Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-15451 | |
Entity Registrant Name | United Parcel Service, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-2480149 | |
Entity Address, Street Address | 55 Glenlake Parkway N.E. , | |
Entity Address, City | Atlanta, | |
Entity Address, State | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | 404 | |
Local Phone Number | 828-6000 | |
Title of 12(b) Security | Class B common stock, par value $0.01 per share | |
Trading Symbol | UPS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001090727 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
0.375% Senior Notes due 2023 | ||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | |
Trading Symbol | UPS23A | |
Security Exchange Name | NYSE | |
1.625% Senior Notes due 2025 | ||
Title of 12(b) Security | 1.625% Senior Notes due 2025 | |
Trading Symbol | UPS25 | |
Security Exchange Name | NYSE | |
1% Senior Notes due 2028 | ||
Title of 12(b) Security | 1% Senior Notes due 2028 | |
Trading Symbol | UPS28 | |
Security Exchange Name | NYSE | |
1.500% Senior Notes due 2032 | ||
Title of 12(b) Security | 1.500% Senior Notes due 2032 | |
Trading Symbol | UPS32 | |
Security Exchange Name | NYSE | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 135,097,238 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 729,820,920 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 11,045 | $ 10,255 |
Marketable securities | 331 | 338 |
Accounts receivable | 11,118 | 12,669 |
Less: Allowance for credit losses | (143) | (128) |
Accounts receivable, net | 10,975 | 12,541 |
Other current assets | 2,247 | 1,800 |
Total Current Assets | 24,598 | 24,934 |
Property, Plant and Equipment, Net | 33,625 | 33,475 |
Operating Lease Right-Of-Use Assets | 3,417 | 3,562 |
Goodwill | 3,624 | 3,692 |
Intangible Assets, Net | 2,439 | 2,486 |
Investments and Restricted Cash | 20 | 26 |
Deferred Income Tax Assets | 143 | 176 |
Other Non-Current Assets | 1,678 | 1,054 |
Total Assets | 69,544 | 69,405 |
Current Liabilities: | ||
Current maturities of long-term debt, commercial paper and finance leases | 2,581 | 2,131 |
Current maturities of operating leases | 560 | 580 |
Accounts payable | 6,731 | 7,523 |
Accrued wages and withholdings | 3,643 | 3,819 |
Self-insurance reserves | 1,081 | 1,048 |
Accrued group welfare and retirement plan contributions | 1,006 | 1,038 |
Hedge margin liabilities | 1,031 | 260 |
Other current liabilities | 1,046 | 1,170 |
Total Current Liabilities | 17,679 | 17,569 |
Long-Term Debt and Finance Leases | 17,769 | 19,784 |
Non-Current Operating Leases | 2,960 | 3,033 |
Pension and Postretirement Benefit Obligations | 6,747 | 8,047 |
Deferred Income Tax Liabilities | 3,761 | 3,125 |
Other Non-Current Liabilities | 3,640 | 3,578 |
Shareowners’ Equity: | ||
Additional paid-in capital | 0 | 1,343 |
Retained earnings | 20,177 | 16,179 |
Accumulated other comprehensive loss | (3,218) | (3,278) |
Deferred compensation obligations | 12 | 16 |
Less: Treasury stock (0.2 and 0.3 shares in 2022 and 2021, respectively) | (12) | (16) |
Total Equity for Controlling Interests | 16,968 | 14,253 |
Noncontrolling interests | 20 | 16 |
Total Shareowners’ Equity | 16,988 | 14,269 |
Total Liabilities and Shareowners’ Equity | $ 69,544 | $ 69,405 |
Treasury stock (in shares) | 0.2 | 0.3 |
Class A common stock | ||
Shareowners’ Equity: | ||
Common stock | $ 2 | $ 2 |
Common stock, shares issued (in shares) | 135 | 138 |
Class B common stock | ||
Shareowners’ Equity: | ||
Common stock | $ 7 | $ 7 |
Common stock, shares issued (in shares) | 730 | 732 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Treasury stock (in shares) | 0.2 | 0.3 |
Class A common stock | ||
Common stock, shares issued (in shares) | 135 | 138 |
Class B common stock | ||
Common stock, shares issued (in shares) | 730 | 732 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 24,161 | $ 23,184 | $ 73,305 | $ 69,516 |
Operating Expenses: | ||||
Compensation and benefits | 11,506 | 11,148 | 34,480 | 33,958 |
Repairs and maintenance | 639 | 619 | 1,908 | 1,837 |
Depreciation and amortization | 774 | 738 | 2,300 | 2,199 |
Purchased transportation | 4,173 | 4,638 | 13,158 | 13,327 |
Fuel | 1,530 | 950 | 4,447 | 2,672 |
Other occupancy | 427 | 384 | 1,338 | 1,252 |
Other expenses | 1,999 | 1,811 | 5,775 | 5,352 |
Total Operating Expenses | 21,048 | 20,288 | 63,406 | 60,597 |
Operating Profit | 3,113 | 2,896 | 9,899 | 8,919 |
Other Income and (Expense): | ||||
Investment income and other | 333 | 274 | 981 | 4,235 |
Interest expense | (177) | (177) | (522) | (521) |
Total Other Income and (Expense) | 156 | 97 | 459 | 3,714 |
Income Before Income Taxes | 3,269 | 2,993 | 10,358 | 12,633 |
Income Tax Expense | 685 | 664 | 2,263 | 2,836 |
Net Income | $ 2,584 | $ 2,329 | $ 8,095 | $ 9,797 |
Basic Earnings Per Share (in dollars per share) | $ 2.97 | $ 2.66 | $ 9.27 | $ 11.21 |
Diluted Earnings Per Share (in dollars per share) | $ 2.96 | $ 2.65 | $ 9.24 | $ 11.16 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 2,584 | $ 2,329 | $ 8,095 | $ 9,797 |
Change in foreign currency translation adjustment, net of tax | (263) | (106) | (548) | (140) |
Change in unrealized gain (loss) on marketable securities, net of tax | (3) | 0 | (10) | (5) |
Change in unrealized gain (loss) on cash flow hedges, net of tax | 281 | 112 | 558 | 180 |
Change in unrecognized pension and postretirement benefit costs, net of tax | 18 | 29 | 60 | 4,049 |
Comprehensive Income (Loss) | $ 2,617 | $ 2,364 | $ 8,155 | $ 13,881 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows From Operating Activities: | ||
Net income | $ 8,095 | $ 9,797 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 2,300 | 2,199 |
Pension and postretirement benefit (income) expense | 666 | (2,656) |
Pension and postretirement benefit contributions | (2,106) | (331) |
Self-insurance reserves | 182 | 122 |
Deferred tax (benefit) expense | 466 | 1,271 |
Stock compensation expense | 850 | 700 |
Other (gains) losses | (25) | 33 |
Changes in assets and liabilities, net of effects of business acquisitions: | ||
Accounts receivable | 1,022 | (21) |
Other assets | (98) | 256 |
Accounts payable | (952) | 20 |
Accrued wages and withholdings | (59) | 306 |
Other liabilities | 481 | 65 |
Other operating activities | (50) | 0 |
Net cash from operating activities | 10,772 | 11,761 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (2,278) | (2,570) |
Proceeds from disposal of businesses, property, plant and equipment | 870 | |
Proceeds from disposal of businesses, property, plant and equipment | 12 | |
Purchases of marketable securities | (195) | (197) |
Sales and maturities of marketable securities | 193 | 257 |
Net change in finance receivables | 23 | 28 |
Cash paid for business acquisitions, net of cash and cash equivalents acquired | (106) | (12) |
Other investing activities | (57) | 24 |
Net cash used in investing activities | (2,408) | (1,600) |
Cash Flows From Financing Activities: | ||
Net change in short-term debt | 0 | 0 |
Proceeds from long-term borrowings | 0 | 0 |
Repayments of long-term borrowings | (1,124) | (2,613) |
Purchases of common stock | (2,194) | (500) |
Issuances of common stock | 198 | 196 |
Dividends | (3,842) | (2,578) |
Other financing activities | (513) | (361) |
Net cash used in financing activities | (7,475) | (5,856) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (99) | (3) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 790 | 4,302 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 10,255 | 5,910 |
End of period | $ 11,045 | $ 10,212 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Principles of Consolidation The accompanying interim unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These interim unaudited, consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly our financial position as of September 30, 2022, our results of operations for the three and nine months ended September 30, 2022 and 2021, and our cash flows for the nine months ended September 30, 2022 and 2021. The results reported in these interim unaudited, consolidated financial statements should not be regarded as indicative of results that may be expected for any other period or the entire year. The interim unaudited, consolidated financial statements should be read in conjunction with the audited, consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no material impact on our financial position or results of operations. Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximated fair value as of September 30, 2022 and December 31, 2021. The fair values of our investment securities are disclosed in note 5, our recognized multiemployer pension withdrawal liabilities in note 7, our short- and long-term debt in note 9 and our derivative instruments in note 15. We apply a fair value hierarchy (Levels 1, 2 and 3) when measuring and reporting items at fair value. Fair values are based on listed market prices (Level 1), when such prices are available. To the extent that listed market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations (Level 2). If listed market prices or other relevant factors are not available, 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 (Level 3). We utilized Level 1 inputs in the fair value hierarchy to determine the fair value of our cash and cash equivalents, and Level 2 inputs to determine the fair value of our accounts receivable, finance receivables and accounts payable. Use of Estimates The preparation of the accompanying interim unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of these financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. As a result, our accounting estimates and assumptions may change significantly over time. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards Accounting pronouncements adopted during the periods covered by the unaudited, consolidated financial statements did not have a material impact on our consolidated financial position, results of operations or cash flows. For accounting standards adopted in the period ended September 30, 2021, refer to note 1 to our audited, consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021. Accounting Standards Issued But Not Yet Effective In September 2022, the Financial Accounting Standards Board issued an Accounting Standards Update ("ASU") to enhance the disclosure of supplier finance programs. The update will be effective for us in the first quarter of 2023. 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, cash flows or internal controls. Other accounting pronouncements issued before, but not effective until after, September 30, 2022, are not expected to have a material impact on our consolidated financial position, results of operations, cash flows or internal controls. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue Recognition Substantially all of our revenues are from contracts associated with the pickup, transportation and delivery of packages and freight (“transportation services”) domestically or internationally. These services may be carried out by or arranged by us, and generally occur over a short period of time. We also provide value-added logistics services to customers, both domestically and internationally, through our global network of distribution centers and field stocking locations. The majority of our contracts with customers for transportation services include only one performance obligation: the transportation services themselves. 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 remaining performance obligations are primarily comprised of transportation services started but not completed as of the reporting date and we expect to complete these remaining performance obligations within a short period of time. All of our major businesses act as a principal in their revenue arrangements and as such, we report revenue and the associated purchased transportation costs on a gross basis within our statements of consolidated income. Disaggregation of Revenue Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue: Next Day Air $ 2,673 $ 2,415 $ 7,923 $ 7,202 Deferred 1,311 1,304 4,123 3,877 Ground 11,390 10,489 33,911 31,541 U.S. Domestic Package 15,374 14,208 45,957 42,620 Domestic 785 852 2,465 2,716 Export 3,747 3,641 11,501 10,808 Cargo & Other 267 227 782 620 International Package 4,799 4,720 14,748 14,144 Forwarding 2,162 2,625 7,140 7,006 Logistics 1,302 1,158 3,843 3,424 Freight — — — 1,064 Other 524 473 1,617 1,258 Supply Chain Solutions 3,988 4,256 12,600 12,752 Consolidated revenue $ 24,161 $ 23,184 $ 73,305 $ 69,516 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 $328 and $304 million as of September 30, 2022 and December 31, 2021, respectively, net of deferred revenue related to in-transit packages of $346 and $314 million as of September 30, 2022 and December 31, 2021, respectively, and are included within Other current assets in the consolidated balance sheets. Short-term contract liabilities related to advance payments from customers were $10 and $27 million as of September 30, 2022 and December 31, 2021, respectively, and are included within Other current liabilities in the consolidated balance sheets. Long-term contract liabilities related to advance payments from customers were $26 and $25 million as of September 30, 2022 and December 31, 2021, respectively, and are included within Other Non-Current Liabilities in the consolidated balance sheets. 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 reasonable and supportable forecasts affect the expected collectability. This requires us to make our best estimate of the current expected losses inherent in our accounts receivable at each balance sheet date. This estimate requires consideration of historical loss experience, adjusted for current conditions, forward looking indicators, trends in customer payment frequency and judgments about the probable effects of relevant observable data, including present and future 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. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We issue share-based awards under various incentive compensation plans, including non-qualified and incentive stock options, stock appreciation rights, restricted stock and stock units ("RSUs") and restricted performance shares and performance units ("RPUs", collectively with RSUs, "Restricted Units"). Upon vesting, Restricted Units result in the issuance of the equivalent number of UPS class A common shares after required tax withholdings. Dividends accrued on Restricted Units are reinvested in additional Restricted Units at each dividend payable date and are subject to the same vesting and forfeiture conditions as the underlying Restricted Units. Our primary equity compensation programs are the UPS Management Incentive Program (the "MIP"), the UPS Long-Term Incentive Performance Program (the "LTIP") and the UPS Stock Option program. We also maintain an employee stock purchase plan which allows eligible employees to purchase shares of UPS class A common stock at a discount. Our matching contributions to our primary employee defined contribution savings plan are made in shares of UPS class A common stock. Management Incentive Program RPUs issued under the MIP vest one year following the grant date based on continued employment with the Company and are expensed on a straight-line basis (less estimated forfeitures) over the requisite service period. In cases of death, disability or retirement, RPUs vest and are expensed immediately. Based on the date of Compensation Committee approval of the 2021 MIP, we determined the award measurement dates to be February 9, 2022 (for U.S.-based employees and executive management) and March 21, 2022 (for international employees). Each RPU issued under the MIP was valued using the closing New York Stock Exchange ("NYSE") prices of $225.07 and $218.56 on those dates. Long-Term Incentive Performance Program RPUs issued under the LTIP vest at the end of a three-year performance period, assuming continued employment with the Company (except in the case of death, disability or retirement, in which case immediate vesting occurs on a prorated basis). The actual number of RPUs earned is based on achievement of the performance targets established on the grant date. The performance targets are equally weighted between adjusted earnings per share and adjusted cumulative free cash flow. The actual number of RPUs earned is subject to adjustment based on total shareholder return relative to the Standard & Poor's 500 Index ("S&P 500"). We determine the grant date fair value of the RPUs using a Monte Carlo model and recognize compensation expense (less estimated forfeitures) ratably over the vesting period, based on the number of awards expected to be earned. Based on the date of Compensation Committee approval of the 2022 LTIP award performance targets, we determined March 23, 2022 to be the award measurement date and each target RPU awarded was valued at $230.67. The weighted-average assumptions used and the weighted-average fair values of the LTIP awards granted in 2022 and 2021 are as follows: 2022 2021 Risk-free interest rate 2.33 % 0.19 % Expected volatility 31.91 % 30.70 % Weighted-average fair value of RPUs granted $ 228.72 $ 168.05 Share payout 107.41 % 102.39 % There is no expected dividend yield as units earn dividend equivalents. Non-Qualified Stock Options We grant non-qualified stock options to a limited group of eligible senior management employees under the UPS Stock Option program. Stock option awards vest over a five-year period with approximately 20% of the award vesting at each anniversary of the grant date (except in the case of death, disability or retirement, in which case immediate vesting occurs). The option grants expire 10 years after the date of the grant. On March 23, 2022, we granted 0.1 million stock options at an exercise price of $214.58, the NYSE closing price on that date. The fair value of each option granted is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the weighted-average fair values of options granted in 2022 and 2021 are as follows: 2022 2021 Expected dividend yield 2.35 % 3.31 % Risk-free interest rate 2.39 % 0.84 % Expected life (in years) 7.5 7.5 Expected volatility 25.04 % 23.15 % Weighted-average fair value of options granted $ 48.45 $ 23.71 Pre-tax compensation expense for share-based awards recognized in Compensation and benefits in the statements of consolidated income for the three months ended September 30, 2022 and 2021 was $233 and $179 million, respectively, and for the nine months ended September 30, 2022 and 2021 was $850 and $700 million , respectively. |
CASH AND INVESTMENTS
CASH AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
CASH AND INVESTMENTS | CASH AND INVESTMENTS The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2022 and December 31, 2021 (in millions): Cost Unrealized Unrealized Estimated September 30, 2022: Current trading marketable securities: Equity securities $ 2 $ — $ — $ 2 Total trading marketable securities 2 — — 2 Current available-for-sale securities: U.S. government and agency debt securities 222 — (8) 214 Mortgage and asset-backed debt securities 10 — — 10 Corporate debt securities 105 — (4) 101 U.S. state and local municipal debt securities 4 — — 4 Non-U.S. government debt securities — — — — Total available-for-sale marketable securities 341 — (12) 329 Total current marketable securities $ 343 $ — $ (12) $ 331 Cost Unrealized Unrealized Estimated December 31, 2021: Current trading marketable securities: Equity securities $ 2 $ — $ — $ 2 Total trading marketable securities 2 — — 2 Current available-for-sale securities: U.S. government and agency debt securities 199 2 (1) 200 Mortgage and asset-backed debt securities 7 — — 7 Corporate debt securities 121 — — 121 U.S. state and local municipal debt securities 5 — — 5 Non-U.S. government debt securities 3 — — 3 Total available-for-sale marketable securities 335 2 (1) 336 Total current marketable securities $ 337 $ 2 $ (1) $ 338 Investment Impairments We have concluded that no material impairment losses existed as of September 30, 2022. In making this determination, we considered the financial condition and prospects of each issuer, the magnitude of the losses compared with the cost, the probability that we will be unable to collect all amounts due according to the contractual terms of the security, the credit rating of the security and our ability and intent to hold these investments until the anticipated recovery in market value occurs. Maturity Information The amortized cost and estimated fair value of marketable securities as of September 30, 2022 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 Due in one year or less $ 16 $ 15 Due after one year through three years 325 314 Due after three years through five years — — Due after five years — — 341 329 Equity securities 2 2 $ 343 $ 331 Non-Current Investments and Restricted Cash We hold an investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan. The investment had a fair market value of $18 and $23 million as of September 30, 2022 and December 31, 2021, respectively. Changes in fair value are recognized in Investment income and other in the statements of consolidated income. Additionally, we held cash in escrow of $2 and $3 million as of September 30, 2022 and December 31, 2021, respectively, related to the acquisition and disposition of certain assets. 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): September 30, 2022 December 31, September 30, 2021 December 31, Cash and cash equivalents $ 11,045 $ 10,255 $ 10,212 $ 5,910 Restricted cash — — — — Total cash, cash equivalents and restricted cash $ 11,045 $ 10,255 $ 10,212 $ 5,910 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. The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices Significant Other Significant Balance September 30, 2022: Marketable securities: U.S. government and agency debt securities $ 214 $ — $ — $ 214 Mortgage and asset-backed debt securities — 10 — 10 Corporate debt securities — 101 — 101 U.S. state and local municipal debt securities — 4 — 4 Equity securities — 2 — 2 Non-U.S. government debt securities — — — — Total marketable securities 214 117 — 331 Other non-current investments 18 — — 18 Total $ 232 $ 117 $ — $ 349 December 31, 2021: Marketable securities: U.S. government and agency debt securities $ 200 $ — $ — $ 200 Mortgage and asset-backed debt securities — 7 — 7 Corporate debt securities — 121 — 121 U.S. state and local municipal debt securities — 5 — 5 Equity securities — 2 — 2 Non-U.S. government debt securities — 3 — 3 Total marketable securities 200 138 — 338 Other non-current investments 23 — — 23 Total $ 223 $ 138 $ — $ 361 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of September 30, 2022 and December 31, 2021 consisted of the following (in millions): 2022 2021 Vehicles $ 10,284 $ 10,018 Aircraft 22,569 21,973 Land 2,093 2,140 Buildings 5,793 5,802 Building and leasehold improvements 5,022 5,010 Plant equipment 15,849 15,650 Technology equipment 2,887 2,798 Construction-in-progress 1,651 1,418 66,148 64,809 Less: Accumulated depreciation and amortization (32,523) (31,334) Property, Plant and Equipment, Net $ 33,625 $ 33,475 Property, plant and equipment purchased on account was $601 and $248 million as of September 30, 2022 and December 31, 2021, respectively. We continually monitor our aircraft fleet utilization in light of current and projected volume levels, aviation fuel prices and other factors. We monitor all other property, plant and equipment for any indicators that the carrying value of the assets may not be recoverable. There were no material impairment charges for the three and nine months ended September 30, 2022, or for the three months ended September 30, 2021. We recorded impairment charges of $30 million for the nine months ended September 30, 2021, due to the reevaluation of certain facility projects. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Company-Sponsored Benefit Plans Information about the net periodic benefit cost (income) for our company-sponsored pension and postretirement benefit plans for the three and nine months ended September 30, 2022 and 2021 is as follows (in millions): U.S. Pension Benefits U.S. Postretirement International 2022 2021 2022 2021 2022 2021 Three Months Ended September 30: Service cost $ 506 $ 442 $ 7 $ 7 $ 17 $ 19 Interest cost 488 490 21 21 11 9 Expected return on assets (820) (825) (1) (1) (19) (17) Amortization of prior service cost 23 36 — 2 — — Net periodic benefit cost $ 197 $ 143 $ 27 $ 29 $ 9 $ 11 U.S. Pension Benefits U.S. Postretirement International 2022 2021 2022 2021 2022 2021 Nine Months Ended September 30: Service cost $ 1,518 $ 1,456 $ 22 $ 21 $ 52 $ 57 Interest cost 1,463 1,459 62 60 34 29 Expected return on assets (2,460) (2,502) (3) (4) (59) (51) Amortization of prior service cost 69 103 — 5 1 1 Actuarial (gain) loss — (3,290) — — — — Settlement and curtailment (gain) loss — — — — (33) — Net periodic benefit (income) cost $ 590 $ (2,774) $ 81 $ 82 $ (5) $ 36 The components of net periodic benefit cost (income) other than current service cost are presented within Investment income and other in the statements of consolidated income. During the nine months ended September 30, 2022, we amended the UPS Canada Ltd. Retirement Plan to cease future benefit accruals effective December 31, 2023. We remeasured plan assets and benefit obligations for this plan, which resulted in a curtailment gain of $33 million ($24 million after tax) during the nine month period. The gain is included in Investment income and other in the statement of consolidated income. During the nine months ended September 30, 2021, we divested our UPS Freight business, which triggered an interim remeasurement of the plan assets and benefit obligations of the UPS Pension Plan, UPS Retirement Plan and UPS Retired Employee Health Care Plan as of this date. The interim remeasurement resulted in an actuarial gain of $2.1 billion, reflecting updated actuarial assumptions and was recorded in other comprehensive income within the equity section of the consolidated balance sheet. An actuarial gain of $69 million ($52 million after tax) for a prior service credit related to the divested group and a $66 million loss ($50 million after tax) for certain plan amendments to the UPS Pension Plan were immediately recognized within Other expenses in the statement of consolidated income for the nine months ended September 30, 2021. During the nine months ended September 30, 2021, we remeasured the UPS/IBT Full Time Employee Pension Plan following the enactment into law of the American Rescue Plan Act, which is discussed below. The interim remeasurement resulted in a pre-tax mark-to-market gain of $3.3 billion ($2.5 billion after tax) during the nine month period. The gain was included within Investment income and other in the statement of consolidated income for the nine months ended September 30, 2021. Contributions to our company-sponsored pension and U.S. postretirement medical benefit plans for the first nine months of 2022 were $1.972 billion and $134 million, respectively. We expect to contribute approximately $43 and $144 million over the remainder of the year to our pension and U.S. postretirement medical benefit plans, respectively. Multiemployer Benefit Plans We contribute to a number of multiemployer defined benefit and health and welfare plans under the terms of collective bargaining agreements that cover our union-represented employees. Our current collective bargaining agreements set forth the annual contribution increases allotted to the plans that we participate in, and we are in compliance with these contribution rates. These limitations on annual contribution rates will remain in effect throughout the terms of the existing collective bargaining agreements. As of September 30, 2022 and December 31, 2021, we had $824 and $830 million, respectively, recorded in Other Non-Current Liabilities in our consolidated balance sheets and $8 million as of September 30, 2022 and December 31, 2021 recorded in Other current liabilities in our consolidated balance sheets associated with our previous withdrawal from the New England Teamsters and Trucking Industry Pension Fund. This liability is payable in equal monthly installments over a remaining term of approximately 40 years. Based on the borrowing rates currently available to us for long-term financing of a similar maturity, the fair value of this withdrawal liability as of September 30, 2022 and December 31, 2021 was $668 and $963 million, respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. UPS was a contributing employer to the Central States Pension Fund (“CSPF”) until 2007 at which time UPS withdrew from the CSPF and paid a $6.1 billion withdrawal liability to satisfy our allocable share of unfunded vested benefits. 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 this withdrawal agreement, benefits to the UPS Transfer Group cannot be reduced without our consent and can only be reduced in accordance with applicable law. The financial crisis of 2008 created extensive asset losses at the CSPF, contributing to the plan’s projected insolvency, at which time benefits would be reduced to the legally permitted Pension Benefit Guaranty Corporation ("PBGC") limits, triggering the coordination of benefits provision in the collective bargaining agreement. In 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 2015, the CSPF submitted a proposed pension benefit reduction plan to the U.S. Department of the Treasury (“Treasury”). In 2016, Treasury rejected the proposed plan submitted by the CSPF. In light of its financial difficulties, the CSPF had stated that it believed a legislative solution to its funded status would be necessary or that it would become insolvent in 2025, at which time benefits would be reduced to the applicable PBGC benefit levels. We account for the potential obligation to pay coordinating benefits to the UPS Transfer Group under 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 and at interim periods when a significant event occurs. ASC 715 does not permit anticipation of changes in law when developing a best estimate. At the December 31, 2020 measurement date, we developed our best estimate for the potential obligation to pay coordinating benefits to the UPS Transfer Group using a deterministic cash flow projection that reflected estimated CSPF cash flows and investment earnings, the lack of legislative action having been taken, the expectation of payment of guaranteed benefits by the PBGC and the lack of a benefit reduction plan under MPRA having been filed by the CSPF. As a result, our best estimate at that time of the obligation for coordinating benefits that may have been required to be directly provided by the UPS/IBT Plan to the UPS Transfer Group was $5.5 billion. In March 2021, the American Rescue Plan Act (“ARPA”) was enacted into law. The ARPA contains provisions that allow for qualifying financially distressed multiemployer pension plans to apply for special financial assistance ("SFA") from the PBGC, which will be funded by Treasury. Following approval of an application, a qualifying multiemployer pension plan will receive a lump sum payment to enable it to continue paying unreduced benefits through 2051. The multiemployer plan is not obligated to repay the SFA. The ARPA is intended to prevent both the PBGC and certain financially distressed multiemployer pension plans, including the CSPF, from becoming insolvent through 2051. The CSPF has submitted an application for SFA to the PBGC. The application remains under review. The passage of the ARPA and the expected receipt of SFA by the CSPF suspends our obligation to provide additional coordinating benefits to the UPS Transfer Group through 2051. These matters also triggered a plan remeasurement under ASC 715. Accordingly, we remeasured the plan assets and pension benefit obligation of the UPS/IBT Plan as of March 31, 2021 resulting in an actuarial gain of $6.4 billion, reflecting a reduction of the liability for coordinating benefits of $5.1 billion and a gain from other updated actuarial assumptions of $1.3 billion. The future value of this estimate will continue to be influenced by a number of factors, including interpretations of the ARPA, future legislative actions, actuarial assumptions and the ability of the PBGC to sustain its commitments. Actual events may result in a change in our best estimate of the projected benefit obligation. We will continue to assess the impact of these uncertainties in accordance with ASC 715. Collective Bargaining Agreements We have approximately 327,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the IBT. These agreements run through July 31, 2023. We have approximately 3,200 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association ("IPA") that becomes amendable September 1, 2023. In the second quarter of 2022, we reached a tentative agreement on a two-year contract extension with the IPA. On August 12, 2022, the IPA ratified the two-year contract extension. Terms of the agreement become effective September 1, 2023 and continue in effect through September 1, 2025. The economic provisions in the agreement include pay increases and enhanced pension benefits on substantially similar terms. We have approximately 1,700 airline mechanics who are covered by a collective bargaining agreement with Teamsters Local 2727. On October 17, 2022, the mechanics ratified a contract extension that will make the contract amendable on November 1, 2026. The provisions in the extension agreement include pay increases, with most other terms unchanged. Approximately 3,300 of our auto and maintenance mechanics who are not employed under agreements with the IBT are employed under collective bargaining agreements with the International Association of Machinists and Aerospace Workers (“IAM”). The collective bargaining agreement with the IAM runs through July 31, 2024. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table indicates the allocation of goodwill as of September 30, 2022 and December 31, 2021 (in millions): U.S. Domestic International Supply Chain Solutions Consolidated December 31, 2021: $ 847 $ 403 $ 2,442 $ 3,692 Acquired — — 64 64 Currency / Other — (32) (100) (132) September 30, 2022: $ 847 $ 371 $ 2,406 $ 3,624 The goodwill balances for both International Package and Supply Chain Solutions decreased due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. In May 2022, we acquired Delivery Solutions, a digital platform that optimizes customer deliveries across multiple networks. The acquisition was funded with cash from operations and was not material to our consolidated financial position or results of operations. The goodwill associated with the acquisition is included within Supply Chain Solutions. We test goodwill and other indefinite-lived intangible assets for impairment annually at July 1st and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Our annual impairment testing indicated that the fair value of goodwill associated with our recently-acquired Roadie reporting unit remained greater than its carrying value as of our July 1st testing date, although this excess was less than 10 percent. The following is a summary of intangible assets as of September 30, 2022 and December 31, 2021 (in millions): Gross Carrying Accumulated Net Carrying September 30, 2022: Capitalized software $ 5,068 $ (3,427) $ 1,641 Licenses 49 (26) 23 Franchise rights 141 (37) 104 Customer relationships 704 (444) 260 Trade name 67 (7) 60 Trademarks, patents and other 169 (22) 147 Amortizable intangible assets $ 6,198 $ (3,963) $ 2,235 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 6,402 $ (3,963) $ 2,439 December 31, 2021: Capitalized software $ 4,910 $ (3,275) $ 1,635 Licenses 58 (27) 31 Franchise rights 119 (37) 82 Customer relationships 733 (408) 325 Trade name 67 (1) 66 Trademarks, patents and other 158 (15) 143 Amortizable intangible assets $ 6,045 $ (3,763) $ 2,282 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 6,249 $ (3,763) $ 2,486 As of September 30, 2022 and December 31, 2021, we had a trade name with a carrying value of $200 million and licenses with a current carrying value of $4 million, which are deemed to be indefinite-lived intangible assets and are included in the table above. There were no events or changes in circumstances during the nine months ended September 30, 2022 that would indicate the carrying amount of our indefinite-lived intangible assets may be impaired as of the date of this report. |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt obligations as of September 30, 2022 and December 31, 2021 consists of the following (in millions): Principal Carrying Value Maturity 2022 2021 Fixed-rate senior notes: 2.450% senior notes 1,000 2022 1,000 1,010 2.350% senior notes — 2022 — 600 2.500% senior notes 1,000 2023 999 998 2.800% senior notes 500 2024 499 498 2.200% senior notes 400 2024 399 399 3.900% senior notes 1,000 2025 997 996 2.400% senior notes 500 2026 499 498 3.050% senior notes 1,000 2027 995 994 3.400% senior notes 750 2029 746 746 2.500% senior notes 400 2029 397 397 4.450% senior notes 750 2030 744 744 6.200% senior notes 1,500 2038 1,484 1,484 5.200% senior notes 500 2040 494 494 4.875% senior notes 500 2040 491 491 3.625% senior notes 375 2042 369 368 3.400% senior notes 500 2046 492 492 3.750% senior notes 1,150 2047 1,137 1,137 4.250% senior notes 750 2049 743 743 3.400% senior notes 700 2049 688 688 5.300% senior notes 1,250 2050 1,231 1,231 Floating-rate senior notes: Floating-rate senior notes — 2022 — 400 Floating-rate senior notes 500 2023 500 500 Floating-rate senior notes 1,039 2049-2067 1,027 1,027 Debentures: 7.620% debentures 276 2030 280 280 Pound Sterling notes: 5.500% notes 74 2031 73 89 5.125% notes 504 2050 479 583 Euro senior notes: 0.375% senior notes 684 2023 683 791 1.625% senior notes 684 2025 682 791 1.000% senior notes 488 2028 486 564 1.500% senior notes 488 2032 486 564 Canadian senior notes: 2.125% senior notes 547 2024 547 585 Finance lease obligations 379 2022-2046 379 408 Facility notes and bonds 320 2029-2045 320 320 Other debt 4 2022-2025 4 5 Total debt $ 20,512 20,350 21,915 Less: current maturities (2,581) (2,131) Long-term debt $ 17,769 $ 19,784 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. As of September 30, 2022, we had no outstanding balances under our commercial paper programs. Debt Classification We have classified certain floating-rate senior notes that are redeemable at the option of the note holder as long-term liabilities in our consolidated balance sheets, due to our intent and ability to refinance the debt if the put option is exercised. Debt Repayments During the second quarter, our 2.350% senior notes with a principal balance of $600 million and our floating rate senior notes with a principal balance of $400 million matured and were repaid in full. On October 3, 2022, our 2.450% senior notes with a principal balance of $1.0 billion matured and were repaid in full. Reference Rate Reform Our floating-rate senior notes with maturities ranging from 2049 through 2067 bear interest at rates that reference the London Interbank Offer Rate ("LIBOR") for U.S. Dollars. As part of a broader program of reference rate reform, it is expected that U.S. Dollar LIBOR rates will cease to be published after June 2023. We are currently working to transition these notes to an alternative reference rate, and we anticipate that the Secured Overnight Financing Rate ("SOFR") will be adopted in accordance with recommendations of the Alternative Reference Rates Committee. Sources of Credit We maintain two credit agreements with a consortium of banks. The first of these agreements provides revolving credit facilities of $1.0 billion, and expires on December 6, 2022. Amounts outstanding under this agreement bear interest at a periodic fixed rate equal to the term SOFR rate, plus 0.10% per annum and an applicable margin based on our then-current credit rating. The applicable margin from the credit pricing grid as of September 30, 2022 was 0.875%. 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%; or (3) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00%, may be used at our discretion. We expect to renew this credit agreement in the fourth quarter of 2022 on substantially similar terms. The second agreement provides revolving credit facilities of $2.0 billion, and expires on December 7, 2026. Amounts outstanding under this facility bear interest at a periodic fixed rate equal to the term SOFR rate plus 0.10% per annum and an applicable margin based on our then-current credit rating. The applicable margin from the credit pricing grid as of September 30, 2022 was 0.875%. 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%; or (3) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00%, plus an applicable margin, may be used at our discretion. If the credit ratings established by Standard & Poor's and Moody's differ, the higher rating will be used, except in cases where the lower rating is two or more levels lower. In these circumstances, the rating one step below the higher rating will be used. We are also able to request advances under these facilities based on competitive bids for the applicable interest rate. There were no amounts outstanding under these facilities as of September 30, 2022. Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of September 30, 2022, 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 September 30, 2022, 10% of net tangible assets was equivalent to $4.6 billion and we had no covered sale-leaseback transactions or secured indebtedness outstanding. We do not expect these covenants to have a material impact on our financial condition or liquidity. Fair Value of Debt Based on the borrowing rates currently available to us for long-term debt with similar terms and maturities, the fair value of long-term debt, including current maturities, was approximately $18.9 and $25.1 billion as of September 30, 2022 and December 31, 2021, 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. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES We have finance and operating leases for real estate, aircraft and 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. We recognize a right-of-use ("ROU") asset and lease obligation for all leases greater than twelve months. 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. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease obligation for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and whether the optional period and payments should be included in the calculation of the associated ROU asset and lease obligation. 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 obligation 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. Our remaining lease terms vary from 1 month to 138 years. Aircraft In addition to the aircraft that we own, we have leases for 310 aircraft. Of these leased aircraft, 17 are classified as finance leases, 18 are classified as operating leases and the remaining 275 are classified as short-term leases. A majority of the obligations associated with the aircraft classified as finance leases have been legally defeased. A majority 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, 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, office space and expansion facilities utilized during peak shipping periods. Many of our leases contain charges for common area maintenance or other 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 obligation. 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, these also reduce the initial lease obligation. From time to time, we enter into leases with the intention of purchasing the underlying 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 determination of the lease term and lease payments, respectively, when the option to exercise or purchase is reasonably certain. Transportation equipment and other equipment We enter into both long-term and short-term leases for transportation equipment to supplement our capacity or meet contractual demands. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. The lease term for these types of leases is determined by the length of the underlying customer contract or based on the judgment of the business unit. We also enter into multi-year leases for trailers to increase capacity during periods of high demand, which are typically only used for 90-120 days during the year. These leases are treated as short-term as the cumulative right of use is less than 12 months over the term of the contract. The remainder of our leases are primarily related to equipment used in our air operations, vehicles required to meet capacity needs during periods of higher demand for our shipping services, technology equipment and office equipment used in our facilities. Some of our transportation and technology equipment leases require us to make additional lease payments based on the underlying usage of the assets. Due to the variable nature of these costs, these are expensed as incurred and are not included in the ROU asset and associated lease obligation. The components of lease expense for the three and nine months ended September 30, 2022 and 2021 are as follows (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease costs $ 179 $ 183 $ 546 $ 537 Finance lease costs: Amortization of assets 28 24 84 70 Interest on lease liabilities 3 4 10 11 Total finance lease costs 31 28 94 81 Variable lease costs 62 51 194 178 Short-term lease costs 319 305 944 835 Total lease costs $ 591 $ 567 $ 1,778 $ 1,631 In addition to the lease costs disclosed in the table above, we monitor all lease categories for any indicators that the carrying value of the assets may not be recoverable. There were no material impairments recognized during the three or nine months ended September 30, 2022 or 2021. Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions, except lease term and discount rate): September 30, December 31, Operating Leases: Operating lease right-of-use assets $ 3,417 $ 3,562 Current maturities of operating leases $ 560 $ 580 Non-current operating leases 2,960 3,033 Total operating lease obligations $ 3,520 $ 3,613 Finance Leases: Property, plant and equipment, net $ 947 $ 1,125 Current maturities of long-term debt, commercial paper and finance leases $ 79 $ 129 Long-term debt and finance leases 300 279 Total finance lease obligations $ 379 $ 408 Weighted average remaining lease term (in years): Operating leases 11.0 11.7 Finance leases 8.8 8.0 Weighted average discount rate: Operating leases 2.21 % 1.94 % Finance leases 3.03 % 2.79 % Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended 2022 2021 Cash paid for amounts included in measurement of obligations: Operating cash flows from operating leases $ 523 $ 538 Operating cash flows from finance leases 3 8 Financing cash flows from finance leases 123 48 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 588 $ 953 Finance leases 98 252 Maturities of lease obligations as of September 30, 2022 are as follows (in millions): Finance Leases Operating Leases 2022 $ 31 $ 136 2023 83 644 2024 56 544 2025 42 484 2026 35 437 Thereafter 212 1,800 Total lease payments 459 4,045 Less: Imputed interest (80) (525) Total lease obligations 379 3,520 Less: Current obligations (79) (560) Long-term lease obligations $ 300 $ 2,960 As of September 30, 2022, we had $1.2 billion of additional leases which had not commenced. These leases will commence between 2022 and 2024 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. |
LEASES | LEASES We have finance and operating leases for real estate, aircraft and 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. We recognize a right-of-use ("ROU") asset and lease obligation for all leases greater than twelve months. 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. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease obligation for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and whether the optional period and payments should be included in the calculation of the associated ROU asset and lease obligation. 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 obligation 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. Our remaining lease terms vary from 1 month to 138 years. Aircraft In addition to the aircraft that we own, we have leases for 310 aircraft. Of these leased aircraft, 17 are classified as finance leases, 18 are classified as operating leases and the remaining 275 are classified as short-term leases. A majority of the obligations associated with the aircraft classified as finance leases have been legally defeased. A majority 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, 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, office space and expansion facilities utilized during peak shipping periods. Many of our leases contain charges for common area maintenance or other 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 obligation. 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, these also reduce the initial lease obligation. From time to time, we enter into leases with the intention of purchasing the underlying 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 determination of the lease term and lease payments, respectively, when the option to exercise or purchase is reasonably certain. Transportation equipment and other equipment We enter into both long-term and short-term leases for transportation equipment to supplement our capacity or meet contractual demands. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. The lease term for these types of leases is determined by the length of the underlying customer contract or based on the judgment of the business unit. We also enter into multi-year leases for trailers to increase capacity during periods of high demand, which are typically only used for 90-120 days during the year. These leases are treated as short-term as the cumulative right of use is less than 12 months over the term of the contract. The remainder of our leases are primarily related to equipment used in our air operations, vehicles required to meet capacity needs during periods of higher demand for our shipping services, technology equipment and office equipment used in our facilities. Some of our transportation and technology equipment leases require us to make additional lease payments based on the underlying usage of the assets. Due to the variable nature of these costs, these are expensed as incurred and are not included in the ROU asset and associated lease obligation. The components of lease expense for the three and nine months ended September 30, 2022 and 2021 are as follows (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease costs $ 179 $ 183 $ 546 $ 537 Finance lease costs: Amortization of assets 28 24 84 70 Interest on lease liabilities 3 4 10 11 Total finance lease costs 31 28 94 81 Variable lease costs 62 51 194 178 Short-term lease costs 319 305 944 835 Total lease costs $ 591 $ 567 $ 1,778 $ 1,631 In addition to the lease costs disclosed in the table above, we monitor all lease categories for any indicators that the carrying value of the assets may not be recoverable. There were no material impairments recognized during the three or nine months ended September 30, 2022 or 2021. Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions, except lease term and discount rate): September 30, December 31, Operating Leases: Operating lease right-of-use assets $ 3,417 $ 3,562 Current maturities of operating leases $ 560 $ 580 Non-current operating leases 2,960 3,033 Total operating lease obligations $ 3,520 $ 3,613 Finance Leases: Property, plant and equipment, net $ 947 $ 1,125 Current maturities of long-term debt, commercial paper and finance leases $ 79 $ 129 Long-term debt and finance leases 300 279 Total finance lease obligations $ 379 $ 408 Weighted average remaining lease term (in years): Operating leases 11.0 11.7 Finance leases 8.8 8.0 Weighted average discount rate: Operating leases 2.21 % 1.94 % Finance leases 3.03 % 2.79 % Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended 2022 2021 Cash paid for amounts included in measurement of obligations: Operating cash flows from operating leases $ 523 $ 538 Operating cash flows from finance leases 3 8 Financing cash flows from finance leases 123 48 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 588 $ 953 Finance leases 98 252 Maturities of lease obligations as of September 30, 2022 are as follows (in millions): Finance Leases Operating Leases 2022 $ 31 $ 136 2023 83 644 2024 56 544 2025 42 484 2026 35 437 Thereafter 212 1,800 Total lease payments 459 4,045 Less: Imputed interest (80) (525) Total lease obligations 379 3,520 Less: Current obligations (79) (560) Long-term lease obligations $ 300 $ 2,960 As of September 30, 2022, we had $1.2 billion of additional leases which had not commenced. These leases will commence between 2022 and 2024 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. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
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 assurances as to the ultimate outcome, we have generally denied, or believe we have meritorious defenses 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 impact on our operations or financial condition. For these matters, we have described the reasons that we are unable to estimate a possible loss or range of losses. Judicial Proceedings 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 such matter will have a material impact on our operations or financial condition. 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' appeal of this decision was denied; however, in the second quarter of 2022 the plaintiffs were granted discretionary review of these claims by the Kentucky Supreme Court. Other Matters 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, we received a Statement of Objections issued by the CNMC. In July 2017, we received a Proposed Decision from the CNMC. On March 8, 2018, the CNMC adopted a final decision, finding an infringement and imposing an immaterial fine on UPS. We 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. We do not believe that any loss from this matter would have a material impact on our operations or financial condition. We are vigorously defending ourselves and believe that we have a number of meritorious legal defenses. There are also unresolved questions of law and fact that could be important to the ultimate resolution of this matter. In November 2021, the Environmental Protection Agency (the "EPA") sent us an information request related to hazardous waste regulatory compliance at certain of our facilities. The EPA indicated that it was investigating potential recordkeeping violations of the Resource Conservation and Recovery Act at those facilities. We cooperated with the EPA and resolved this matter for an immaterial amount. 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 impact on our operations or financial condition. |
SHAREOWNERS' EQUITY
SHAREOWNERS' EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREOWNERS' EQUITY | SHAREOWNERS' EQUITY Capital Stock, Additional Paid-In Capital, Retained Earnings and Non-Controlling Minority Interests We are authorized to issue two classes of common stock, which are distinguished from each other primarily 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 NYSE under the symbol “UPS”. Class A and B shares both have a $0.01 par value, and as of September 30, 2022, 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 September 30, 2022, no preferred shares had been issued. The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling minority interests accounts for the three and nine months ended September 30, 2022 and 2021 (in millions, except per share amounts): Three Months Ended September 30: 2022 2021 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 138 $ 2 144 $ 2 Stock award plans (1) — (1) — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (3) — (3) — Class A shares issued at end of period 135 $ 2 141 $ 2 Class B Common Stock Balance at beginning of period 732 $ 7 728 $ 7 Common stock purchases (5) — (3) — Conversions of class A to class B common stock 3 — 3 — Class B shares issued at end of period 730 $ 7 728 $ 7 Additional Paid-In Capital Balance at beginning of period $ 573 $ 1,329 Common stock purchases (903) (500) Stock award plans 233 176 Common stock issuances 97 83 Balance at end of period $ — $ 1,088 Retained Earnings Balance at beginning of period $ 18,958 $ 12,531 Net income attributable to common shareowners 2,584 2,329 Dividends ($1.52 and $1.02 per share) (1) (1,316) (887) Common stock purchases (48) — Other (1) — Balance at end of period $ 20,177 $ 13,973 Non-Controlling Minority Interest Balance at beginning of period $ 21 $ 17 Change in non-controlling minority interest (1) (1) Balance at end of period $ 20 $ 16 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $41 and $27 million as of September 30, 2022 and 2021, respectively, that were settled in shares of class A common stock. Nine Months Ended September 30: 2022 2021 Shares Dollars Shares Dollars Class A Common Stock: Balance at beginning of period 138 $ 2 147 $ 2 Stock award plans 5 — 5 — Common stock issuances 2 — 2 — Conversions of class A to class B common stock (10) — (13) — Class A shares outstanding at end of period 135 $ 2 141 $ 2 Class B Common Stock: Balance at beginning of period 732 $ 7 718 $ 7 Common stock purchases (12) — (3) — Conversions of class A to class B common stock 10 — 13 — Class B shares outstanding at end of period 730 $ 7 728 $ 7 Additional Paid-In Capital: Balance at beginning of period $ 1,343 $ 865 Common stock purchases (2,146) (500) Stock award plans 410 399 Common stock issuances 393 324 Balance at end of period $ — $ 1,088 Retained Earnings: Balance at beginning of period $ 16,179 $ 6,896 Net income attributable to controlling interests 8,095 9,797 Dividends ($4.56 and $3.06 per share) (1) (4,049) (2,718) Common stock purchases (48) — Other — (2) Balance at end of period $ 20,177 $ 13,973 Non-Controlling Interests: Balance at beginning of period $ 16 $ 12 Change in non-controlling interest 4 4 Balance at end of period $ 20 $ 16 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $207 and $140 million as of September 30, 2022 and 2021, respectively, that were settled in shares of class A common stock. In August 2021, the Board of Directors authorized the company to repurchase up to $5.0 billion of class A and class B common stock. We repurchased 4.9 and 11.6 million shares of class B common stock for $951 million and $2.2 billion under this program during the three and nine months ended September 30, 2022, respectively. We repurchased 2.6 million shares of class B common stock for $500 million under this program during the three and nine months ended September 30, 2021. As of September 30, 2022, we had $2.3 billion available under this repurchase authorization. We anticipate our share repurchases will total at least $3.0 billion for all of 2022. Future share repurchases may be in the form of accelerated share repurchase programs, open market purchases or other methods we deem appropriate. The timing of share repurchases will depend upon market conditions. Unless terminated earlier by the Board of Directors, this program will expire when we have purchased all shares authorized for repurchase under the program. Movements in additional paid-in capital in respect of stock award plans comprise accruals for unvested awards, offset by adjustments for awards that vest during the period. Accumulated Other Comprehensive Income (Loss) We recognize activity in other comprehensive income for foreign currency translation adjustments, unrealized holding gains and losses on available-for-sale securities, unrealized gains and losses from derivatives that qualify as hedges of cash flows and unrecognized pension and postretirement benefit costs. The activity in accumulated other comprehensive income for the three and nine months ended September 30, 2022 and 2021 was as follows (in millions): Three Months Ended September 30: 2022 2021 Foreign Currency Translation Gain (Loss), Net of Tax: Balance at beginning of period $ (1,447) $ (1,015) Translation adjustment (net of tax effect of $4 and $8) (263) (106) Balance at end of period (1,710) (1,121) Unrealized Gain (Loss) on Marketable Securities, Net of Tax: Balance at beginning of period (8) 1 Current period changes in fair value (net of tax effect of $(1) and $0) (4) — Reclassification to earnings (net of tax effect of $0 and $0) 1 — Balance at end of period (11) 1 Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: Balance at beginning of period 260 (155) Current period changes in fair value (net of tax effect of $110 and $40) 350 126 Reclassification to earnings (net of tax effect of $(21) and $(5)) (69) (14) Balance at end of period 541 (43) Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: Balance at beginning of period (2,056) (1,895) Reclassification to earnings (net of tax effect of $5 and $9) 18 29 Balance at end of period (2,038) (1,866) Accumulated other comprehensive income (loss) at end of period $ (3,218) $ (3,029) Nine Months Ended September 30: 2022 2021 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,162) $ (981) Translation adjustment (net of tax effect of $11 and $37) (548) (140) Balance at end of period (1,710) (1,121) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (1) 6 Current period changes in fair value (net of tax effect of $(3) and $0) (11) (1) Reclassification to earnings (net of tax effect of $0 and $0) 1 (4) Balance at end of period (11) 1 Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period (17) (223) Current period changes in fair value (net of tax effect of $222 and $65) 705 207 Reclassification to earnings (net of tax effect of $(46) and $(9)) (147) (27) Balance at end of period 541 (43) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (2,098) (5,915) Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $11 and $2,039) 31 6,470 Reclassification to earnings (net of tax effect of $8 and $(763)) 29 (2,421) Balance at end of period (2,038) (1,866) Accumulated other comprehensive income (loss) at end of period $ (3,218) $ (3,029) Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and nine months ended September 30, 2022 and 2021 is as follows (in millions): Amount Reclassified from AOCI Affected Line Item in the Income Statement Three Months Ended September 30: 2022 2021 Unrealized Gain (Loss) on Marketable Securities: Realized gain (loss) on sale of securities $ (1) $ — Investment income and other Income tax (expense) benefit — — Income tax expense Impact on net income (1) — Net income Unrealized Gain (Loss) on Cash Flow Hedges: Interest rate contracts (4) (3) Interest expense Foreign currency exchange contracts 94 22 Revenue Income tax (expense) benefit (21) (5) Income tax expense Impact on net income 69 14 Net income Unrecognized Pension and Postretirement Benefit Costs: Prior service costs (23) (38) Investment income and other Income tax (expense) benefit 5 9 Income tax expense Impact on net income (18) (29) Net income Total amount reclassified for the period $ 50 $ (15) Net income Amount Reclassified from AOCI Affected Line Item in the Income Statement Nine Months Ended September 30: 2022 2021 Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities $ (1) $ 4 Investment income and other Income tax (expense) benefit — — Income tax expense Impact on net income (1) 4 Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (9) (8) Interest expense Foreign currency exchange contracts 202 44 Revenue Income tax (expense) benefit (46) (9) Income tax expense Impact on net income 147 27 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (70) (109) Investment income and other Prior service credit for divested business — 69 Other expenses Plan amendments for divested business — (66) Other expenses Remeasurement of benefit obligation — 3,290 Investment income and other Curtailment of benefit obligation 33 — Investment income and other Income tax (expense) benefit 8 (763) Income tax expense Impact on net income (29) 2,421 Net income Total amount reclassified for the period $ 117 $ 2,452 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 S hareowners’ 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 three and nine months ended September 30, 2022 and 2021 was as follows (in millions): 2022 2021 Three Months Ended September 30: Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 12 $ 16 Reinvested dividends — — Benefit payments — — Balance at end of period $ 12 $ 16 Treasury Stock: Balance at beginning of period — $ (12) — $ (16) Reinvested dividends — — — — Benefit payments — — — — Balance at end of period — $ (12) — $ (16) 2022 2021 Nine Months Ended September 30: Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 16 $ 20 Reinvested dividends 1 1 Benefit payments (5) (5) Balance at end of period $ 12 $ 16 Treasury Stock: Balance at beginning of period — $ (16) — $ (20) Reinvested dividends — (1) — (1) Benefit payments — 5 — 5 Balance at end of period — $ (12) — $ (16) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We have two reportable segments: U.S. Domestic Package and International Package, which are together referred to as our global small package operations. Our remaining businesses are reported as Supply Chain Solutions. Global small 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. Supply Chain Solutions comprises the results of non-reportable operating segments that do not meet the quantitative and qualitative criteria of a reportable segment as defined under ASC Topic 280 – Segment Reporting. U.S. Domestic Package U.S. 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 our operations in Europe, Asia, Americas and the Indian Sub-Continent, Middle East and Africa. Supply Chain Solutions Supply Chain Solutions includes our Forwarding, Logistics, Coyote, Marken, UPS Mail Innovations and other businesses. 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. 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, specializing in clinical trials logistics. Our other businesses include The UPS Store, UPS Capital, Roadie and Delivery Solutions. UPS Freight was included within Supply Chain Solutions until its divestiture in the second quarter of 2021. In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating profit is before investment income and other, interest expense and income tax expense. Certain expenses are allocated between the segments using activity-based costing methods that require us to make estimates that impact the amount of each expense category that is attributed to each segment. Changes in these estimates would directly impact the expense allocated to each segment, and therefore the operating profit of each reporting segment. We periodically refine our allocation methodologies to reflect changes in our business. There were no significant changes to our allocation methodologies in the third quarter or year-to-date periods. Results of operations for the three and nine months ended September 30, 2022 and 2021 are as follows (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue: U.S. Domestic Package $ 15,374 $ 14,208 $ 45,957 $ 42,620 International Package 4,799 4,720 14,748 14,144 Supply Chain Solutions 3,988 4,256 12,600 12,752 Consolidated revenue $ 24,161 $ 23,184 $ 73,305 $ 69,516 Operating Profit: U.S. Domestic Package $ 1,666 $ 1,407 $ 5,157 $ 4,333 International Package 997 1,051 3,306 3,320 Supply Chain Solutions 450 438 1,436 1,266 Consolidated operating profit $ 3,113 $ 2,896 $ 9,899 $ 8,919 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The earnings per share amounts are the same for class A and class B common shares as the holders of each class are legally entitled to equal per-share distributions whether through dividends or in liquidation. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021 (in millions, except per share amounts): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Numerator: Net income attributable to common shareowners $ 2,584 $ 2,329 $ 8,095 $ 9,797 Denominator: Weighted average shares 867 870 870 869 Vested portion of restricted units 3 5 3 5 Denominator for basic earnings per share 870 875 873 874 Effect of dilutive securities: Restricted units 2 3 2 3 Stock options — 1 1 1 Denominator for diluted earnings per share 872 879 876 878 Basic earnings per share $ 2.97 $ 2.66 $ 9.27 $ 11.21 Diluted earnings per share $ 2.96 $ 2.65 $ 9.24 $ 11.16 |
DERIVATIVE INSTRUMENTS AND RISK
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | 9 Months Ended |
Sep. 30, 2022 | |
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 and we actively monitor these exposures. To manage the impact of these exposures, we may 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 exchange 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. As of September 30, 2022 and December 31, 2021, we had agreements with all of our active counterparties (covering all of our derivative positions) which contained 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. Since September 30, 2022, we have entered into foreign currency forward contracts in respect of certain foreign currency-denominated debt in notional amounts of 750 million Canadian Dollars, 1.2 billion Euro and 66 million Pounds Sterling that are not covered by the zero threshold bilateral collateral provisions. As of September 30, 2022 and December 31, 2021, we held cash collateral of $1.0 billion and $260 million, respectively, under these agreements. This collateral is included in Cash and cash equivalents in the consolidated balance sheets and our use of it is not restricted. As of September 30, 2022 and December 31, 2021, no 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. Types of Hedges Commodity Risk Management Currently, the fuel surcharges that we apply to our domestic and international package 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 services. 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 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 other comprehensive income to offset the translation risk from those investments. Balances in the foreign currency translation adjustment account remain until the sale or substantially complete liquidation of the foreign entity, upon which we recognize these balances as a component of Investment income and other in the statements of consolidated income. 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. Interest rate swaps allow us to maintain a target range of floating-rate debt within our capital structure. The notional amount, interest payment date and maturity date of the swaps match the terms of the associated debt being hedged. 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 fair value hedges 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 these interest rate swaps are recorded to other comprehensive income. We periodically hedge the forecasted fixed-coupon interest payments associated with anticipated debt offerings by using forward starting interest rate swaps, interest rate locks or similar derivatives. These agreements effectively lock a portion of our interest rate exposure between the time the agreement is entered into and the date when the debt offering is completed, thereby mitigating the impact of interest rate changes on future interest expense. These derivatives are settled commensurate with the issuance of the debt, and any gain or loss upon settlement is amortized as an adjustment to the effective interest yield on the debt. Outstanding Positions As of September 30, 2022 and December 31, 2021, the notional amounts of our outstanding derivative positions were as follows (in millions): September 30, 2022 December 31, Currency hedges: Euro EUR 4,175 4,257 British Pound Sterling GBP 912 1,402 Canadian Dollar CAD 1,631 1,633 Hong Kong Dollar HKD 4,342 4,033 Interest rate hedges: Fixed to Floating Interest Rate Swaps USD 1,000 1,000 Floating to Fixed Interest Rate Swaps USD 28 28 As of September 30, 2022 and December 31, 2021, we had no outstanding commodity hedge positions. Our fixed to floating interest rate swaps were designated as a fair value hedge of our 2.450% fixed rate notes that matured in October 2022. 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. 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 as of September 30, 2022 and December 31, 2021 (in millions): Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Asset Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current assets Level 2 $ 336 $ 100 $ 336 $ 82 Interest rate contracts Other current assets Level 2 — 11 — 11 Foreign currency exchange contracts Other non-current assets Level 2 558 123 555 90 Derivatives not designated as hedges: Foreign currency exchange contracts Other current assets Level 2 1 2 1 2 Total Asset Derivatives $ 895 $ 236 $ 892 $ 185 Fair Value Hierarchy Level Gross Amounts Presented in Net Amounts if Right of Liability Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current liabilities Level 2 $ — $ 19 $ — $ 1 Interest rate contracts Other current liabilities Level 2 — — — — Foreign currency exchange contracts Other non-current liabilities Level 2 3 33 — — Interest rate contracts Other non-current liabilities Level 2 5 10 5 10 Total Liability Derivatives $ 8 $ 62 $ 5 $ 11 Our foreign currency 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. These derivatives are classified as Level 2. As of September 30, 2022 and December 31, 2021, we did not have any derivatives that were classified as Level 1 or Level 3 within the fair value hierarchy. Balance Sheet Location of Hedged Item in Fair Value Hedges The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of September 30, 2022 and December 31, 2021 (in millions): Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount Cumulative Amount Carrying Amount Cumulative Amount September 30, 2022 September 30, 2022 December 31, 2021 December 31, 2021 Current maturities of long-term debt, commercial paper and finance leases $ 1,000 $ — $ 1,010 $ 11 Long-term debt and finance leases $ 280 $ 5 $ 280 $ 5 The cumulative amount of fair value hedging losses remaining for any hedged assets and liabilities for which hedge accounting has been discontinued as of September 30, 2022 is $5 million. These amounts will be recognized over the next 8 years. Income Statement and AOCI Recognition The following table indicates the amount of gains and (losses) that have been recognized in the statements of consolidated income for fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the three and nine months ended September 30, 2022 and 2021 (in millions): Three Months Ended September 30, Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2022 2021 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 $ — $ (1) $ — $ — $ 4 $ — Derivatives designated as hedging instruments — 1 — — (4) — Gain or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (4) — — (3) — Foreign Currency Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 94 — — 22 — — 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 $ 94 $ (4) $ — $ 22 $ (3) $ — Nine Months Ended September 30, 2022 2021 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 $ — $ 10 $ — $ — $ 14 $ — Derivatives designated as hedging instruments — (10) — — (14) — Gain or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (9) — — (8) — Foreign Currency Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 202 — — 44 — — 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 $ 202 $ (9) $ — $ 44 $ (8) $ — The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the three and nine months ended September 30, 2022 and 2021 for those derivatives designated as cash flow hedges (in millions): Three Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2022 2021 Interest rate contracts $ 1 $ 1 Foreign currency exchange contracts 459 165 Total $ 460 $ 166 Nine Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2022 2021 Interest rate contracts $ 5 $ 1 Foreign currency exchange contracts 922 271 Total $ 927 $ 272 As of September 30, 2022, there were $330 million of unrealized pre-tax gains related to cash flow hedges deferred in AOCI that are expected to be reclassified to income over the 12 month period ending September 30, 2023. 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 10 years. The following table indicates the amount of gains and (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three and nine months ended September 30, 2022 and 2021 for those instruments designated as net investment hedges (in millions): Three Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2022 2021 Foreign denominated debt $ 209 $ 90 Total $ 209 $ 90 Nine Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2022 2021 Foreign denominated debt $ 436 $ 167 Total $ 436 $ 167 Additionally, we maintain foreign currency exchange forward contracts that are not designated as hedges. These foreign currency exchange forward contracts are intended to provide an economic offset to foreign currency remeasurement and settlement risk for certain assets and liabilities in our consolidated balance sheets. We also periodically terminate foreign currency exchange forward contracts by entering into offsetting foreign currency exchange positions with different counterparties. As part of this process, we de-designate our original foreign currency exchange contracts. These transactions provide an economic offset that effectively eliminates the effects of changes in market value. The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of foreign currency exchange forward contracts not designated as hedges for the three and nine months ended September 30, 2022 and 2021 (in millions): Derivative Instruments Not Designated in Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income 2022 2021 Three Months Ended September 30: Foreign currency exchange contracts Investment income and other $ (45) $ (21) Total $ (45) $ (21) Nine Months Ended September 30: Foreign currency exchange contracts Investment income and other $ (131) $ (24) Total $ (131) $ (24) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate decreased to 21.0% in the third quarter from 22.2% in the same period of 2021 (21.8% year to date compared to 22.4% in 2021). The recognition in income tax of excess tax benefits related to share-based compensation reduced our effective rate by 0.8% year to date compared to 0.6% in the same period of 2021 (there was no significant impact in the third quarter of 2022 or 2021). Other items that impacted our effective tax rate in the third quarter compared to 2021 included favorable changes in uncertain tax positions and favorable changes in our jurisdictional earnings mix. As discussed in our Annual Report on Form 10-K for the year ended December 31, 2021, we have recognized liabilities for uncertain tax positions and we reevaluate these uncertain tax positions on a quarterly basis. A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months, however, an estimate of the range of reasonably possible outcomes cannot be made. Items that may cause changes to unrecognized tax benefits include the allowance or disallowance of deductions, the timing of deductions and the allocation of income and expense between tax jurisdictions. Any changes could result from the settlement of ongoing litigation, the completion of ongoing examinations, the expiration of statutes of limitations or other unforeseen circumstances. In the first nine months of 2022, we recognized an immaterial income tax expense related to a pre-tax curtailment gain of $33 million on the UPS Canada Ltd. Retirement Plan. This income tax expense was generated at a higher average tax rate than the U.S. federal statutory tax rate because it included the effect of foreign taxes. In the first nine months of 2021, we recognized an income tax expense of $788 million related to a pre-tax mark-to-market gain of $3.3 billion on the UPS/IBT Full-Time Employee Pension Plan. This income tax expense was generated at a higher average tax rate than the U.S. federal statutory tax rate because it included the effect of U.S. state and local taxes. As discussed in note 17, we recognized pre-tax transformation strategy costs of $36 million in the third quarter of 2022 compared to $74 million in the same period of 2021 ($132 million year to date compared to $308 million in the prior year). As a result, we recorded an income tax benefit of $9 million in the third quarter compared to $20 million in the same period of 2021 ($31 million year to date compared to $76 million in the prior year). The income tax benefit was generated at a higher average tax rate than the U.S. federal statutory tax rate, primarily due to the effect of U.S. state and local taxes and foreign taxes. During the first nine months of 2021, we recorded a net pre-tax gain of $35 million related to the divestiture of UPS Freight, resulting in a net income tax expense of $8 million. This income tax expense was generated at a higher average tax rate than the U.S. federal statutory tax rate due to the effect of U.S. state and local taxes. Beginning in 2012, we were granted a tax incentive for certain of our non-U.S. operations, which was effective through December 31, 2021. During the first nine months of 2022, the tax incentive was renegotiated and extended. The tax incentive is conditioned upon our meeting specific employment and investment thresholds, which we expect to meet. The impact of the tax incentive did not significantly change our effective tax rate for the first nine months of 2022 compared to 2021. |
TRANSFORMATION STRATEGY
TRANSFORMATION STRATEGY | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
TRANSFORMATION STRATEGY | TRANSFORMATION STRATEGY COSTS Our strategy includes a multi-year, enterprise-wide transformation of our organization. The program includes investments, as well as changes in processes and technology, that impact global direct and indirect operating costs. The table below presents transformation strategy costs for the three and nine months ended September 30, 2022 and 2021 (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Transformation Strategy Costs: Compensation and benefits $ 15 $ 33 $ 71 $ 164 Total other expenses 21 41 61 144 Total Transformation Strategy Costs $ 36 $ 74 $ 132 $ 308 Income Tax Benefit from Transformation Strategy Costs (9) (20) (31) (76) After-Tax Transformation Strategy Costs $ 27 $ 54 $ 101 $ 232 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying interim unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These interim unaudited, consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly our financial position as of September 30, 2022, our results of operations for the three and nine months ended September 30, 2022 and 2021, and our cash flows for the nine months ended September 30, 2022 and 2021. The results reported in these interim unaudited, consolidated financial statements should not be regarded as indicative of results that may be expected for any other period or the entire year. The interim unaudited, consolidated financial statements should be read in conjunction with the audited, consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximated fair value as of September 30, 2022 and December 31, 2021. The fair values of our investment securities are disclosed in note 5, our recognized multiemployer pension withdrawal liabilities in note 7, our short- and long-term debt in note 9 and our derivative instruments in note 15. We apply a fair value hierarchy (Levels 1, 2 and 3) when measuring and reporting items at fair value. Fair values are based on listed market prices (Level 1), when such prices are available. To the extent that listed market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations (Level 2). If listed market prices or other relevant factors are not available, 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 (Level 3). We utilized Level 1 inputs in the fair value hierarchy to determine the fair value of our cash and cash equivalents, and Level 2 inputs to determine the fair value of our accounts receivable, finance receivables and accounts payable. |
Accounting Estimates | Use of Estimates The preparation of the accompanying interim unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of these financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. As a result, our accounting estimates and assumptions may change significantly over time. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Accounting pronouncements adopted during the periods covered by the unaudited, consolidated financial statements did not have a material impact on our consolidated financial position, results of operations or cash flows. For accounting standards adopted in the period ended September 30, 2021, refer to note 1 to our audited, consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021. Accounting Standards Issued But Not Yet Effective In September 2022, the Financial Accounting Standards Board issued an Accounting Standards Update ("ASU") to enhance the disclosure of supplier finance programs. The update will be effective for us in the first quarter of 2023. 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, cash flows or internal controls. Other accounting pronouncements issued before, but not effective until after, September 30, 2022, are not expected to have a material impact on our consolidated financial position, results of operations, cash flows or internal controls. |
Investment Impairments | Investment Impairments We have concluded that no material impairment losses existed as of September 30, 2022. In making this determination, we considered the financial condition and prospects of each issuer, the magnitude of the losses compared with the 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. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue: Next Day Air $ 2,673 $ 2,415 $ 7,923 $ 7,202 Deferred 1,311 1,304 4,123 3,877 Ground 11,390 10,489 33,911 31,541 U.S. Domestic Package 15,374 14,208 45,957 42,620 Domestic 785 852 2,465 2,716 Export 3,747 3,641 11,501 10,808 Cargo & Other 267 227 782 620 International Package 4,799 4,720 14,748 14,144 Forwarding 2,162 2,625 7,140 7,006 Logistics 1,302 1,158 3,843 3,424 Freight — — — 1,064 Other 524 473 1,617 1,258 Supply Chain Solutions 3,988 4,256 12,600 12,752 Consolidated revenue $ 24,161 $ 23,184 $ 73,305 $ 69,516 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Weighted-Average Assupmtions and Fair Values Used of Performance Units Granted | The weighted-average assumptions used and the weighted-average fair values of the LTIP awards granted in 2022 and 2021 are as follows: 2022 2021 Risk-free interest rate 2.33 % 0.19 % Expected volatility 31.91 % 30.70 % Weighted-average fair value of RPUs granted $ 228.72 $ 168.05 Share payout 107.41 % 102.39 % |
Fair Value of Employee Stock Options Granted and Determined by Black-Scholes Valuation Model Assumptions | The fair value of each option granted is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the weighted-average fair values of options granted in 2022 and 2021 are as follows: 2022 2021 Expected dividend yield 2.35 % 3.31 % Risk-free interest rate 2.39 % 0.84 % Expected life (in years) 7.5 7.5 Expected volatility 25.04 % 23.15 % Weighted-average fair value of options granted $ 48.45 $ 23.71 |
CASH AND INVESTMENTS (Tables)
CASH AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities | The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2022 and December 31, 2021 (in millions): Cost Unrealized Unrealized Estimated September 30, 2022: Current trading marketable securities: Equity securities $ 2 $ — $ — $ 2 Total trading marketable securities 2 — — 2 Current available-for-sale securities: U.S. government and agency debt securities 222 — (8) 214 Mortgage and asset-backed debt securities 10 — — 10 Corporate debt securities 105 — (4) 101 U.S. state and local municipal debt securities 4 — — 4 Non-U.S. government debt securities — — — — Total available-for-sale marketable securities 341 — (12) 329 Total current marketable securities $ 343 $ — $ (12) $ 331 Cost Unrealized Unrealized Estimated December 31, 2021: Current trading marketable securities: Equity securities $ 2 $ — $ — $ 2 Total trading marketable securities 2 — — 2 Current available-for-sale securities: U.S. government and agency debt securities 199 2 (1) 200 Mortgage and asset-backed debt securities 7 — — 7 Corporate debt securities 121 — — 121 U.S. state and local municipal debt securities 5 — — 5 Non-U.S. government debt securities 3 — — 3 Total available-for-sale marketable securities 335 2 (1) 336 Total current marketable securities $ 337 $ 2 $ (1) $ 338 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of marketable securities as of September 30, 2022 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 Due in one year or less $ 16 $ 15 Due after one year through three years 325 314 Due after three years through five years — — Due after five years — — 341 329 Equity securities 2 2 $ 343 $ 331 |
Cash and Cash Equivalents and Restricted Cash | A reconciliation of cash and cash equivalents and restricted cash from the consolidated balance sheets to the statements of consolidated cash flows is shown below (in millions): September 30, 2022 December 31, September 30, 2021 December 31, Cash and cash equivalents $ 11,045 $ 10,255 $ 10,212 $ 5,910 Restricted cash — — — — Total cash, cash equivalents and restricted cash $ 11,045 $ 10,255 $ 10,212 $ 5,910 |
Fair Value, Assets Measured on Recurring Basis | The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices Significant Other Significant Balance September 30, 2022: Marketable securities: U.S. government and agency debt securities $ 214 $ — $ — $ 214 Mortgage and asset-backed debt securities — 10 — 10 Corporate debt securities — 101 — 101 U.S. state and local municipal debt securities — 4 — 4 Equity securities — 2 — 2 Non-U.S. government debt securities — — — — Total marketable securities 214 117 — 331 Other non-current investments 18 — — 18 Total $ 232 $ 117 $ — $ 349 December 31, 2021: Marketable securities: U.S. government and agency debt securities $ 200 $ — $ — $ 200 Mortgage and asset-backed debt securities — 7 — 7 Corporate debt securities — 121 — 121 U.S. state and local municipal debt securities — 5 — 5 Equity securities — 2 — 2 Non-U.S. government debt securities — 3 — 3 Total marketable securities 200 138 — 338 Other non-current investments 23 — — 23 Total $ 223 $ 138 $ — $ 361 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment as of September 30, 2022 and December 31, 2021 consisted of the following (in millions): 2022 2021 Vehicles $ 10,284 $ 10,018 Aircraft 22,569 21,973 Land 2,093 2,140 Buildings 5,793 5,802 Building and leasehold improvements 5,022 5,010 Plant equipment 15,849 15,650 Technology equipment 2,887 2,798 Construction-in-progress 1,651 1,418 66,148 64,809 Less: Accumulated depreciation and amortization (32,523) (31,334) Property, Plant and Equipment, Net $ 33,625 $ 33,475 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Information about the net periodic benefit cost (income) for our company-sponsored pension and postretirement benefit plans for the three and nine months ended September 30, 2022 and 2021 is as follows (in millions): U.S. Pension Benefits U.S. Postretirement International 2022 2021 2022 2021 2022 2021 Three Months Ended September 30: Service cost $ 506 $ 442 $ 7 $ 7 $ 17 $ 19 Interest cost 488 490 21 21 11 9 Expected return on assets (820) (825) (1) (1) (19) (17) Amortization of prior service cost 23 36 — 2 — — Net periodic benefit cost $ 197 $ 143 $ 27 $ 29 $ 9 $ 11 U.S. Pension Benefits U.S. Postretirement International 2022 2021 2022 2021 2022 2021 Nine Months Ended September 30: Service cost $ 1,518 $ 1,456 $ 22 $ 21 $ 52 $ 57 Interest cost 1,463 1,459 62 60 34 29 Expected return on assets (2,460) (2,502) (3) (4) (59) (51) Amortization of prior service cost 69 103 — 5 1 1 Actuarial (gain) loss — (3,290) — — — — Settlement and curtailment (gain) loss — — — — (33) — Net periodic benefit (income) cost $ 590 $ (2,774) $ 81 $ 82 $ (5) $ 36 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table indicates the allocation of goodwill as of September 30, 2022 and December 31, 2021 (in millions): U.S. Domestic International Supply Chain Solutions Consolidated December 31, 2021: $ 847 $ 403 $ 2,442 $ 3,692 Acquired — — 64 64 Currency / Other — (32) (100) (132) September 30, 2022: $ 847 $ 371 $ 2,406 $ 3,624 |
Schedule of Intangible Assets (Excluding Goodwill) | The following is a summary of intangible assets as of September 30, 2022 and December 31, 2021 (in millions): Gross Carrying Accumulated Net Carrying September 30, 2022: Capitalized software $ 5,068 $ (3,427) $ 1,641 Licenses 49 (26) 23 Franchise rights 141 (37) 104 Customer relationships 704 (444) 260 Trade name 67 (7) 60 Trademarks, patents and other 169 (22) 147 Amortizable intangible assets $ 6,198 $ (3,963) $ 2,235 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 6,402 $ (3,963) $ 2,439 December 31, 2021: Capitalized software $ 4,910 $ (3,275) $ 1,635 Licenses 58 (27) 31 Franchise rights 119 (37) 82 Customer relationships 733 (408) 325 Trade name 67 (1) 66 Trademarks, patents and other 158 (15) 143 Amortizable intangible assets $ 6,045 $ (3,763) $ 2,282 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 6,249 $ (3,763) $ 2,486 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of our outstanding debt obligations as of September 30, 2022 and December 31, 2021 consists of the following (in millions): Principal Carrying Value Maturity 2022 2021 Fixed-rate senior notes: 2.450% senior notes 1,000 2022 1,000 1,010 2.350% senior notes — 2022 — 600 2.500% senior notes 1,000 2023 999 998 2.800% senior notes 500 2024 499 498 2.200% senior notes 400 2024 399 399 3.900% senior notes 1,000 2025 997 996 2.400% senior notes 500 2026 499 498 3.050% senior notes 1,000 2027 995 994 3.400% senior notes 750 2029 746 746 2.500% senior notes 400 2029 397 397 4.450% senior notes 750 2030 744 744 6.200% senior notes 1,500 2038 1,484 1,484 5.200% senior notes 500 2040 494 494 4.875% senior notes 500 2040 491 491 3.625% senior notes 375 2042 369 368 3.400% senior notes 500 2046 492 492 3.750% senior notes 1,150 2047 1,137 1,137 4.250% senior notes 750 2049 743 743 3.400% senior notes 700 2049 688 688 5.300% senior notes 1,250 2050 1,231 1,231 Floating-rate senior notes: Floating-rate senior notes — 2022 — 400 Floating-rate senior notes 500 2023 500 500 Floating-rate senior notes 1,039 2049-2067 1,027 1,027 Debentures: 7.620% debentures 276 2030 280 280 Pound Sterling notes: 5.500% notes 74 2031 73 89 5.125% notes 504 2050 479 583 Euro senior notes: 0.375% senior notes 684 2023 683 791 1.625% senior notes 684 2025 682 791 1.000% senior notes 488 2028 486 564 1.500% senior notes 488 2032 486 564 Canadian senior notes: 2.125% senior notes 547 2024 547 585 Finance lease obligations 379 2022-2046 379 408 Facility notes and bonds 320 2029-2045 320 320 Other debt 4 2022-2025 4 5 Total debt $ 20,512 20,350 21,915 Less: current maturities (2,581) (2,131) Long-term debt $ 17,769 $ 19,784 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense for the three and nine months ended September 30, 2022 and 2021 are as follows (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease costs $ 179 $ 183 $ 546 $ 537 Finance lease costs: Amortization of assets 28 24 84 70 Interest on lease liabilities 3 4 10 11 Total finance lease costs 31 28 94 81 Variable lease costs 62 51 194 178 Short-term lease costs 319 305 944 835 Total lease costs $ 591 $ 567 $ 1,778 $ 1,631 Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended 2022 2021 Cash paid for amounts included in measurement of obligations: Operating cash flows from operating leases $ 523 $ 538 Operating cash flows from finance leases 3 8 Financing cash flows from finance leases 123 48 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 588 $ 953 Finance leases 98 252 |
Supplemental Balance Sheet | Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions, except lease term and discount rate): September 30, December 31, Operating Leases: Operating lease right-of-use assets $ 3,417 $ 3,562 Current maturities of operating leases $ 560 $ 580 Non-current operating leases 2,960 3,033 Total operating lease obligations $ 3,520 $ 3,613 Finance Leases: Property, plant and equipment, net $ 947 $ 1,125 Current maturities of long-term debt, commercial paper and finance leases $ 79 $ 129 Long-term debt and finance leases 300 279 Total finance lease obligations $ 379 $ 408 Weighted average remaining lease term (in years): Operating leases 11.0 11.7 Finance leases 8.8 8.0 Weighted average discount rate: Operating leases 2.21 % 1.94 % Finance leases 3.03 % 2.79 % |
Operating Leases Maturity Schedule | Maturities of lease obligations as of September 30, 2022 are as follows (in millions): Finance Leases Operating Leases 2022 $ 31 $ 136 2023 83 644 2024 56 544 2025 42 484 2026 35 437 Thereafter 212 1,800 Total lease payments 459 4,045 Less: Imputed interest (80) (525) Total lease obligations 379 3,520 Less: Current obligations (79) (560) Long-term lease obligations $ 300 $ 2,960 |
Finance Leases Maturity Schedule | Maturities of lease obligations as of September 30, 2022 are as follows (in millions): Finance Leases Operating Leases 2022 $ 31 $ 136 2023 83 644 2024 56 544 2025 42 484 2026 35 437 Thereafter 212 1,800 Total lease payments 459 4,045 Less: Imputed interest (80) (525) Total lease obligations 379 3,520 Less: Current obligations (79) (560) Long-term lease obligations $ 300 $ 2,960 |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Three Months Ended September 30: 2022 2021 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 138 $ 2 144 $ 2 Stock award plans (1) — (1) — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (3) — (3) — Class A shares issued at end of period 135 $ 2 141 $ 2 Class B Common Stock Balance at beginning of period 732 $ 7 728 $ 7 Common stock purchases (5) — (3) — Conversions of class A to class B common stock 3 — 3 — Class B shares issued at end of period 730 $ 7 728 $ 7 Additional Paid-In Capital Balance at beginning of period $ 573 $ 1,329 Common stock purchases (903) (500) Stock award plans 233 176 Common stock issuances 97 83 Balance at end of period $ — $ 1,088 Retained Earnings Balance at beginning of period $ 18,958 $ 12,531 Net income attributable to common shareowners 2,584 2,329 Dividends ($1.52 and $1.02 per share) (1) (1,316) (887) Common stock purchases (48) — Other (1) — Balance at end of period $ 20,177 $ 13,973 Non-Controlling Minority Interest Balance at beginning of period $ 21 $ 17 Change in non-controlling minority interest (1) (1) Balance at end of period $ 20 $ 16 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $41 and $27 million as of September 30, 2022 and 2021, respectively, that were settled in shares of class A common stock. Nine Months Ended September 30: 2022 2021 Shares Dollars Shares Dollars Class A Common Stock: Balance at beginning of period 138 $ 2 147 $ 2 Stock award plans 5 — 5 — Common stock issuances 2 — 2 — Conversions of class A to class B common stock (10) — (13) — Class A shares outstanding at end of period 135 $ 2 141 $ 2 Class B Common Stock: Balance at beginning of period 732 $ 7 718 $ 7 Common stock purchases (12) — (3) — Conversions of class A to class B common stock 10 — 13 — Class B shares outstanding at end of period 730 $ 7 728 $ 7 Additional Paid-In Capital: Balance at beginning of period $ 1,343 $ 865 Common stock purchases (2,146) (500) Stock award plans 410 399 Common stock issuances 393 324 Balance at end of period $ — $ 1,088 Retained Earnings: Balance at beginning of period $ 16,179 $ 6,896 Net income attributable to controlling interests 8,095 9,797 Dividends ($4.56 and $3.06 per share) (1) (4,049) (2,718) Common stock purchases (48) — Other — (2) Balance at end of period $ 20,177 $ 13,973 Non-Controlling Interests: Balance at beginning of period $ 16 $ 12 Change in non-controlling interest 4 4 Balance at end of period $ 20 $ 16 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $207 and $140 million as of September 30, 2022 and 2021, respectively, that were settled in shares of class A common stock. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The activity in accumulated other comprehensive income for the three and nine months ended September 30, 2022 and 2021 was as follows (in millions): Three Months Ended September 30: 2022 2021 Foreign Currency Translation Gain (Loss), Net of Tax: Balance at beginning of period $ (1,447) $ (1,015) Translation adjustment (net of tax effect of $4 and $8) (263) (106) Balance at end of period (1,710) (1,121) Unrealized Gain (Loss) on Marketable Securities, Net of Tax: Balance at beginning of period (8) 1 Current period changes in fair value (net of tax effect of $(1) and $0) (4) — Reclassification to earnings (net of tax effect of $0 and $0) 1 — Balance at end of period (11) 1 Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: Balance at beginning of period 260 (155) Current period changes in fair value (net of tax effect of $110 and $40) 350 126 Reclassification to earnings (net of tax effect of $(21) and $(5)) (69) (14) Balance at end of period 541 (43) Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: Balance at beginning of period (2,056) (1,895) Reclassification to earnings (net of tax effect of $5 and $9) 18 29 Balance at end of period (2,038) (1,866) Accumulated other comprehensive income (loss) at end of period $ (3,218) $ (3,029) Nine Months Ended September 30: 2022 2021 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,162) $ (981) Translation adjustment (net of tax effect of $11 and $37) (548) (140) Balance at end of period (1,710) (1,121) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (1) 6 Current period changes in fair value (net of tax effect of $(3) and $0) (11) (1) Reclassification to earnings (net of tax effect of $0 and $0) 1 (4) Balance at end of period (11) 1 Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period (17) (223) Current period changes in fair value (net of tax effect of $222 and $65) 705 207 Reclassification to earnings (net of tax effect of $(46) and $(9)) (147) (27) Balance at end of period 541 (43) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (2,098) (5,915) Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $11 and $2,039) 31 6,470 Reclassification to earnings (net of tax effect of $8 and $(763)) 29 (2,421) Balance at end of period (2,038) (1,866) Accumulated other comprehensive income (loss) at end of period $ (3,218) $ (3,029) |
Gains (Losses) Reclassified from AOCI | Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and nine months ended September 30, 2022 and 2021 is as follows (in millions): Amount Reclassified from AOCI Affected Line Item in the Income Statement Three Months Ended September 30: 2022 2021 Unrealized Gain (Loss) on Marketable Securities: Realized gain (loss) on sale of securities $ (1) $ — Investment income and other Income tax (expense) benefit — — Income tax expense Impact on net income (1) — Net income Unrealized Gain (Loss) on Cash Flow Hedges: Interest rate contracts (4) (3) Interest expense Foreign currency exchange contracts 94 22 Revenue Income tax (expense) benefit (21) (5) Income tax expense Impact on net income 69 14 Net income Unrecognized Pension and Postretirement Benefit Costs: Prior service costs (23) (38) Investment income and other Income tax (expense) benefit 5 9 Income tax expense Impact on net income (18) (29) Net income Total amount reclassified for the period $ 50 $ (15) Net income Amount Reclassified from AOCI Affected Line Item in the Income Statement Nine Months Ended September 30: 2022 2021 Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities $ (1) $ 4 Investment income and other Income tax (expense) benefit — — Income tax expense Impact on net income (1) 4 Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (9) (8) Interest expense Foreign currency exchange contracts 202 44 Revenue Income tax (expense) benefit (46) (9) Income tax expense Impact on net income 147 27 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (70) (109) Investment income and other Prior service credit for divested business — 69 Other expenses Plan amendments for divested business — (66) Other expenses Remeasurement of benefit obligation — 3,290 Investment income and other Curtailment of benefit obligation 33 — Investment income and other Income tax (expense) benefit 8 (763) Income tax expense Impact on net income (29) 2,421 Net income Total amount reclassified for the period $ 117 $ 2,452 Net income |
Activity in Deferred Compensation Program | Activity in the deferred compensation program for the three and nine months ended September 30, 2022 and 2021 was as follows (in millions): 2022 2021 Three Months Ended September 30: Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 12 $ 16 Reinvested dividends — — Benefit payments — — Balance at end of period $ 12 $ 16 Treasury Stock: Balance at beginning of period — $ (12) — $ (16) Reinvested dividends — — — — Benefit payments — — — — Balance at end of period — $ (12) — $ (16) 2022 2021 Nine Months Ended September 30: Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 16 $ 20 Reinvested dividends 1 1 Benefit payments (5) (5) Balance at end of period $ 12 $ 16 Treasury Stock: Balance at beginning of period — $ (16) — $ (20) Reinvested dividends — (1) — (1) Benefit payments — 5 — 5 Balance at end of period — $ (12) — $ (16) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Results of Operations | Results of operations for the three and nine months ended September 30, 2022 and 2021 are as follows (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue: U.S. Domestic Package $ 15,374 $ 14,208 $ 45,957 $ 42,620 International Package 4,799 4,720 14,748 14,144 Supply Chain Solutions 3,988 4,256 12,600 12,752 Consolidated revenue $ 24,161 $ 23,184 $ 73,305 $ 69,516 Operating Profit: U.S. Domestic Package $ 1,666 $ 1,407 $ 5,157 $ 4,333 International Package 997 1,051 3,306 3,320 Supply Chain Solutions 450 438 1,436 1,266 Consolidated operating profit $ 3,113 $ 2,896 $ 9,899 $ 8,919 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021 (in millions, except per share amounts): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Numerator: Net income attributable to common shareowners $ 2,584 $ 2,329 $ 8,095 $ 9,797 Denominator: Weighted average shares 867 870 870 869 Vested portion of restricted units 3 5 3 5 Denominator for basic earnings per share 870 875 873 874 Effect of dilutive securities: Restricted units 2 3 2 3 Stock options — 1 1 1 Denominator for diluted earnings per share 872 879 876 878 Basic earnings per share $ 2.97 $ 2.66 $ 9.27 $ 11.21 Diluted earnings per share $ 2.96 $ 2.65 $ 9.24 $ 11.16 |
DERIVATIVE INSTRUMENTS AND RI_2
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of September 30, 2022 and December 31, 2021, the notional amounts of our outstanding derivative positions were as follows (in millions): September 30, 2022 December 31, Currency hedges: Euro EUR 4,175 4,257 British Pound Sterling GBP 912 1,402 Canadian Dollar CAD 1,631 1,633 Hong Kong Dollar HKD 4,342 4,033 Interest rate hedges: Fixed to Floating Interest Rate Swaps USD 1,000 1,000 Floating to Fixed Interest Rate Swaps USD 28 28 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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. 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 as of September 30, 2022 and December 31, 2021 (in millions): Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Asset Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current assets Level 2 $ 336 $ 100 $ 336 $ 82 Interest rate contracts Other current assets Level 2 — 11 — 11 Foreign currency exchange contracts Other non-current assets Level 2 558 123 555 90 Derivatives not designated as hedges: Foreign currency exchange contracts Other current assets Level 2 1 2 1 2 Total Asset Derivatives $ 895 $ 236 $ 892 $ 185 Fair Value Hierarchy Level Gross Amounts Presented in Net Amounts if Right of Liability Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current liabilities Level 2 $ — $ 19 $ — $ 1 Interest rate contracts Other current liabilities Level 2 — — — — Foreign currency exchange contracts Other non-current liabilities Level 2 3 33 — — Interest rate contracts Other non-current liabilities Level 2 5 10 5 10 Total Liability Derivatives $ 8 $ 62 $ 5 $ 11 The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of September 30, 2022 and December 31, 2021 (in millions): Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount Cumulative Amount Carrying Amount Cumulative Amount September 30, 2022 September 30, 2022 December 31, 2021 December 31, 2021 Current maturities of long-term debt, commercial paper and finance leases $ 1,000 $ — $ 1,010 $ 11 Long-term debt and finance leases $ 280 $ 5 $ 280 $ 5 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table indicates the amount of gains and (losses) that have been recognized in the statements of consolidated income for fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the three and nine months ended September 30, 2022 and 2021 (in millions): Three Months Ended September 30, Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2022 2021 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 $ — $ (1) $ — $ — $ 4 $ — Derivatives designated as hedging instruments — 1 — — (4) — Gain or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (4) — — (3) — Foreign Currency Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 94 — — 22 — — 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 $ 94 $ (4) $ — $ 22 $ (3) $ — Nine Months Ended September 30, 2022 2021 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 $ — $ 10 $ — $ — $ 14 $ — Derivatives designated as hedging instruments — (10) — — (14) — Gain or (loss) on cash flow hedging relationships: Interest Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income — (9) — — (8) — Foreign Currency Exchange Contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income 202 — — 44 — — 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 $ 202 $ (9) $ — $ 44 $ (8) $ — |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the three and nine months ended September 30, 2022 and 2021 for those derivatives designated as cash flow hedges (in millions): Three Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2022 2021 Interest rate contracts $ 1 $ 1 Foreign currency exchange contracts 459 165 Total $ 460 $ 166 Nine Months Ended September 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2022 2021 Interest rate contracts $ 5 $ 1 Foreign currency exchange contracts 922 271 Total $ 927 $ 272 The following table indicates the amount of gains and (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three and nine months ended September 30, 2022 and 2021 for those instruments designated as net investment hedges (in millions): Three Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2022 2021 Foreign denominated debt $ 209 $ 90 Total $ 209 $ 90 Nine Months Ended September 30: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2022 2021 Foreign denominated debt $ 436 $ 167 Total $ 436 $ 167 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of foreign currency exchange forward contracts not designated as hedges for the three and nine months ended September 30, 2022 and 2021 (in millions): Derivative Instruments Not Designated in Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income 2022 2021 Three Months Ended September 30: Foreign currency exchange contracts Investment income and other $ (45) $ (21) Total $ (45) $ (21) Nine Months Ended September 30: Foreign currency exchange contracts Investment income and other $ (131) $ (24) Total $ (131) $ (24) |
TRANSFORMATION STRATEGY (Tables
TRANSFORMATION STRATEGY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below presents transformation strategy costs for the three and nine months ended September 30, 2022 and 2021 (in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Transformation Strategy Costs: Compensation and benefits $ 15 $ 33 $ 71 $ 164 Total other expenses 21 41 61 144 Total Transformation Strategy Costs $ 36 $ 74 $ 132 $ 308 Income Tax Benefit from Transformation Strategy Costs (9) (20) (31) (76) After-Tax Transformation Strategy Costs $ 27 $ 54 $ 101 $ 232 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue | ||||
Revenue | $ 24,161 | $ 23,184 | $ 73,305 | $ 69,516 |
Forwarding | ||||
Disaggregation of Revenue | ||||
Revenue | 2,162 | 2,625 | 7,140 | 7,006 |
Logistics | ||||
Disaggregation of Revenue | ||||
Revenue | 1,302 | 1,158 | 3,843 | 3,424 |
Freight | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 1,064 |
Other | ||||
Disaggregation of Revenue | ||||
Revenue | 524 | 473 | 1,617 | 1,258 |
U.S | Next Day Air | ||||
Disaggregation of Revenue | ||||
Revenue | 2,673 | 2,415 | 7,923 | 7,202 |
U.S | Deferred | ||||
Disaggregation of Revenue | ||||
Revenue | 1,311 | 1,304 | 4,123 | 3,877 |
U.S | Ground | ||||
Disaggregation of Revenue | ||||
Revenue | 11,390 | 10,489 | 33,911 | 31,541 |
International | Domestic | ||||
Disaggregation of Revenue | ||||
Revenue | 785 | 852 | 2,465 | 2,716 |
International | Export | ||||
Disaggregation of Revenue | ||||
Revenue | 3,747 | 3,641 | 11,501 | 10,808 |
International | Cargo & Other | ||||
Disaggregation of Revenue | ||||
Revenue | 267 | 227 | 782 | 620 |
U.S. Domestic Package | ||||
Disaggregation of Revenue | ||||
Revenue | 15,374 | 14,208 | 45,957 | 42,620 |
U.S. Domestic Package | U.S | Operating Segments | ||||
Disaggregation of Revenue | ||||
Revenue | 15,374 | 14,208 | 45,957 | 42,620 |
International Package | ||||
Disaggregation of Revenue | ||||
Revenue | 4,799 | 4,720 | 14,748 | 14,144 |
International Package | International | Operating Segments | ||||
Disaggregation of Revenue | ||||
Revenue | 4,799 | 4,720 | 14,748 | 14,144 |
Supply Chain Solutions | ||||
Disaggregation of Revenue | ||||
Revenue | 3,988 | 4,256 | 12,600 | 12,752 |
Supply Chain Solutions | Operating Segments | ||||
Disaggregation of Revenue | ||||
Revenue | $ 3,988 | $ 4,256 | $ 12,600 | $ 12,752 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Less: Allowance for credit losses | $ (143) | $ (143) | $ (128) | ||
Provisions for doubtful receivables | 48 | $ 48 | 154 | $ 128 | |
Contract assets | 328 | 328 | 304 | ||
Deferred revenue | 346 | 346 | 314 | ||
Deferred revenue, current | 10 | 10 | 27 | ||
Deferred revenue, noncurrent | $ 26 | $ 26 | $ 25 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 23, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 21, 2022 | Feb. 09, 2022 | |
Stockholders Equity Note [Line Items] | |||||||
Stock compensation expense | $ 233 | $ 179 | $ 850 | $ 700 | |||
Management Incentive Award | |||||||
Stockholders Equity Note [Line Items] | |||||||
Closing New York Stock Exchange price | $ 225.07 | ||||||
Management Incentive Award | International employee | |||||||
Stockholders Equity Note [Line Items] | |||||||
Closing New York Stock Exchange price | $ 218.56 | ||||||
Long-Term Incentive Performance Award | |||||||
Stockholders Equity Note [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Long-Term Incentive Performance Award | Year 2021 | Restricted Units | |||||||
Stockholders Equity Note [Line Items] | |||||||
Weighted-average fair value of options granted (usd per share) | $ 230.67 | ||||||
Nonqualified Stock Options | |||||||
Stockholders Equity Note [Line Items] | |||||||
Award vesting period | 5 years | ||||||
Weighted-average fair value of options granted (usd per share) | $ 214.58 | ||||||
Percentage of the award vesting at each anniversary date of the grant | 20% | ||||||
Expiration period (in years) | 10 years | ||||||
Stock options granted | 100,000 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Detail) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Nonqualified Stock Options | ||
Stockholders Equity Note [Line Items] | ||
Risk-free interest rate | 2.39% | 0.84% |
Expected volatility | 25.04% | 23.15% |
Weighted-average fair value of options granted (usd per share) | $ 48.45 | $ 23.71 |
Expected life (in years) | 7 years 6 months | 7 years 6 months |
Expected dividend yield | 2.35% | 3.31% |
Long-Term Incentive Performance Award | ||
Stockholders Equity Note [Line Items] | ||
Risk-free interest rate | 2.33% | 0.19% |
Expected volatility | 31.91% | 30.70% |
Weighted-average fair value of RPU's granted (usd per share) | $ 228.72 | $ 168.05 |
Share payout | 107.41% | 102.39% |
CASH AND INVESTMENTS - Summary
CASH AND INVESTMENTS - Summary of Marketable Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Trading, Amortized Cost | $ 2 | $ 2 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 2 | 2 |
Debt Securities, Available-for-sale, Amortized Cost | 341 | 335 |
Debt Securities, Available-for-sale, Current | 329 | 336 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 12 | 1 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 2 |
Total Amortized Cost | 343 | 337 |
Marketable Securities, Gross Unrealized Gain | 0 | 2 |
Marketable Securities, Gross Unrealized Loss | (12) | (1) |
Total Estimated Fair Value | 331 | 338 |
Equity securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Trading, Amortized Cost | 2 | 2 |
Trading Securities, Gross Unrealized Gain | 0 | 0 |
Trading Securities, Gross Unrealized Loss | 0 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 2 | 2 |
U.S. government and agency debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 222 | 199 |
Debt Securities, Available-for-sale, Current | 214 | 200 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 8 | 1 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 2 |
Mortgage and asset-backed debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 10 | 7 |
Debt Securities, Available-for-sale, Current | 10 | 7 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Corporate debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 105 | 121 |
Debt Securities, Available-for-sale, Current | 101 | 121 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 4 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
U.S. state and local municipal debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 4 | 5 |
Debt Securities, Available-for-sale, Current | 4 | 5 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Non-U.S. government debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 0 | 3 |
Debt Securities, Available-for-sale, Current | 0 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | $ 0 | $ 0 |
CASH AND INVESTMENTS - Amortize
CASH AND INVESTMENTS - Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Cost | ||
Due in one year or less | $ 16 | |
Due after one year through three years | 325 | |
Due after three years through five years | 0 | |
Due after five years | 0 | |
Marketable Securities, Debt Maturities, Amortized Cost, Total | 341 | |
Equity securities | 2 | |
Total Amortized Cost | 343 | $ 337 |
Estimated Fair Value | ||
Due in one year or less | 15 | |
Due after one year through three years | 314 | |
Due after three years through five years | 0 | |
Due after five years | 0 | |
Marketable Securities, Debt Maturities, Fair Value, Total | 329 | |
Equity securities | 2 | |
Total Estimated Fair Value | $ 331 | $ 338 |
CASH AND INVESTMENTS - Addition
CASH AND INVESTMENTS - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Gain (Loss) on Securities [Line Items] | ||
Other than temporary impairment losses | $ 0 | |
Investments and Restricted Cash | 20,000,000 | $ 26,000,000 |
cash held in escrow [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Restricted Cash and Cash Equivalents, Noncurrent | 2,000,000 | 3,000,000 |
Variable life insurance policy | ||
Gain (Loss) on Securities [Line Items] | ||
Investments and Restricted Cash | $ 18,000,000 | $ 23,000,000 |
CASH AND INVESTMENTS - Cash Det
CASH AND INVESTMENTS - Cash Details (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 11,045 | $ 10,255 | $ 10,212 | $ 5,910 |
Restricted cash | 0 | 0 | 0 | 0 |
Total cash, cash equivalents and restricted cash | $ 11,045 | $ 10,255 | $ 10,212 | $ 5,910 |
CASH AND INVESTMENTS - Investme
CASH AND INVESTMENTS - Investments Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 349 | $ 361 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 331 | 338 |
Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 214 | 200 |
Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 10 | 7 |
Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 101 | 121 |
Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2 | 2 |
Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 3 |
Marketable securities | U.S. state and local municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4 | 5 |
Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 18 | 23 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 232 | 223 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 214 | 200 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 214 | 200 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | U.S. state and local municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 18 | 23 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 117 | 138 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 117 | 138 |
Significant Other Observable Inputs (Level 2) | Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 10 | 7 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 101 | 121 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2 | 2 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 3 |
Significant Other Observable Inputs (Level 2) | Marketable securities | U.S. state and local municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4 | 5 |
Significant Other Observable Inputs (Level 2) | Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | U.S. state and local municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Non-Current Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 66,148 | $ 66,148 | $ 64,809 | ||
Less: Accumulated depreciation and amortization | (32,523) | (32,523) | (31,334) | ||
Property, plant and equipment, net | 33,625 | 33,625 | 33,475 | ||
Impairment charges on property plant and equipment | 0 | $ 0 | 0 | $ 30 | |
Vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 10,284 | 10,284 | 10,018 | ||
Aircraft | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 22,569 | 22,569 | 21,973 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 2,093 | 2,093 | 2,140 | ||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 5,793 | 5,793 | 5,802 | ||
Building and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 5,022 | 5,022 | 5,010 | ||
Plant equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 15,849 | 15,849 | 15,650 | ||
Technology equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 2,887 | 2,887 | 2,798 | ||
Construction-in-progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 1,651 | $ 1,651 | $ 1,418 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment purchased on account | $ 601 | $ 601 | $ 248 | ||
Impairment charges on property plant and equipment | $ 0 | $ 0 | $ 0 | $ 30 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Pension Plan | U.S. Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | $ 506 | $ 442 | $ 1,518 | $ 1,456 |
Interest cost | 488 | 490 | 1,463 | 1,459 |
Expected return on assets | (820) | (825) | (2,460) | (2,502) |
Amortization of prior service cost | 23 | 36 | 69 | 103 |
Actuarial (gain) loss | 0 | (3,290) | ||
Settlement and curtailment (gain) loss | 0 | 0 | ||
Net periodic benefit cost | 197 | 143 | 590 | (2,774) |
Defined Benefit Pension Plan | International Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | 17 | 19 | 52 | 57 |
Interest cost | 11 | 9 | 34 | 29 |
Expected return on assets | (19) | (17) | (59) | (51) |
Amortization of prior service cost | 0 | 0 | 1 | 1 |
Actuarial (gain) loss | 0 | 0 | ||
Settlement and curtailment (gain) loss | (33) | 0 | ||
Net periodic benefit cost | 9 | 11 | (5) | 36 |
U.S. Postretirement Medical Benefits | U.S. Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | 7 | 7 | 22 | 21 |
Interest cost | 21 | 21 | 62 | 60 |
Expected return on assets | (1) | (1) | (3) | (4) |
Amortization of prior service cost | 0 | 2 | 0 | 5 |
Actuarial (gain) loss | 0 | 0 | ||
Settlement and curtailment (gain) loss | 0 | 0 | ||
Net periodic benefit cost | $ 27 | $ 29 | $ 81 | $ 82 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ in Millions | 9 Months Ended | |||||
Apr. 30, 2021 USD ($) | Dec. 31, 2007 USD ($) | Sep. 30, 2022 USD ($) employee | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Curtailment gain, before tax | $ 33 | |||||
Curtailment gain, after tax | $ 24 | |||||
Defined benefit plan, net actuarial gain (loss) | $ 2,100 | |||||
Pre-tax actuarial gain | $ 69 | |||||
Actuarial gain, after tax | 52 | |||||
Reclassification adjustment loss, before tax | 66 | |||||
Reclassification adjustment loss, after tax | 50 | |||||
Multiemployer Plans, Payment Term | 40 years | |||||
National Master Agreement And Various Supplemental Agreements | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of employees covered | employee | 327,000 | |||||
Independent Pilots Association | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of employees covered | employee | 3,200 | |||||
Teamsters Local 2727 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of employees covered | employee | 1,700 | |||||
International Association Of Machinists And Aerospace Workers | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of employees covered | employee | 3,300 | |||||
UPS/IBT Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Actuarial gain (loss) | 6,400 | |||||
Reduction of the liability for coordinating benefits | 5,100 | |||||
Gain from other updated actuarial assumptions | 1,300 | |||||
Pre-tax actuarial gain | 3,300 | |||||
Actuarial gain, after tax | $ 2,500 | |||||
Defined Benefit Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multi-employer Plans, Withdrawal Obligation, Fair Value Disclosure | $ 668 | $ 963 | ||||
Defined Benefit Pension Plan | Central States Pension Fund | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Payment of withdrawal liability | $ 6,100 | |||||
Pension liability | $ 5,500 | |||||
Defined Benefit Pension Plan | Long term debt | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multiemployer Plans, Withdrawal Obligation, Present Value | 824 | 830 | ||||
Defined Benefit Pension Plan | Other current liabilities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multiemployer Plans, Withdrawal Obligation, Present Value | 8 | $ 8 | ||||
Defined Benefit Pension Plan | U.S. Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amount contributed to company- sponsored benefit plans | 1,972 | |||||
Estimated future employer contributions to defined benefit plan, current fiscal year | 43 | |||||
U.S. Postretirement Medical Benefits | U.S. Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amount contributed to company- sponsored benefit plans | 134 | |||||
Estimated future employer contributions to defined benefit plan, current fiscal year | $ 144 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Allocation of Goodwill by Reportable Segment (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,692 |
Acquired | 64 |
Currency / Other | (132) |
Ending balance | 3,624 |
U.S. Domestic Package | |
Goodwill [Roll Forward] | |
Beginning balance | 847 |
Acquired | 0 |
Currency / Other | 0 |
Ending balance | 847 |
International Package | |
Goodwill [Roll Forward] | |
Beginning balance | 403 |
Acquired | 0 |
Currency / Other | (32) |
Ending balance | 371 |
Supply Chain Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 2,442 |
Acquired | 64 |
Currency / Other | (100) |
Ending balance | $ 2,406 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Summary of Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,198 | $ 6,045 |
Accumulated Amortization | (3,963) | (3,763) |
Net Carrying Value | 2,235 | 2,282 |
Indefinite-lived intangible assets | 204 | 204 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangible assets | 204 | 204 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 6,402 | 6,249 |
Accumulated Amortization | (3,963) | (3,763) |
Intangible Assets, Net | 2,439 | 2,486 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,068 | 4,910 |
Accumulated Amortization | (3,427) | (3,275) |
Net Carrying Value | 1,641 | 1,635 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (3,427) | (3,275) |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 49 | 58 |
Accumulated Amortization | (26) | (27) |
Net Carrying Value | 23 | 31 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (26) | (27) |
Franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 141 | 119 |
Accumulated Amortization | (37) | (37) |
Net Carrying Value | 104 | 82 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (37) | (37) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 704 | 733 |
Accumulated Amortization | (444) | (408) |
Net Carrying Value | 260 | 325 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (444) | (408) |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 67 | 67 |
Accumulated Amortization | (7) | (1) |
Net Carrying Value | 60 | 66 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (7) | (1) |
Trademarks, patents and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 169 | 158 |
Accumulated Amortization | (22) | (15) |
Net Carrying Value | 147 | 143 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (22) | $ (15) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 204 | $ 204 | $ 204 | ||
Impairment of finite lived intangible assets | 0 | $ 0 | 0 | $ 7 | |
Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | 200 | 200 | 200 | ||
Licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 4 | $ 4 | $ 4 |
DEBT AND FINANCING ARRANGEMEN_3
DEBT AND FINANCING ARRANGEMENTS - Carrying Value of Outstanding Debt (Detail) - USD ($) | Sep. 30, 2022 | May 16, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Principal Amount | $ 20,512,000,000 | ||
Total debt | 20,350,000,000 | $ 21,915,000,000 | |
Less current maturities | (2,581,000,000) | (2,131,000,000) | |
Long-Term Debt and Finance Leases | $ 17,769,000,000 | 19,784,000,000 | |
Senior notes | 2.450% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.45% | ||
Principal Amount | $ 1,000,000,000 | ||
Total debt | $ 1,000,000,000 | 1,010,000,000 | |
Senior notes | 2.350% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.35% | 2.35% | |
Principal Amount | $ 0 | ||
Total debt | $ 0 | 600,000,000 | |
Senior notes | 2.500% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.50% | ||
Principal Amount | $ 1,000,000,000 | ||
Total debt | $ 999,000,000 | 998,000,000 | |
Senior notes | 2.800% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.80% | ||
Principal Amount | $ 500,000,000 | ||
Total debt | $ 499,000,000 | 498,000,000 | |
Senior notes | 2.200% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.20% | ||
Principal Amount | $ 400,000,000 | ||
Total debt | $ 399,000,000 | 399,000,000 | |
Senior notes | 3.900% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.90% | ||
Principal Amount | $ 1,000,000,000 | ||
Total debt | $ 997,000,000 | 996,000,000 | |
Senior notes | 2.400% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.40% | ||
Principal Amount | $ 500,000,000 | ||
Total debt | $ 499,000,000 | 498,000,000 | |
Senior notes | 3.050% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.05% | ||
Principal Amount | $ 1,000,000,000 | ||
Total debt | $ 995,000,000 | 994,000,000 | |
Senior notes | 3.400% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.40% | ||
Principal Amount | $ 750,000,000 | ||
Total debt | $ 746,000,000 | 746,000,000 | |
Senior notes | 2.500% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.50% | ||
Principal Amount | $ 400,000,000 | ||
Total debt | $ 397,000,000 | 397,000,000 | |
Senior notes | 4.450% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.45% | ||
Principal Amount | $ 750,000,000 | ||
Total debt | $ 744,000,000 | 744,000,000 | |
Senior notes | 6.200% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 6.20% | ||
Principal Amount | $ 1,500,000,000 | ||
Total debt | $ 1,484,000,000 | 1,484,000,000 | |
Senior notes | 5.200% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 5.20% | ||
Principal Amount | $ 500,000,000 | ||
Total debt | $ 494,000,000 | 494,000,000 | |
Senior notes | 4.875% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.875% | ||
Principal Amount | $ 500,000,000 | ||
Total debt | $ 491,000,000 | 491,000,000 | |
Senior notes | 3.625% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.625% | ||
Principal Amount | $ 375,000,000 | ||
Total debt | $ 369,000,000 | 368,000,000 | |
Senior notes | 3.400% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.40% | ||
Principal Amount | $ 500,000,000 | ||
Total debt | $ 492,000,000 | 492,000,000 | |
Senior notes | 3.750% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.75% | ||
Principal Amount | $ 1,150,000,000 | ||
Total debt | $ 1,137,000,000 | 1,137,000,000 | |
Senior notes | 4.250% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.25% | ||
Principal Amount | $ 750,000,000 | ||
Total debt | $ 743,000,000 | 743,000,000 | |
Senior notes | 3.400% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.40% | ||
Principal Amount | $ 700,000,000 | ||
Total debt | $ 688,000,000 | 688,000,000 | |
Senior notes | 5.300% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 5.30% | ||
Principal Amount | $ 1,250,000,000 | ||
Total debt | 1,231,000,000 | 1,231,000,000 | |
Senior notes | Floating-rate senior notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | 0 | ||
Total debt | 0 | 400,000,000 | |
Senior notes | Floating-rate senior notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | 500,000,000 | ||
Total debt | 500,000,000 | 500,000,000 | |
Senior notes | Floating-rate senior notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | 1,039,000,000 | ||
Total debt | $ 1,027,000,000 | 1,027,000,000 | |
Senior notes | 7.620% debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 7.62% | ||
Principal Amount | $ 276,000,000 | ||
Total debt | $ 280,000,000 | 280,000,000 | |
Pound Sterling notes | 5.500% notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 5.50% | ||
Principal Amount | $ 74,000,000 | ||
Total debt | $ 73,000,000 | 89,000,000 | |
Pound Sterling notes | 5.125% notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 5.125% | ||
Principal Amount | $ 504,000,000 | ||
Total debt | $ 479,000,000 | 583,000,000 | |
Euro Senior Notes | 0.375% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 0.375% | ||
Principal Amount | $ 684,000,000 | ||
Total debt | $ 683,000,000 | 791,000,000 | |
Euro Senior Notes | 1.625% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 1.625% | ||
Principal Amount | $ 684,000,000 | ||
Total debt | $ 682,000,000 | 791,000,000 | |
Euro Senior Notes | 1.000% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 1% | ||
Principal Amount | $ 488,000,000 | ||
Total debt | $ 486,000,000 | 564,000,000 | |
Euro Senior Notes | 1.500% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 1.50% | ||
Principal Amount | $ 488,000,000 | ||
Total debt | $ 486,000,000 | 564,000,000 | |
Canadian Senior Notes | 2.125% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.125% | ||
Principal Amount | $ 547,000,000 | ||
Total debt | 547,000,000 | 585,000,000 | |
Facility notes and bonds | |||
Debt Instrument [Line Items] | |||
Principal Amount | 320,000,000 | ||
Total debt | 320,000,000 | 320,000,000 | |
Other debt | |||
Debt Instrument [Line Items] | |||
Principal Amount | 4,000,000 | ||
Total debt | $ 4,000,000 | $ 5,000,000 |
DEBT AND FINANCING ARRANGEMEN_4
DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) € in Billions | 9 Months Ended | |||||
Oct. 03, 2022 USD ($) | May 16, 2022 USD ($) | Sep. 30, 2022 USD ($) Credit_Agreements | Sep. 30, 2021 USD ($) | Sep. 30, 2022 EUR (€) Credit_Agreements | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 1,124,000,000 | $ 2,613,000,000 | ||||
Face value of debt instrument | $ 20,512,000,000 | |||||
Number of credit agreements | Credit_Agreements | 2 | 2 | ||||
Sale-lease back outstanding | $ 0 | |||||
Long-term debt fair value | 18,900,000,000 | $ 25,100,000,000 | ||||
Finance Lease, Liability | $ 379,000,000 | $ 408,000,000 | ||||
Covenants limit, amount of secured indebtedness and debt in sale-leaseback transactions, percentage of net tangible assets | 10% | 10% | ||||
Covenants that limit the amount of secured indebtedness and amount of attributable debt in sale-leaseback transactions, net tangible assets amount | $ 4,600,000,000 | |||||
Secured debt outstanding | 0 | |||||
U.S. Commercial Paper Program | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper program, authorized to borrow | 10,000,000,000 | |||||
Long-term Debt | 0 | |||||
Foreign Commercial Paper Program | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper program, authorized to borrow | € | € 5 | |||||
Long-term Debt | $ 0 | |||||
Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity | Dec. 06, 2022 | |||||
Revolving credit facilities | $ 1,000,000,000 | |||||
Amounts outstanding under this facility | $ 0 | |||||
Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity | Dec. 07, 2026 | |||||
Revolving credit facilities | $ 2,000,000,000 | |||||
Amounts outstanding under this facility | $ 0 | |||||
Senior notes | 2.350% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.35% | 2.35% | 2.35% | |||
Repayments of senior notes | $ 600,000,000 | |||||
Face value of debt instrument | $ 0 | |||||
Senior notes | Floating Rate Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of senior notes | $ 400,000,000 | |||||
Face value of debt instrument | $ 0 | |||||
Senior notes | 3.050% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.05% | 3.05% | ||||
Face value of debt instrument | $ 1,000,000,000 | |||||
Senior notes | 3.900% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.90% | 3.90% | ||||
Face value of debt instrument | $ 1,000,000,000 | |||||
Senior notes | 4.450% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 4.45% | 4.45% | ||||
Face value of debt instrument | $ 750,000,000 | |||||
Senior notes | 5.200% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 5.20% | 5.20% | ||||
Face value of debt instrument | $ 500,000,000 | |||||
Senior notes | 5.300% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 5.30% | 5.30% | ||||
Face value of debt instrument | $ 1,250,000,000 | |||||
Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.40% | 3.40% | ||||
Face value of debt instrument | $ 750,000,000 | |||||
Senior notes | 4.250% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 4.25% | 4.25% | ||||
Face value of debt instrument | $ 750,000,000 | |||||
Senior notes | 2.500% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.50% | 2.50% | ||||
Face value of debt instrument | $ 400,000,000 | |||||
Senior notes | 2.200% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.20% | 2.20% | ||||
Face value of debt instrument | $ 400,000,000 | |||||
Senior notes | 3.400% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.40% | 3.40% | ||||
Face value of debt instrument | $ 700,000,000 | |||||
Senior notes | 7.620% debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 7.62% | 7.62% | ||||
Face value of debt instrument | $ 276,000,000 | |||||
Senior notes | 2.450% senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.45% | 2.45% | ||||
Face value of debt instrument | $ 1,000,000,000 | |||||
Senior notes | 2.450% senior notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.45% | |||||
Repayments of senior notes | $ 1,000,000,000 | |||||
Federal Funds Rate | Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.50% | |||||
Federal Funds Rate | Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.50% | |||||
Base Rate | Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.875% | |||||
Base Rate | Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.875% | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.10% | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 0.10% | |||||
Adjusted Term Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility Expiring In 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 1% | |||||
Adjusted Term Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility Expiring In 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin rates | 1% |
LEASES - Narratives (Details)
LEASES - Narratives (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) aircraft | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) aircraft | Sep. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Number of lease aircrafts (aircraft) | 310 | 310 | ||
Number of lease aircrafts, finance (aircraft) | 17 | 17 | ||
Number of lease aircrafts, operating (aircraft) | 18 | 18 | ||
Number of lease aircrafts, short-term (aircraft) | 275 | 275 | ||
Finance Lease, Impairment Loss | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Lease, Impairment Loss | $ | 0 | $ 0 | 0 | $ 0 |
Lessee, Finance Lease and Operating Lease, Lease Not Yet Commenced, Amount | $ | $ 1,200,000,000 | $ 1,200,000,000 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 month | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 138 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease costs | $ 179 | $ 183 | $ 546 | $ 537 |
Amortization of assets | 28 | 24 | 84 | 70 |
Interest on lease liabilities | 3 | 4 | 10 | 11 |
Total finance lease costs | 31 | 28 | 94 | 81 |
Variable lease costs | 62 | 51 | 194 | 178 |
Short-term lease costs | 319 | 305 | 944 | 835 |
Total lease costs | $ 591 | $ 567 | $ 1,778 | $ 1,631 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Leases: | ||
Operating lease right-of-use assets | $ 3,417,000,000 | $ 3,562,000,000 |
Current maturities of operating leases | 560,000,000 | 580,000,000 |
Non-current operating leases | 2,960,000,000 | 3,033,000,000 |
Total lease obligations | 3,520,000,000 | 3,613,000,000 |
Finance Leases: | ||
Property, plant and equipment, net | $ 947,000,000 | $ 1,125,000,000 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt, commercial paper and finance leases | Current maturities of long-term debt, commercial paper and finance leases |
Current maturities of long-term debt, commercial paper and finance leases | $ 79,000,000 | $ 129,000,000 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt, Excluding Current Maturities | Long-Term Debt, Excluding Current Maturities |
Long-term debt and finance leases | $ 300,000,000 | $ 279,000,000 |
Total lease obligations | $ 379,000,000 | $ 408,000,000 |
Weighted average remaining lease term (in years): | ||
Operating leases | 11 years | 11 years 8 months 12 days |
Finance leases | 8 years 9 months 18 days | 8 years |
Weighted average discount rate: | ||
Operating leases | 2.21% | 1.94% |
Finance leases | 3.03% | 2.79% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 523 | $ 538 |
Operating cash flows from finance leases | 3 | 8 |
Financing cash flows from finance leases | 123 | 48 |
Operating leases | 588 | 953 |
Finance leases | $ 98 | $ 252 |
LEASES - Maturity Schedule Afte
LEASES - Maturity Schedule After Adoption (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Finance Leases | ||
2022 | $ 31,000,000 | |
Finance Lease, Liability, to be Paid, Year One | 83,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 644,000,000 | |
2023 | 56,000,000 | |
2024 | 42,000,000 | |
2025 | 35,000,000 | |
Thereafter | 212,000,000 | |
Total lease payments | 459,000,000 | |
Less: Imputed interest | (80,000,000) | |
Total lease obligations | 379,000,000 | $ 408,000,000 |
Less: Current obligations | (79,000,000) | (129,000,000) |
Long-term lease obligations | 300,000,000 | 279,000,000 |
Operating Leases | ||
2022 | 136,000,000 | |
2023 | 544,000,000 | |
2024 | 484,000,000 | |
2025 | 437,000,000 | |
Thereafter | 1,800,000,000 | |
Total lease payments | 4,045,000,000 | |
Less: Imputed interest | (525,000,000) | |
Total lease obligations | 3,520,000,000 | 3,613,000,000 |
Less: Current obligations | (560,000,000) | (580,000,000) |
Long-term lease obligations | $ 2,960,000,000 | $ 3,033,000,000 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Narratives) (Details) | 1 Months Ended |
Aug. 31, 2016 Defendants | |
CNMC | |
Loss Contingencies | |
Number of defendants | 10 |
SHAREOWNERS' EQUITY - Additiona
SHAREOWNERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) Classes_of_Common_Stock Vote $ / shares shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) Classes_of_Common_Stock Vote $ / shares shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Stockholders Equity Note [Line Items] | ||||||
Classes of Common Stock, Number | Classes_of_Common_Stock | 2 | 2 | ||||
Preferred stock, shares authorized | shares | 200,000,000 | 200,000,000 | ||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||||
Preferred stock, issued | shares | 0 | 0 | ||||
Purchases of common stock | $ 2,194 | $ 500 | ||||
Change in non-controlling minority interest | $ (1) | $ (1) | 4 | 4 | ||
Reclassification adjustment loss, before tax | $ (66) | |||||
Defined benefit plan, curtailments | $ (33) | |||||
August 2021 Share Repurchase Program | ||||||
Stockholders Equity Note [Line Items] | ||||||
Common stock authorized for purchase, amount | $ 5,000 | |||||
Common stock purchases | shares | 4,900,000 | 2,600,000 | 11,600,000 | 2,600,000 | ||
Total of Class A and Class B common stock, repurchased, value | $ 951 | $ 500 | $ 2,200 | $ 500 | ||
Share repurchase authorization available | $ 2,300 | $ 2,300 | ||||
August 2021 Share Repurchase Program | Forecast | ||||||
Stockholders Equity Note [Line Items] | ||||||
Projected repurchase value in 2022 | $ 3,000 | |||||
Class A common stock | ||||||
Stockholders Equity Note [Line Items] | ||||||
Votes per common share | Vote | 10 | 10 | ||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized | shares | 4,600,000,000 | 4,600,000,000 | ||||
Class B common stock | ||||||
Stockholders Equity Note [Line Items] | ||||||
Votes per common share | Vote | 1 | 1 | ||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized | shares | 5,600,000,000 | 5,600,000,000 | ||||
Net income | ||||||
Stockholders Equity Note [Line Items] | ||||||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | $ 50 | (15) | $ 117 | 2,452 | ||
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (21) | (5) | (46) | (9) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 69 | 14 | 147 | 27 | ||
Unrealized gain (loss) on cash flow hedges, net of tax: | Income tax expense | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (21) | (5) | (46) | (9) | ||
Unrealized gain (loss) on cash flow hedges, net of tax: | Net income | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 69 | 14 | 147 | 27 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||||
Stockholders Equity Note [Line Items] | ||||||
Reclassification to earnings (net of tax effect of $_ and $12) | (18) | (29) | (29) | 2,421 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Income tax expense | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 5 | 9 | 8 | (763) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Net income | ||||||
Stockholders Equity Note [Line Items] | ||||||
Reclassification to earnings (net of tax effect of $_ and $12) | (18) | (29) | (29) | 2,421 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Investment income and other | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (23) | (38) | (70) | (109) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 0 | 3,290 | ||||
Defined benefit plan, curtailments | 33 | 0 | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Other expenses | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 69 | ||||
Reclassification adjustment loss, before tax | 0 | (66) | ||||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||||
Stockholders Equity Note [Line Items] | ||||||
Reclassification to earnings, tax effect | 0 | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (1) | 0 | (1) | 4 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | Income tax expense | ||||||
Stockholders Equity Note [Line Items] | ||||||
Reclassification to earnings, tax effect | 0 | 0 | 0 | 0 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | Net income | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (1) | 0 | (1) | 4 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | Investment income and other | ||||||
Stockholders Equity Note [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | (1) | 0 | (1) | 4 | ||
Foreign Exchange Contracts | Interest expense | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Foreign Exchange Contracts | Investment income and other | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Foreign Exchange Contracts | Revenue | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 94 | 22 | 202 | 44 | ||
Foreign Exchange Contracts | Unrealized gain (loss) on cash flow hedges, net of tax: | Revenue | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 94 | 22 | 202 | 44 | ||
Interest Contracts | Interest expense | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | (4) | (3) | (9) | (8) | ||
Interest Contracts | Investment income and other | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Interest Contracts | Revenue | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Interest Contracts | Unrealized gain (loss) on cash flow hedges, net of tax: | Interest expense | ||||||
Stockholders Equity Note [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | $ (4) | $ (3) | $ (9) | $ (8) |
SHAREOWNERS' EQUITY - Roll-forw
SHAREOWNERS' EQUITY - Roll-forward of Common Stock, Additional Paid-in Capital, Retained Earnings Accounts and Noncontrolling Interest (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 14,253 | |||
Net income attributable to common shareowners | $ 2,584 | $ 2,329 | 8,095 | $ 9,797 |
Balance at end of period | 16,968 | 16,968 | ||
Non-Controlling Minority Interest | ||||
Balance at beginning of period | 21 | 17 | 16 | 12 |
Change in non-controlling minority interest | (1) | (1) | 4 | 4 |
Balance at end of period | $ 20 | $ 16 | $ 20 | $ 16 |
Common stock, cash paid for dividends, per share | $ 1.52 | $ 1.02 | $ 4.56 | $ 3.06 |
Dividends, common stock | $ 41 | $ 27 | $ 207 | $ 140 |
Class A common stock | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period, shares | 138 | |||
Balance at end of period, shares | 135 | 135 | ||
Class B common stock | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period, shares | 732 | |||
Balance at end of period, shares | 730 | 730 | ||
Common Stock | Class A common stock | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 2 | $ 2 | $ 2 | $ 2 |
Balance at beginning of period, shares | 138 | 144 | 138 | 147 |
Stock award plans | $ 0 | $ 0 | $ 0 | $ 0 |
Stock award plans, shares | (1) | (1) | 5 | 5 |
Common stock issuances | $ 0 | $ 0 | $ 0 | $ 0 |
Common stock issuances, shares | 1 | 1 | 2 | 2 |
Conversions of class A to class B common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Conversions of Class A to Class B common stock, shares | (3) | (3) | (10) | (13) |
Balance at end of period | $ 2 | $ 2 | $ 2 | $ 2 |
Balance at end of period, shares | 135 | 141 | 135 | 141 |
Common Stock | Class B common stock | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 7 | $ 7 | $ 7 | $ 7 |
Balance at beginning of period, shares | 732 | 728 | 732 | 718 |
Common stock purchases | $ 0 | $ 0 | $ 0 | $ 0 |
Common stock purchases, shares | (5) | (3) | (12) | (3) |
Conversions of class A to class B common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Conversions of Class A to Class B common stock, shares | (3) | (3) | (10) | (13) |
Balance at end of period | $ 7 | $ 7 | $ 7 | $ 7 |
Balance at end of period, shares | 730 | 728 | 730 | 728 |
Additional Paid-In Capital | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 573 | $ 1,329 | $ 1,343 | $ 865 |
Common stock purchases | (903) | (500) | (2,146) | (500) |
Stock award plans | 233 | 176 | 410 | 399 |
Common stock issuances | 97 | 83 | 393 | 324 |
Balance at end of period | 0 | 1,088 | 0 | 1,088 |
Retained Earnings | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | 18,958 | 12,531 | 16,179 | 6,896 |
Common stock purchases | (48) | 0 | (48) | 0 |
Net income attributable to common shareowners | 2,329 | 8,095 | 9,797 | |
Balance at end of period | 20,177 | 13,973 | 20,177 | 13,973 |
Dividends ($1.52 and $1.02 per share) (1) | (1,316) | (887) | (4,049) | (2,718) |
Other | $ (1) | $ 0 | $ 0 | $ (2) |
SHAREOWNERS' EQUITY - Activity
SHAREOWNERS' EQUITY - Activity in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ (3,278) | |||
Translation adjustment (net of tax effect of $4 and $8) | $ (263) | $ (106) | (548) | $ (140) |
Current period changes in fair value (net of tax effect of $(1) and $0) | (3) | 0 | (10) | (5) |
Change in unrealized gain (loss) on cash flow hedges, net of tax | 281 | 112 | 558 | 180 |
Balance at end of period | (3,218) | (3,029) | (3,218) | (3,029) |
Foreign currency translation gain (loss): | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (1,447) | (1,015) | (1,162) | (981) |
Translation adjustment (net of tax effect of $4 and $8) | (263) | (106) | (548) | (140) |
Balance at end of period | (1,710) | (1,121) | (1,710) | (1,121) |
Aggregate adjustment for the period, tax | 4 | 8 | 11 | 37 |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (8) | 1 | (1) | 6 |
Current period changes in fair value (net of tax effect of $(1) and $0) | (4) | 0 | (11) | (1) |
Reclassification to earnings (net of tax effect of $0 and $0) | 1 | 0 | 1 | (4) |
Balance at end of period | (11) | 1 | (11) | 1 |
Current period changes in fair value, tax effect | (1) | 0 | (3) | 0 |
Reclassification to earnings, tax effect | 0 | 0 | 0 | 0 |
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 260 | (155) | (17) | (223) |
Change in unrealized gain (loss) on cash flow hedges, net of tax | 350 | 126 | 705 | 207 |
Reclassification to earnings (net of tax effect of $(21) and $(5)) | (69) | (14) | (147) | (27) |
Balance at end of period | 541 | (43) | 541 | (43) |
Current period changes in fair value, tax effect | 110 | 40 | 222 | 65 |
Reclassification to earnings, tax effect | (21) | (5) | (46) | (9) |
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (2,056) | (1,895) | (2,098) | (5,915) |
Reclassification to earnings (net of tax effect of $5 and $9) | 18 | 29 | 29 | (2,421) |
Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $11 and $2,039) | 31 | 6,470 | ||
Balance at end of period | (2,038) | (1,866) | (2,038) | (1,866) |
Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities, tax effect | 11 | 2,039 | ||
Reclassification to earnings, tax effect | 5 | 9 | 8 | (763) |
Income tax expense | Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassification to earnings, tax effect | 0 | 0 | 0 | 0 |
Income tax expense | Unrealized gain (loss) on cash flow hedges, net of tax: | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassification to earnings, tax effect | (21) | (5) | (46) | (9) |
Net income | Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassification to earnings (net of tax effect of $0 and $0) | 1 | 0 | 1 | (4) |
Net income | 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 $(21) and $(5)) | (69) | (14) | (147) | (27) |
Net income | Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassification to earnings (net of tax effect of $5 and $9) | $ 18 | $ 29 | $ 29 | $ (2,421) |
SHAREOWNERS' EQUITY - Gains (Lo
SHAREOWNERS' EQUITY - Gains (Losses) Reclassified from AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification adjustment loss, before tax | $ (66) | |||
Net income | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | $ 50 | $ (15) | $ 117 | 2,452 |
Interest rate contracts | Investment income and other | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | (4) | (3) | (9) | (8) |
Interest rate contracts | Revenue | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Foreign currency exchange contracts | Investment income and other | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Foreign currency exchange contracts | Interest expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Foreign currency exchange contracts | Revenue | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 94 | 22 | 202 | 44 |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification to earnings, tax effect | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (1) | 0 | (1) | 4 |
Accumulated Net Unrealized Investment Gain (Loss) | Income tax expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification to earnings, tax effect | 0 | 0 | 0 | 0 |
Accumulated Net Unrealized Investment Gain (Loss) | Net income | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (1) | 0 | (1) | 4 |
Accumulated Net Unrealized Investment Gain (Loss) | Investment income and other | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | (1) | 0 | (1) | 4 |
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification to earnings, tax effect | (21) | (5) | (46) | (9) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 69 | 14 | 147 | 27 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Income tax expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Reclassification to earnings, tax effect | (21) | (5) | (46) | (9) |
Unrealized gain (loss) on cash flow hedges, net of tax: | Net income | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 69 | 14 | 147 | 27 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Interest rate contracts | Interest expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | (4) | (3) | (9) | (8) |
Unrealized gain (loss) on cash flow hedges, net of tax: | Foreign currency exchange contracts | Revenue | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 94 | 22 | 202 | 44 |
Accumulated Defined Benefit Plans Adjustment | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | (18) | (29) | (29) | 2,421 |
Accumulated Defined Benefit Plans Adjustment | Income tax expense | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 5 | 9 | 8 | (763) |
Accumulated Defined Benefit Plans Adjustment | Net income | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | (18) | (29) | (29) | 2,421 |
Accumulated Defined Benefit Plans Adjustment | Investment income and other | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | $ (23) | $ (38) | (70) | (109) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 0 | 3,290 | ||
Accumulated Defined Benefit Plans Adjustment | Other expenses | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 69 | ||
Reclassification adjustment loss, before tax | $ 0 | $ (66) |
SHAREOWNERS' EQUITY - Activit_2
SHAREOWNERS' EQUITY - Activity in Deferred Compensation Program (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 14,253 | |||
Balance at beginning of period | 0.3 | |||
Balance at end of period | $ 16,968 | $ 16,968 | ||
Balance at end of period | 0.2 | 0.2 | ||
Treasury Stock [Member] | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ (12) | $ (16) | $ (16) | $ (20) |
Balance at beginning of period | 0 | 0 | 0 | 0 |
Reinvested dividends | $ 0 | $ 0 | $ (1) | $ (1) |
Reinvested dividends | 0 | 0 | 0 | 0 |
Benefit payments | 0 | 0 | 0 | 0 |
Benefit payments | $ 0 | $ 0 | $ (5) | $ (5) |
Balance at end of period | $ (12) | $ (16) | $ (12) | $ (16) |
Balance at end of period | 0 | 0 | 0 | 0 |
Deferred Compensation Obligations | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | $ 12 | $ 16 | $ 16 | $ 20 |
Reinvested dividends | 0 | 0 | (1) | (1) |
Benefit payments | 0 | 0 | (5) | (5) |
Balance at end of period | $ 12 | $ 16 | $ 12 | $ 16 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 Segment Countries_and_Territories | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 2 |
International Package | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries and territories in which service is rendered | 220 |
Supply Chain Solutions | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries and territories in which service is rendered | 200 |
SEGMENT INFORMATION - Results o
SEGMENT INFORMATION - Results of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 24,161 | $ 23,184 | $ 73,305 | $ 69,516 |
Operating profit | 3,113 | 2,896 | 9,899 | 8,919 |
U.S. Domestic Package | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15,374 | 14,208 | 45,957 | 42,620 |
U.S. Domestic Package | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 1,666 | 1,407 | 5,157 | 4,333 |
International Package | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,799 | 4,720 | 14,748 | 14,144 |
International Package | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 997 | 1,051 | 3,306 | 3,320 |
Supply Chain Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,988 | 4,256 | 12,600 | 12,752 |
Supply Chain Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,988 | 4,256 | 12,600 | 12,752 |
Operating profit | $ 450 | $ 438 | $ 1,436 | $ 1,266 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net income attributable to common shareowners | $ 2,584 | $ 2,329 | $ 8,095 | $ 9,797 |
Denominator: | ||||
Weighted average shares | 867 | 870 | 870 | 869 |
Vested portion of restricted shares | 3 | 5 | 3 | 5 |
Denominator for basic earnings per share | 870 | 875 | 873 | 874 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share | 872 | 879 | 876 | 878 |
Restricted performance units | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 2 | 3 | 2 | 3 |
Stock option plans | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 0 | 1 | 1 | 1 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share that may be issued upon the exercise of employee stock options because such effect would be antidilutive | 0.1 | 0 | 0.1 | 0.1 |
DERIVATIVE INSTRUMENTS AND RI_3
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) | Oct. 31, 2022 CAD ($) | Oct. 31, 2022 EUR (€) | Oct. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | |||||
Derivative, collateral, obligation to return cash | $ 1,000,000,000 | $ 260,000,000 | |||
Collateral securities repledged, delivered, or used | 0 | 0 | |||
Commodity asset | $ 0 | 0 | |||
Derivative instrument recognition period | 8 years | ||||
Pre-tax losses related to cash flow hedges that are currently deferred in AOCI and are expected to be reclassified to income within twelve months | $ 330,000,000 | ||||
Maximum term over hedging exposures to the variability of cash flow | 10 years | ||||
Foreign Exchange Forward | Subsequent Event | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 750 | € 1,200 | £ 66 | ||
Fixed to Floating Interest Rates Swaps | |||||
Derivative [Line Items] | |||||
Debt instrument, stated interest rate | 2.45% | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Derivative [Line Items] | |||||
Derivatives classified as Level 1 or Level 3 | $ 0 | 0 | |||
Significant Other Observable Inputs (Level 2) | |||||
Derivative [Line Items] | |||||
Liability derivatives | 8,000,000 | 62,000,000 | |||
Significant Unobservable Inputs (Level 3) | |||||
Derivative [Line Items] | |||||
Derivatives classified as Level 1 or Level 3 | 0 | $ 0 | |||
Long-term debt and finance leases | Not Designated as Hedging Instrument | Fair Value | |||||
Derivative [Line Items] | |||||
Liability derivatives | $ 5,000,000 |
DERIVATIVE INSTRUMENTS AND RI_4
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | Oct. 31, 2022 CAD ($) | Oct. 31, 2022 EUR (€) | Oct. 31, 2022 GBP (£) | Sep. 30, 2022 CAD ($) | Sep. 30, 2022 EUR (€) | Sep. 30, 2022 GBP (£) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 HKD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 HKD ($) |
Derivative [Line Items] | |||||||||||||
Collateral securities repledged, delivered, or used | $ 0 | $ 0 | |||||||||||
Foreign Exchange Contracts | Euro Member Countries, Euro | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | € | € 4,175 | € 4,257 | |||||||||||
Foreign Exchange Contracts | United Kingdom, Pounds | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | £ | £ 912 | £ 1,402 | |||||||||||
Foreign Exchange Contracts | Canada, Dollars | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 1,631 | $ 1,633 | |||||||||||
Foreign Exchange Contracts | Hong Kong, Dollars | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 4,342 | $ 4,033 | |||||||||||
Fixed to Floating Interest Rate Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 1,000,000,000 | 1,000,000,000 | |||||||||||
Floating to Fixed Interest Rate Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 28,000,000 | $ 28,000,000 | |||||||||||
Foreign Exchange Forward | Subsequent Event | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 750 | € 1,200 | £ 66 |
DERIVATIVE INSTRUMENTS AND RI_5
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Location on the Balance Sheet of Derivative Assets and Liabilities (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Asset Derivatives | ||
Asset Derivatives | $ 895 | $ 236 |
Net Amounts if Right of Offset had been Applied | 892 | 185 |
Derivative Liabilities [Abstract] | ||
Liability derivatives | 8 | 62 |
Net Amounts if Right of Offset had been Applied | 5 | 11 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 336 | 100 |
Net Amounts if Right of Offset had been Applied | 336 | 82 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other non-current assets | ||
Asset Derivatives | ||
Asset Derivatives | 558 | 123 |
Net Amounts if Right of Offset had been Applied | 555 | 90 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability derivatives | 0 | 19 |
Net Amounts if Right of Offset had been Applied | 0 | 1 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability derivatives | 3 | 33 |
Net Amounts if Right of Offset had been Applied | 0 | 0 |
Designated as Hedging Instrument | Interest rate contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 11 |
Net Amounts if Right of Offset had been Applied | 0 | 11 |
Designated as Hedging Instrument | Interest rate contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability derivatives | 0 | 0 |
Net Amounts if Right of Offset had been Applied | 0 | 0 |
Designated as Hedging Instrument | Interest rate contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability derivatives | 5 | 10 |
Net Amounts if Right of Offset had been Applied | 5 | 10 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 1 | 2 |
Net Amounts if Right of Offset had been Applied | $ 1 | $ 2 |
DERIVATIVE INSTRUMENTS AND RI_6
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Fair Value Derivative Balance Sheet Location (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current maturities of long-term debt, commercial paper and finance leases | Carrying Amount | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 1,000 | $ 1,010 |
Current maturities of long-term debt, commercial paper and finance leases | Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 11 |
Long-term debt and finance leases | Carrying Amount | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 280 | 280 |
Long-term debt and finance leases | Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 5 | $ 5 |
DERIVATIVE INSTRUMENTS AND RI_7
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Income Statement and AOCI Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | $ 0 | $ 0 | $ 0 | $ 0 |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded | 94 | 22 | 202 | 44 |
Revenue | Interest Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Revenue | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 94 | 22 | 202 | 44 |
Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | (1) | 4 | 10 | 14 |
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 | (4) | (3) | (9) | (8) |
Interest expense | Interest Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives designated as hedging instruments | 1 | (4) | (10) | (14) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income | (4) | (3) | (9) | (8) |
Interest expense | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded | 0 | 0 | 0 | 0 |
Investment income and other | Interest Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Investment income and other | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND RI_8
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments in Cash Flow Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 460 | $ 166 | $ 927 | $ 272 |
Derivative Instruments in Cash Flow Hedging Relationships | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 1 | 1 | 5 | 1 |
Derivative Instruments in Cash Flow Hedging Relationships | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 459 | 165 | 922 | 271 |
Non-derivative Instruments in Net Investment Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 209 | 90 | 436 | 167 |
Non-derivative Instruments in Net Investment Hedging Relationships | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 209 | $ 90 | $ 436 | $ 167 |
DERIVATIVE INSTRUMENTS AND RI_9
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount Recorded in Income Statements for Foreign Currency Forward Contracts Not Designated as Hedges (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (45) | $ (21) | $ (131) | $ (24) |
Foreign currency exchange contracts | Investment income and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (45) | $ (21) | $ (131) | $ (24) |
INCOME TAXES (Detail)
INCOME TAXES (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax | ||||
Effective tax rate | 21% | 22.20% | 21.80% | 22.40% |
Effective income tax rate reconciliation, percent | (0.80%) | (0.60%) | ||
Defined benefit plan, curtailments | $ (33) | |||
Mark to market gain (loss), tax effect | $ 788 | |||
Mark to market gain (loss) | 3,300 | |||
Transformation cost | $ 36 | $ 74 | 132 | 308 |
Income tax benefit from restructuring costs | $ 9 | $ 20 | 31 | 76 |
Disposed of by Sale | UPS Freight Business | ||||
Income Tax | ||||
Pre-tax gain | 35 | |||
Gain (loss) on disposal, tax expense (benefit) | 8 | |||
Investment income and other | Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Income Tax | ||||
Defined benefit plan, curtailments | $ 33 | $ 0 |
TRANSFORMATION STRATEGY (Detail
TRANSFORMATION STRATEGY (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||||
Compensation and benefits | $ 15 | $ 33 | $ 71 | $ 164 |
Total other expenses | 21 | 41 | 61 | 144 |
Total Transformation Strategy Costs | 36 | 74 | 132 | 308 |
Income Tax Benefit from Transformation Strategy Costs | (9) | (20) | (31) | (76) |
After-Tax Transformation Strategy Costs | $ 27 | $ 54 | $ 101 | $ 232 |