
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash | 871 | 598 | (152) | ||||||||
Beginning of period | $ 4,367 | 3,769 | 4,367 | 3,769 | 3,921 | ||||||
End of period | $ 5,238 | $ 4,367 | $ 5,238 | 4,367 | 3,769 | ||||||
As previously reported | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net Income | 4,910 | ||||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Deferred tax (benefit) expense | 1,230 | ||||||||||
Other assets | (982) | ||||||||||
Accounts payable | 592 | ||||||||||
Accrued wages and withholdings | 193 | ||||||||||
Other liabilities | (241) | ||||||||||
Other operating activities | 47 | ||||||||||
Net cash from operating activities | 1,479 | ||||||||||
Purchases of marketable securities | (1,634) | ||||||||||
Net cash (used in) investing activities | (4,975) | ||||||||||
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash | (156) | ||||||||||
Beginning of period | 3,320 | 3,320 | 3,476 | ||||||||
End of period | 3,320 | ||||||||||
ASU 2014-09 | Adjustments | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net Income | (5) | ||||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Deferred tax (benefit) expense | (6) | ||||||||||
Other assets | (2) | ||||||||||
Accounts payable | 7 | ||||||||||
Accrued wages and withholdings | 7 | ||||||||||
Other liabilities | (2) | ||||||||||
Other operating activities | 1 | ||||||||||
Accounting Standards Update 2016-18 [Member] | Adjustments | |||||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Purchases of marketable securities | 4 | ||||||||||
Net cash (used in) investing activities | 4 | ||||||||||
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash | 4 | ||||||||||
Beginning of period | $ 449 | $ 449 | 445 | ||||||||
End of period | $ 449 |
INVESTMENTS AND RESTRICTED CA_3
INVESTMENTS AND RESTRICTED CASH - Summary of Marketable Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, Amortized Cost | $ 114 | $ 139 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 114 | 139 |
Available-for-sale Securities, Amortized Cost Basis | 383 | 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 | 389 | 671 |
Marketable Securities, Amortized Cost, Total | 497 | 813 |
Marketable Securities, Gross Unrealized Gain | 6 | 1 |
Marketable Securities, Gross Unrealized Loss | 0 | (4) |
Marketable securities | 503 | 810 |
U.S. government and agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 191 | 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 | 193 | 297 |
Mortgage and asset-backed debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 46 | 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 | 47 | 81 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, Amortized Cost | 112 | 137 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 112 | 137 |
Available-for-sale Securities, Amortized Cost Basis | 130 | 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 | 133 | 273 |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, Amortized Cost | 2 | 2 |
Debt Securities, Trading, and Equity Securities, FV-NI | 2 | 2 |
Non-U.S. government debt securities | ||
Debt Securities, Available-for-sale [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 |
INVESTMENTS AND RESTRICTED CA_4
INVESTMENTS AND RESTRICTED CASH - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Marketable securities pledged as collateral | $ 389,000,000 | $ 587,000,000 | |
Debt Securities, Trading, and Equity Securities, FV-NI | 114,000,000 | 139,000,000 | |
Gross realized gains on sales of marketable securities | 8,000,000 | ||
Gross realized losses on sales of marketable securities | 2,000,000 | 4,000,000 | $ 2,000,000 |
Impairment charge | 0 | 0 | $ 0 |
Investments and Restricted Cash | 24,000,000 | 170,000,000 | |
Variable Life Insurance Policy [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Investments and Restricted Cash | 21,000,000 | 19,000,000 | |
cash held in escrow [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Restricted Cash and Cash Equivalents, Noncurrent | $ 3,000,000 | $ 9,000,000 | |
Measurement Input, Discount Rate [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Weighted average discount rate | 7.40% | 8.16% |
INVESTMENTS AND RESTRICTED CA_5
INVESTMENTS AND RESTRICTED CASH - Age of Gross Unrealized Losses and Fair Value by Investment Category (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Gain (Loss) on Securities [Line Items] | |
Less Than 12 Months Fair Value | $ 60 |
Less Than 12 Months Unrealized Losses | 0 |
12 Months or More Fair Value | 9 |
12 Months or More Unrealized Losses | 0 |
Total Fair Value | 69 |
Total Unrealized Losses | 0 |
U.S. government and agency debt securities | |
Gain (Loss) on Securities [Line Items] | |
Less Than 12 Months Fair Value | 42 |
Less Than 12 Months Unrealized Losses | 0 |
12 Months or More Fair Value | 0 |
12 Months or More Unrealized Losses | 0 |
Total Fair Value | 42 |
Total Unrealized Losses | 0 |
Mortgage and asset-backed debt securities | |
Gain (Loss) on Securities [Line Items] | |
Less Than 12 Months Fair Value | 3 |
Less Than 12 Months Unrealized Losses | 0 |
12 Months or More Fair Value | 5 |
12 Months or More Unrealized Losses | 0 |
Total Fair Value | 8 |
Total Unrealized Losses | 0 |
Corporate debt securities | |
Gain (Loss) on Securities [Line Items] | |
Less Than 12 Months Fair Value | 6 |
Less Than 12 Months Unrealized Losses | 0 |
12 Months or More Fair Value | 2 |
12 Months or More Unrealized Losses | 0 |
Total Fair Value | 8 |
Total Unrealized Losses | 0 |
Non-U.S. government debt securities | |
Gain (Loss) on Securities [Line Items] | |
Less Than 12 Months Fair Value | 9 |
Less Than 12 Months Unrealized Losses | 0 |
12 Months or More Fair Value | 2 |
12 Months or More Unrealized Losses | 0 |
Total Fair Value | 11 |
Total Unrealized Losses | $ 0 |
INVESTMENTS AND RESTRICTED CA_6
INVESTMENTS AND RESTRICTED CASH - Cash Details (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 5,238 | $ 4,225 | $ 3,320 | |
Restricted cash | 0 | 142 | 449 | |
Total cash, cash equivalents and restricted cash | $ 5,238 | $ 4,367 | $ 3,769 | $ 3,921 |
- Amortized Cost and Estimated
- Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cost | ||
Marketable Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 118 | |
Due after one year through three years | 328 | |
Due after three years through five years | 6 | |
Marketable Securities, Debt Maturities, After Five Years, Amortized Cost Basis | 43 | |
Marketable Securities, Debt Maturities, Amortized Cost, Total | 495 | |
Equity securities | 2 | |
Marketable Securities, Amortized Cost, Total | 497 | $ 813 |
Estimated Fair Value | ||
Due in one year or less | 118 | |
Due after one year through three years | 332 | |
Due after three years through five years | 6 | |
Due after five years | 45 | |
Marketable Securities, Debt Maturities, Fair Value, Total | 501 | |
Equity securities | 2 | |
Marketable securities | 503 | 810 |
Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 525 | 831 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 214 | 316 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 310 | 513 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 1 | 2 |
Marketable securities | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 503 | 810 |
Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 193 | 297 |
Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 310 | 513 |
Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Other Long-term Investments | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 22 | 21 |
Other Long-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 21 | 19 |
Other Long-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Other Long-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 1 | 2 |
U.S. government and agency debt securities | Marketable securities | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 193 | 297 |
U.S. government and agency debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 193 | 297 |
U.S. government and agency debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
U.S. government and agency debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Mortgage and asset-backed debt securities | Marketable securities | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 47 | 81 |
Mortgage and asset-backed debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Mortgage and asset-backed debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 47 | 81 |
Mortgage and asset-backed debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Corporate debt securities | Marketable securities | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 245 | 410 |
Corporate debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Corporate debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 245 | 410 |
Corporate debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Equity securities | Marketable securities | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 2 | 2 |
Equity securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Equity securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 2 | 2 |
Equity securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Non-U.S. government debt securities | Marketable securities | Fair Value, Measurements, Recurring | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 16 | 20 |
Non-U.S. government debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 0 | 0 |
Non-U.S. government debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | 16 | 20 |
Non-U.S. government debt securities | Marketable securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Estimated Fair Value | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 59,727,000,000 | $ 54,488,000,000 |
Less: Accumulated depreciation and amortization | (29,245,000,000) | (27,912,000,000) |
Property, plant and equipment, net | 30,482,000,000 | 26,576,000,000 |
Asset impairment charges | 0 | 0 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,613,000,000 | 9,820,000,000 |
Aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19,045,000,000 | 17,499,000,000 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,087,000,000 | 2,000,000,000 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,046,000,000 | 4,808,000,000 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,898,000,000 | 4,323,000,000 |
Plant equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,849,000,000 | 11,833,000,000 |
Technology equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,206,000,000 | 2,093,000,000 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,983,000,000 | $ 2,112,000,000 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 212 | ||||||||||
Operating profit (loss) | $ 2,133 | $ 2,128 | $ 2,143 | $ 1,394 | $ 2,004 | $ 1,727 | $ 1,773 | $ 1,520 | 7,798 | $ 7,024 | $ 7,529 |
Net income attributable to common shareowners | $ (106) | $ 1,750 | $ 1,685 | $ 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | $ 4,791 | $ 4,905 |
Basic Earnings Per Share (in dollars per share) | $ (0.12) | $ 2.03 | $ 1.95 | $ 1.28 | $ 0.52 | $ 1.74 | $ 1.71 | $ 1.55 | $ 5.14 | $ 5.53 | $ 5.63 |
Diluted Earnings Per Share (in dollars per share) | $ (0.12) | $ 2.01 | $ 1.94 | $ 1.28 | $ 0.52 | $ 1.73 | $ 1.71 | $ 1.55 | $ 5.11 | $ 5.51 | $ 5.61 |
Adjustments | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 153 | $ (29) | |||||||||
Net income attributable to common shareowners | $ (120) | $ 23 | |||||||||
Earnings Per Share, Basic and Diluted | $ (0.14) | $ 0.03 | |||||||||
Adjustments | Investment Property | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 365 | ||||||||||
Net income attributable to common shareowners | $ (287) | ||||||||||
Earnings Per Share, Basic and Diluted | $ (0.33) | ||||||||||
Adjustments | Adjustments To Useful Life | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Net income attributable to common shareowners | $ 167 | ||||||||||
Earnings Per Share, Basic and Diluted | $ 0.19 | ||||||||||
Adjustments | Transformation Assets | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ (286) | ||||||||||
Operating profit (loss) | 286 | ||||||||||
Net income attributable to common shareowners | $ 228 | ||||||||||
Basic Earnings Per Share (in dollars per share) | $ 0.26 | ||||||||||
Adjustments | Capital Investments | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ (257) | ||||||||||
Net income attributable to common shareowners | $ (205) | ||||||||||
Earnings Per Share, Basic and Diluted | $ (0.24) |
COMPANY-SPONSORED EMPLOYEE BE_3
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)Employee | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Employee$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined benefit plan net actuarial loss | $ 8,040,000,000 | $ 3,174,000,000 | ||||||||||
Discount rate | 3.55% | 4.45% | 3.81% | |||||||||
Actuarial Gain Loss Corridor Threshold | 10.00% | |||||||||||
Return on plan assets | 2.75% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Target Award Maximum, Percentage | 200.00% | |||||||||||
Number of covered persons | Employee | 18,800 | 18,800 | ||||||||||
Lump Sum Pension Payments | $ 820,000,000 | |||||||||||
Pension and postretirement benefit expense | $ 3,141,000,000 | $ 2,242,000,000 | $ 1,643,000,000 | |||||||||
Health care cost trends, initial annual rate increase | 6.50% | 6.50% | ||||||||||
Health care cost trends, an ultimate trend rate | 4.50% | 4.50% | ||||||||||
Accumulated benefit obligation for pension plans | $ 57,553,000,000 | $ 45,704,000,000 | $ 57,553,000,000 | 45,704,000,000 | ||||||||
Employer contributions | 2,362,000,000 | 186,000,000 | 7,794,000,000 | |||||||||
Fair value of plan assets | 47,767,000,000 | 40,864,000,000 | $ 47,767,000,000 | $ 40,864,000,000 | ||||||||
Plan assets target allocation | 100.00% | 100.00% | ||||||||||
Decreas in projected benefit obligation | $ 900,000,000 | |||||||||||
Change in unrecognized pension and postretirement benefit costs, net of tax | 1,129,000,000 | $ (272,000,000) | 148,000,000 | |||||||||
Net Income | (106,000,000) | $ 1,750,000,000 | $ 1,685,000,000 | $ 1,111,000,000 | 453,000,000 | $ 1,508,000,000 | $ 1,485,000,000 | $ 1,345,000,000 | 4,440,000,000 | 4,791,000,000 | $ 4,905,000,000 | |
Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Employer contributions | 27,000,000 | 23,000,000 | ||||||||||
U.S. Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Discount rate | 0.32% | |||||||||||
Postretirement Medical Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Employer contributions | 82,000,000 | 87,000,000 | ||||||||||
International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Fair value of plan assets | 1,558,000,000 | 1,284,000,000 | 1,558,000,000 | 1,284,000,000 | ||||||||
International Pension Benefits | Cash and Cash Equivalents [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Fair value of plan assets | $ 72,000,000 | $ 45,000,000 | 72,000,000 | 45,000,000 | ||||||||
International Pension Benefits | Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined benefit plan, curtailment | 0 | 0 | $ 2,000,000 | |||||||||
Defined benefit plan net actuarial loss | $ (213,000,000) | $ 81,000,000 | ||||||||||
Discount rate | 2.94% | 2.78% | 2.75% | |||||||||
Discount rate | 2.21% | 2.94% | 2.21% | 2.94% | ||||||||
Projected benefit obligation, Projected Benefit Obligation Exceeds the Fair Value of the Plan Assets | $ 1,319,000,000 | $ 630,000,000 | $ 1,319,000,000 | $ 630,000,000 | ||||||||
Pension obligations | 377,000,000 | 299,000,000 | 377,000,000 | 299,000,000 | ||||||||
Fair value of plan assets | 1,558,000,000 | 1,284,000,000 | 1,558,000,000 | 1,284,000,000 | $ 1,333,000,000 | |||||||
Fixed Income Securities [Member] | International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Fair value of plan assets | 381,000,000 | 324,000,000 | 381,000,000 | 324,000,000 | ||||||||
Equity securities | International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Fair value of plan assets | 730,000,000 | 586,000,000 | 730,000,000 | 586,000,000 | ||||||||
Other Investments [Member] | Private Equity and Real Estate | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Unfunded commitments to limited partnerships | 2,241,000,000 | 2,241,000,000 | ||||||||||
Other Investments [Member] | International Pension Benefits | Other | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Fair value of plan assets | 247,000,000 | 208,000,000 | 247,000,000 | 208,000,000 | ||||||||
Other Investments [Member] | International Pension Benefits | Structured Products | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Fair value of plan assets | $ 128,000,000 | $ 121,000,000 | 128,000,000 | 121,000,000 | ||||||||
Change in Assumptions for Defined Benefit Plans [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Change in unrecognized pension and postretirement benefit costs, net of tax | 810,000,000 | |||||||||||
Net Income | $ 616,000,000 | |||||||||||
Earnings Per Share, Basic and Diluted | $ / shares | $ 0.71 | |||||||||||
Employee Defined Contribution Plans [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Contributions charged to expense | $ 130,000,000 | 127,000,000 | 119,000,000 | |||||||||
Pension and postretirement benefit expense | 67,000,000 | 28,000,000 | 23,000,000 | |||||||||
Defined Contribution Money Purchase Plans [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Contributions charged to expense | $ 97,000,000 | $ 92,000,000 | $ 91,000,000 | |||||||||
Discounted Employee Stock Purchase Modified Plan [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Price Percentage Of Closing Price Of Another Class Of Stock | 95.00% | 95.00% | ||||||||||
Minimum | U.S. Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Postretirement medical plans service minimum eligibility year | 10 years | |||||||||||
Postretirement medical plans service minimum eligibility age | 55 years | |||||||||||
Minimum | International Pension Benefits | Cash and Cash Equivalents [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
Minimum | Fixed Income Securities [Member] | International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 25.00% | 25.00% | 25.00% | 25.00% | ||||||||
Minimum | Equity securities | International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 30.00% | 30.00% | 30.00% | 30.00% | ||||||||
Minimum | Other Investments [Member] | Private Equity and Real Estate | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Redemption notice period, lower limit | 10 years | |||||||||||
Minimum | Other Investments [Member] | International Pension Benefits | Other | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 0.00% | 1.00% | 0.00% | 1.00% | ||||||||
Minimum | Other Investments [Member] | International Pension Benefits | Structured Products | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||
Minimum | Employee Defined Contribution Plans [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined contribution plan, employer contribution (percentage) | 5.00% | |||||||||||
Maximum | International Pension Benefits | Cash and Cash Equivalents [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||
Maximum | Fixed Income Securities [Member] | International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 45.00% | 45.00% | 45.00% | 45.00% | ||||||||
Maximum | Equity securities | International Pension Benefits | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 60.00% | 60.00% | 60.00% | 60.00% | ||||||||
Maximum | Other Investments [Member] | Private Equity and Real Estate | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Redemption notice period, upper limit | 15 years | |||||||||||
Maximum | Other Investments [Member] | International Pension Benefits | Other | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 10.00% | 2.00% | 10.00% | 2.00% | ||||||||
Maximum | Other Investments [Member] | International Pension Benefits | Structured Products | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum (Deprecated 2017-01-31) | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||
Maximum | Employee Defined Contribution Plans [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined contribution plan, employer contribution (percentage) | 8.00% | |||||||||||
Multiemployer Plans, Pension | Central States, South East & South West Areas Health and Welfare Fund | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined benefit plan net actuarial loss | $ 603,000,000 | $ 1,550,000,000 | ||||||||||
Multiemployer Plans, Withdrawal Obligation | 6,100,000,000 | |||||||||||
Projected benefit obligation, Projected Benefit Obligation Exceeds the Fair Value of the Plan Assets | $ 2.6 | 2.6 | ||||||||||
Increase in benefit obligation | 2,200,000,000 | |||||||||||
Pension obligations | $ 4,800,000,000 | 4,800,000,000 | ||||||||||
Adjustments | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined benefit plan, actuarial gain | $ 569,000,000 | |||||||||||
Defined benefit plan, curtailment | 1,525,000,000 | |||||||||||
Defined benefit plan net actuarial loss | $ 956,000,000 | |||||||||||
Net Income | $ (120,000,000) | $ 23,000,000 | ||||||||||
Earnings Per Share, Basic and Diluted | $ / shares | $ (0.14) | $ 0.03 | ||||||||||
Defined Benefit Plan, Actuarial Assumptions Discount Rate | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined benefit plan net actuarial loss | $ 7,477,000,000 | $ 4,829,000,000 | ||||||||||
Defined Benefit Plan, Actuarial Assumptions Demographic and Assumption Changes [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Defined benefit plan net actuarial loss | $ 40,000,000 | $ (105,000,000) |
COMPANY-SPONSORED EMPLOYEE BE_4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost for Company Sponsored Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | United States | |||
Net Periodic Benefit Cost: | |||
Service cost | $ 1,439 | $ 1,661 | $ 1,543 |
Interest cost | 2,067 | 1,799 | 1,813 |
Expected return on assets | (3,130) | (3,201) | (2,883) |
Amortization of: | |||
Amortization of prior service cost | 218 | 193 | 192 |
Actuarial (gain) loss | 2,296 | 1,603 | 729 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 | 0 |
Net periodic benefit cost | 2,890 | 2,055 | 1,394 |
Pension Benefits | International Pension Benefits | |||
Net Periodic Benefit Cost: | |||
Service cost | 57 | 62 | 60 |
Interest cost | 47 | 45 | 40 |
Expected return on assets | (76) | (77) | (66) |
Amortization of: | |||
Amortization of prior service cost | 2 | 1 | 1 |
Actuarial (gain) loss | 54 | 24 | 18 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 | 2 |
Net periodic benefit cost | 84 | 55 | 55 |
Postemployment Retirement Benefits | United States | |||
Net Periodic Benefit Cost: | |||
Service cost | 23 | 29 | 29 |
Interest cost | 108 | 104 | 112 |
Expected return on assets | (8) | (8) | (7) |
Amortization of: | |||
Amortization of prior service cost | 7 | 7 | 7 |
Actuarial (gain) loss | 37 | 0 | 53 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 | 0 |
Net periodic benefit cost | $ 167 | $ 132 | $ 194 |
COMPANY-SPONSORED EMPLOYEE BE_5
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Weighted Average Actuarial Assumptions Used to Determine the Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.55% | 4.45% | 3.81% |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.50% | 3.84% | 4.41% |
Rate of compensation increase | 4.25% | 4.25% | 4.27% |
Expected return on assets | 7.75% | 7.75% | 8.75% |
Cash balance interest credit rate | 2.98% | 2.50% | 2.91% |
Pension Benefits | International Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.94% | 2.78% | 2.75% |
Rate of compensation increase | 3.24% | 3.22% | 3.17% |
Expected return on assets | 5.69% | 5.76% | 5.65% |
Cash balance interest credit rate | 3.17% | 3.07% | 2.65% |
Postemployment Retirement Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.51% | 3.82% | 4.23% |
Expected return on assets | 7.20% | 7.20% | 8.75% |
COMPANY-SPONSORED EMPLOYEE BE_6
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Weighted Average Actuarial Assumptions Used to Determine the Benefit Obligations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.60% | 4.50% |
Rate of compensation increase | 4.22% | 4.25% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Cash Balance Interest Credit Rate | 2.50% | 2.98% |
Pension Benefits | International Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.21% | 2.94% |
Rate of compensation increase | 3.00% | 3.24% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Cash Balance Interest Credit Rate | 2.59% | 3.17% |
Postemployment Retirement Benefits | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.59% | 4.51% |
COMPANY-SPONSORED EMPLOYEE BE_7
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Reconciliation of the Changes in the Plans' Benefit Obligations and Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Benefit Obligations: | ||
Actuarial (gain)/loss | $ (8,040) | $ (3,174) |
Fair Value of Plan Assets: | ||
Fair value of plan assets at beginning of year | 40,864 | |
Fair value of plan assets at end of year | $ 47,767 | $ 40,864 |
COMPANY-SPONSORED EMPLOYEE BE_8
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Funded Status as of the Respective Measurement Dates in Each Year and the Amounts Recognized in Balance Sheet (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | $ 2,362 | $ 186 | $ 7,794 |
Funded Status: | |||
Fair value of plan assets | 47,767 | 40,864 | |
United States | |||
Funded Status: | |||
Fair value of plan assets | 46,209 | 39,580 | |
International Pension Benefits | |||
Funded Status: | |||
Fair value of plan assets | 1,558 | 1,284 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 27 | 23 | |
Pension Benefits | United States | |||
Funded Status: | |||
Fair value of plan assets | 46,172 | 39,554 | 41,932 |
Benefit obligation | (54,039) | (45,333) | (45,847) |
Funded status recognized at December 31 | (7,867) | (5,779) | |
Funded Status Recognized in our Balance Sheet: | |||
Other non-current assets | 0 | 0 | |
Other current liabilities | (22) | (20) | |
Pension and postretirement benefit obligations | (7,845) | (5,759) | |
Net liability at December 31 | (7,867) | (5,779) | |
Amounts Recognized in AOCI: | |||
Unrecognized net prior service cost | (800) | (1,018) | |
Unrecognized net actuarial gain (loss) | (5,404) | (3,967) | |
Gross unrecognized cost at December 31 | (6,204) | (4,985) | |
Deferred tax assets (liabilities) at December 31 | 1,497 | 1,205 | |
Net unrecognized cost at December 31 | (4,707) | (3,780) | |
Pension Benefits | International Pension Benefits | |||
Funded Status: | |||
Fair value of plan assets | 1,558 | 1,284 | 1,333 |
Benefit obligation | (1,906) | (1,552) | (1,651) |
Funded status recognized at December 31 | (348) | (268) | |
Funded Status Recognized in our Balance Sheet: | |||
Other non-current assets | 34 | 35 | |
Other current liabilities | (5) | (4) | |
Pension and postretirement benefit obligations | (377) | (299) | |
Net liability at December 31 | (348) | (268) | |
Amounts Recognized in AOCI: | |||
Unrecognized net prior service cost | (12) | (14) | |
Unrecognized net actuarial gain (loss) | (162) | (100) | |
Gross unrecognized cost at December 31 | (174) | (114) | |
Deferred tax assets (liabilities) at December 31 | 40 | 28 | |
Net unrecognized cost at December 31 | (134) | (86) | |
Postemployment Retirement Benefits | United States | |||
Funded Status: | |||
Fair value of plan assets | 37 | 26 | 183 |
Benefit obligation | (2,616) | (2,510) | $ (2,792) |
Funded status recognized at December 31 | (2,579) | (2,484) | |
Funded Status Recognized in our Balance Sheet: | |||
Other non-current assets | 0 | 0 | |
Other current liabilities | (200) | (195) | |
Pension and postretirement benefit obligations | (2,379) | (2,289) | |
Net liability at December 31 | (2,579) | (2,484) | |
Amounts Recognized in AOCI: | |||
Unrecognized net prior service cost | (16) | (21) | |
Unrecognized net actuarial gain (loss) | (240) | (32) | |
Gross unrecognized cost at December 31 | (256) | (53) | |
Deferred tax assets (liabilities) at December 31 | 62 | 13 | |
Net unrecognized cost at December 31 | $ (194) | $ (40) |
COMPANY-SPONSORED EMPLOYEE BE_9
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets for Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 8,040 | $ 3,174 | |
Fair value of plan assets at beginning of year | 40,864 | ||
Fair value of plan assets at end of year | 47,767 | 40,864 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at beginning of year | 39,580 | ||
Fair value of plan assets at end of year | 46,209 | 39,580 | |
International Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at beginning of year | 1,284 | ||
Fair value of plan assets at end of year | 1,558 | 1,284 | |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, Projected Benefit Obligation Exceeds the Fair Value of the Plan Assets | 54,039 | 45,333 | |
Accumulated benefit obligation, Projected Benefit Obligation Exceeds the Fair Value of the Plan Assets | 53,194 | 44,284 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 46,172 | 39,554 | |
Projected benefit obligation, Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | 54,039 | 45,333 | |
Accumulated benefit obligation, Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | 53,194 | 44,284 | |
Fair value of plan assets, Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | 46,172 | 39,554 | |
Projected benefit obligation at beginning of year | 45,333 | 45,847 | |
Service cost | 1,439 | 1,661 | $ 1,543 |
Interest cost | 2,067 | 1,799 | 1,813 |
Gross benefits paid | (2,394) | (1,390) | |
Plan participants’ contributions | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 331 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (7,594) | 2,915 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 0 | 0 | |
Defined Benefit Plan Other Benefit Obligations | 0 | 0 | |
Projected benefit obligation at end of year | 54,039 | 45,333 | 45,847 |
Fair value of plan assets at beginning of year | 39,554 | 41,932 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 6,991 | (1,007) | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2,021 | 19 | |
Gross benefits paid | (2,394) | (1,390) | |
Plan participants’ contributions | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Fair value of plan assets at end of year | 46,172 | 39,554 | 41,932 |
Increase (Decrease) in Defined Benefit Plan Other Fair Value Of Plan Assets | 0 | 0 | |
Pension Benefits | International Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, Projected Benefit Obligation Exceeds the Fair Value of the Plan Assets | 1,319 | 630 | |
Accumulated benefit obligation, Projected Benefit Obligation Exceeds the Fair Value of the Plan Assets | 1,210 | 539 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 948 | 339 | |
Projected benefit obligation, Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | 1,319 | 630 | |
Accumulated benefit obligation, Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | 1,210 | 539 | |
Fair value of plan assets, Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | 948 | 339 | |
Projected benefit obligation at beginning of year | 1,552 | 1,651 | |
Service cost | 57 | 62 | 60 |
Interest cost | 47 | 45 | 40 |
Gross benefits paid | (40) | (33) | |
Plan participants’ contributions | 3 | 3 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 1 | 13 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (213) | 81 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 47 | (110) | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 2 | 1 | |
Defined Benefit Plan Other Benefit Obligations | 28 | 3 | |
Projected benefit obligation at end of year | 1,906 | 1,552 | 1,651 |
Fair value of plan assets at beginning of year | 1,284 | 1,333 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 171 | (6) | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 67 | 80 | |
Gross benefits paid | (40) | (33) | |
Plan participants’ contributions | 3 | 3 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 49 | (92) | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 2 | 1 | |
Fair value of plan assets at end of year | 1,558 | 1,284 | 1,333 |
Increase (Decrease) in Defined Benefit Plan Other Fair Value Of Plan Assets | (26) | 0 | |
Postemployment Retirement Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | 2,510 | 2,792 | |
Service cost | 23 | 29 | 29 |
Interest cost | 108 | 104 | 112 |
Gross benefits paid | (288) | (263) | |
Plan participants’ contributions | 30 | 26 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (233) | 178 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 0 | ||
Defined Benefit Plan Other Benefit Obligations | 0 | ||
Projected benefit obligation at end of year | 2,616 | 2,510 | 2,792 |
Fair value of plan assets at beginning of year | 26 | 183 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (5) | (7) | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 274 | 87 | |
Gross benefits paid | (288) | (263) | |
Plan participants’ contributions | 30 | 26 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Fair value of plan assets at end of year | 37 | 26 | $ 183 |
Increase (Decrease) in Defined Benefit Plan Other Fair Value Of Plan Assets | $ 0 | $ 0 |
COMPANY-SPONSORED EMPLOYEE B_10
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Fair Values of U.S. Pension and Postretirement Benefit Plan Assets by Asset Category as Well as the Percentage That Each Category Comprises of Total Plan Assets and the Respective Target Allocations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 47,767 | $ 40,864 | |
Plan assets target allocation | 100.00% | 100.00% | |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 24,161 | $ 20,696 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,876 | 12,723 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 6 | |
Fair Value, Inputs, Level 3 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | $ 8 |
Fair Value, Inputs, Level 3 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 4 | 0 |
Fair Value, Inputs, Level 3 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | $ 6 | $ 8 |
Minimum | Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement medical plans service minimum eligibility year | 10 years | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 46,209 | $ 39,580 | |
Percentage of Plan Assets | 100.00% | 100.00% | |
United States | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 964 | $ 157 | |
Percentage of Plan Assets | 2.10% | 0.40% | |
United States | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 23,787 | $ 20,404 | |
United States | Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 818 | 108 | |
United States | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,769 | 11,793 | |
United States | Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 146 | 49 | |
United States | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
United States | Fair Value, Inputs, Level 3 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
United States | Minimum | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | 1.00% | |
United States | Maximum | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 5.00% | 5.00% | |
United States | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 16,634 | $ 13,667 | |
Percentage of Plan Assets | 36.00% | 34.50% | |
United States | Equity securities | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 6,607 | $ 5,276 | |
United States | Equity securities | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 505 | 542 | |
United States | Equity securities | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,039 | 1,859 | |
United States | Equity securities | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,892 | 2,320 | |
United States | Equity securities | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,591 | 3,670 | |
United States | Equity securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,840 | 8,222 | |
United States | Equity securities | Fair Value, Inputs, Level 1 | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,889 | 2,155 | |
United States | Equity securities | Fair Value, Inputs, Level 1 | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 376 | 386 | |
United States | Equity securities | Fair Value, Inputs, Level 1 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,523 | 1,436 | |
United States | Equity securities | Fair Value, Inputs, Level 1 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,553 | 2,056 | |
United States | Equity securities | Fair Value, Inputs, Level 1 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,499 | 2,189 | |
United States | Equity securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,794 | 5,445 | |
United States | Equity securities | Fair Value, Inputs, Level 2 | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,718 | 3,121 | |
United States | Equity securities | Fair Value, Inputs, Level 2 | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 129 | 156 | |
United States | Equity securities | Fair Value, Inputs, Level 2 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 516 | 423 | |
United States | Equity securities | Fair Value, Inputs, Level 2 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 339 | 264 | |
United States | Equity securities | Fair Value, Inputs, Level 2 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,092 | 1,481 | |
United States | Equity securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity securities | Fair Value, Inputs, Level 3 | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity securities | Fair Value, Inputs, Level 3 | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity securities | Fair Value, Inputs, Level 3 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity securities | Fair Value, Inputs, Level 3 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity securities | Fair Value, Inputs, Level 3 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
United States | Equity securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 25.00% | 25.00% | |
United States | Equity securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 55.00% | 55.00% | |
United States | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 19,202 | $ 16,669 | |
Percentage of Plan Assets | 41.50% | 42.10% | |
United States | Fixed Income Securities | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 50 | $ 55 | |
United States | Fixed Income Securities | U.S. Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,077 | 12,295 | |
United States | Fixed Income Securities | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,051 | 4,303 | |
United States | Fixed Income Securities | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 16 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,980 | 11,922 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 1 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 1 | U.S. Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,980 | 11,922 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 1 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 1 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,222 | 4,745 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 2 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 55 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 2 | U.S. Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,097 | 373 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 2 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,051 | 4,301 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 2 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 16 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 3 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 3 | U.S. Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 3 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
United States | Fixed Income Securities | Fair Value, Inputs, Level 3 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
United States | Fixed Income Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 35.00% | 35.00% | |
United States | Fixed Income Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 55.00% | 55.00% | |
United States | Other Investments [Member] | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 3,273 | $ 3,154 | |
Percentage of Plan Assets | 7.10% | 8.00% | |
United States | Other Investments [Member] | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 3,030 | $ 2,763 | |
Percentage of Plan Assets | 6.60% | 7.00% | |
United States | Other Investments [Member] | Private Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 772 | $ 836 | |
Percentage of Plan Assets | 1.70% | 2.10% | |
United States | Other Investments [Member] | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,940 | $ 1,989 | |
Percentage of Plan Assets | 4.20% | 5.00% | |
United States | Other Investments [Member] | Risk Parity Funds [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 241 | $ 207 | |
Percentage of Plan Assets | 0.50% | 0.50% | |
United States | Other Investments [Member] | Asset-backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 138 | ||
Percentage of Plan Assets | 0.40% | ||
United States | Other Investments [Member] | Structured Products [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 153 | ||
Percentage of Plan Assets | 0.30% | ||
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Private Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 149 | 152 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Risk Parity Funds [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Asset-backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Other Investments [Member] | Fair Value, Inputs, Level 1 | Structured Products [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,380 | 1,185 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Private Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 178 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 74 | 53 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Risk Parity Funds [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Asset-backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 138 | ||
United States | Other Investments [Member] | Fair Value, Inputs, Level 2 | Structured Products [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 153 | ||
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Private Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Risk Parity Funds [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Asset-backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | ||
United States | Other Investments [Member] | Fair Value, Inputs, Level 3 | Structured Products [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | ||
United States | Other Investments [Member] | Minimum | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 5.00% | 5.00% | |
United States | Other Investments [Member] | Minimum | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | 1.00% | |
United States | Other Investments [Member] | Minimum | Private Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | ||
United States | Other Investments [Member] | Minimum | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | 1.00% | |
United States | Other Investments [Member] | Minimum | Risk Parity Funds [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | 1.00% | |
United States | Other Investments [Member] | Minimum | Structured Products [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | 1.00% | |
United States | Other Investments [Member] | Maximum | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 15.00% | 15.00% | |
United States | Other Investments [Member] | Maximum | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | 10.00% | |
United States | Other Investments [Member] | Maximum | Private Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | ||
United States | Other Investments [Member] | Maximum | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | 10.00% | |
United States | Other Investments [Member] | Maximum | Risk Parity Funds [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | 10.00% | |
United States | Other Investments [Member] | Maximum | Structured Products [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 5.00% | 5.00% | |
International Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,558 | $ 1,284 | |
Percentage of Plan Assets | 100.00% | 100.00% | |
International Pension Benefits | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 72 | $ 45 | |
Percentage of Plan Assets | 4.60% | 3.50% | |
International Pension Benefits | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 374 | $ 292 | |
International Pension Benefits | Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32 | 4 | |
International Pension Benefits | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,107 | 930 | |
International Pension Benefits | Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 40 | 41 | |
International Pension Benefits | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 4 | |
International Pension Benefits | Fair Value, Inputs, Level 3 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
International Pension Benefits | Minimum | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 1.00% | 1.00% | |
International Pension Benefits | Maximum | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | 10.00% | |
International Pension Benefits | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 730 | $ 586 | |
Percentage of Plan Assets | 46.80% | 45.60% | |
International Pension Benefits | Equity securities | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 33 | $ 33 | |
International Pension Benefits | Equity securities | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 441 | 348 | |
International Pension Benefits | Equity securities | local market equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 209 | 171 | |
International Pension Benefits | Equity securities | U.S. Equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47 | 34 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 212 | 183 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 1 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 33 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 1 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 179 | 150 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 1 | local market equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 1 | U.S. Equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 518 | 403 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 2 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 2 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 262 | 198 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 2 | local market equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 209 | 171 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 2 | U.S. Equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47 | 34 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 3 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 3 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 3 | local market equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Equity securities | Fair Value, Inputs, Level 3 | U.S. Equity [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
International Pension Benefits | Equity securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 30.00% | 30.00% | |
International Pension Benefits | Equity securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 60.00% | 60.00% | |
International Pension Benefits | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 381 | $ 324 | |
Percentage of Plan Assets | 24.50% | 25.20% | |
International Pension Benefits | Fixed Income Securities | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 177 | $ 195 | |
International Pension Benefits | Fixed Income Securities | Global Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 110 | 27 | |
International Pension Benefits | Fixed Income Securities | Foreign Government Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 102 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130 | 105 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 1 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 54 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 1 | Global Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 110 | 27 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 1 | Foreign Government Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 24 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 251 | 219 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 2 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 157 | 141 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 2 | Global Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 2 | Foreign Government Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 78 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 3 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 3 | Global Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Fixed Income Securities | Fair Value, Inputs, Level 3 | Foreign Government Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
International Pension Benefits | Fixed Income Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 25.00% | 25.00% | |
International Pension Benefits | Fixed Income Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 45.00% | 45.00% | |
International Pension Benefits | Other Investments [Member] | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 128 | $ 121 | |
Percentage of Plan Assets | 8.20% | 9.40% | |
International Pension Benefits | Other Investments [Member] | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 247 | $ 208 | |
Percentage of Plan Assets | 15.90% | 16.30% | |
International Pension Benefits | Other Investments [Member] | Fair Value, Inputs, Level 1 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
International Pension Benefits | Other Investments [Member] | Fair Value, Inputs, Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Other Investments [Member] | Fair Value, Inputs, Level 2 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 76 | |
International Pension Benefits | Other Investments [Member] | Fair Value, Inputs, Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218 | 191 | |
International Pension Benefits | Other Investments [Member] | Fair Value, Inputs, Level 3 | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits | Other Investments [Member] | Fair Value, Inputs, Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 12 | $ 4 | |
International Pension Benefits | Other Investments [Member] | Minimum | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 5.00% | 5.00% | |
International Pension Benefits | Other Investments [Member] | Minimum | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 0.00% | 1.00% | |
International Pension Benefits | Other Investments [Member] | Maximum | Structured Products | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | 10.00% | |
International Pension Benefits | Other Investments [Member] | Maximum | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets target allocation, Maximum | 10.00% | 2.00% |
COMPANY-SPONSORED EMPLOYEE B_11
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Fair Value Measurement of Plan Assets Using Unobservable Inputs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 40,864 | |
Actual Return on Assets: | ||
Fair value of plan assets at end of year | 47,767 | $ 40,864 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 6 | |
Actual Return on Assets: | ||
Fair value of plan assets at end of year | 12 | 6 |
Fair Value, Inputs, Level 3 | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 2 | 8 |
Actual Return on Assets: | ||
Assets Held at End of Year | 0 | 0 |
Assets Sold During the Year | (4) | (7) |
Purchases | 4 | 11 |
Sales | (2) | (10) |
Transfers Into (Out of) Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 0 | 2 |
Fair Value, Inputs, Level 3 | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 4 | 0 |
Actual Return on Assets: | ||
Assets Held at End of Year | 1 | 0 |
Assets Sold During the Year | 0 | 0 |
Purchases | 7 | 9 |
Sales | (5) | |
Transfers Into (Out of) Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 12 | 4 |
Fair Value, Inputs, Level 3 | Structured Products | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 6 | 8 |
Actual Return on Assets: | ||
Assets Held at End of Year | 1 | 0 |
Assets Sold During the Year | (4) | (7) |
Purchases | 11 | 20 |
Sales | (2) | (15) |
Transfers Into (Out of) Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 12 | $ 6 |
COMPANY-SPONSORED EMPLOYEE B_12
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Expected Cash Flows for Pension and Postretirement Benefit Plans (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | United States | |
Expected Benefit Payments: | |
2020 | $ 1,645 |
2021 | 1,802 |
2022 | 1,942 |
2023 | 2,085 |
2024 | 2,230 |
2025 - 2029 | 13,293 |
Pension Benefits | United States | 2020 to plan trusts | |
Employer Contributions: | |
2020 | 1,000 |
Pension Benefits | United States | 2020 to plan participants | |
Employer Contributions: | |
2020 | 21 |
Pension Benefits | International Pension Benefits | |
Expected Benefit Payments: | |
2020 | 32 |
2021 | 36 |
2022 | 41 |
2023 | 46 |
2024 | 52 |
2025 - 2029 | 353 |
Pension Benefits | International Pension Benefits | 2020 to plan trusts | |
Employer Contributions: | |
2020 | 62 |
Pension Benefits | International Pension Benefits | 2020 to plan participants | |
Employer Contributions: | |
2020 | 5 |
Postemployment Retirement Benefits | United States | |
Expected Benefit Payments: | |
2020 | 241 |
2021 | 225 |
2022 | 215 |
2023 | 206 |
2024 | 196 |
2025 - 2029 | 857 |
Postemployment Retirement Benefits | United States | 2020 to plan trusts | |
Employer Contributions: | |
2020 | 186 |
Postemployment Retirement Benefits | United States | 2020 to plan participants | |
Employer Contributions: | |
2020 | $ 11 |
COMPANY-SPONSORED EMPLOYEE B_13
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Effects of One Basis Point Change on Projected Benefit Obligation (Details) - United States $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Pension Benefits | |
effects of one-basis point change one PBO [Line Items] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Projected Benefit Obligation | $ (86) |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Projected Benefit Obligation | 92 |
Postemployment Retirement Benefits | |
effects of one-basis point change one PBO [Line Items] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Projected Benefit Obligation | (2) |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Projected Benefit Obligation | $ 3 |
MULTIEMPLOYER EMPLOYEE BENEFI_3
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS - UPS's Participation in Multiemployer Plans (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)Employees | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2012Employees | |
Multiemployer Plans [Line Items] | ||||
Number of employees under a national master agreement and various supplemental agreements with local unions affiliated with Teamster | Employees | 290,000 | |||
Employees Not Employed Under Agreement With Teamsters | Employees | 3,300 | |||
Number of pilots under a collective bargaining agreement with the Independent Pilots Association | Employees | 2,900 | |||
Ground Mechanics Employed Under IAM Agreements | Employees | 1,500 | |||
Represented by Teamsters [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Number of employees under a national master agreement and various supplemental agreements with local unions affiliated with Teamster | Employees | 10,200 | |||
Multiemployer Plans, Pension | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Period Contributions, Significance of Contributions | 5.00% | |||
Multiemployer pension plans, maximum term to forecast a funding deficiency in the orange zone | 6 years | |||
UPS Contribution | $ 2,220 | $ 2,042 | $ 1,870 | |
Multi-employer plans, fair value of withdrawal liability | $ 929 | $ 832 | ||
Debt Instrument, Term | 43 years | |||
Multiemployer Plans, Pension | Central Pennsylvania Teamsters Defined Benefit Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 23-6262789-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 48 | $ 44 | 40 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 55-6021850-001 | |||
Pension Protection Act Zone Status | Red | Red | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 14 | $ 13 | 12 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Hagerstown Motor Carriers and Teamsters Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 52-6045424-001 | |||
Pension Protection Act Zone Status | Red | Red | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 10 | $ 9 | 8 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | I.A.M. National Pension Fund / National Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 51-6031295-002 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 41 | $ 38 | 35 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | International Brotherhood of Teamsters Union Local No. 710 Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 36-2377656-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 142 | $ 129 | 118 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Local 705, International Brotherhood of Teamsters Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 36-6492502-001 | |||
Pension Protection Act Zone Status | Yellow | Yellow | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 113 | $ 104 | 93 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 51-6117726-001 | |||
Pension Protection Act Zone Status | Yellow | Yellow | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 112 | $ 116 | 110 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Milwaukee Drivers Pension Trust Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 39-6045229-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 48 | $ 42 | 38 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | New England Teamsters & Trucking Industry Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 04-6372430-001 | |||
Pension Protection Act Zone Status | Red | Red | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 120 | $ 121 | 114 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | New York State Teamsters Conference Pension and Retirement Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 16-6063585-074 | |||
Pension Protection Act Zone Status | Red | Red | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 119 | $ 108 | 100 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Teamster Pension Fund of Philadelphia and Vicinity | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 23-1511735-001 | |||
Pension Protection Act Zone Status | Yellow | Yellow | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 74 | $ 66 | 60 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Teamsters Joint Council No. 83 of Virginia Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 54-6097996-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 75 | $ 69 | 64 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Teamsters Local 639—Employers Pension Trust | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 53-0237142-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 68 | $ 61 | 55 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Teamsters Negotiated Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 43-6196083-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 37 | $ 34 | 32 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 52-6043608-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 24 | $ 22 | 20 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 13-1426500-419 | |||
Pension Protection Act Zone Status | Red | Red | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 100 | $ 95 | 88 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Western Conference of Teamsters Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 91-6145047-001 | |||
Pension Protection Act Zone Status | Green | Green | ||
FIP/RP Status Pending/ Implemented | No | |||
UPS Contribution | $ 939 | $ 868 | 772 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | Western Pennsylvania Teamsters and Employers Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN / Pension Plan Number | 25-6029946-001 | |||
Pension Protection Act Zone Status | Red | Red | ||
FIP/RP Status Pending/ Implemented | Implemented | |||
UPS Contribution | $ 34 | $ 31 | 30 | |
Surcharge Imposed | No | |||
Multiemployer Plans, Pension | All Other Multiemployer Pension Plans | ||||
Multiemployer Plans [Line Items] | ||||
UPS Contribution | $ 102 | $ 72 | $ 81 | |
Multiemployer Plans, Pension | Minimum | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer pension plans, percentage of plan funded | 0.00% | |||
Multiemployer Plans, Pension | Green Zone, At Least 80% Funded [Member] | Minimum | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer pension plans, percentage of plan funded | 80.00% | |||
Multiemployer Plans, Pension | Red Zone, Less than 65% Funded [Member] | Maximum | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer pension plans, percentage of plan funded | 65.00% | |||
Multiemployer Plans, Pension | Otange Zone, Less than 80% and Have an Accumulated Funding Deficiency or Expect to Have a Deficiency Within Six Years [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer pension plans, percentage of plan funded | 80.00% | |||
Multiemployer Plans, Pension | Yellow Zone, Less than 80% Funded [Member] | Maximum | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer pension plans, percentage of plan funded | 80.00% | |||
Other Noncurrent Liabilities [Member] | Multiemployer Plans, Pension | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plans, present value of withdrawal liability | $ 845 | $ 852 | ||
Other current liabilities | Multiemployer Plans, Pension | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plans, present value of withdrawal liability | $ 7 | $ 7 |
MULTIEMPLOYER EMPLOYEE BENEFI_4
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS - Multi-Employer Health and Welfare Plans (Detail) - Health and Welfare Fund - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Multiemployer Plans [Line Items] | |||
UPS Contributions | $ 4,810 | $ 4,268 | $ 3,972 |
Delta Health Systems—East Bay Drayage Drivers | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 37 | 40 | 37 |
Central Pennsylvania Teamsters Health & Pension Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 31 | 29 | 27 |
Central States, South East & South West Areas Health and Welfare Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 2,899 | 2,530 | 2,366 |
Teamsters Western Region & Local One Seventy Seven Health Care Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 769 | 656 | 605 |
Delta Health Systems—East Bay Drayage Drivers | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 30 | 30 | 29 |
Joint Council 83 Health & Welfare Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 45 | 40 | 37 |
Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 101 | 90 | 84 |
Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 48 | 43 | 38 |
New York State Teamsters Health & Hospital Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 71 | 62 | 59 |
Northern New England Benefit Trust | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 157 | 153 | 132 |
Oregon / Teamster Employers Trust | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 59 | 54 | 50 |
Oregon / Teamster Employers Trust | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 51 | 43 | 38 |
Teamsters 170 Health & Welfare Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 19 | 18 | 17 |
Teamsters Benefit Trust | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 47 | 48 | 46 |
Teamsters Local 251 Health & Insurance Plan | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 18 | 17 | 15 |
Teamsters Local 639—Employers Health & Pension Trust Funds | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 53 | 48 | 43 |
Teamsters Local 671 Health Services & Insurance Plan | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 32 | 29 | 27 |
Teamsters Union 25 Health Services & Insurance Plan | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 20 | 19 | 17 |
Teamsters Union 25 Health Services & Insurance Plan | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 59 | 56 | 52 |
Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 19 | 18 | 16 |
Utah-Idaho Teamsters Security Fund | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 37 | 32 | 29 |
Washington Teamsters Welfare Trust | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | 67 | 57 | 52 |
All Other Multiemployer Health and Welfare Plans | |||
Multiemployer Plans [Line Items] | |||
UPS Contributions | $ 141 | $ 156 | $ 156 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Allocation of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 3,811 | $ 3,872 |
Acquired | 5 | 0 |
Currency / Other | (3) | (61) |
Ending Balance | 3,813 | 3,811 |
U.S. Domestic Package | ||
Goodwill [Line Items] | ||
Beginning Balance | 715 | 715 |
Acquired | 0 | 0 |
Currency / Other | 0 | 0 |
Ending Balance | 715 | 715 |
International Package | ||
Goodwill [Line Items] | ||
Beginning Balance | 417 | 435 |
Acquired | 2 | 0 |
Currency / Other | (3) | (18) |
Ending Balance | 416 | 417 |
Supply Chain & Freight | ||
Goodwill [Line Items] | ||
Beginning Balance | 2,679 | 2,722 |
Acquired | 3 | 0 |
Currency / Other | 0 | (43) |
Ending Balance | $ 2,682 | $ 2,679 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Impairment of intangible assets | $ 2,000,000 | $ 12,000,000 | |
Goodwill, Impairment Loss | 0 | 0 | $ 0 |
Amortization of intangible assets | 377,000,000 | $ 339,000,000 | $ 287,000,000 |
Expected amortization of finite-lived intangible assets for the year 2013 | 481,000,000 | ||
Expected amortization of finite-lived intangible assets for the year 2014 | 403,000,000 | ||
Expected amortization of finite-lived intangible assets for the year 2015 | 332,000,000 | ||
Expected amortization of finite-lived intangible assets for the year 2016 | 276,000,000 | ||
Expected amortization of finite-lived intangible assets for the year 2017 | 220,000,000 | ||
Trade Names | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Carrying amount of indefinite intangible assets | 200,000,000 | ||
Licenses | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Carrying amount of indefinite intangible assets | 4,000,000 | ||
Supply Chain & Freight | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Cumulative impairment loss | $ 622,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Summary of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | $ 5,347 | $ 4,943 |
Accumulated Amortization | $ (3,180) | (2,867) |
Weighted-Average Amortization Period (in years) | 7 years 8 months 12 days | |
Accumulated Amortization | $ (3,180) | (2,867) |
Net Carrying Value | 2,167 | 2,075 |
Trademarks, patents, and other [Member] [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | 29 | 52 |
Accumulated Amortization | $ (21) | (31) |
Weighted-Average Amortization Period (in years) | 7 years 8 months 12 days | |
Accumulated Amortization | $ (21) | (31) |
Net Carrying Value | 8 | 20 |
Capitalized software | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | 4,125 | 3,693 |
Accumulated Amortization | $ (2,704) | (2,478) |
Weighted-Average Amortization Period (in years) | 6 years 10 months 24 days | |
Accumulated Amortization | $ (2,704) | (2,478) |
Net Carrying Value | 1,421 | 1,215 |
Customer relationships | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | 730 | 736 |
Accumulated Amortization | $ (282) | (217) |
Weighted-Average Amortization Period (in years) | 10 years 7 months 6 days | |
Accumulated Amortization | $ (282) | (217) |
Net Carrying Value | 448 | 519 |
Trade Names | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | 200 | 200 |
Accumulated Amortization | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Net Carrying Value | 200 | 200 |
Franchise rights | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | 146 | 145 |
Accumulated Amortization | $ (109) | (105) |
Weighted-Average Amortization Period (in years) | 20 years | |
Accumulated Amortization | $ (109) | (105) |
Net Carrying Value | 37 | 40 |
Licenses | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount, Finite-lived | 117 | 117 |
Accumulated Amortization | $ (64) | (36) |
Weighted-Average Amortization Period (in years) | 3 years 10 months 24 days | |
Accumulated Amortization | $ (64) | (36) |
Net Carrying Value | $ 53 | $ 81 |
DEBT AND FINANCING ARRANGEMEN_3
DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) £ in Millions, $ in Millions | Aug. 16, 2019USD ($) | Nov. 09, 2017 | Nov. 08, 2017EUR (€) | May 18, 2017CAD ($) | Dec. 31, 2019USD ($)TranchesCredit_Agreements | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019GBP (£)Credit_Agreements | Dec. 31, 2019EUR (€)Credit_Agreements | Apr. 01, 2019USD ($) | Mar. 15, 2019USD ($) | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 26,388,000,000 | |||||||||||
Long-term Debt and Lease Obligation | $ 25,238,000,000 | $ 22,736,000,000 | ||||||||||
Number of tranches in debt instrument | Tranches | 2 | |||||||||||
Rent expense related to operating leases | 959,000,000 | $ 804,000,000 | ||||||||||
Outstanding letters of credit | $ 1,267,000,000 | |||||||||||
Surety bonds written | $ 1,327,000,000 | |||||||||||
Number of credit agreements | Credit_Agreements | 2 | 2 | 2 | |||||||||
Covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions, to percentage of net tangible assets | 10.00% | 10.00% | 10.00% | |||||||||
Covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions, net tangible assets amount | $ 3,646,000,000 | |||||||||||
Long-term debt fair value | 26,949,000,000 | $ 23,293,000,000 | ||||||||||
Long-term Debt | 24,891,000,000 | |||||||||||
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 | |||||||||||
8.375% Debentures | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate percentage | 837.50% | 837.50% | 837.50% | |||||||||
8.375% debentures Due 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Original debt amount | $ 276,000,000 | |||||||||||
Debt instrument redemption price | 100.00% | 100.00% | 100.00% | |||||||||
8.375% debentures Due 2030 | Until April 1, 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate percentage | 8.375% | 8.375% | 8.375% | |||||||||
8.375% debentures Due 2030 | After April 1, 2020 for the Final 10 Years | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate percentage | 7.62% | 7.62% | 7.62% | |||||||||
Debt instrument, period that interest rate is reduced to 7.62% | 10 years | |||||||||||
8.375% debentures Due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt not subject to early redemption | $ 424,000,000 | |||||||||||
Derivative, average swaption interest rate | 7.20% | 6.93% | 7.20% | 7.20% | ||||||||
Facility Notes and Bonds Worldport Louisville | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 1.49% | 1.43% | ||||||||||
Principal Balance | $ 149,000,000 | |||||||||||
Facility Notes and Bonds Airfreight Louisville | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 1.49% | 1.39% | ||||||||||
Principal Balance | $ 42,000,000 | |||||||||||
Facility Notes and Bonds International Airport Dallas Fort Worth | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Balance | $ 29,000,000 | |||||||||||
Fixed interest rate | 5.11% | 5.11% | 5.11% | |||||||||
Facility Notes and Bonds, Delaware County, Pennsylvania Industrial Development Authority, Due September 2045 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 1.48% | 1.35% | ||||||||||
Principal Balance | $ 100,000,000 | |||||||||||
5.50% Pound Sterling Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of tranches in debt instrument | Tranches | 2 | |||||||||||
Pound Sterling notes not exchanged | £ | £ 66 | |||||||||||
5.50% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate percentage | 5.50% | 5.50% | 5.50% | |||||||||
5.13% Pound Sterling Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 5.125% | |||||||||||
Pound Sterling notes not exchanged | £ | £ 455 | |||||||||||
Revolving credit facility expiring in 2014 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facilities | $ 2,000,000,000 | |||||||||||
Revolving credit facility expiring in 2014 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 1.00% | |||||||||||
Revolving credit facility expiring in 2018 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facilities | $ 2,500,000,000 | |||||||||||
Maturity | Dec. 11, 2023 | |||||||||||
Applicable margin for base rate below LIBOR | 1.00% | |||||||||||
Revolving credit facility expiring in 2018 | Federal funds effective rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.50% | |||||||||||
Revolving credit facility expiring in 2018 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 1.00% | |||||||||||
Revolving credit facility expiring in 2018 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin for base rate below LIBOR | 0.00% | |||||||||||
Federal funds effective rate | Revolving credit facility expiring in 2014 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.50% | |||||||||||
LIBOR [Member] | Revolving credit facility expiring in 2014 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 1.00% | |||||||||||
LIBOR [Member] | Revolving credit facility expiring in 2014 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Credit Default Swap Spread, Term | 1 year | |||||||||||
Applicable margin rates | 0.25% | |||||||||||
LIBOR [Member] | Revolving credit facility expiring in 2018 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.10% | |||||||||||
Citibank base rate [Member] | Revolving credit facility expiring in 2014 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 1.00% | |||||||||||
Citibank base rate [Member] | Revolving credit facility expiring in 2014 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.00% | |||||||||||
Citibank base rate [Member] | Revolving credit facility expiring in 2018 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.75% | |||||||||||
Canadian Senior Notes | 2.125% canadian senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 750 | |||||||||||
Debt instrument, stated interest rate percentage | 2.125% | |||||||||||
Canadian Senior Notes | 2.125% canadian senior notes | Government of Canada Yield | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.215% | |||||||||||
Euro Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Euro Senior Notes | 0.375% Euro Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | € 700,000,000 | $ 783,000,000 | ||||||||||
Debt instrument, stated interest rate percentage | 0.375% | 0.375% | 0.375% | 0.375% | ||||||||
Long-term Debt and Lease Obligation | $ 779,000,000 | $ 797,000,000 | ||||||||||
Maturity | Dec. 31, 2023 | |||||||||||
Euro Senior Notes | 0.375% Euro Senior Notes | Euro Government Yield | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.01% | |||||||||||
Euro Senior Notes | 1.500% euro senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | € 500,000,000 | $ 560,000,000 | ||||||||||
Debt instrument, stated interest rate percentage | 1.50% | 1.50% | 1.50% | 1.50% | ||||||||
Long-term Debt and Lease Obligation | $ 556,000,000 | 569,000,000 | ||||||||||
Maturity | Dec. 31, 2032 | |||||||||||
Euro Senior Notes | 1.500% euro senior notes | Euro Government Yield | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.02% | |||||||||||
Euro Senior Notes | 1.000% euro senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 560,000,000 | € 500,000,000 | ||||||||||
Debt instrument, stated interest rate percentage | 1.00% | 1.00% | 1.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Long-term Debt and Lease Obligation | $ 556,000,000 | 570,000,000 | ||||||||||
Maturity | Nov. 30, 2028 | |||||||||||
Euro Senior Notes | 1.000% euro senior notes | German Government | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.15% | |||||||||||
Euro Senior Notes | Floating Rate Euro Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 560,000,000 | € 500,000,000 | ||||||||||
Long-term Debt and Lease Obligation | $ 559,000,000 | 572,000,000 | ||||||||||
Maturity | Dec. 31, 2020 | |||||||||||
Commercial paper | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 3,243,000,000 | |||||||||||
Long-term Debt and Lease Obligation | $ 3,234,000,000 | $ 2,662,000,000 | ||||||||||
Maturity | Dec. 31, 2020 | |||||||||||
Commercial paper | U.S. Commercial Paper Program | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt | $ 2,172,000,000 | |||||||||||
Debt, Weighted Average Interest Rate | 1.90% | 1.90% | 1.90% | |||||||||
Commercial paper | Foreign Commercial Paper Program | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt | $ 1,062,000,000 | € 949,000,000 | ||||||||||
Debt, Weighted Average Interest Rate | (0.44%) | (0.44%) | (0.44%) | |||||||||
Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt, Weighted Average Interest Rate | 2.82% | 2.50% | 2.82% | 2.82% | ||||||||
Senior notes | Maximum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.45% | |||||||||||
Senior notes | Minimum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.15% | |||||||||||
Senior notes | 3.400% senior notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | ||||||||||
Debt instrument, stated interest rate percentage | 3.40% | 3.40% | 3.40% | 3.40% | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Long-term Debt and Lease Obligation | $ 688,000,000 | $ 0 | ||||||||||
Maturity | Sep. 1, 2029 | |||||||||||
Senior notes | 3.750% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,150,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 3.75% | 3.75% | 3.75% | |||||||||
Long-term Debt and Lease Obligation | $ 1,136,000,000 | 1,136,000,000 | ||||||||||
Maturity | Nov. 30, 2047 | |||||||||||
Senior notes | 2.800% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 2.80% | 2.80% | 2.80% | |||||||||
Long-term Debt and Lease Obligation | $ 497,000,000 | 496,000,000 | ||||||||||
Maturity | Nov. 30, 2024 | |||||||||||
Senior notes | 3.050% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 3.05% | 3.05% | 3.05% | |||||||||
Long-term Debt and Lease Obligation | $ 992,000,000 | 991,000,000 | ||||||||||
Maturity | Nov. 30, 2027 | |||||||||||
Senior notes | 3.40% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 3.40% | 3.40% | 3.40% | |||||||||
Long-term Debt and Lease Obligation | $ 491,000,000 | $ 491,000,000 | ||||||||||
Maturity | Dec. 31, 2046 | |||||||||||
Senior notes | 5.50% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 5.50% | 5.50% | 5.50% | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 3.63% | 0.00% | 0.00% | ||||||||
Senior notes | 1.125% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 5.125% | |||||||||||
Senior notes | 3.125% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,500,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 3.125% | 3.125% | 3.125% | |||||||||
Long-term Debt and Lease Obligation | $ 1,524,000,000 | $ 1,492,000,000 | ||||||||||
Maturity | Dec. 31, 2021 | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.59% | 2.32% | 2.59% | 2.59% | ||||||||
Senior notes | 8.375% debentures Due 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 276,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 8.375% | 8.375% | 8.375% | |||||||||
Long-term Debt and Lease Obligation | $ 281,000,000 | $ 274,000,000 | ||||||||||
Maturity | Dec. 31, 2030 | |||||||||||
Senior notes | 8.375% debentures Due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 424,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 8.375% | 8.375% | 8.375% | |||||||||
Long-term Debt and Lease Obligation | $ 426,000,000 | 419,000,000 | ||||||||||
Maturity | Dec. 31, 2020 | |||||||||||
Senior notes | Floating rate senior notes maturing 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||
Long-term Debt and Lease Obligation | $ 399,000,000 | $ 399,000,000 | ||||||||||
Maturity | May 31, 2022 | |||||||||||
Senior notes | Euro Senior Notes Due July 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||
Average interest rate | 0.08% | 0.11% | ||||||||||
Senior notes | Euro Senior Notes Due November 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 1.625% | 1.625% | 1.625% | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Applicable margin rates | 0.20% | |||||||||||
Senior notes | 2.40% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 2.40% | 2.40% | 2.40% | |||||||||
Long-term Debt and Lease Obligation | $ 498,000,000 | $ 498,000,000 | ||||||||||
Maturity | Dec. 31, 2026 | |||||||||||
Senior notes | Floating rate senior notes maturing 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 350,000,000 | |||||||||||
Long-term Debt and Lease Obligation | $ 349,000,000 | 349,000,000 | ||||||||||
Maturity | Apr. 30, 2021 | |||||||||||
Senior notes | Floating rate senior notes maturing 2021 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.15% | |||||||||||
Senior notes | Floating rate senior notes maturing 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||
Long-term Debt and Lease Obligation | $ 499,000,000 | 499,000,000 | ||||||||||
Maturity | Apr. 30, 2023 | |||||||||||
Senior notes | Floating rate senior notes maturing 2023 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.45% | |||||||||||
Senior notes | 2.050% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 2.05% | 2.05% | 2.05% | |||||||||
Long-term Debt and Lease Obligation | $ 699,000,000 | 698,000,000 | ||||||||||
Maturity | Apr. 30, 2021 | |||||||||||
Senior notes | 2.500% senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 2.50% | 2.50% | 2.50% | |||||||||
Long-term Debt and Lease Obligation | $ 995,000,000 | 994,000,000 | ||||||||||
Maturity | Apr. 30, 2023 | |||||||||||
Senior notes | Floating rate senior notes maturing 2049-2067 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,041,000,000 | |||||||||||
Long-term Debt and Lease Obligation | $ 1,028,000,000 | $ 1,029,000,000 | ||||||||||
Average interest rate | 2.05% | 1.76% | ||||||||||
Senior notes earliest callable period | 30 years | |||||||||||
Senior notes earliest putable period | 1 year | |||||||||||
Maturity - Minimum Date | Dec. 31, 2049 | |||||||||||
Maturity - Maximum Date | Dec. 31, 2067 | |||||||||||
Senior notes | Floating rate senior notes maturing 2049-2067 | Maximum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.45% | |||||||||||
Senior notes | Floating rate senior notes maturing 2049-2067 | Minimum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin rates | 0.30% | |||||||||||
Senior notes | 3.400% senior notes Due 2029 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | ||||||||||
Debt instrument, stated interest rate percentage | 3.40% | 3.40% | 3.40% | 3.40% | ||||||||
Long-term Debt and Lease Obligation | $ 745,000,000 | $ 0 | ||||||||||
Maturity | Mar. 15, 2029 | |||||||||||
Senior notes | 2.20% senior notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | ||||||||||
Debt instrument, stated interest rate percentage | 2.20% | 2.20% | 2.20% | 2.20% | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Long-term Debt and Lease Obligation | $ 398,000,000 | 0 | ||||||||||
Maturity | Sep. 1, 2024 | |||||||||||
Senior notes | 2.500% senior notes Due 2029 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||
Debt instrument, stated interest rate percentage | 2.50% | 2.50% | 2.50% | 2.50% | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Long-term Debt and Lease Obligation | $ 397,000,000 | $ 0 | ||||||||||
Maturity | Sep. 1, 2029 |
DEBT AND FINANCING ARRANGEMEN_4
DEBT AND FINANCING ARRANGEMENTS - Carrying Value of Debt Obligations (Detail) | 12 Months Ended | ||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Aug. 16, 2019USD ($) | Apr. 01, 2019USD ($) | Mar. 15, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 08, 2017EUR (€) | |
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 26,388,000,000 | ||||||
Long-term Debt | 24,891,000,000 | ||||||
Total debt | 25,238,000,000 | $ 22,736,000,000 | |||||
Less current maturities | (3,420,000,000) | (2,805,000,000) | |||||
Long-term debt, excluding current maturities | 21,818,000,000 | 19,931,000,000 | |||||
Commercial paper | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 3,243,000,000 | ||||||
Maturity | Dec. 31, 2020 | ||||||
Total debt | $ 3,234,000,000 | 2,662,000,000 | |||||
Senior notes | 1.125% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,000,000,000 | ||||||
Debt instrument, stated interest rate percentage | 5.125% | ||||||
Senior notes | 5.50% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 750,000,000 | ||||||
Debt instrument, stated interest rate percentage | 5.50% | 5.50% | |||||
Senior notes | 5.125% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,000,000,000 | ||||||
Debt instrument, stated interest rate percentage | 5.125% | 5.125% | |||||
Maturity | Dec. 31, 2019 | ||||||
Total debt | $ 0 | 998,000,000 | |||||
Senior notes | 3.125% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,500,000,000 | ||||||
Debt instrument, stated interest rate percentage | 3.125% | 3.125% | |||||
Maturity | Dec. 31, 2021 | ||||||
Total debt | $ 1,524,000,000 | 1,492,000,000 | |||||
Senior notes | 2.050% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 700,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.05% | 2.05% | |||||
Maturity | Apr. 30, 2021 | ||||||
Total debt | $ 699,000,000 | 698,000,000 | |||||
Senior notes | 2.45% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,000,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.45% | 2.45% | |||||
Maturity - Maximum Date | Oct. 1, 2022 | ||||||
Total debt | $ 1,003,000,000 | 1,023,000,000 | |||||
Senior notes | A235 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 600,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.35% | 2.35% | |||||
Maturity | May 31, 2022 | ||||||
Total debt | $ 598,000,000 | 597,000,000 | |||||
Senior notes | 2.500% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,000,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.50% | 2.50% | |||||
Maturity | Apr. 30, 2023 | ||||||
Total debt | $ 995,000,000 | 994,000,000 | |||||
Senior notes | 2.800% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 500,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.80% | 2.80% | |||||
Maturity | Nov. 30, 2024 | ||||||
Total debt | $ 497,000,000 | 496,000,000 | |||||
Senior notes | 2.20% senior notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 400,000,000 | $ 400,000,000 | |||||
Debt instrument, stated interest rate percentage | 2.20% | 2.20% | 2.20% | ||||
Maturity | Sep. 1, 2024 | ||||||
Total debt | $ 398,000,000 | 0 | |||||
Senior notes | 2.40% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 500,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.40% | 2.40% | |||||
Maturity | Dec. 31, 2026 | ||||||
Total debt | $ 498,000,000 | 498,000,000 | |||||
Senior notes | 3.050% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,000,000,000 | ||||||
Debt instrument, stated interest rate percentage | 3.05% | 3.05% | |||||
Maturity | Nov. 30, 2027 | ||||||
Total debt | $ 992,000,000 | 991,000,000 | |||||
Senior notes | 3.400% senior notes Due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 750,000,000 | $ 750,000,000 | |||||
Debt instrument, stated interest rate percentage | 3.40% | 3.40% | 3.40% | ||||
Maturity | Mar. 15, 2029 | ||||||
Total debt | $ 745,000,000 | 0 | |||||
Senior notes | 2.500% senior notes Due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 400,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.50% | 2.50% | 2.50% | ||||
Maturity | Sep. 1, 2029 | ||||||
Total debt | $ 397,000,000 | 0 | |||||
Senior notes | 6.20% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,500,000,000 | ||||||
Debt instrument, stated interest rate percentage | 6.20% | 6.20% | |||||
Maturity | Dec. 31, 2038 | ||||||
Total debt | $ 1,483,000,000 | 1,482,000,000 | |||||
Senior notes | 4.875% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 500,000,000 | ||||||
Debt instrument, stated interest rate percentage | 4.875% | 4.875% | |||||
Maturity | Dec. 31, 2040 | ||||||
Total debt | $ 490,000,000 | 490,000,000 | |||||
Senior notes | 3.625% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 375,000,000 | ||||||
Debt instrument, stated interest rate percentage | 3.625% | 3.625% | |||||
Maturity | Dec. 31, 2042 | ||||||
Total debt | $ 368,000,000 | 368,000,000 | |||||
Senior notes | 3.40% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 500,000,000 | ||||||
Debt instrument, stated interest rate percentage | 3.40% | 3.40% | |||||
Maturity | Dec. 31, 2046 | ||||||
Total debt | $ 491,000,000 | 491,000,000 | |||||
Senior notes | 3.750% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,150,000,000 | ||||||
Debt instrument, stated interest rate percentage | 3.75% | 3.75% | |||||
Maturity | Nov. 30, 2047 | ||||||
Total debt | $ 1,136,000,000 | 1,136,000,000 | |||||
Senior notes | 4.250% senior notes 2049 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 750,000,000 | ||||||
Debt instrument, stated interest rate percentage | 4.25% | 4.25% | 4.25% | ||||
Maturity | Mar. 15, 2049 | ||||||
Total debt | $ 742,000,000 | 0 | |||||
Senior notes | 3.400% senior notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 700,000,000 | $ 700,000,000 | |||||
Debt instrument, stated interest rate percentage | 3.40% | 3.40% | 3.40% | ||||
Maturity | Sep. 1, 2029 | ||||||
Total debt | $ 688,000,000 | 0 | |||||
Senior notes | Floating rate senior notes maturing 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 350,000,000 | ||||||
Maturity | Apr. 30, 2021 | ||||||
Total debt | $ 349,000,000 | 349,000,000 | |||||
Senior notes | Floating rate senior notes maturing 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 400,000,000 | ||||||
Maturity | May 31, 2022 | ||||||
Total debt | $ 399,000,000 | 399,000,000 | |||||
Senior notes | Floating rate senior notes maturing 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 500,000,000 | ||||||
Maturity | Apr. 30, 2023 | ||||||
Total debt | $ 499,000,000 | 499,000,000 | |||||
Senior notes | Floating rate senior notes maturing 2049-2067 | |||||||
Debt Instrument [Line Items] | |||||||
Principal 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 Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 424,000,000 | ||||||
Debt instrument, stated interest rate percentage | 8.375% | 8.375% | |||||
Maturity | Dec. 31, 2020 | ||||||
Total debt | $ 426,000,000 | 419,000,000 | |||||
Senior notes | 8.375% debentures Due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 276,000,000 | ||||||
Debt instrument, stated interest rate percentage | 8.375% | 8.375% | |||||
Maturity | Dec. 31, 2030 | ||||||
Total debt | $ 281,000,000 | 274,000,000 | |||||
Senior notes | Canadian Senior Note 2.125 Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 573,000,000 | ||||||
Debt instrument, stated interest rate percentage | 2.125% | 2.125% | |||||
Maturity | Dec. 31, 2024 | ||||||
Total debt | $ 571,000,000 | 548,000,000 | |||||
Pound Sterling notes | 5.50% Pound Sterling Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 87,000,000 | ||||||
Debt instrument, stated interest rate percentage | 5.50% | 5.50% | |||||
Maturity | Dec. 31, 2031 | ||||||
Total debt | $ 86,000,000 | 84,000,000 | |||||
Pound Sterling notes | Pound Sterling Notes 5 Point 13 Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 597,000,000 | ||||||
Debt instrument, stated interest rate percentage | 5.125% | 5.125% | |||||
Maturity | Dec. 31, 2050 | ||||||
Total debt | $ 566,000,000 | 546,000,000 | |||||
Euro Senior Notes | 0.375% Euro Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 783,000,000 | € 700,000,000 | |||||
Debt instrument, stated interest rate percentage | 0.375% | 0.375% | 0.375% | ||||
Maturity | Dec. 31, 2023 | ||||||
Total debt | $ 779,000,000 | 797,000,000 | |||||
Euro Senior Notes | 1.625% euro senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 783,000,000 | ||||||
Debt instrument, stated interest rate percentage | 1.625% | 1.625% | |||||
Maturity | Dec. 31, 2025 | ||||||
Total debt | $ 779,000,000 | 798,000,000 | |||||
Euro Senior Notes | 1.000% euro senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 560,000,000 | € 500,000,000 | |||||
Debt instrument, stated interest rate percentage | 1.00% | 1.00% | |||||
Maturity | Nov. 30, 2028 | ||||||
Total debt | $ 556,000,000 | 570,000,000 | |||||
Euro Senior Notes | 1.500% euro senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 560,000,000 | € 500,000,000 | |||||
Debt instrument, stated interest rate percentage | 1.50% | 1.50% | 1.50% | ||||
Maturity | Dec. 31, 2032 | ||||||
Total debt | $ 556,000,000 | 569,000,000 | |||||
Euro Senior Notes | Floating Rate Euro Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 560,000,000 | € 500,000,000 | |||||
Maturity | Dec. 31, 2020 | ||||||
Total debt | $ 559,000,000 | 572,000,000 | |||||
Finance lease obligations | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 498,000,000 | ||||||
Maturity - Minimum Date | Dec. 31, 2020 | ||||||
Maturity - Maximum Date | Dec. 31, 2210 | ||||||
Total debt | $ 498,000,000 | 534,000,000 | |||||
Facility notes and bonds | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 320,000,000 | ||||||
Maturity - Minimum Date | Dec. 31, 2029 | ||||||
Maturity - Maximum Date | Dec. 31, 2045 | ||||||
Total debt | $ 320,000,000 | 320,000,000 | |||||
Other debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 8,000,000 | ||||||
Maturity - Minimum Date | Dec. 31, 2020 | ||||||
Maturity - Maximum Date | Dec. 31, 2025 | ||||||
Total debt | $ 8,000,000 | $ 13,000,000 |
DEBT AND FINANCING ARRANGEMEN_5
DEBT AND FINANCING ARRANGEMENTS DEBT AND FINANCING ARRANGEMENTS - Average Interest Rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Apr. 01, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Principal Value | $ 26,388,000,000 | ||
Senior notes | 1.125% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate percentage | 5.125% | ||
Principal Value | $ 1,000,000,000 | ||
Senior notes | 5.125% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate percentage | 5.125% | ||
Principal Value | $ 1,000,000,000 | ||
Average Effective Percentage Rate | 4.48% | 3.99% | |
Senior notes | 5.50% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate percentage | 5.50% | ||
Principal Value | $ 750,000,000 | ||
Average Effective Percentage Rate | 0.00% | 3.63% | |
Senior notes | 3.125% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate percentage | 3.125% | ||
Principal Value | $ 1,500,000,000 | ||
Average Effective Percentage Rate | 2.59% | 2.32% | |
Senior notes | 2.45% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate percentage | 2.45% | ||
Principal Value | $ 1,000,000,000 | ||
Maturity | Oct. 1, 2022 | ||
Average Effective Percentage Rate | 3.03% | 2.77% |
DEBT AND FINANCING ARRANGEMEN_6
DEBT AND FINANCING ARRANGEMENTS - Aggregate Minimum Lease Payments , Annual Principal Payments and Amounts Expected to be Spent for Purchase Commitments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Capital Leases | ||
2019 | $ 158 | |
2020 | 95 | |
2021 | 42 | |
2022 | 39 | |
2023 | 36 | |
After 2024 | 293 | |
Total | 663 | |
Less: imputed interest | (129) | |
Present value of minimum capitalized lease payments | 534 | |
Less: current portion | (140) | |
Long-term capitalized lease obligations | 394 | |
Operating Leases | ||
2019 | 578 | |
2020 | 477 | |
2021 | 399 | |
2022 | 325 | |
2023 | 262 | |
Total | $ 2,967 | |
Debt Principal | ||
2015 | $ 4,232 | |
2016 | 2,551 | |
2017 | 2,001 | |
2018 | 2,284 | |
2019 | 1,474 | |
After 2019 | 12,349 | |
Total | 24,891 | |
Purchase Commitments(1) | ||
2015 | 3,569 | |
2016 | 1,982 | |
2017 | 966 | |
2018 | 323 | |
2019 | 261 | |
After 2019 | 201 | |
Total | $ 7,302 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES LEGAL PROCEEDINGS AND CONTINGENCIES (Details) € in Millions, $ in Millions | Nov. 07, 2019USD ($) | Mar. 08, 2018EUR (€) | May 25, 2017USD ($) | Apr. 30, 2018Defendants | Aug. 31, 2016Defendants | Dec. 31, 2019USD ($) |
U.S. District Court for the Southern District of New York | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement amount | $ 19 | $ 9 | ||||
Litigation Settlement Interest | $ 79 | $ 238 | ||||
Loss Contingency Accrual | $ 100 | |||||
Loss Contingency, Estimate of Possible Loss | $ 247 | |||||
CNMC | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement amount | € | € 19 | |||||
Loss Contingency, Number of Defendants | Defendants | 10 | |||||
Turkish Competition Authority | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number of Defendants | Defendants | 30 |
LEASES - Narratives (Details)
LEASES - Narratives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019aircraft | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of lease aircrafts (aircraft) | 342 | ||
Number of lease aircrafts, finance (aircraft) | 31 | ||
Number of lease aircrafts, operating (aircraft) | 14 | ||
Number of lease aircrafts, short-term (aircraft) | 297 | ||
Rent expense related to operating leases | $ | $ 959 | $ 804 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Lease Term | 1 month | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Lease Term | 190 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of assets | $ 73 |
Interest on lease liabilities | 19 |
Total finance lease costs | 92 |
Variable lease costs | 206 |
Short-term lease costs | 1,122 |
Operating lease costs | 643 |
Total lease costs | $ 2,063 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leases: | ||
Operating Lease, Right-of-Use Asset | $ 2,856 | $ 2,650 |
Current maturities of operating leases | (538) | |
Non-current operating leases | 2,391 | |
Total lease obligations | 2,929 | $ 2,700 |
Finance Leases: | ||
Accumulated amortization | (884) | |
Finance Lease, Right-of-Use Asset | 1,502 | |
Current maturities of long-term debt, commercial paper and finance leases | (181) | |
Long-term debt and finance leases | 317 | |
Total lease obligations | $ 498 | |
Weighted average remaining lease term (in years): | ||
Operating leases | 9 years 8 months 12 days | |
Finance leases | 8 years 10 months 24 days | |
Weighted average discount rate: | ||
Operating leases | 2.78% | |
Finance leases | 4.03% | |
Aircraft | ||
Finance Leases: | ||
Property, plant and equipment, at cost | $ 2,087 | |
Buildings | ||
Finance Leases: | ||
Property, plant and equipment, at cost | 272 | |
Vehicles, plant equipment, technology equipment and other | ||
Finance Leases: | ||
Property, plant and equipment, at cost | $ 27 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Disclosures (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 620 |
Operating cash flows from finance leases | 19 |
Financing cash flows from finance leases | 140 |
Operating leases | 810 |
Finance leases | $ 110 |
LEASES - Maturity Schedule Afte
LEASES - Maturity Schedule After Adoption (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Finance Leases | ||
2019 | $ 199 | |
2020 | 44 | |
2021 | 39 | |
2022 | 37 | |
2023 | 35 | |
Thereafter | 259 | |
Total lease payments | 613 | |
Less: Imputed interest | (115) | |
Total lease obligations | 498 | |
Current maturities of long-term debt, commercial paper and finance leases | (181) | |
Long-term lease obligations | 317 | |
Operating Leases | ||
2019 | 619 | |
2020 | 536 | |
2021 | 451 | |
2022 | 360 | |
2023 | 256 | |
Thereafter | 1,267 | |
Total lease payments | 3,489 | |
Less: Imputed interest | (560) | |
Total lease obligations | 2,929 | $ 2,700 |
Current maturities of operating leases | (538) | |
Operating Lease, Liability, Noncurrent | $ 2,391 |
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 2024 | 293 |
Total | 663 |
Less: Imputed interest | (129) |
Present value of minimum capitalized lease payments | 534 |
Less: Current obligations | (140) |
Long-term capitalized lease obligations | 394 |
Operating Leases | |
2019 | 578 |
2020 | 477 |
2021 | 399 |
2022 | 325 |
2023 | 262 |
After 2023 | 926 |
Total | $ 2,967 |
SHAREOWNERS' EQUITY - Additiona
SHAREOWNERS' EQUITY - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Classes_of_Common_StockVote$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | May 31, 2016USD ($) | |
Stockholders Equity Note [Line Items] | ||||
Classes of common stock | Classes_of_Common_Stock | 2 | |||
Preferred stock, shares authorized | 200,000,000 | |||
Preferred stock, par value | $ / shares | $ 0.01 | |||
Preferred stock, issued | 0 | |||
Common stock purchases, Shares | 9,100,000 | 8,900,000 | 16,100,000 | |
Total of class A and class B common stock, repurchased, value | $ | $ 1,005,000,000 | $ 1,000,000,000 | $ 1,816,000,000 | |
Share repurchase authorized amount | $ | $ 8,000,000,000 | |||
Share repurchase authorization remaining | $ | $ 2,334,000,000 | |||
Shares outstanding (shares) | 1,498,000 | |||
Settled Options | ||||
Stockholders Equity Note [Line Items] | ||||
Option Premiums Received (Paid) | $ | $ 21,000,000 | $ 34,000,000 | $ 54,000,000 | |
Shares outstanding (shares) | 0 | |||
Class A Common Stock: | ||||
Stockholders Equity Note [Line Items] | ||||
Votes per common share | Vote | 10 | |||
Common stock, par value | $ / shares | $ 0.01 | |||
Common stock, shares authorized | 4,600,000,000 | |||
Class B Common Stock: | ||||
Stockholders Equity Note [Line Items] | ||||
Votes per common share | Vote | 1 | |||
Common stock, par value | $ / shares | $ 0.01 | |||
Common stock, shares authorized | 5,600,000,000 |
SHAREOWNERS' EQUITY - Roll-forw
SHAREOWNERS' EQUITY - Roll-forward of Common Stock, Additional Paid-in Capital, and Retained Earnings Accounts (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock purchases, Shares | (9.1) | (8.9) | (16.1) | ||||||||
Balance at beginning of year | $ 3,021 | $ 3,021 | |||||||||
Net income attributable to controlling interests | $ (106) | $ 1,750 | $ 1,685 | 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | 4,440 | $ 4,791 | $ 4,905 |
Common stock purchases | (1,005) | (1,000) | (1,816) | ||||||||
Balance at end of year | 3,267 | 3,021 | 3,267 | 3,021 | |||||||
Payments for Repurchase of Common Stock | 1,004 | 1,011 | 1,813 | ||||||||
Stockholders' Equity, Other | 0 | (42) | (2) | ||||||||
Balance at beginning of year | $ 16 | 16 | |||||||||
Balance at beginning of year | $ 16 | $ 16 | 16 | 16 | |||||||
Dividends [Domain] | Class A Common Stock: | |||||||||||
Stockholders Equity Note [Line Items] | |||||||||||
Dividends, Common Stock, Stock | $ 147 | $ 178 | $ 157 | ||||||||
Common Stock | Class A Common Stock: | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance at beginning of year, Shares | 163 | 173 | 163 | 173 | 180 | ||||||
Common stock purchases, Shares | (3) | (3) | (4) | ||||||||
Stock award plans, Shares | 5 | 3 | 4 | ||||||||
Common stock issuances, Shares | 3 | 4 | 3 | ||||||||
Conversions of class A to class B common stock, Shares | (12) | (14) | (10) | ||||||||
Balance at end of year, Shares | 156 | 163 | 156 | 163 | 173 | ||||||
Balance at beginning of year | $ 2 | $ 2 | $ 2 | $ 2 | $ 2 | ||||||
Stock award plans | 0 | 0 | 0 | ||||||||
Common stock purchases | 0 | 0 | 0 | ||||||||
Common stock issuances | 0 | 0 | 0 | ||||||||
Conversions of class A to class B common stock | 0 | 0 | 0 | ||||||||
Balance at end of year | $ 2 | $ 2 | $ 2 | $ 2 | $ 2 | ||||||
Common Stock | Class B Common Stock: | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance at beginning of year, Shares | 696 | 687 | 696 | 687 | 689 | ||||||
Common stock purchases, Shares | (7) | (5) | (12) | ||||||||
Conversions of class A to class B common stock, Shares | 12 | 14 | 10 | ||||||||
Balance at end of year, Shares | 701 | 696 | 701 | 696 | 687 | ||||||
Balance at beginning of year | $ 7 | $ 7 | $ 7 | $ 7 | $ 7 | ||||||
Common stock purchases | 0 | 0 | 0 | ||||||||
Conversions of class A to class B common stock | 0 | 0 | 0 | ||||||||
Balance at end of year | $ 7 | $ 7 | 7 | 7 | 7 | ||||||
Additional Paid-In Capital: | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Option Premiums Received (Paid) | 21 | 34 | 54 | ||||||||
Balance at beginning of year | 0 | 0 | 0 | 0 | 0 | ||||||
Stock award plans | 778 | 419 | 396 | ||||||||
Common stock purchases | (1,005) | (859) | (813) | ||||||||
Common stock issuances | 356 | 406 | 363 | ||||||||
Balance at end of year | 150 | 0 | 150 | 0 | 0 | ||||||
Retained Earnings: | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance at beginning of year | 8,006 | 5,852 | 8,006 | 5,852 | 4,880 | ||||||
Net income attributable to controlling interests | 4,440 | 4,791 | 4,905 | ||||||||
Dividends ($3.84, $3.64, and $3.32 per share) (1) | (3,341) | (3,189) | (2,928) | ||||||||
Common stock purchases | 0 | (141) | (1,003) | ||||||||
Balance at end of year | 9,105 | 8,006 | 9,105 | 8,006 | 5,852 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 735 | 0 | 735 | 0 | ||||||
Noncontrolling Interest [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance at beginning of year | $ 16 | $ 30 | 16 | 30 | 24 | ||||||
Change in non-controlling interests | 0 | (14) | 6 | ||||||||
Balance at beginning of year | $ 16 | $ 16 | $ 16 | $ 16 | $ 30 |
SHAREOWNERS' EQUITY - Roll-fo_2
SHAREOWNERS' EQUITY - Roll-forward of Common Stock, Additional Paid-in Capital, and Retained Earnings Accounts (Phantom) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retained Earnings: | |||
Stockholders Equity Note [Line Items] | |||
Dividends, per share | $ 3.84 | $ 3.64 | $ 3.32 |
SHAREOWNERS' EQUITY - Activity
SHAREOWNERS' EQUITY - Activity in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | $ (4,994) | $ (4,867) | |
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 | 48 | (149) | $ 86 |
Current period changes in fair value (net of tax effect of $4, $(1) and $(1)) | 6 | 0 | (1) |
Current period changes in fair value (net of tax effect of $61, $135 and $(190)) | 72 | 485 | (321) |
Balance at end of period | (5,997) | (4,994) | (4,867) |
Foreign currency translation gain (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | (1,126) | (930) | (1,016) |
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 | (48) | 149 | (86) |
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | (47) | 0 |
Balance at end of period | (1,078) | (1,126) | (930) |
Unrealized gain (loss) on marketable securities, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | (2) | (2) | (1) |
Current period changes in fair value (net of tax effect of $4, $(1) and $(1)) | 11 | (3) | (2) |
Reclassification to earnings (net of tax effect of $(1), $1 and $1) | (5) | 3 | 1 |
Balance at end of period | 4 | (2) | (2) |
Unrealized gain (loss) on cash flow hedges, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | 40 | (366) | (45) |
Current period changes in fair value (net of tax effect of $61, $135 and $(190)) | 195 | 429 | (316) |
Reclassification to earnings (net of tax effect of $(39), $18 and $(3)) | (123) | 56 | (5) |
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | (79) | 0 |
Balance at end of period | 112 | 40 | (366) |
Unrecognized pension and postretirement benefit costs, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | (3,906) | (3,569) | (3,421) |
Reclassification to earnings (net of tax effect of $626, $439 and $269) | 1,988 | 1,389 | 731 |
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | (609) | 0 |
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(979), $(355) and $(180)) | (3,117) | (1,117) | (879) |
Balance at end of period | (5,035) | (3,906) | (3,569) |
Net Income [Member] [Member] | Unrealized gain (loss) on marketable securities, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Reclassification to earnings (net of tax effect of $(1), $1 and $1) | 5 | (3) | (1) |
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 $(39), $18 and $(3)) | (123) | 56 | (5) |
Net Income [Member] [Member] | Unrecognized pension and postretirement benefit costs, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Reclassification to earnings (net of tax effect of $626, $439 and $269) | $ (1,988) | $ (1,389) | $ (731) |
SHAREOWNERS' EQUITY - Activit_2
SHAREOWNERS' EQUITY - Activity in Accumulated Other Comprehensive Income (Loss) (Phantom) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency translation gain (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Aggregate adjustment for the period, tax effect | $ 10 | $ 37 | $ (161) |
Unrealized gain (loss) on marketable securities, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Current period changes in fair value, tax effect | 4 | (1) | (1) |
Reclassification to earnings, tax effect | (1) | 1 | 1 |
Unrealized gain (loss) on cash flow hedges, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Current period changes in fair value, tax effect | 61 | 135 | (190) |
Reclassification to earnings, tax effect | (39) | 18 | 3 |
Unrecognized pension and postretirement benefit costs, net of tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification to earnings, tax effect | 626 | 439 | 269 |
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities, tax effect | $ (979) | $ (355) | $ (180) |
SHAREOWNERS' EQUITY - Activit_3
SHAREOWNERS' EQUITY - Activity in Deferred Compensation Program (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefit Obligations: | |||
Balance at beginning of year | $ 3,021 | ||
Balance at end of year | $ 3,267 | $ 3,021 | |
Balance at beginning of year, Treasury Stock | (1) | ||
Balance at end of year, Treasury Stock | 0 | (1) | |
Treasury Stock | |||
Benefit Obligations: | |||
Balance at beginning of year | $ (32) | $ (37) | $ (45) |
Reinvested dividends | (2) | (2) | (2) |
Benefit payments | 8 | 7 | 10 |
Balance at end of year | $ (26) | $ (32) | $ (37) |
Balance at beginning of year, Treasury Stock | (1) | (1) | (1) |
Reinvested dividends, Treasury Stock | 0 | 0 | 0 |
Benefit payments, Treasury Stock | 1 | 0 | 0 |
Balance at end of year, Treasury Stock | 0 | (1) | (1) |
Deferred Compensation Obligations | |||
Benefit Obligations: | |||
Balance at beginning of year | $ 32 | $ 37 | $ 45 |
Reinvested dividends | (2) | (2) | (2) |
Benefit payments | (8) | (7) | (10) |
Balance at end of year | $ 26 | $ 32 | $ 37 |
SHAREOWNERS' EQUITY SHAREOWNERS
SHAREOWNERS' EQUITY SHAREOWNERS' EQUITY - Reclassification from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 1 | $ (1) | $ (1) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (5) | 3 | 1 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (123) | 56 | (5) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 39 | (18) | (3) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification to earnings (net of tax effect of $67, $1,876 and $378) | 1,988 | 1,389 | 731 |
Tax | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (39) | 18 | (3) |
Tax | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 626 | 439 | 269 |
Net Income [Member] [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | (1,860) | (1,448) | (727) |
Net Income [Member] [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 5 | (3) | (1) |
Net Income [Member] [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (123) | 56 | (5) |
Net Income [Member] [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification to earnings (net of tax effect of $67, $1,876 and $378) | (1,988) | (1,389) | (731) |
Labor and Related Expense [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (227) | (201) | (200) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (2,387) | (1,627) | (800) |
Investment Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 6 | (4) | (2) |
Interest Expense [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (1) | 1 | 1 |
Interest rate contracts | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (15) | (24) | (27) |
Foreign exchange contracts | Revenue [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 177 | $ (50) | $ 35 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 915 | $ 634 | $ 584 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 216 | $ 186 | $ 227 |
Share-based Compensation Arrangement by Share-based Payment Award, Target Award Minimum, Percentage | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Target Award Maximum, Percentage | 200.00% | ||
Discounted Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1,000,000 | 900,000 | 900,000 |
Stock Issued Employee Stock Purchase Plan Average Price Per Share | $ 102.11 | $ 105.53 | $ 108.98 |
Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 26,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 13,000,000 | ||
Incentive Compensation Plan [Member] | Restricted Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Decrease In Number Of Shares Available For Grant For Each Share Of Award Granted | 1 | ||
Management Incentive Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 1 month | ||
Long Term Incentive Performance Award | Restricted Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of Stock Units granted | $ 108.78 | $ 110.95 | $ 105.62 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 457 | $ 596 | $ 534 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 341 | ||
Long Term Incentive Performance Award | Restricted Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 3 years | ||
Weighted-average grant date fair value of Stock Units granted | $ 107.30 | $ 111.42 | $ 105.65 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 71 | $ 97 | $ 71 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 103 | ||
Nonqualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from Stock Options Exercised | $ 7 | 12 | 41 |
Vesting (exercisable) period of awards | 5 years | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 5 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 5 | 6 | 22 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2 | ||
Percentage of the award vesting at each anniversary date of the grant | 20.00% | ||
Discounted Employee Stock Purchase Modified Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Price Percentage Of Closing Price Of Another Class Of Stock | 95.00% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 1 year | ||
Minimum | Management Incentive Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Paid in Restricted Units, Percent | 50.00% | ||
Minimum | Long Term Incentive Performance Award | Restricted Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Consolidated operating return | 33.33% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 5 years | ||
Maximum | Management Incentive Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Paid in Restricted Units, Percent | 66.67% | ||
Maximum | Long Term Incentive Performance Award | Restricted Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Consolidated operating return | 66.67% | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 148 | $ 175 | $ 276 |
Restricted Stock Units (RSUs) [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 1 year | ||
Restricted Stock Units (RSUs) [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 4 years | ||
Share-based Payment Arrangement, Tranche One [Member] | Management Incentive Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 5 years | ||
Percentage of the award vesting at each anniversary date of the grant | 20.00% | ||
Share-based Payment Arrangement, Tranche Two [Member] | Management Incentive Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting (exercisable) period of awards | 1 year |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units Outstanding, Including Reinvested Dividends (Detail) - Long Term Incentive Performance Award - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Units [Member] | |||
Shares | |||
Beginning Balance | 10,139 | ||
Vested | (5,100) | ||
Granted | 5,516 | ||
Reinvested Dividends | 410 | ||
Forfeited / Expired | (226) | ||
Ending Balance | 10,739 | 10,139 | |
Restricted Units Expected to Vest | 12,690 | ||
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 104.47 | ||
Vested | 102.54 | ||
Granted | 108.78 | $ 110.95 | $ 105.62 |
Forfeited / Expired | 107.22 | ||
Ending Balance | 106.94 | $ 104.47 | |
Restricted Units Expected to Vest | $ 106.59 | ||
Weighted-Average Remaining Contractual Term (in years) | |||
Nonvested at December 31, 2019 | 21 days | ||
Restricted Units Expected to Vest | 22 days | ||
Aggregate Intrinsic Value | |||
Nonvested at December 31, 2019 | $ 1,257 | ||
Restricted Units Expected to Vest | $ 1,485 | ||
Restricted Units | |||
Shares | |||
Beginning Balance | 1,701 | ||
Vested | (898) | ||
Granted | 974 | ||
Reinvested Dividends | 83 | ||
Forfeited / Expired | (169) | ||
Ending Balance | 1,691 | 1,701 | |
Restricted Units Expected to Vest | 1,677 | ||
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 108.63 | ||
Vested | 106.12 | ||
Granted | 107.30 | $ 111.42 | $ 105.65 |
Forfeited / Expired | 108.60 | ||
Ending Balance | 109.18 | $ 108.63 | |
Restricted Units Expected to Vest | $ 109.16 | ||
Weighted-Average Remaining Contractual Term (in years) | |||
Nonvested at December 31, 2019 | 1 year 6 months 14 days | ||
Restricted Units Expected to Vest | 1 year 6 months 18 days | ||
Aggregate Intrinsic Value | |||
Nonvested at December 31, 2019 | $ 198 | ||
Restricted Units Expected to Vest | $ 196 |
STOCK-BASED COMPENSATION - Opti
STOCK-BASED COMPENSATION - Options to Purchase Shares of Class A Common Stock Issued and Outstanding (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shares | |
Ending Balance | shares | 1,498 |
Exercisable at December 31, 2019 | shares | 915 |
Weighted-Average Exercise Price | |
Ending Balance | $ / shares | $ 100.74 |
Exercisable at December 31, 2019 | $ / shares | $ 96.12 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at December 31, 2019 | 6 years 4 months 13 days |
Nonqualified Stock Options | |
Shares | |
Beginning Balance | shares | 1,384 |
Exercised | shares | (147) |
Granted | shares | 261 |
Forfeited / Expired | shares | 0 |
Ending Balance | shares | 1,498 |
Options Vested and Expected to Vest | shares | 1,498 |
Exercisable at December 31, 2019 | shares | 915 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 95.36 |
Exercised | $ / shares | 69.33 |
Granted | $ / shares | 111.68 |
Forfeited / Expired | $ / shares | 0 |
Ending Balance | $ / shares | 100.74 |
Options Vested and Expected to Vest | $ / shares | 100.74 |
Exercisable at December 31, 2019 | $ / shares | $ 96.12 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at December 31, 2019 | 6 years 4 months 13 days |
Options Vested and Expected to Vest | 6 years 4 months 13 days |
Exercisable at December 31, 2019 | 5 years 3 months |
Aggregate Intrinsic Value | |
Outstanding at December 31, 2019 | $ | $ 24 |
Options Vested and Expected to Vest | $ | 24 |
Exercisable at December 31, 2019 | $ | $ 19 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long Term Incentive Performance Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.23% | 2.61% | 1.46% |
Expected dividend yield | 115.04% | 123.47% | 113.55% |
Risk-free interest rate | 19.64% | 16.51% | 16.59% |
Weighted-average fair value of options granted | $ 123.44 | $ 137.57 | $ 119.29 |
Nonqualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.60% | 2.84% | 2.15% |
Expected dividend yield | 2.94% | 2.93% | 2.89% |
Risk-free interest rate | 17.79% | 16.72% | 17.81% |
Expected life in years | 7 years 6 months | 7 years 6 months | 7 years 6 months |
Weighted-average fair value of options granted | $ 16.34 | $ 15.23 | $ 14.70 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summarized Information about Stock Options Outstanding and Exercisable (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Shares | shares | 1,498 |
Options Outstanding, Average Life (in years) | 6 years 4 months 13 days |
Options Outstanding, Average Exercise Price | $ 100.74 |
Options Exercisable, Shares | shares | 915 |
Options Exercisable Average, Exercise Price | $ 96.12 |
Range 1 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, lower limit | 65.01 |
Exercise Price Range, upper limit | $ 80 |
Options Outstanding, Shares | shares | 157 |
Options Outstanding, Average Life (in years) | 1 year 6 months 7 days |
Options Outstanding, Average Exercise Price | $ 74.06 |
Options Exercisable, Shares | shares | 157 |
Options Exercisable Average, Exercise Price | $ 74.06 |
Range 2 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, lower limit | 80.01 |
Exercise Price Range, upper limit | $ 95 |
Options Outstanding, Shares | shares | 100 |
Options Outstanding, Average Life (in years) | 3 years 2 months 1 day |
Options Outstanding, Average Exercise Price | $ 82.89 |
Options Exercisable, Shares | shares | 100 |
Options Exercisable Average, Exercise Price | $ 82.89 |
Range 3 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, lower limit | 95.01 |
Exercise Price Range, upper limit | $ 110 |
Options Outstanding, Shares | shares | 985 |
Options Outstanding, Average Life (in years) | 6 years 9 months |
Options Outstanding, Average Exercise Price | $ 103.93 |
Options Exercisable, Shares | shares | 635 |
Options Exercisable Average, Exercise Price | $ 103.09 |
Range 4 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, lower limit | 110.01 |
Exercise Price Range, upper limit | $ 125 |
Options Outstanding, Shares | shares | 256 |
Options Outstanding, Average Life (in years) | 9 years 1 month 17 days |
Options Outstanding, Average Exercise Price | $ 111.80 |
Options Exercisable, Shares | shares | 23 |
Options Exercisable Average, Exercise Price | $ 111.80 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019LocationSegments | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segments | 3 | ||
Description of consolidated revenue | No countries outside of the United States provided 10% or more of consolidated revenue. | No countries outside of the United States, nor any individual customers, provided 10% or more of consolidated revenue. | No countries outside of the United States, nor any individual customers, provided 10% or more of consolidated revenue. |
Revenue Benchmark | Customer Concentration Risk | Amazon.com, Inc. | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (percent) | 11.60% | ||
Receivable Benchmark | Customer Concentration Risk | Amazon.com, Inc. | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (percent) | 16.90% | ||
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 AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
Operating Profit (Loss) | 2,133 | $ 2,128 | $ 2,143 | $ 1,394 | 2,004 | $ 1,727 | $ 1,773 | $ 1,520 | 7,798 | 7,024 | 7,529 |
Assets | 57,857 | 50,016 | 57,857 | 50,016 | 45,574 | ||||||
Depreciation and Amortization Expense | 2,360 | 2,207 | 2,282 | ||||||||
U.S. Domestic Package | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 46,493 | 43,593 | 40,761 | ||||||||
Operating Profit (Loss) | 4,164 | 3,643 | 4,303 | ||||||||
Assets | 32,795 | 28,216 | 32,795 | 28,216 | 25,449 | ||||||
Depreciation and Amortization Expense | 1,520 | 1,375 | 1,479 | ||||||||
International Package | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 14,220 | 14,442 | 13,342 | ||||||||
Operating Profit (Loss) | 2,657 | 2,529 | 2,429 | ||||||||
Assets | 14,044 | 12,070 | 14,044 | 12,070 | 10,361 | ||||||
Depreciation and Amortization Expense | 547 | 526 | 509 | ||||||||
Supply Chain & Freight | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 13,381 | 13,826 | 12,482 | ||||||||
Operating Profit (Loss) | 977 | 852 | 797 | ||||||||
Assets | 9,045 | 8,411 | 9,045 | 8,411 | 8,267 | ||||||
Depreciation and Amortization Expense | 293 | 306 | 294 | ||||||||
Unallocated | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 1,973 | $ 1,319 | 1,973 | 1,319 | 1,497 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 58,699 | 56,115 | 52,080 | ||||||||
United States | U.S. Domestic Package | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 46,493 | 43,593 | 40,761 | ||||||||
International Package | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 15,395 | 15,746 | 14,505 | ||||||||
Supply Chain & Freight | Supply Chain & Freight | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 13,381 | $ 13,826 | $ 12,482 |
SEGMENT AND GEOGRAPHIC INFORM_5
SEGMENT AND GEOGRAPHIC INFORMATION - Revenue by Product Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
U.S. Domestic Package | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 46,493 | 43,593 | 40,761 | ||||||||
International Package | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 14,220 | 14,442 | 13,342 | ||||||||
Supply Chain & Freight | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 13,381 | 13,826 | 12,482 | ||||||||
Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 814 | 794 | 791 | ||||||||
Freight | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 3,265 | 3,218 | 3,000 | ||||||||
Logistics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 3,435 | 3,234 | 3,017 | ||||||||
Forwarding | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 5,867 | 6,580 | 5,674 | ||||||||
United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 58,699 | 56,115 | 52,080 | ||||||||
United States | U.S. Domestic Package | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 46,493 | 43,593 | 40,761 | ||||||||
United States | Ground | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 32,834 | 31,223 | 29,251 | ||||||||
United States | Deferred | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 5,180 | 4,752 | 4,422 | ||||||||
United States | Next Day Air | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 8,479 | 7,618 | 7,088 | ||||||||
International Package | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 15,395 | 15,746 | 14,505 | ||||||||
International Package | Cargo & Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 547 | 595 | 526 | ||||||||
International Package | Export | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 10,837 | 10,973 | 10,170 | ||||||||
International Package | Domestic | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 2,836 | $ 2,874 | $ 2,646 |
SEGMENT AND GEOGRAPHIC INFORM_6
SEGMENT AND GEOGRAPHIC INFORMATION - Geographic Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
Long-lived assets | 37,543 | 33,495 | 37,543 | 33,495 | 29,107 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 58,699 | 56,115 | 52,080 | ||||||||
Long-lived assets | 27,976 | 24,918 | 27,976 | 24,918 | 21,141 | ||||||
International Package | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 15,395 | 15,746 | 14,505 | ||||||||
Long-lived assets | $ 9,567 | $ 8,577 | $ 9,567 | $ 8,577 | $ 7,966 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
U.S. Federal | $ 570 | $ 89 | $ 671 |
U.S. State and Local | 183 | 7 | 49 |
Non-U.S. | 359 | 374 | 288 |
Total Current | 1,112 | 470 | 1,008 |
Deferred: | |||
U.S. Federal | 255 | 668 | 1,115 |
U.S. State and Local | (93) | 75 | 118 |
Non-U.S. | (62) | 15 | (9) |
Total Deferred | 100 | 758 | 1,224 |
Total Income Tax Expense | $ 1,212 | $ 1,228 | $ 2,232 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 3,972 | $ 4,307 | $ 5,987 |
Non-U.S. | 1,680 | 1,712 | 1,150 |
Income Before Income Taxes | $ 5,652 | $ 6,019 | $ 7,137 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% |
U.S. state and local income taxes (net of federal benefit) | 1.40% | 1.40% | 1.50% |
Non-U.S. tax rate differential | 0.30% | 0.20% | (2.00%) |
U.S. federal tax credits | (1.40%) | (1.10%) | (1.80%) |
Income tax benefit from the Tax Cuts and Jobs Act and other non-U.S. tax law changes | 0.00% | 0.00% | (3.60%) |
Effective Income Tax Rate Reconciliation, Change In Enacted Tax Rate, Increase (Decrease) Defined Benefit Plan Adjustment Tax Rate, Percent | 0.00% | 0.00% | 1.50% |
Non-U.S. valuation allowance release | (1.20%) | 0.00% | 0.00% |
Other | 1.30% | (1.10%) | 0.70% |
Effective income tax rate | 21.40% | 20.40% | 31.30% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||||
Effective income tax rate | 21.40% | 20.40% | 31.30% | |||
Provisional benefit from Jobs Act 2017 | $ 272 | $ 272 | ||||
Loss on mark to market of defined benefit plan, tax benefit | $ 571 | $ 390 | 193 | |||
Loss on mark to market of defined benefit plan | 2,387 | 1,627 | 800 | |||
Decrease to foreign deferred tax asset | 14 | |||||
Transformation cost | $ 255 | $ 360 | ||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount | 59 | 87 | ||||
Legal contingencies | 97 | 97 | ||||
Benefit related to legal expenses | 6 | 6 | ||||
Operating lease carryforward | 68 | 68 | ||||
Tax benefit from share-based compensation | $ 38 | |||||
Reduction of effective tax rate due to share-based compensation benefits | 0.60% | |||||
Deferred tax expense | 100 | $ 758 | 1,224 | |||
Income tax benefit | (1,212) | (1,228) | (2,232) | |||
Income tax holiday, decrease of non-U.S. tax expense | $ 27 | $ 27 | $ 24 | |||
Income tax holiday, per share impact (usd per share) | $ 0.03 | $ 0.03 | $ 0.03 | |||
Change in valuation allowance | $ 58 | $ 14 | $ 33 | |||
Tax credit carryforward | 3 | 3 | ||||
Undistributed earnings of foreign subsidiaries | 6,060 | 6,060 | ||||
Indefinitely reinvested undistributed earnings of foreign subsidiaries | 1,597 | 1,597 | ||||
Gross unrecognized tax benefits that would impact effective tax rate, if recognized | 171 | $ 165 | $ 159 | 171 | $ 165 | 159 |
Federal | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | 21 | 21 | ||||
Operating loss set to expire in 2021 | 20 | 20 | ||||
non U.S | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | $ 670 | $ 670 | ||||
Adjustments | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 1.00% | |||||
Income tax benefit | $ 71 |
INCOME TAXES - Deferred Tax Lia
INCOME TAXES - Deferred Tax Liabilities and Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Liabilities, Leasing Arrangements | $ (685) | |
Fixed assets and capitalized software | (4,720) | $ (4,010) |
Other | (538) | (493) |
Deferred tax liabilities | (5,943) | (4,503) |
Pension and postretirement benefits | 2,522 | 1,743 |
Loss and credit carryforwards | 328 | 298 |
Insurance reserves | 413 | 437 |
Stock compensation | 249 | 189 |
Accrued employee compensation | 287 | 274 |
Operating lease liabilities | 691 | |
Other | 205 | 196 |
Deferred tax assets | 4,695 | 3,137 |
Deferred tax assets valuation allowance | (54) | (112) |
Deferred tax asset (net of valuation allowance) | 4,641 | 3,025 |
Amounts recognized in the consolidated balance sheets: | ||
Deferred tax assets | 330 | 141 |
Deferred tax liabilities | (1,632) | (1,619) |
Deferred Tax Liabilities, Net | $ (1,302) | $ (1,478) |
INCOME TAXES - U.S. State and L
INCOME TAXES - U.S. State and Local Operating Loss and Credit Carryforwards (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
U.S. state and local operating loss carryforwards | $ 1,374 | $ 1,014 |
U.S. state and local credit carryforwards | $ 110 | $ 80 |
INCOME TAXES - Summarized Activ
INCOME TAXES - Summarized Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | $ 167 | $ 160 | $ 144 |
Additions for tax positions of the current year | 6 | 47 | 16 |
Additions for tax positions of prior years | 51 | 7 | 33 |
Reductions for tax positions of prior years for: | |||
Changes based on facts and circumstances | (45) | (43) | (24) |
Settlements during the period | (3) | (1) | (6) |
Lapses of applicable statute of limitations | (4) | (3) | (3) |
Ending Balance | 172 | 167 | 160 |
Interest | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | 44 | 43 | 50 |
Additions for tax positions of the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 13 | 10 | 14 |
Reductions for tax positions of prior years for: | |||
Changes based on facts and circumstances | (4) | (8) | (18) |
Settlements during the period | (1) | (1) | (3) |
Lapses of applicable statute of limitations | 0 | 0 | 0 |
Ending Balance | 52 | 44 | 43 |
Penalties | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | 5 | 9 | 6 |
Additions for tax positions of the current year | 0 | 1 | 0 |
Additions for tax positions of prior years | 0 | 0 | 3 |
Reductions for tax positions of prior years for: | |||
Changes based on facts and circumstances | (1) | (5) | 0 |
Settlements during the period | 0 | 0 | 0 |
Lapses of applicable statute of limitations | 0 | 0 | 0 |
Ending Balance | $ 4 | $ 5 | $ 9 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income attributable to common shareowners | $ (106) | $ 1,750 | $ 1,685 | $ 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | $ 4,791 | $ 4,905 |
Denominator: | |||||||||||
Weighted-average shares | 859 | 860 | 865 | ||||||||
Deferred compensation obligations | 0 | 1 | 1 | ||||||||
Vested portion of restricted shares | 5 | 5 | 5 | ||||||||
Denominator for basic earnings per share | 864 | 866 | 871 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Denominator for diluted earnings per share | 869 | 870 | 875 | ||||||||
Basic Earnings Per Share | $ (0.12) | $ 2.03 | $ 1.95 | $ 1.28 | $ 0.52 | $ 1.74 | $ 1.71 | $ 1.55 | $ 5.14 | $ 5.53 | $ 5.63 |
Diluted Earnings Per Share | $ (0.12) | $ 2.01 | $ 1.94 | $ 1.28 | $ 0.52 | $ 1.73 | $ 1.71 | $ 1.55 | $ 5.11 | $ 5.51 | $ 5.61 |
Restricted Performance Units [Member] | |||||||||||
Effect of Dilutive Securities: | |||||||||||
Dilutive securities | 5 | 4 | 3 | ||||||||
Stock Option Plans [Member] | |||||||||||
Effect of Dilutive Securities: | |||||||||||
Dilutive securities | 0 | 0 | 1 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Shares excluded from diluted earnings per share that may be issued upon the exercise of employee stock options because such effect would be antidilutive | 0.5 | 0.2 | 0.1 |
DERIVATIVE INSTRUMENTS AND RI_3
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Commodity Asset | $ 0 | $ 0 |
Derivative Instrument Recognition Period | 11 years | |
Hedge margin liabilities | $ 495,000,000 | 325,000,000 |
Aggregate fair value additional collateral | $ 0 | |
Maximum term over hedging exposures to the variability of cash flow | 13 years | |
Pre-tax gains related to cash flow hedges that are currently deferred in AOCI and are expected to be reclassified to income over the 12 month period ended December 31, 2012 | $ 162,000,000 | |
Unfavorable Regulatory Action [Member] | ||
Derivative [Line Items] | ||
Derivative, Additional Collateral, Obligation to Return Cash | 0 | $ 0 |
Estimate of Fair Value Measurement [Member] | Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 17,000,000 |
DERIVATIVE INSTRUMENTS AND RI_4
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Notional Amounts of Outstanding Derivative Positions (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019SGD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018CAD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018SGD ($) | Dec. 31, 2018HKD ($) |
Interest rate contracts | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 3,674 | $ 4,674 | ||||||||||
Floating to Fixed Interest Rate Swaps | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 778 | $ 778 | ||||||||||
EUR | Foreign exchange contracts | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | € | € 4,571 | € 4,924 | ||||||||||
GBP | Foreign exchange contracts | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | £ | £ 1,494 | £ 2,037 | ||||||||||
CAD | Foreign exchange contracts | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 1,402 | $ 1,443 | ||||||||||
HKD | Foreign exchange contracts | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 3,327 | $ 3,642 | ||||||||||
Singapore Dollar | Foreign exchange contracts | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 0 | $ 20 |
DERIVATIVE INSTRUMENTS AND RI_5
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Balance sheet location of derivative assets and liabilities and their related fair values (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | $ 432 | $ 361 |
Derivative Liability, Fair Value, Gross Liability | 37 | 67 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 12 | 35 |
Net Amounts if Right of Offset had been Applied | 407 | 329 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 138 | 90 |
Net Amounts if Right of Offset had been Applied | 131 | 83 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Foreign exchange contracts | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 252 | 230 |
Net Amounts if Right of Offset had been Applied | 236 | 215 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Foreign exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (7) | 7 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Foreign exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 16 | 15 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Interest rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 2 | 1 |
Net Amounts if Right of Offset had been Applied | 2 | 1 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Interest rate contracts | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 21 | 14 |
Net Amounts if Right of Offset had been Applied | 20 | 6 |
Fair Value, Inputs, Level 2 | Designated as Hedging Instrument | Interest rate contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 11 | 41 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 10 | 33 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 7 | 7 |
Net Amounts if Right of Offset had been Applied | 7 | 5 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Foreign exchange contracts | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 0 | 1 |
Net Amounts if Right of Offset had been Applied | 0 | 1 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Foreign exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 3 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 1 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Foreign exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 1 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 1 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Interest rate contracts | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Presented in Consolidated Balance Sheets, Asset Derivatives | 12 | 18 |
Net Amounts if Right of Offset had been Applied | 11 | 18 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Interest rate contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 3 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 0 |
Estimate of Fair Value Measurement [Member] | Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 17 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 40 | 16 |
Reported Value Measurement [Member] | Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 3,234 | $ 4,207 |
DERIVATIVE INSTRUMENTS AND RI_6
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ 256 | $ 564 |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 6 | 1 |
Cash Flow Hedging | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 250 | 563 |
Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 75 | 211 |
Net Investment Hedging | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ 75 | $ 211 |
DERIVATIVE INSTRUMENTS AND RI_7
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount Recorded in Income Statements for Foreign Currency Forward Contracts Not Designated as Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ 0 | $ 0 |
Gain (Loss) on Fair Value Of Derivatives Designated As Hedged Item Recognized in Earnings | 0 | 0 |
Other Comprehensive Income (Loss) Gain (Loss), after Reclassification and Tax, Parent | 177 | (50) |
Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | 0 |
Gain (Loss) on Fair Value Of Derivatives Designated As Hedged Item Recognized in Earnings | 0 | 0 |
Other Comprehensive Income (Loss) Gain (Loss), after Reclassification and Tax, Parent | 0 | 0 |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (38) | 57 |
Gain (Loss) on Fair Value Of Derivatives Designated As Hedged Item Recognized in Earnings | 38 | (57) |
Other Comprehensive Income (Loss) Gain (Loss), after Reclassification and Tax, Parent | (15) | (24) |
Foreign exchange contracts | Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 177 | (50) |
Foreign exchange contracts | Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Foreign exchange contracts | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Interest rate contracts | Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Interest rate contracts | Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Interest rate contracts | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (15) | (24) |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | (10) | (95) |
Not Designated as Hedging Instrument | Foreign exchange contracts | Investment income and other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | (1) | (102) |
Not Designated as Hedging Instrument | Interest rate contracts | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | (9) | (9) |
Not Designated as Hedging Instrument | Investment market price contracts | Investment income and other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | 0 | 16 |
Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 75 | 211 |
Net Investment Hedging | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 75 | 211 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 256 | 564 |
Cash Flow Hedging | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 250 | 563 |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ 6 | $ 1 |
DERIVATIVE INSTRUMENTS AND RI_8
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Inputs, Level 2 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | $ 432 | $ 361 |
Liability Derivatives | (37) | (67) |
Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | 0 |
Gain (Loss) on Fair Value Of Derivatives Designated As Hedged Item Recognized in Earnings | 0 | 0 |
Other Comprehensive Income (Loss) Gain (Loss), after Reclassification and Tax, Parent | 177 | (50) |
Revenue [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 177 | (50) |
Revenue [Member] | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (38) | 57 |
Gain (Loss) on Fair Value Of Derivatives Designated As Hedged Item Recognized in Earnings | 38 | (57) |
Other Comprehensive Income (Loss) Gain (Loss), after Reclassification and Tax, Parent | (15) | (24) |
Interest Expense [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Interest Expense [Member] | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (15) | (24) |
Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | 0 |
Gain (Loss) on Fair Value Of Derivatives Designated As Hedged Item Recognized in Earnings | 0 | 0 |
Other Comprehensive Income (Loss) Gain (Loss), after Reclassification and Tax, Parent | 0 | 0 |
Investment Income [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 |
Investment Income [Member] | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ 0 | $ 0 |
TRANSFORMATION STRATEGY TRANSFO
TRANSFORMATION STRATEGY TRANSFORMATION STRATEGY COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Compensation and benefits | $ 166 | $ 262 |
Total other expenses | 89 | 98 |
Total Transformation Strategy Costs | 255 | 360 |
Income Tax Benefit from Transformation Strategy Costs | (59) | (87) |
After Tax Transformation Strategy Costs | $ 196 | $ 273 |
QUARTERLY INFORMATION (unaudi_3
QUARTERLY INFORMATION (unaudited) - Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information [Line Items] | |||||||||||
Revenue | $ 20,568 | $ 18,318 | $ 18,048 | $ 17,160 | $ 19,848 | $ 17,444 | $ 17,456 | $ 17,113 | $ 74,094 | $ 71,861 | $ 66,585 |
Operating profit (loss) | 2,133 | 2,128 | 2,143 | 1,394 | 2,004 | 1,727 | 1,773 | 1,520 | 7,798 | 7,024 | 7,529 |
Nonoperating Income (Expense) | (2,331) | 78 | 61 | 46 | (1,461) | 162 | 153 | 141 | (2,146) | (1,005) | (392) |
Net Income | $ (106) | $ 1,750 | $ 1,685 | $ 1,111 | $ 453 | $ 1,508 | $ 1,485 | $ 1,345 | $ 4,440 | $ 4,791 | $ 4,905 |
Basic | $ (0.12) | $ 2.03 | $ 1.95 | $ 1.28 | $ 0.52 | $ 1.74 | $ 1.71 | $ 1.55 | $ 5.14 | $ 5.53 | $ 5.63 |
Diluted | $ (0.12) | $ 2.01 | $ 1.94 | $ 1.28 | $ 0.52 | $ 1.73 | $ 1.71 | $ 1.55 | $ 5.11 | $ 5.51 | $ 5.61 |
U.S. Domestic Package | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenue | $ 13,408 | $ 11,455 | $ 11,150 | $ 10,480 | $ 12,575 | $ 10,437 | $ 10,354 | $ 10,227 | |||
Operating profit (loss) | 1,074 | 1,216 | 1,208 | 666 | 999 | 949 | 939 | 756 | |||
International Package | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenue | 3,762 | 3,494 | 3,505 | 3,459 | 3,829 | 3,478 | 3,602 | 3,533 | |||
Operating profit (loss) | 799 | 667 | 663 | 528 | 781 | 536 | 618 | 594 | |||
Supply Chain & Freight | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenue | 3,398 | 3,369 | 3,393 | 3,221 | 3,444 | 3,529 | 3,500 | 3,353 | |||
Operating profit (loss) | $ 260 | $ 245 | $ 272 | $ 200 | $ 224 | $ 242 | $ 216 | $ 170 |
QUARTERLY INFORMATION (unaudi_4
QUARTERLY INFORMATION (unaudited) - Transformation and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Interim Period, Costs Not Allocable [Line Items] | ||||||||
Legal Contingencies and Expenses | $ 97 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan Mark-to-Market Charges | 2,387 | 0 | 0 | 0 | 1,627 | 0 | 0 | 0 |
Transformation Strategy - Employee Benefits | ||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||
Transformation cost | 17 | 41 | 2 | 106 | 0 | 70 | 192 | 0 |
Transformation Strategy - Other Costs | ||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||
Transformation cost | 31 | 22 | 19 | 17 | 0 | 27 | 71 | 0 |
U.S. Domestic Package | ||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||
Transformation cost | 133 | 26 | 18 | 28 | 0 | 39 | 196 | 0 |
International Package | ||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||
Transformation cost | 10 | 26 | 2 | 84 | 0 | 40 | 36 | 0 |
Supply Chain & Freight | ||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||
Transformation cost | $ 2 | $ 11 | $ 1 | $ 11 | $ 0 | $ 18 | $ 31 | $ 0 |