Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 24, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.01 per share | |
Trading Symbol | UPS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001090727 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
0.375% Senior Notes due 2023 | ||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | |
Trading Symbol | UPS23A | |
Security Exchange Name | NYSE | |
1.625% Senior Notes due 2025 | ||
Title of 12(b) Security | 1.625% Senior Notes due 2025 | |
Trading Symbol | UPS25 | |
Security Exchange Name | NYSE | |
1% Senior Notes due 2028 | ||
Title of 12(b) Security | 1% Senior Notes due 2028 | |
Trading Symbol | UPS28 | |
Security Exchange Name | NYSE | |
1.500% Senior Notes due 2032 | ||
Title of 12(b) Security | 1.500% Senior Notes due 2032 | |
Trading Symbol | UPS32 | |
Security Exchange Name | NYSE | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 134,106,663 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 724,779,682 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 6,190 | $ 5,602 |
Marketable securities | 3,208 | 1,993 |
Accounts receivable | 10,448 | 12,729 |
Less: Allowance for credit losses | (149) | (146) |
Accounts receivable, net | 10,299 | 12,583 |
Other current assets | 2,028 | 2,039 |
Total Current Assets | 21,725 | 22,217 |
Property, Plant and Equipment, Net | 34,995 | 34,719 |
Operating Lease Right-Of-Use Assets | 4,089 | 3,755 |
Goodwill | 4,249 | 4,223 |
Intangible Assets, Net | 2,811 | 2,796 |
Deferred Income Tax Assets | 155 | 139 |
Other Non-Current Assets | 4,165 | 3,275 |
Total Assets | 72,189 | 71,124 |
Current Liabilities: | ||
Current maturities of long-term debt, commercial paper and finance leases | 2,332 | 2,341 |
Current maturities of operating leases | 668 | 621 |
Accounts payable | 6,302 | 7,515 |
Accrued wages and withholdings | 3,012 | 4,049 |
Self-insurance reserves | 1,069 | 1,069 |
Accrued group welfare and retirement plan contributions | 1,196 | 1,078 |
Other current liabilities | 1,683 | 1,467 |
Total Current Liabilities | 16,262 | 18,140 |
Long-Term Debt and Finance Leases | 19,856 | 17,321 |
Non-Current Operating Leases | 3,539 | 3,238 |
Pension and Postretirement Benefit Obligations | 4,602 | 4,807 |
Deferred Income Tax Liabilities | 4,345 | 4,302 |
Other Non-Current Liabilities | 3,532 | 3,513 |
Shareowners’ Equity: | ||
Additional paid-in capital | 0 | 0 |
Retained earnings | 21,510 | 21,326 |
Accumulated other comprehensive loss | (1,481) | (1,549) |
Deferred compensation obligations | 9 | 13 |
Less: Treasury stock (0.2 shares in both 2023 and 2022) | (9) | (13) |
Total Equity for Controlling Interests | 20,038 | 19,786 |
Noncontrolling interests | 15 | 17 |
Total Shareowners’ Equity | 20,053 | 19,803 |
Total Liabilities and Shareowners’ Equity | 72,189 | 71,124 |
Class A common stock | ||
Shareowners’ Equity: | ||
Common stock | 2 | 2 |
Class B common stock | ||
Shareowners’ Equity: | ||
Common stock | $ 7 | $ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Treasury stock (in shares) | 0.2 | 0.2 |
Class A common stock | ||
Common stock, issued (in shares) | 135 | 134 |
Class B common stock | ||
Common stock, issued (in shares) | 724 | 725 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 22,925 | $ 24,378 |
Operating Expenses: | ||
Compensation and benefits | 11,462 | 11,601 |
Repairs and maintenance | 725 | 701 |
Depreciation and amortization | 834 | 764 |
Purchased transportation | 3,543 | 4,607 |
Fuel | 1,271 | 1,220 |
Other occupancy | 551 | 501 |
Other expenses | 1,998 | 1,733 |
Total Operating Expenses | 20,384 | 21,127 |
Operating Profit | 2,541 | 3,251 |
Other Income and (Expense): | ||
Investment income and other | 169 | 315 |
Interest expense | (188) | (174) |
Total Other Income and (Expense) | (19) | 141 |
Income Before Income Taxes | 2,522 | 3,392 |
Income Tax Expense | 627 | 730 |
Net Income | $ 1,895 | $ 2,662 |
Basic Earnings Per Share (in dollars per share) | $ 2.20 | $ 3.05 |
Diluted Earnings Per Share (in dollars per share) | $ 2.19 | $ 3.03 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,895 | $ 2,662 |
Change in foreign currency translation adjustment, net of tax | 118 | (40) |
Change in unrealized gain (loss) on marketable securities, net of tax | 7 | (6) |
Change in unrealized gain (loss) on cash flow hedges, net of tax | (77) | 43 |
Change in unrecognized pension and postretirement benefit costs, net of tax | 20 | 24 |
Comprehensive Income (Loss) | $ 1,963 | $ 2,683 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,895 | $ 2,662 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 834 | 764 |
Pension and postretirement benefit (income) expense | 243 | 201 |
Pension and postretirement benefit contributions | (1,277) | (45) |
Self-insurance reserves | (20) | (45) |
Deferred tax (benefit) expense | 56 | 209 |
Stock compensation expense | 126 | 386 |
Other (gains) losses | (13) | 44 |
Changes in assets and liabilities, net of effects of business acquisitions: | ||
Accounts receivable | 2,254 | 1,227 |
Other assets | 62 | 7 |
Accounts payable | (1,668) | (743) |
Accrued wages and withholdings | (508) | (343) |
Other liabilities | 405 | 173 |
Other operating activities | (32) | (17) |
Net cash from operating activities | 2,357 | 4,480 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (609) | (548) |
Proceeds from disposal of businesses, property, plant and equipment | 5 | 0 |
Purchases of marketable securities | (2,371) | (68) |
Sales and maturities of marketable securities | 1,179 | 60 |
Acquisitions, net of cash acquired | (34) | 1 |
Other investing activities | 17 | (17) |
Net cash used in investing activities | (1,813) | (572) |
Cash Flows From Financing Activities: | ||
Net change in short-term debt | 0 | 0 |
Proceeds from long-term borrowings | 2,503 | 0 |
Repayments of long-term borrowings | (65) | (18) |
Purchases of common stock | (751) | (254) |
Issuances of common stock | 49 | 67 |
Dividends | (1,348) | (1,284) |
Other financing activities | (384) | (481) |
Net cash from/(used in) financing activities | 4 | (1,970) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 40 | 15 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 588 | 1,953 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 5,602 | 10,255 |
End of period | $ 6,190 | $ 12,208 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 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 March 31, 2023 and our results of operations and cash flows for the three months ended March 31, 2023 and 2022. 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, 2022. During the first quarter of 2023, we reclassified certain operating expenses to better align with the manner in which we manage our operations. Substantially all of these costs were previously classified within operating expenses as Other expenses and have now been classified within operating expenses as Repairs and maintenance in the statements of consolidated income. The remaining line items within operating expenses impacted by this reclassification were inconsequential. As a result, the statements of consolidated income for the three months ended March 31, 2023 and 2022 give effect to this reclassification by decreasing Other expenses by $88 and $77 million, respectively, and increasing Repairs and maintenance by $83 and $75 million, respectively. The reclassification had no impact on our reported revenue, operating profit, net income, or any internal performance measure on which management is compensated. 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 March 31, 2023 and December 31, 2022. The fair values of our marketable 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). 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. Supplier Finance Programs As part of our working capital management, certain financial institutions offer a Supply Chain Finance ("SCF") program to certain of our suppliers. We agree to commercial terms with our suppliers, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. Suppliers issue invoices to us based on the agreed-upon contractual terms. If they participate in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, to sell to the financial institutions. Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms. No guarantees are provided by us under the SCF program. We have no economic interest in a supplier’s decision to participate, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Amounts due to our suppliers that participate in the SCF program are included in Accounts payable in our consolidated balance sheets. We have been informed by the participating financial institutions that as of March 31, 2023 and December 31, 2022, suppliers sold them $628 and $806 million, respectively, of our outstanding payment obligations. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In September 2022, the Financial Accounting Standards Board issued an Accounting Standards Update ("ASU") to enhance the disclosure of supplier finance programs. This ASU did not affect the recognition, measurement or financial statement presentation of obligations covered by supplier finance programs. We adopted the requirements of this ASU as of January 1, 2023 and have included required disclosures within note 1. Other 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. Accounting Standards Issued But Not Yet Effective Accounting pronouncements issued before, but not effective until after, March 31, 2023, 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 | 3 Months Ended |
Mar. 31, 2023 | |
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”). These services may be carried out by or arranged by us and generally occur over a short period of time. Additionally, we provide value-added logistics services to customers through our global network of distribution centers and field stocking locations. The vast majority of our contracts with customers are for transportation services that include only one performance obligation; the transportation services themselves. We generally recognize revenue over time, based on the extent of progress towards completion of the services in the contract. 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 2023 2022 Revenue: Next Day Air $ 2,461 $ 2,594 Deferred 1,194 1,420 Ground 11,332 11,110 U.S. Domestic Package 14,987 15,124 Domestic 794 851 Export 3,552 3,778 Cargo & Other 197 247 International Package 4,543 4,876 Forwarding 1,514 2,589 Logistics 1,410 1,251 Other 471 538 Supply Chain Solutions 3,395 4,378 Consolidated revenue $ 22,925 $ 24,378 Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit shipments, as we have an unconditional right to payment only when services have been completed (i.e. shipments have been delivered). Amounts do 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 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 amount will be earned. We classify deferred revenue as current 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 and liabilities as of March 31, 2023 and December 31, 2022 were as follows (in millions): Balance Sheet Location March 31, 2023 December 31, 2022 Contract Assets: Revenue related to in-transit packages Other current assets $ 267 $ 308 Contract Liabilities: Short-term advance payments from customers Other current liabilities $ 10 $ 11 Long-term advance payments from customers Other non-current liabilities $ 25 $ 26 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 | 3 Months Ended |
Mar. 31, 2023 | |
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. Pre-tax compensation expense for share-based awards recognized in Compensation and benefits in the statements of consolidated income for the three months ended March 31, 2023 and 2022 was $126 and $386 million, respectively. Management Incentive Program RPUs issued under the MIP prior to 2022 vested one year following the grant date based on continued employment with the Company and were expensed on a straight-line basis (less estimated forfeitures) over the requisite service period. In cases of death, disability or retirement, RPUs vested and were expensed immediately. On November 2, 2022, the Compensation and Human Capital Committee of the UPS Board of Directors (the "Compensation Committee") amended and restated the terms and conditions of the MIP effective January 1, 2023, such that awards earned will be fully electable in the form of cash or unrestricted shares of class A common stock. The terms and conditions governing the 2022 MIP were also amended and restated to fully vest RPUs to be issued in connection therewith as of December 31, 2022. As a result, the award was classified as a compensation obligation and recorded in Accrued wages and withholdings on the consolidated balance sheet at that date. Based on the Compensation Committee's approval of the 2022 MIP, we determined the award measurement date to be February 8, 2023 for U.S.-based employees and executive management, and March 20, 2023 for international employees. Each RPU issued under the MIP was valued using the closing New York Stock Exchange ("NYSE") prices of $186.36 and $183.49 on those dates. The compensation obligation recognized as of December 31, 2022 was relieved and the issuance of RPUs was recorded as Additional Paid-in Capital on the measurement date. 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 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 Compensation Committee's approval of the 2023 LTIP award performance targets, we determined March 22, 2023 to be the award measurement date and each target RPU awarded was valued at $200.01. The weighted-average assumptions used and the weighted-average fair values of the LTIP awards granted in 2023 and 2022 are as follows: 2023 2022 Risk-free interest rate 3.81 % 2.35 % Expected volatility 30.30 % 31.92 % Weighted-average fair value of RPUs granted $ 200.01 $ 227.00 Share payout 107.80 % 107.37 % 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 22, 2023, we granted 0.1 million stock options at an exercise price of $185.54, the NYSE closing price on that date. The fair value of each option granted is estimated using a Black-Scholes option pricing model. The weighted-average assumptions used and the weighted-average fair values of options granted in 2023 and 2022 are as follows: 2023 2022 Expected dividend yield 3.54 % 2.35 % Risk-free interest rate 3.70 % 2.39 % Expected life (in years) 5.93 7.5 Expected volatility 28.31 % 25.04 % Weighted-average fair value of options granted $ 41.08 $ 48.45 |
MARKETABLE SECURITIES AND NON-C
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS | MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS The following is a summary of marketable securities classified as trading and available-for-sale as of March 31, 2023 and December 31, 2022 (in millions): Cost Unrealized Unrealized Estimated March 31, 2023: Current trading marketable securities: Equity securities $ 6 $ — $ — $ 6 Total trading marketable securities 6 — — 6 Current available-for-sale securities: U.S. government and agency debt securities 761 2 (4) 759 Mortgage and asset-backed debt securities 9 — — 9 Corporate debt securities 2,279 3 (6) 2,276 U.S. state and local municipal debt securities 3 — — 3 Non-U.S. government debt securities 155 — — 155 Total available-for-sale marketable securities 3,207 5 (10) 3,202 Total current marketable securities $ 3,213 $ 5 $ (10) $ 3,208 Cost Unrealized Unrealized Estimated December 31, 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 355 — (8) 347 Mortgage and asset-backed debt securities 9 — — 9 Corporate debt securities 1,472 — (6) 1,466 U.S. state and local municipal debt securities 4 — — 4 Non-U.S. government debt securities 165 — — 165 Total available-for-sale marketable securities 2,005 — (14) 1,991 Total current marketable securities $ 2,007 $ — $ (14) $ 1,993 Investment Impairments We have concluded that no material impairment losses existed as of March 31, 2023. 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 March 31, 2023 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 $ 1,727 $ 1,726 Due after one year through three years 1,478 1,474 Due after three years through five years 2 2 Due after five years — — 3,207 3,202 Equity securities 6 6 $ 3,213 $ 3,208 Non-Current Investments We hold non-current investments that are reported within Other Non-Current Assets in our consolidated balance sheets. Cash paid for these investments is included in Other investing activities in our statements of consolidated cash flows. • Equity method investments: As of March 31, 2023 and December 31, 2022, equity securities accounted for under the equity method had a carrying value of $257 and $256 million, respectively. • Other equity securities: Certain equity securities that do not have readily determinable fair values are reported in accordance with the measurement alternative in ASC Topic 321 Investments - Equity Securities . As of March 31, 2023 and December 31, 2022, we held equity securities accounted for using the measurement alternative of $33 and $31 million, respectively. • Other investments: 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 $19 and $18 million as of March 31, 2023 and December 31, 2022, respectively. 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 March 31, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices Significant Other Significant Total March 31, 2023: Marketable Securities: U.S. government and agency debt securities $ 759 $ — $ — $ 759 Mortgage and asset-backed debt securities — 9 — 9 Corporate debt securities — 2,276 — 2,276 U.S. state and local municipal debt securities — 3 — 3 Equity securities — 6 — 6 Non-U.S. government debt securities — 155 — 155 Total marketable securities 759 2,449 — 3,208 Other non-current investments (1) — 19 — 19 Total $ 759 $ 2,468 $ — $ 3,227 (1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan. December 31, 2022: Quoted Prices Significant Other Significant Total Marketable Securities: U.S. government and agency debt securities $ 279 $ 68 $ — $ 347 Mortgage and asset-backed debt securities — 9 — 9 Corporate debt securities — 1,466 — 1,466 U.S. state and local municipal debt securities — 4 — 4 Equity securities — 2 — 2 Non-U.S. government debt securities — 165 — 165 Total marketable securities 279 1,714 — 1,993 Other non-current investments (1) — 18 — 18 Total $ 279 $ 1,732 $ — $ 2,011 (1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan. There were no transfers of investments into or out of Level 3 during the three months ended March 31, 2023 or 2022. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of March 31, 2023 and December 31, 2022 consisted of the following (in millions): 2023 2022 Vehicles $ 10,840 $ 10,628 Aircraft 22,638 22,598 Land 2,143 2,140 Buildings 6,122 6,032 Building and leasehold improvements 5,142 5,067 Plant equipment 16,454 16,145 Technology equipment 2,445 2,411 Construction-in-progress 2,544 2,409 68,328 67,430 Less: Accumulated depreciation and amortization (33,333) (32,711) Property, Plant and Equipment, Net $ 34,995 $ 34,719 Property, plant and equipment purchased on account was $626 and $176 million as of March 31, 2023 and December 31, 2022, respectively. There were no material impairment charges during the three months ended March 31, 2023 or 2022. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022 is as follows (in millions): U.S. Pension Benefits U.S. Postretirement International 2023 2022 2023 2022 2023 2022 Three Months Ended March 31: Service cost $ 293 $ 506 $ 5 $ 8 $ 11 $ 18 Interest cost 627 488 29 20 17 12 Expected return on assets (742) (820) (3) (1) (21) (20) Amortization of prior service cost 27 23 — — — — Settlement and curtailment (gain) loss — — — — — (33) Net periodic benefit cost (income) $ 205 $ 197 $ 31 $ 27 $ 7 $ (23) 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 first quarter of 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 three-month period. The gain is included in Investment income and other in the statement of consolidated income. During the first quarter of 2023, we contributed $1.2 billion and $74 million to our company-sponsored pension and U.S. postretirement medical benefit plans, respectively. We expect to contribute approximately $78 and $44 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 March 31, 2023 and December 31, 2022, we had $819 and $821 million, respectively, recorded in Other Non-Current Liabilities in our consolidated balance sheets and $8 million as of March 31, 2023 and December 31, 2022 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 March 31, 2023 and December 31, 2022 was $710 and $686 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. 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 reduced by the CSPF consistent with the terms of our withdrawal agreement with the CSPF. Under this agreement, benefits to the UPS Transfer Group cannot be reduced without our consent and can only be reduced in accordance with law. Subsequent to our withdrawal, the CSPF incurred extensive asset losses and indicated that it was projected to become insolvent. In such event, the CSPF benefits would be reduced to the legally permitted Pension Benefit Guaranty Corporation ("PBGC") limits, triggering the coordinating benefits provision in the collective bargaining agreement. In March 2021, the American Rescue Plan Act (“ARPA”) was enacted into law. The ARPA contains provisions that allow for qualifying multiemployer pension plans to apply for special financial assistance ("SFA") from the PBGC, which will be funded by the U.S. government. Following SFA approval, a qualifying multiemployer pension plan will receive a lump sum payment to enable it to continue paying unreduced pension 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 submitted an application for SFA that was approved in December 2022 and, in January 2023, the CSPF received $35.8 billion from the PBGC. We account for the potential obligation to pay coordinating benefits under ASC Topic 715, which requires us to provide a best estimate of various actuarial assumptions in measuring our pension benefit obligation at the December 31st measurement date. As of December 31, 2022, our best estimate of coordinating benefits that may be required to be paid by the UPS/IBT Plan after SFA funds have been exhausted was immaterial. The value of our estimate for future coordinating benefits 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 CSPF to sustain its long-term 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 Topic 715. Collective Bargaining Agreements We have approximately 330,000 employees in the U.S. employed under a national master agreement and various supplemental agreements with local unions affiliated with the Teamsters. These agreements run through July 31, 2023. We have begun negotiating successor agreements with the Teamsters. We are negotiating in good faith in an effort to reach an agreement that is in the best interests of our employees, the Teamsters and UPS; however, no assurances of our ability to do so, or the timing or terms thereof, can be provided. Customers may reduce their business or stop doing business with us if they believe that such actions or threatened actions may adversely affect our ability to provide services. We may permanently lose customers if we are unable to provide uninterrupted service, and this could materially adversely affect us. The terms of future collective bargaining agreements also may affect our competitive position and results of operations. Furthermore, our actions or responses to any such negotiations, labor disputes, strikes or work stoppages could negatively impact how our brand is perceived and our corporate reputation and have adverse effects on our business, including our results of operations. We have approximately 10,000 employees in Canada employed under a collective bargaining agreement with the Teamsters which runs through July 31, 2025. We have approximately 3,500 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association ("IPA"). This collective bargaining agreement becomes amendable September 1, 2025. We have approximately 1,800 airline mechanics who are covered by a collective bargaining agreement with Teamsters Local 2727 which becomes amendable November 1, 2026. In addition, approximately 3,100 of our auto and maintenance mechanics who are not employed under agreements with the Teamsters are employed under collective bargaining agreements with the International Association of Machinists and Aerospace Workers (“IAM”). The collective bargaining agreement with the IAM runs through July 31, 2024. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table indicates the allocation of goodwill as of March 31, 2023 and December 31, 2022 (in millions): U.S. Domestic International Supply Chain Solutions Consolidated December 31, 2022: $ 847 $ 492 $ 2,884 $ 4,223 Acquired — — 9 9 Impairments — — (8) (8) Currency / Other — 6 19 25 March 31, 2023: $ 847 $ 498 $ 2,904 $ 4,249 During the three months ended March 31, 2023, we recorded goodwill adjustments of $9 million relating to our November 2022 acquisition of Bomi Group. Certain areas, including our estimates of tax positions for Bomi Group, remain preliminary as of March 31, 2023. Additionally, we recorded an immaterial impairment charge related to the closure of a trade management services business within Supply Chain Solutions. The remaining movements are due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. We complete our annual goodwill impairment evaluation as of July 1st on a reporting unit basis. Our 2022 annual impairment testing indicated that the fair value of goodwill associated with our Roadie reporting unit remained greater than its carrying value, although this excess was less than 10 percent. The goodwill associated with our Roadie reporting unit as of March 31, 2023 was $241 million. There were no events or changes in circumstances during the first quarter of 2023 that would indicate the carrying amount of Roadie goodwill may be impaired as of the date of this report. For each of our reporting units and our indefinite-lived trade name, we continue to monitor the combined impact of macroeconomic conditions and business performance on our estimates of fair value. The following is a summary of intangible assets as of March 31, 2023 and December 31, 2022 (in millions): Gross Carrying Accumulated Net Carrying March 31, 2023: Capitalized software $ 5,300 $ (3,598) $ 1,702 Licenses 55 (34) 21 Franchise rights 261 (39) 222 Customer relationships 880 (474) 406 Trade name 126 (10) 116 Trademarks, patents and other 177 (37) 140 Amortizable intangible assets $ 6,799 $ (4,192) $ 2,607 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 7,003 $ (4,192) $ 2,811 December 31, 2022: Capitalized software $ 5,186 $ (3,500) $ 1,686 Licenses 55 (30) 25 Franchise rights 226 (37) 189 Customer relationships 872 (453) 419 Trade name 125 (8) 117 Trademarks, patents and other 183 (27) 156 Amortizable intangible assets $ 6,647 $ (4,055) $ 2,592 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 6,851 $ (4,055) $ 2,796 A trade name and licenses with carrying values of $200 and $4 million, respectively, as of March 31, 2023 are deemed to be indefinite-lived intangible assets, and therefore are not amortized. There were no events or changes in circumstances during the three months ended March 31, 2023 that would indicate the carrying amount of our indefinite-lived intangible assets may be impaired as of the date of this report. Impairment tests for finite-lived intangible assets are performed when a triggering event occurs that may indicate that the carrying value of the intangible asset may not be recoverable. There were no impairment charges for finite-lived intangible assets during the three months ended March 31, 2023 or 2022. |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt obligations as of March 31, 2023 and December 31, 2022 consists of the following (in millions): Principal Carrying Value Maturity 2023 2022 Fixed-rate senior notes: 2.500% senior notes $ 1,000 2023 $ 1,000 $ 999 2.800% senior notes 500 2024 499 499 2.200% senior notes 400 2024 399 399 3.900% senior notes 1,000 2025 998 997 2.400% senior notes 500 2026 499 499 3.050% senior notes 1,000 2027 995 995 3.400% senior notes 750 2029 747 747 2.500% senior notes 400 2029 398 397 4.450% senior notes 750 2030 745 744 4.875% senior notes 900 2033 894 — 6.200% senior notes 1,500 2038 1,485 1,485 5.200% senior notes 500 2040 494 494 4.875% senior notes 500 2040 491 491 3.625% senior notes 375 2042 369 369 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 5.050% senior notes 1,100 2053 1,083 — Floating-rate senior notes: Floating-rate senior notes 500 2023 500 500 Floating-rate senior notes 1,566 2049-2073 1,548 1,027 Debentures: 7.620% debentures 276 2030 280 280 Pound Sterling notes: 5.500% notes 82 2031 82 79 5.125% notes 563 2050 535 521 Euro senior notes: 0.375% senior notes 762 2023 761 745 1.625% senior notes 762 2025 760 744 1.000% senior notes 544 2028 542 531 1.500% senior notes 544 2032 542 530 Canadian senior notes: 2.125% senior notes 555 2024 553 553 Finance lease obligations 365 2023-2046 365 390 Facility notes and bonds 320 2029-2045 320 320 Other debt 13 2023-2026 13 36 Total debt $ 22,377 22,188 19,662 Less: current maturities (2,332) (2,341) Long-term debt $ 19,856 $ 17,321 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 March 31, 2023, we had no outstanding balances under our commercial paper programs. The amount of commercial paper outstanding under these programs in 2023 is expected to fluctuate. 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 first quarter of 2023, we repaid approximately $16 million of foreign currency-denominated debt assumed in the Bomi Group acquisition. On April 1, 2023, our 2.500% Senior Notes with a principal balance of $1.0 billion and our floating rate senior notes with a principal balance of $500 million matured and were repaid in full. Debt Issuances On February 23, 2023 we issued two series of notes in the principal amounts of $900 million and $1.1 billion. These notes bear interest at 4.875% and 5.050%, respectively, and mature on March 3, 2033 and March 3, 2053, respectively. Interest on the notes is payable semi-annually, beginning September 2023. Each series of notes is callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest, plus accrued and unpaid interest. On March 7, 2023 we issued floating rate senior notes with a principal balance of $529 million. These notes bear interest at a rate equal to the compounded Secured Overnight Financing Rate ("SOFR") less 0.350% per year and mature on March 15, 2073. These notes are callable at various times after 30 years at a stated percentage of par value and are redeemable at the option of the note holders at various times after one year at a stated percentage of par value. Reference Rate Reform Our floating-rate senior notes that mature between 2049 and 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 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 5, 2023. 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 March 31, 2023 was 0.70%. 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. 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 March 31, 2023 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 March 31, 2023. Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of March 31, 2023, 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 March 31, 2023, 10% of net tangible assets was equivalent to $4.9 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 $21.9 and $18.2 billion as of March 31, 2023 and December 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES We have finance and operating leases for real estate (primarily package centers, airport facilities and warehouses), aircraft and engines, information technology equipment, 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. Aircraft In addition to the aircraft that we own, 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. 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. 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. We also enter into equipment leases to increase capacity during periods of high demand. These leases are treated as short-term as the cumulative right of use is less than 12 months over the term of the contract. 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 right of use lease asset and associated lease obligation. The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows (in millions): 2023 2022 Operating lease costs $ 207 $ 183 Finance lease costs: Amortization of assets 29 28 Interest on lease liabilities 4 4 Total finance lease costs 33 32 Variable lease costs 72 68 Short-term lease costs 277 302 Total lease costs (1) $ 589 $ 585 (1) This table excludes sublease income as it was not material to the three months ended March 31, 2023 or 2022. 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 months ended March 31, 2023 or 2022. Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions, except lease term and discount rate): March 31, December 31, Operating Leases: Operating lease right-of-use assets $ 4,089 $ 3,755 Current maturities of operating leases $ 668 $ 621 Non-current operating leases 3,539 3,238 Total operating lease obligations $ 4,207 $ 3,859 Finance Leases: Property, plant and equipment, net $ 869 $ 959 Current maturities of long-term debt, commercial paper and finance leases $ 68 $ 92 Long-term debt and finance leases 297 298 Total finance lease obligations $ 365 $ 390 Weighted average remaining lease term (in years): Operating leases 11.2 10.8 Finance leases 8.8 8.4 Weighted average discount rate: Operating leases 2.73 % 2.32 % Finance leases 3.28 % 3.17 % Supplemental cash flow information related to leases is as follows (in millions): Three Months Ended 2023 2022 Cash paid for amounts included in measurement of obligations: Operating cash flows from operating leases $ 212 $ 176 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 48 18 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 498 $ 119 Finance leases $ 30 $ 59 Maturities of lease obligations as of March 31, 2023 were as follows (in millions): Finance Leases Operating Leases 2023 $ 73 $ 576 2024 62 705 2025 48 632 2026 39 543 2027 38 472 Thereafter 183 2,038 Total lease payments 443 4,966 Less: Imputed interest (78) (759) Total lease obligations 365 4,207 Less: Current obligations (68) (668) Long-term lease obligations $ 297 $ 3,539 As of March 31, 2023, we had $771 million of additional leases which had not commenced. These leases will commence between 2023 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 (primarily package centers, airport facilities and warehouses), aircraft and engines, information technology equipment, 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. Aircraft In addition to the aircraft that we own, 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. 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. 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. We also enter into equipment leases to increase capacity during periods of high demand. These leases are treated as short-term as the cumulative right of use is less than 12 months over the term of the contract. 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 right of use lease asset and associated lease obligation. The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows (in millions): 2023 2022 Operating lease costs $ 207 $ 183 Finance lease costs: Amortization of assets 29 28 Interest on lease liabilities 4 4 Total finance lease costs 33 32 Variable lease costs 72 68 Short-term lease costs 277 302 Total lease costs (1) $ 589 $ 585 (1) This table excludes sublease income as it was not material to the three months ended March 31, 2023 or 2022. 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 months ended March 31, 2023 or 2022. Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions, except lease term and discount rate): March 31, December 31, Operating Leases: Operating lease right-of-use assets $ 4,089 $ 3,755 Current maturities of operating leases $ 668 $ 621 Non-current operating leases 3,539 3,238 Total operating lease obligations $ 4,207 $ 3,859 Finance Leases: Property, plant and equipment, net $ 869 $ 959 Current maturities of long-term debt, commercial paper and finance leases $ 68 $ 92 Long-term debt and finance leases 297 298 Total finance lease obligations $ 365 $ 390 Weighted average remaining lease term (in years): Operating leases 11.2 10.8 Finance leases 8.8 8.4 Weighted average discount rate: Operating leases 2.73 % 2.32 % Finance leases 3.28 % 3.17 % Supplemental cash flow information related to leases is as follows (in millions): Three Months Ended 2023 2022 Cash paid for amounts included in measurement of obligations: Operating cash flows from operating leases $ 212 $ 176 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 48 18 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 498 $ 119 Finance leases $ 30 $ 59 Maturities of lease obligations as of March 31, 2023 were as follows (in millions): Finance Leases Operating Leases 2023 $ 73 $ 576 2024 62 705 2025 48 632 2026 39 543 2027 38 472 Thereafter 183 2,038 Total lease payments 443 4,966 Less: Imputed interest (78) (759) Total lease obligations 365 4,207 Less: Current obligations (68) (668) Long-term lease obligations $ 297 $ 3,539 As of March 31, 2023, we had $771 million of additional leases which had not commenced. These leases will commence between 2023 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 | 3 Months Ended |
Mar. 31, 2023 | |
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, they were granted a discretionary review by the Kentucky Supreme Court. In the first quarter of 2023, the Kentucky Supreme Court ruled in our favor. Plaintiffs have filed a motion for rehearing before 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. In March 2018, the CNMC adopted a final decision, finding an infringement and imposing an immaterial fine on UPS. We appealed the decision. In December 2022, a trial court ruled against us. We have filed an appeal before the Spanish Supreme Court. 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 that could be important to the ultimate resolution of this matter. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, 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 March 31, 2023, 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 months ended March 31, 2023 and 2022 (in millions, except per share amounts): Three Months Ended March 31: 2023 2022 Shares Dollars Shares Dollars Class A Common Stock: Balance at beginning of period 134 $ 2 138 $ 2 Stock award plans 3 — 4 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (3) — (3) — Class A shares outstanding at end of period 135 $ 2 140 $ 2 Class B Common Stock: Balance at beginning of period 725 $ 7 732 $ 7 Common stock purchases (4) — (1) — Conversions of class A to class B common stock 3 — 3 — Class B shares outstanding at end of period 724 $ 7 734 $ 7 Additional Paid-In Capital: Balance at beginning of period $ — $ 1,343 Stock award plans 345 (35) Common stock purchases (492) (260) Common stock issuances 147 183 Balance at end of period $ — $ 1,231 Retained Earnings: Balance at beginning of period $ 21,326 $ 16,179 Net income attributable to controlling interests 1,895 2,662 Dividends ($1.62 and $1.52 per share) (1) (1,453) (1,406) Common stock purchases (258) — Other — (2) Balance at end of period $ 21,510 $ 17,433 Non-Controlling Interests: Balance at beginning of period $ 17 $ 16 Change in non-controlling interest (2) 2 Balance at end of period $ 15 $ 18 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $105 and $122 million as of March 31, 2023 and 2022, respectively, that were settled in shares of class A common stock. We repurchased 4.1 and 1.2 million shares of class B common stock for $750 and $260 million during the three months ended March 31, 2023 and 2022, respectively. Repurchases of $751 and $254 million, respectively, are reported on the statements of consolidated cash flows due to the timing of settlements. These repurchases were completed as follows: • 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 (the "2021 Authorization"). For the three months ended March 31, 2023 and 2022, we repurchased 0.5 and 1.2 million shares of class B common stock for $82 and $260 million, respectively, under this authorization. • In January 2023, the Board of Directors terminated the 2021 Authorization and approved a new share repurchase authorization for $5.0 billion of class A and class B common stock (the "2023 Authorization"). For the three months ended March 31, 2023, we repurchased 3.6 million shares for $668 million under the 2023 Authorization. As of March 31, 2023, we had $4.3 billion available under this repurchase authorization. We anticipate our share repurchases will total approximately $3.0 billion in 2023. 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 (loss) for the three months ended March 31, 2023 and 2022 was as follows (in millions): Three Months Ended March 31: 2023 2022 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,446) $ (1,162) Translation adjustment (net of tax effect of $(15) and $0) 115 (40) Reclassification to earnings (net of tax effect of $0 and $0) 3 — Balance at end of period (1,328) (1,202) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (11) (1) Current period changes in fair value (net of tax effect of $1 and $(2)) 5 (6) Reclassification to earnings (net of tax effect of $1 and $0) 2 — Balance at end of period (4) (7) Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 167 (17) Current period changes in fair value (net of tax effect of $(8) and $23) (26) 72 Reclassification to earnings (net of tax effect of $(16) and $(9)) (51) (29) Balance at end of period 90 26 Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (259) (2,098) Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $0 and $11) — 31 Reclassification to earnings (net of tax effect of $7 and $(3)) 20 (7) Balance at end of period (239) (2,074) Accumulated other comprehensive income (loss) at end of period $ (1,481) $ (3,257) Detail of the gains (losses) reclassified from accumulated other comprehensive income (loss) to the statements of consolidated income for the three months ended March 31, 2023 and 2022 is as follows (in millions): Amount Reclassified from AOCI (1) Affected Line Item in the Income Statement Three Months Ended March 31: 2023 2022 Unrealized Gain (Loss) on Foreign Currency Translation: Realized gain (loss) on business wind-down $ (3) $ — Other expenses Income tax (expense) benefit — — Income tax expense Impact on net income (3) — Net income Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities (3) — Investment income and other Income tax (expense) benefit 1 — Income tax expense Impact on net income (2) — Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (1) (3) Interest expense Foreign currency exchange contracts 68 41 Revenue Income tax (expense) benefit (16) (9) Income tax expense Impact on net income 51 29 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (27) (23) Investment income and other Curtailment of benefit obligation — 33 Investment income and other Income tax (expense) benefit 7 (3) Income tax expense Impact on net income (20) 7 Net income Total amount reclassified for the period $ 26 $ 36 Net income ( 1 ) Accumulated other comprehensive income (loss) 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 within Shareowners’ Equity in 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 months ended March 31, 2023 and 2022 was as follows (in millions): 2023 2022 Three Months Ended March 31: Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 13 $ 16 Reinvested dividends — — Benefit payments (4) (4) Balance at end of period $ 9 $ 12 Treasury Stock: Balance at beginning of period — $ (13) — $ (16) Reinvested dividends — — — — Benefit payments — 4 — 4 Balance at end of period — $ (9) — $ (12) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
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, the Indian sub-continent, the Middle East, Africa, Canada and Latin America. 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 businesses 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, healthcare logistics, mail and consulting services. Coyote offers truckload brokerage services primarily in the United States. Marken provides supply chain solutions to the life sciences industry. Other businesses within this segment include The UPS Store, UPS Capital, Roadie, and Delivery Solutions. In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating profit is before investment income (expense) and other, interest expense and income tax expense. Certain expenses are allocated between the segments using activity-based costing methods. These activity-based costing methods require us to make estimates that impact the amount of each expense category that is attributed to each segment. Changes in these estimates directly impact the amount of expense allocated to each segment, and therefore the operating profit of each reporting segment. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. There were no significant changes to our allocation methodologies in the first quarter. Results of operations for the three months ended March 31, 2023 and 2022 are as follows (in millions): Three Months Ended 2023 2022 Revenue: U.S. Domestic Package $ 14,987 $ 15,124 International Package 4,543 4,876 Supply Chain Solutions 3,395 4,378 Consolidated revenue $ 22,925 $ 24,378 Operating Profit: U.S. Domestic Package $ 1,466 $ 1,662 International Package 828 1,116 Supply Chain Solutions 247 473 Consolidated operating profit $ 2,541 $ 3,251 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022 (in millions, except per share amounts): Three Months Ended 2023 2022 Numerator: Net income attributable to common shareowners $ 1,895 $ 2,662 Denominator: Weighted average shares 858 871 Vested portion of restricted units 4 3 Denominator for basic earnings per share 862 874 Effect of dilutive securities: Restricted units 2 4 Stock options 1 1 Denominator for diluted earnings per share 865 879 Basic earnings per share $ 2.20 $ 3.05 Diluted earnings per share $ 2.19 $ 3.03 Diluted earnings per share for the three months ended March 31, 2023 and 2022 excluded the effect of 0.2 and 0.1 million shares of common stock that may be issued upon the exercise of employee stock options because such effect would be antidilutive. |
DERIVATIVE INSTRUMENTS AND RISK
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | 3 Months Ended |
Mar. 31, 2023 | |
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. Where deemed appropriate, to manage the impact of these exposures on earnings and/or cash flows, we may enter into a variety of derivative financial instruments. 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. We seek to minimize such risk exposures for these instruments by limiting the counterparties to banks and financial institutions that meet established credit guidelines. We may further manage credit risk through the use of zero threshold bilateral collateral provisions and/or early termination rights utilizing master netting arrangements, whereby cash is exchanged based on the net fair value of derivatives associated with each counterparty. As of March 31, 2023 and December 31, 2022, we held cash collateral of $375 and $534 million, respectively, under these agreements. This collateral is included in Cash and cash equivalents in the consolidated balance sheets and is unrestricted. As of March 31, 2023 and December 31, 2022, no collateral was required to be posted with our counterparties. Types of Hedges Commodity Risk Management Currently, the fuel surcharges that we apply in our domestic and international package businesses 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 generally designate and account for these contracts as cash flow hedges of anticipated foreign currency denominated revenue. We also hedge portions of our anticipated cash settlements of principal and interest on certain foreign currency denominated debt. We generally designate and account for these contracts as cash flow hedges of forecasted foreign currency denominated transactions. We hedge our net investment in certain foreign operations with foreign currency denominated debt instruments. 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. 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. 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. We may 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. Outstanding Positions As of March 31, 2023 and December 31, 2022, the notional amounts of our outstanding derivative positions were as follows (in millions): March 31, December 31, Currency hedges: Euro EUR 3,880 4,115 British Pound Sterling GBP 776 856 Canadian Dollar CAD 1,515 1,598 Hong Kong Dollar HKD 4,552 4,261 Interest rate hedges: Floating to Fixed Interest Rate Swaps USD 28 28 As of March 31, 2023 and December 31, 2022, we had no outstanding commodity hedge positions. Balance Sheet Recognition The following table indicates the location in the consolidated balance sheets where our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives. 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 March 31, 2023 and December 31, 2022 (in millions): Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Asset Derivatives Balance Sheet Location March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current assets Level 2 $ 143 $ 174 $ 135 $ 171 Foreign currency exchange contracts Other non-current assets Level 2 188 250 159 226 Derivatives not designated as hedges: Foreign currency exchange contracts Other current assets Level 2 — 1 — 1 Total Asset Derivatives $ 331 $ 425 $ 294 $ 398 Fair Value Hierarchy Level Gross Amounts Presented in Net Amounts if Right of Liability Derivatives Balance Sheet Location March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current liabilities Level 2 $ 8 $ 3 $ — $ — Foreign currency exchange contracts Other non-current liabilities Level 2 29 24 — — Interest rate contracts Other non-current liabilities Level 2 5 5 5 5 Derivatives not designated as hedges: Foreign currency exchange contracts Other current liabilities Level 2 1 — 1 — Total Liability Derivatives $ 43 $ 32 $ 6 $ 5 Our foreign currency exchange rate, 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, foreign currency exchange rates and investment forward prices; therefore, these derivatives are classified as Level 2. Balance Sheet Location of Hedged Item in Fair Value Hedges The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of March 31, 2023 and December 31, 2022 (in millions): Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount Cumulative Amount Carrying Amount Cumulative Amount March 31, 2023 March 31, 2023 December 31, 2022 December 31, 2022 Long-term debt and finance leases $ 280 $ 5 $ 280 $ 5 Income Statement and AOCI Recognition of Designated Hedges The following table indicates the amount of gains (losses) that have been recognized in the statements of consolidated income for fair value and cash flow hedges, as well as the associated gain (loss) for the underlying hedged item for fair value hedges for the three months ended March 31, 2023 and 2022 (in millions): Three Months Ended March 31, 2023 2022 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 (loss) on fair value hedging relationships: Interest Rate Contracts: Hedged items $ — $ — $ — $ — $ 8 $ — Derivatives designated as hedging instruments — — — — (8) — Gain (loss) on cash flow hedging relationships: Interest Rate Contracts: Amount of gain (loss) reclassified from accumulated other comprehensive income — (1) — — (3) — Foreign Currency Exchange Contracts: Amount of gain (loss) reclassified from accumulated other comprehensive income 68 — — 41 — — 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 $ 68 $ (1) $ — $ 41 $ (3) $ — The following table indicates the amount of gains (losses) that have been recognized in AOCI for the three months ended March 31, 2023 and 2022 for those derivatives designated as cash flow hedges (in millions): Three Months Ended March 31: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2023 2022 Interest rate contracts $ — $ 3 Foreign currency exchange contracts (34) 92 Total $ (34) $ 95 As of March 31, 2023, there were $130 million of 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 March 31, 2024. 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 9 years. The following table indicates the amount of gains (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three months ended March 31, 2023 and 2022 for those instruments designated as net investment hedges (in millions): Three Months Ended March 31: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2023 2022 Foreign currency denominated debt $ (73) $ 46 Total $ (73) $ 46 Income Statement Recognition of Non-Designated Derivative Instruments Derivative instruments that are not designated as hedges are recorded at fair value with unrealized gains and losses reported in earnings each period. Cash flows from the settlement of derivative instruments appear in the statement of consolidated cash flows within the same categories as the cash flows of the hedged item. We may periodically terminate interest rate swaps and foreign currency exchange forward contracts or enter into offsetting swap and foreign currency positions with different counterparties. As part of this process, we de-designate our original hedge relationship. Amounts recorded in the statements of consolidated income related to fair value changes and settlements of interest rate swaps and foreign currency forward contracts not designated as hedges for the three months ended March 31, 2023 and 2022 (in millions) were as follows: Derivative Instruments Not Designated in Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income 2023 2022 Three Months Ended March 31: Foreign currency exchange contracts Investment income and other $ 4 $ (28) Total $ 4 $ (28) |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate for the three months ended March 31, 2023 and 2022 was approximately 24.9% and 21.5%, respectively. The year-over-year increase in our effective tax rate was driven by lower excess tax benefits related to share-based compensation, unfavorable changes in jurisdictional earnings mix and uncertain tax positions. 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. 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. These changes could result from the settlement of ongoing litigation, the completion of ongoing examinations, the expiration of the statute of limitations, or other unforeseen circumstances. Over the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits may decrease by up to $180 million. |
TRANSFORMATION STRATEGY COSTS
TRANSFORMATION STRATEGY COSTS | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
TRANSFORMATION STRATEGY COSTS | TRANSFORMATION STRATEGY COSTS We are undertaking an enterprise-wide transformation of our organization. The program includes initiatives, 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 months ended March 31, 2023 and 2022 (in millions): Three Months Ended 2023 2022 Transformation Strategy Costs: Compensation and benefits $ (12) $ 33 Total other expenses 15 22 Total Transformation Strategy Costs $ 3 $ 55 Income Tax Benefit from Transformation Strategy Costs — (12) After-Tax Transformation Strategy Costs $ 3 $ 43 |
BASIS OF PRESENTATION AND ACC_2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and our results of operations and cash flows for the three months ended March 31, 2023 and 2022. 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, 2022. |
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 March 31, 2023 and December 31, 2022. The fair values of our marketable 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). |
Use of 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. |
Supplier Finance Programs | Supplier Finance Programs As part of our working capital management, certain financial institutions offer a Supply Chain Finance ("SCF") program to certain of our suppliers. We agree to commercial terms with our suppliers, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. Suppliers issue invoices to us based on the agreed-upon contractual terms. If they participate in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, to sell to the financial institutions. Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms. No guarantees are provided by us under the SCF program. We have no economic interest in a supplier’s decision to participate, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Amounts due to our suppliers that participate in the SCF program are included in Accounts payable |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In September 2022, the Financial Accounting Standards Board issued an Accounting Standards Update ("ASU") to enhance the disclosure of supplier finance programs. This ASU did not affect the recognition, measurement or financial statement presentation of obligations covered by supplier finance programs. We adopted the requirements of this ASU as of January 1, 2023 and have included required disclosures within note 1. Other 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. Accounting Standards Issued But Not Yet Effective Accounting pronouncements issued before, but not effective until after, March 31, 2023, 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 March 31, 2023. 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) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue Three Months Ended 2023 2022 Revenue: Next Day Air $ 2,461 $ 2,594 Deferred 1,194 1,420 Ground 11,332 11,110 U.S. Domestic Package 14,987 15,124 Domestic 794 851 Export 3,552 3,778 Cargo & Other 197 247 International Package 4,543 4,876 Forwarding 1,514 2,589 Logistics 1,410 1,251 Other 471 538 Supply Chain Solutions 3,395 4,378 Consolidated revenue $ 22,925 $ 24,378 |
Schedule of Contract Assets and Liabilities | Contract assets and liabilities as of March 31, 2023 and December 31, 2022 were as follows (in millions): Balance Sheet Location March 31, 2023 December 31, 2022 Contract Assets: Revenue related to in-transit packages Other current assets $ 267 $ 308 Contract Liabilities: Short-term advance payments from customers Other current liabilities $ 10 $ 11 Long-term advance payments from customers Other non-current liabilities $ 25 $ 26 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Weighted-Average Assumptions 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 2023 and 2022 are as follows: 2023 2022 Risk-free interest rate 3.81 % 2.35 % Expected volatility 30.30 % 31.92 % Weighted-average fair value of RPUs granted $ 200.01 $ 227.00 Share payout 107.80 % 107.37 % |
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 a Black-Scholes option pricing model. The weighted-average assumptions used and the weighted-average fair values of options granted in 2023 and 2022 are as follows: 2023 2022 Expected dividend yield 3.54 % 2.35 % Risk-free interest rate 3.70 % 2.39 % Expected life (in years) 5.93 7.5 Expected volatility 28.31 % 25.04 % Weighted-average fair value of options granted $ 41.08 $ 48.45 |
MARKETABLE SECURITIES AND NON_2
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following is a summary of marketable securities classified as trading and available-for-sale as of March 31, 2023 and December 31, 2022 (in millions): Cost Unrealized Unrealized Estimated March 31, 2023: Current trading marketable securities: Equity securities $ 6 $ — $ — $ 6 Total trading marketable securities 6 — — 6 Current available-for-sale securities: U.S. government and agency debt securities 761 2 (4) 759 Mortgage and asset-backed debt securities 9 — — 9 Corporate debt securities 2,279 3 (6) 2,276 U.S. state and local municipal debt securities 3 — — 3 Non-U.S. government debt securities 155 — — 155 Total available-for-sale marketable securities 3,207 5 (10) 3,202 Total current marketable securities $ 3,213 $ 5 $ (10) $ 3,208 Cost Unrealized Unrealized Estimated December 31, 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 355 — (8) 347 Mortgage and asset-backed debt securities 9 — — 9 Corporate debt securities 1,472 — (6) 1,466 U.S. state and local municipal debt securities 4 — — 4 Non-U.S. government debt securities 165 — — 165 Total available-for-sale marketable securities 2,005 — (14) 1,991 Total current marketable securities $ 2,007 $ — $ (14) $ 1,993 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of marketable securities as of March 31, 2023 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 $ 1,727 $ 1,726 Due after one year through three years 1,478 1,474 Due after three years through five years 2 2 Due after five years — — 3,207 3,202 Equity securities 6 6 $ 3,213 $ 3,208 |
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 March 31, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices Significant Other Significant Total March 31, 2023: Marketable Securities: U.S. government and agency debt securities $ 759 $ — $ — $ 759 Mortgage and asset-backed debt securities — 9 — 9 Corporate debt securities — 2,276 — 2,276 U.S. state and local municipal debt securities — 3 — 3 Equity securities — 6 — 6 Non-U.S. government debt securities — 155 — 155 Total marketable securities 759 2,449 — 3,208 Other non-current investments (1) — 19 — 19 Total $ 759 $ 2,468 $ — $ 3,227 (1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan. December 31, 2022: Quoted Prices Significant Other Significant Total Marketable Securities: U.S. government and agency debt securities $ 279 $ 68 $ — $ 347 Mortgage and asset-backed debt securities — 9 — 9 Corporate debt securities — 1,466 — 1,466 U.S. state and local municipal debt securities — 4 — 4 Equity securities — 2 — 2 Non-U.S. government debt securities — 165 — 165 Total marketable securities 279 1,714 — 1,993 Other non-current investments (1) — 18 — 18 Total $ 279 $ 1,732 $ — $ 2,011 (1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of March 31, 2023 and December 31, 2022 consisted of the following (in millions): 2023 2022 Vehicles $ 10,840 $ 10,628 Aircraft 22,638 22,598 Land 2,143 2,140 Buildings 6,122 6,032 Building and leasehold improvements 5,142 5,067 Plant equipment 16,454 16,145 Technology equipment 2,445 2,411 Construction-in-progress 2,544 2,409 68,328 67,430 Less: Accumulated depreciation and amortization (33,333) (32,711) Property, Plant and Equipment, Net $ 34,995 $ 34,719 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022 is as follows (in millions): U.S. Pension Benefits U.S. Postretirement International 2023 2022 2023 2022 2023 2022 Three Months Ended March 31: Service cost $ 293 $ 506 $ 5 $ 8 $ 11 $ 18 Interest cost 627 488 29 20 17 12 Expected return on assets (742) (820) (3) (1) (21) (20) Amortization of prior service cost 27 23 — — — — Settlement and curtailment (gain) loss — — — — — (33) Net periodic benefit cost (income) $ 205 $ 197 $ 31 $ 27 $ 7 $ (23) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table indicates the allocation of goodwill as of March 31, 2023 and December 31, 2022 (in millions): U.S. Domestic International Supply Chain Solutions Consolidated December 31, 2022: $ 847 $ 492 $ 2,884 $ 4,223 Acquired — — 9 9 Impairments — — (8) (8) Currency / Other — 6 19 25 March 31, 2023: $ 847 $ 498 $ 2,904 $ 4,249 |
Schedule of Intangible Assets (Excluding Goodwill) | The following is a summary of intangible assets as of March 31, 2023 and December 31, 2022 (in millions): Gross Carrying Accumulated Net Carrying March 31, 2023: Capitalized software $ 5,300 $ (3,598) $ 1,702 Licenses 55 (34) 21 Franchise rights 261 (39) 222 Customer relationships 880 (474) 406 Trade name 126 (10) 116 Trademarks, patents and other 177 (37) 140 Amortizable intangible assets $ 6,799 $ (4,192) $ 2,607 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 7,003 $ (4,192) $ 2,811 December 31, 2022: Capitalized software $ 5,186 $ (3,500) $ 1,686 Licenses 55 (30) 25 Franchise rights 226 (37) 189 Customer relationships 872 (453) 419 Trade name 125 (8) 117 Trademarks, patents and other 183 (27) 156 Amortizable intangible assets $ 6,647 $ (4,055) $ 2,592 Indefinite-lived intangible assets 204 — 204 Total Intangible Assets, Net $ 6,851 $ (4,055) $ 2,796 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of our outstanding debt obligations as of March 31, 2023 and December 31, 2022 consists of the following (in millions): Principal Carrying Value Maturity 2023 2022 Fixed-rate senior notes: 2.500% senior notes $ 1,000 2023 $ 1,000 $ 999 2.800% senior notes 500 2024 499 499 2.200% senior notes 400 2024 399 399 3.900% senior notes 1,000 2025 998 997 2.400% senior notes 500 2026 499 499 3.050% senior notes 1,000 2027 995 995 3.400% senior notes 750 2029 747 747 2.500% senior notes 400 2029 398 397 4.450% senior notes 750 2030 745 744 4.875% senior notes 900 2033 894 — 6.200% senior notes 1,500 2038 1,485 1,485 5.200% senior notes 500 2040 494 494 4.875% senior notes 500 2040 491 491 3.625% senior notes 375 2042 369 369 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 5.050% senior notes 1,100 2053 1,083 — Floating-rate senior notes: Floating-rate senior notes 500 2023 500 500 Floating-rate senior notes 1,566 2049-2073 1,548 1,027 Debentures: 7.620% debentures 276 2030 280 280 Pound Sterling notes: 5.500% notes 82 2031 82 79 5.125% notes 563 2050 535 521 Euro senior notes: 0.375% senior notes 762 2023 761 745 1.625% senior notes 762 2025 760 744 1.000% senior notes 544 2028 542 531 1.500% senior notes 544 2032 542 530 Canadian senior notes: 2.125% senior notes 555 2024 553 553 Finance lease obligations 365 2023-2046 365 390 Facility notes and bonds 320 2029-2045 320 320 Other debt 13 2023-2026 13 36 Total debt $ 22,377 22,188 19,662 Less: current maturities (2,332) (2,341) Long-term debt $ 19,856 $ 17,321 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows (in millions): 2023 2022 Operating lease costs $ 207 $ 183 Finance lease costs: Amortization of assets 29 28 Interest on lease liabilities 4 4 Total finance lease costs 33 32 Variable lease costs 72 68 Short-term lease costs 277 302 Total lease costs (1) $ 589 $ 585 (1) This table excludes sublease income as it was not material to the three months ended March 31, 2023 or 2022. Supplemental cash flow information related to leases is as follows (in millions): Three Months Ended 2023 2022 Cash paid for amounts included in measurement of obligations: Operating cash flows from operating leases $ 212 $ 176 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 48 18 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 498 $ 119 Finance leases $ 30 $ 59 |
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): March 31, December 31, Operating Leases: Operating lease right-of-use assets $ 4,089 $ 3,755 Current maturities of operating leases $ 668 $ 621 Non-current operating leases 3,539 3,238 Total operating lease obligations $ 4,207 $ 3,859 Finance Leases: Property, plant and equipment, net $ 869 $ 959 Current maturities of long-term debt, commercial paper and finance leases $ 68 $ 92 Long-term debt and finance leases 297 298 Total finance lease obligations $ 365 $ 390 Weighted average remaining lease term (in years): Operating leases 11.2 10.8 Finance leases 8.8 8.4 Weighted average discount rate: Operating leases 2.73 % 2.32 % Finance leases 3.28 % 3.17 % |
Operating Leases Maturity Schedule | Maturities of lease obligations as of March 31, 2023 were as follows (in millions): Finance Leases Operating Leases 2023 $ 73 $ 576 2024 62 705 2025 48 632 2026 39 543 2027 38 472 Thereafter 183 2,038 Total lease payments 443 4,966 Less: Imputed interest (78) (759) Total lease obligations 365 4,207 Less: Current obligations (68) (668) Long-term lease obligations $ 297 $ 3,539 |
Finance Leases Maturity Schedule | Maturities of lease obligations as of March 31, 2023 were as follows (in millions): Finance Leases Operating Leases 2023 $ 73 $ 576 2024 62 705 2025 48 632 2026 39 543 2027 38 472 Thereafter 183 2,038 Total lease payments 443 4,966 Less: Imputed interest (78) (759) Total lease obligations 365 4,207 Less: Current obligations (68) (668) Long-term lease obligations $ 297 $ 3,539 |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling minority interests accounts for the three months ended March 31, 2023 and 2022 (in millions, except per share amounts): Three Months Ended March 31: 2023 2022 Shares Dollars Shares Dollars Class A Common Stock: Balance at beginning of period 134 $ 2 138 $ 2 Stock award plans 3 — 4 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (3) — (3) — Class A shares outstanding at end of period 135 $ 2 140 $ 2 Class B Common Stock: Balance at beginning of period 725 $ 7 732 $ 7 Common stock purchases (4) — (1) — Conversions of class A to class B common stock 3 — 3 — Class B shares outstanding at end of period 724 $ 7 734 $ 7 Additional Paid-In Capital: Balance at beginning of period $ — $ 1,343 Stock award plans 345 (35) Common stock purchases (492) (260) Common stock issuances 147 183 Balance at end of period $ — $ 1,231 Retained Earnings: Balance at beginning of period $ 21,326 $ 16,179 Net income attributable to controlling interests 1,895 2,662 Dividends ($1.62 and $1.52 per share) (1) (1,453) (1,406) Common stock purchases (258) — Other — (2) Balance at end of period $ 21,510 $ 17,433 Non-Controlling Interests: Balance at beginning of period $ 17 $ 16 Change in non-controlling interest (2) 2 Balance at end of period $ 15 $ 18 (1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $105 and $122 million as of March 31, 2023 and 2022, 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 (loss) for the three months ended March 31, 2023 and 2022 was as follows (in millions): Three Months Ended March 31: 2023 2022 Foreign currency translation gain (loss), net of tax: Balance at beginning of period $ (1,446) $ (1,162) Translation adjustment (net of tax effect of $(15) and $0) 115 (40) Reclassification to earnings (net of tax effect of $0 and $0) 3 — Balance at end of period (1,328) (1,202) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (11) (1) Current period changes in fair value (net of tax effect of $1 and $(2)) 5 (6) Reclassification to earnings (net of tax effect of $1 and $0) 2 — Balance at end of period (4) (7) Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 167 (17) Current period changes in fair value (net of tax effect of $(8) and $23) (26) 72 Reclassification to earnings (net of tax effect of $(16) and $(9)) (51) (29) Balance at end of period 90 26 Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (259) (2,098) Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $0 and $11) — 31 Reclassification to earnings (net of tax effect of $7 and $(3)) 20 (7) Balance at end of period (239) (2,074) Accumulated other comprehensive income (loss) at end of period $ (1,481) $ (3,257) |
Gains (Losses) Reclassified from AOCI | Detail of the gains (losses) reclassified from accumulated other comprehensive income (loss) to the statements of consolidated income for the three months ended March 31, 2023 and 2022 is as follows (in millions): Amount Reclassified from AOCI (1) Affected Line Item in the Income Statement Three Months Ended March 31: 2023 2022 Unrealized Gain (Loss) on Foreign Currency Translation: Realized gain (loss) on business wind-down $ (3) $ — Other expenses Income tax (expense) benefit — — Income tax expense Impact on net income (3) — Net income Unrealized gain (loss) on marketable securities: Realized gain (loss) on sale of securities (3) — Investment income and other Income tax (expense) benefit 1 — Income tax expense Impact on net income (2) — Net income Unrealized gain (loss) on cash flow hedges: Interest rate contracts (1) (3) Interest expense Foreign currency exchange contracts 68 41 Revenue Income tax (expense) benefit (16) (9) Income tax expense Impact on net income 51 29 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (27) (23) Investment income and other Curtailment of benefit obligation — 33 Investment income and other Income tax (expense) benefit 7 (3) Income tax expense Impact on net income (20) 7 Net income Total amount reclassified for the period $ 26 $ 36 Net income ( 1 ) Accumulated other comprehensive income (loss) |
Activity in Deferred Compensation Program | Activity in the deferred compensation program for the three months ended March 31, 2023 and 2022 was as follows (in millions): 2023 2022 Three Months Ended March 31: Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 13 $ 16 Reinvested dividends — — Benefit payments (4) (4) Balance at end of period $ 9 $ 12 Treasury Stock: Balance at beginning of period — $ (13) — $ (16) Reinvested dividends — — — — Benefit payments — 4 — 4 Balance at end of period — $ (9) — $ (12) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Results of Operations | Results of operations for the three months ended March 31, 2023 and 2022 are as follows (in millions): Three Months Ended 2023 2022 Revenue: U.S. Domestic Package $ 14,987 $ 15,124 International Package 4,543 4,876 Supply Chain Solutions 3,395 4,378 Consolidated revenue $ 22,925 $ 24,378 Operating Profit: U.S. Domestic Package $ 1,466 $ 1,662 International Package 828 1,116 Supply Chain Solutions 247 473 Consolidated operating profit $ 2,541 $ 3,251 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022 (in millions, except per share amounts): Three Months Ended 2023 2022 Numerator: Net income attributable to common shareowners $ 1,895 $ 2,662 Denominator: Weighted average shares 858 871 Vested portion of restricted units 4 3 Denominator for basic earnings per share 862 874 Effect of dilutive securities: Restricted units 2 4 Stock options 1 1 Denominator for diluted earnings per share 865 879 Basic earnings per share $ 2.20 $ 3.05 Diluted earnings per share $ 2.19 $ 3.03 |
DERIVATIVE INSTRUMENTS AND RI_2
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2023 and December 31, 2022, the notional amounts of our outstanding derivative positions were as follows (in millions): March 31, December 31, Currency hedges: Euro EUR 3,880 4,115 British Pound Sterling GBP 776 856 Canadian Dollar CAD 1,515 1,598 Hong Kong Dollar HKD 4,552 4,261 Interest rate hedges: 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 March 31, 2023 and December 31, 2022 (in millions): Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Asset Derivatives Balance Sheet Location March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current assets Level 2 $ 143 $ 174 $ 135 $ 171 Foreign currency exchange contracts Other non-current assets Level 2 188 250 159 226 Derivatives not designated as hedges: Foreign currency exchange contracts Other current assets Level 2 — 1 — 1 Total Asset Derivatives $ 331 $ 425 $ 294 $ 398 Fair Value Hierarchy Level Gross Amounts Presented in Net Amounts if Right of Liability Derivatives Balance Sheet Location March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign currency exchange contracts Other current liabilities Level 2 $ 8 $ 3 $ — $ — Foreign currency exchange contracts Other non-current liabilities Level 2 29 24 — — Interest rate contracts Other non-current liabilities Level 2 5 5 5 5 Derivatives not designated as hedges: Foreign currency exchange contracts Other current liabilities Level 2 1 — 1 — Total Liability Derivatives $ 43 $ 32 $ 6 $ 5 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 March 31, 2023 and December 31, 2022 (in millions): Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount Cumulative Amount Carrying Amount Cumulative Amount March 31, 2023 March 31, 2023 December 31, 2022 December 31, 2022 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 (losses) that have been recognized in the statements of consolidated income for fair value and cash flow hedges, as well as the associated gain (loss) for the underlying hedged item for fair value hedges for the three months ended March 31, 2023 and 2022 (in millions): Three Months Ended March 31, 2023 2022 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 (loss) on fair value hedging relationships: Interest Rate Contracts: Hedged items $ — $ — $ — $ — $ 8 $ — Derivatives designated as hedging instruments — — — — (8) — Gain (loss) on cash flow hedging relationships: Interest Rate Contracts: Amount of gain (loss) reclassified from accumulated other comprehensive income — (1) — — (3) — Foreign Currency Exchange Contracts: Amount of gain (loss) reclassified from accumulated other comprehensive income 68 — — 41 — — 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 $ 68 $ (1) $ — $ 41 $ (3) $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table indicates the amount of gains (losses) that have been recognized in AOCI for the three months ended March 31, 2023 and 2022 for those derivatives designated as cash flow hedges (in millions): Three Months Ended March 31: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives 2023 2022 Interest rate contracts $ — $ 3 Foreign currency exchange contracts (34) 92 Total $ (34) $ 95 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table indicates the amount of gains (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three months ended March 31, 2023 and 2022 for those instruments designated as net investment hedges (in millions): Three Months Ended March 31: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt 2023 2022 Foreign currency denominated debt $ (73) $ 46 Total $ (73) $ 46 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Amounts recorded in the statements of consolidated income related to fair value changes and settlements of interest rate swaps and foreign currency forward contracts not designated as hedges for the three months ended March 31, 2023 and 2022 (in millions) were as follows: Derivative Instruments Not Designated in Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income 2023 2022 Three Months Ended March 31: Foreign currency exchange contracts Investment income and other $ 4 $ (28) Total $ 4 $ (28) |
TRANSFORMATION STRATEGY COSTS (
TRANSFORMATION STRATEGY COSTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below presents transformation strategy costs for the three months ended March 31, 2023 and 2022 (in millions): Three Months Ended 2023 2022 Transformation Strategy Costs: Compensation and benefits $ (12) $ 33 Total other expenses 15 22 Total Transformation Strategy Costs $ 3 $ 55 Income Tax Benefit from Transformation Strategy Costs — (12) After-Tax Transformation Strategy Costs $ 3 $ 43 |
BASIS OF PRESENTATION AND ACC_3
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Supplier finance program, obligation, sold to financial institutions | $ 628 | $ 806 | |
Other expenses | (1,998) | $ (1,733) | |
Repairs and maintenance | 725 | 701 | |
Revision of Prior Period, Reclassification, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other expenses | 88 | 77 | |
Repairs and maintenance | $ 83 | $ 75 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue | ||
Revenue | $ 22,925 | $ 24,378 |
U.S. Domestic Package | ||
Disaggregation of Revenue | ||
Revenue | 14,987 | 15,124 |
International Package | ||
Disaggregation of Revenue | ||
Revenue | 4,543 | 4,876 |
Supply Chain Solutions | ||
Disaggregation of Revenue | ||
Revenue | 3,395 | 4,378 |
Supply Chain Solutions | Operating Segments | ||
Disaggregation of Revenue | ||
Revenue | 3,395 | 4,378 |
U.S | U.S. Domestic Package | Operating Segments | ||
Disaggregation of Revenue | ||
Revenue | 14,987 | 15,124 |
International | International Package | Operating Segments | ||
Disaggregation of Revenue | ||
Revenue | 4,543 | 4,876 |
Next Day Air | U.S | ||
Disaggregation of Revenue | ||
Revenue | 2,461 | 2,594 |
Deferred | U.S | ||
Disaggregation of Revenue | ||
Revenue | 1,194 | 1,420 |
Ground | U.S | ||
Disaggregation of Revenue | ||
Revenue | 11,332 | 11,110 |
Domestic | International | ||
Disaggregation of Revenue | ||
Revenue | 794 | 851 |
Export | International | ||
Disaggregation of Revenue | ||
Revenue | 3,552 | 3,778 |
Cargo & Other | International | ||
Disaggregation of Revenue | ||
Revenue | 197 | 247 |
Forwarding | ||
Disaggregation of Revenue | ||
Revenue | 1,514 | 2,589 |
Logistics | ||
Disaggregation of Revenue | ||
Revenue | 1,410 | 1,251 |
Other | ||
Disaggregation of Revenue | ||
Revenue | $ 471 | $ 538 |
REVENUE RECOGNITION - Schedule
REVENUE RECOGNITION - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Contract Assets: | ||
Revenue related to in-transit packages | $ 267 | $ 308 |
Contract Liabilities: | ||
Short-term advance payments from customers | 10 | 11 |
Long-term advance payments from customers | $ 25 | $ 26 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Provisions for doubtful receivables | $ 43 | $ 54 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Mar. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 20, 2023 | Feb. 08, 2023 | |
Stockholders Equity Note [Line Items] | |||||
Stock compensation expense | $ 126 | $ 386 | |||
Management Incentive Program | |||||
Stockholders Equity Note [Line Items] | |||||
Closing New York stock exchange price (in dollars per share) | $ 183.49 | $ 186.36 | |||
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 (in dollars per share) | $ 200.01 | ||||
Nonqualified Stock Options | |||||
Stockholders Equity Note [Line Items] | |||||
Award vesting period | 5 years | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 185.54 | ||||
Percentage of the award vesting at each anniversary date of the grant | 20% | ||||
Expiration period | 10 years | ||||
Stock options granted (in shares) | 100,000 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Nonqualified Stock Options | ||
Stockholders Equity Note [Line Items] | ||
Expected dividend yield | 3.54% | 2.35% |
Risk-free interest rate | 3.70% | 2.39% |
Expected life | 5 years 11 months 4 days | 7 years 6 months |
Expected volatility | 28.31% | 25.04% |
Weighted-average fair value of options granted (in dollars per share) | $ 41.08 | $ 48.45 |
Long-Term Incentive Performance Award | ||
Stockholders Equity Note [Line Items] | ||
Risk-free interest rate | 3.81% | 2.35% |
Expected volatility | 30.30% | 31.92% |
Weighted-average fair value of RPU's granted (in dollars per share) | $ 200.01 | $ 227 |
Share payout | 107.80% | 107.37% |
MARKETABLE SECURITIES AND NON_3
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS - Summary of Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading marketable securities, Cost | $ 6 | $ 2 |
Trading marketable securities, Unrealized Gains | 0 | 0 |
Trading marketable securities, Unrealized Losses | 0 | 0 |
Trading marketable securities, Estimated Fair Value | 6 | 2 |
Available-for-sale marketable securities, Cost | 3,207 | 2,005 |
Available-for-sale marketable securities, Unrealized Gains | 5 | 0 |
Available-for-sale marketable securities, Unrealized Losses | (10) | (14) |
Available-for-sale marketable securities, Estimated Fair Value | 3,202 | 1,991 |
Current marketable securities, Cost | 3,213 | 2,007 |
Current marketable securities, Unrealized Gains | 5 | 0 |
Current marketable securities, Unrealized Losses | (10) | (14) |
Current marketable securities, Estimated Fair Value | 3,208 | 1,993 |
Equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading marketable securities, Cost | 6 | 2 |
Trading marketable securities, Unrealized Gains | 0 | 0 |
Trading marketable securities, Unrealized Losses | 0 | 0 |
Trading marketable securities, Estimated Fair Value | 6 | 2 |
U.S. government and agency debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available-for-sale marketable securities, Cost | 761 | 355 |
Available-for-sale marketable securities, Unrealized Gains | 2 | 0 |
Available-for-sale marketable securities, Unrealized Losses | (4) | (8) |
Available-for-sale marketable securities, Estimated Fair Value | 759 | 347 |
Mortgage and asset-backed debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available-for-sale marketable securities, Cost | 9 | 9 |
Available-for-sale marketable securities, Unrealized Gains | 0 | 0 |
Available-for-sale marketable securities, Unrealized Losses | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | 9 | 9 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available-for-sale marketable securities, Cost | 2,279 | 1,472 |
Available-for-sale marketable securities, Unrealized Gains | 3 | 0 |
Available-for-sale marketable securities, Unrealized Losses | (6) | (6) |
Available-for-sale marketable securities, Estimated Fair Value | 2,276 | 1,466 |
U.S. state and local municipal debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available-for-sale marketable securities, Cost | 3 | 4 |
Available-for-sale marketable securities, Unrealized Gains | 0 | 0 |
Available-for-sale marketable securities, Unrealized Losses | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | 3 | 4 |
Non-U.S. government debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available-for-sale marketable securities, Cost | 155 | 165 |
Available-for-sale marketable securities, Unrealized Gains | 0 | 0 |
Available-for-sale marketable securities, Unrealized Losses | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | $ 155 | $ 165 |
MARKETABLE SECURITIES AND NON_4
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS - Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cost | ||
Due in one year or less | $ 1,727 | |
Due after one year through three years | 1,478 | |
Due after three years through five years | 2 | |
Due after five years | 0 | |
Amortized cost | 3,207 | |
Equity securities | 6 | |
Current marketable securities, Cost | 3,213 | $ 2,007 |
Estimated Fair Value | ||
Due in one year or less | 1,726 | |
Due after one year through three years | 1,474 | |
Due after three years through five years | 2 | |
Due after five years | 0 | |
Debt securities | 3,202 | |
Equity securities | 6 | |
Marketable securities | $ 3,208 | $ 1,993 |
MARKETABLE SECURITIES AND NON_5
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Gain (Loss) on Securities [Line Items] | ||
Other than temporary impairment losses | $ 0 | |
Equity method investments | 257,000,000 | $ 256,000,000 |
Equity securities without readily determinable fair value, amount | 33,000,000 | 31,000,000 |
Variable life insurance policy | ||
Gain (Loss) on Securities [Line Items] | ||
Restricted cash and investments, noncurrent | $ 19,000,000 | $ 18,000,000 |
MARKETABLE SECURITIES AND NON_6
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS - Investments Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 3,227 | $ 2,011 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3,208 | 1,993 |
Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 759 | 347 |
Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 9 | 9 |
Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,276 | 1,466 |
Marketable securities | U.S. state and local municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3 | 4 |
Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 6 | 2 |
Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 155 | 165 |
Other non-current investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 19 | 18 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 759 | 279 |
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 | 759 | 279 |
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 | 759 | 279 |
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 | 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) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other non-current investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,468 | 1,732 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,449 | 1,714 |
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 | 68 |
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 | 9 | 9 |
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 | 2,276 | 1,466 |
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 | 3 | 4 |
Significant Other Observable Inputs (Level 2) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 6 | 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 | 155 | 165 |
Significant Other Observable Inputs (Level 2) | Other non-current investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 19 | 18 |
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 | 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) | Marketable securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | Non-U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other non-current investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 68,328 | $ 67,430 |
Less: Accumulated depreciation and amortization | (33,333) | (32,711) |
Property, plant and equipment, net | 34,995 | 34,719 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,840 | 10,628 |
Aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,638 | 22,598 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,143 | 2,140 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,122 | 6,032 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,142 | 5,067 |
Plant equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,454 | 16,145 |
Technology equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,445 | 2,411 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,544 | $ 2,409 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment purchased on account | $ 626,000,000 | $ 176,000,000 | |
Impairment charges on property plant and equipment | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Periodic Cost: | ||
Settlement and curtailment (gain) loss | $ (33) | |
Defined Benefit Pension Plan | U.S. Pension Benefits | ||
Net Periodic Cost: | ||
Service cost | $ 293 | 506 |
Interest cost | 627 | 488 |
Expected return on assets | (742) | (820) |
Amortization of prior service cost | 27 | 23 |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (income) | 205 | 197 |
Defined Benefit Pension Plan | International Pension Benefits | ||
Net Periodic Cost: | ||
Service cost | 11 | 18 |
Interest cost | 17 | 12 |
Expected return on assets | (21) | (20) |
Amortization of prior service cost | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | (33) |
Net periodic benefit cost (income) | 7 | (23) |
U.S. Postretirement Medical Benefits | U.S. Pension Benefits | ||
Net Periodic Cost: | ||
Service cost | 5 | 8 |
Interest cost | 29 | 20 |
Expected return on assets | (3) | (1) |
Amortization of prior service cost | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (income) | $ 31 | $ 27 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) employee | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | $ 33 | ||
Curtailment gain, after tax | 24 | ||
Multiemployer plans, payment term | 40 years | ||
National Master Agreement And Various Supplemental Agreements | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered | employee | 330,000 | ||
Teamsters | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered | employee | 10,000 | ||
Independent Pilots Association | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered | employee | 3,500 | ||
Teamsters Local 2727 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered | employee | 1,800 | ||
International Association Of Machinists And Aerospace Workers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered | employee | 3,100 | ||
Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer plans, withdrawal obligation, fair value | $ 710 | $ 686 | |
Defined Benefit Pension Plan | Long term debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plans, withdrawal obligation, present value | 819 | 821 | |
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] | |||
Curtailment gain | 0 | 0 | |
Amount contributed to company- sponsored benefit plans | 1,200 | ||
Estimated future employer contributions to defined benefit plan, current fiscal year | 78 | ||
U.S. Postretirement Medical Benefits | U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0 | $ 0 | |
Amount contributed to company- sponsored benefit plans | 74 | ||
Estimated future employer contributions to defined benefit plan, current fiscal year | $ 44 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Allocation of Goodwill by Reportable Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 4,223 |
Acquired | 9 |
Impairments | (8) |
Currency / Other | 25 |
Ending balance | 4,249 |
U.S. Domestic Package | |
Goodwill [Roll Forward] | |
Beginning balance | 847 |
Acquired | 0 |
Impairments | 0 |
Currency / Other | 0 |
Ending balance | 847 |
International Package | |
Goodwill [Roll Forward] | |
Beginning balance | 492 |
Acquired | 0 |
Impairments | 0 |
Currency / Other | 6 |
Ending balance | 498 |
Supply Chain Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 2,884 |
Acquired | 9 |
Impairments | (8) |
Currency / Other | 19 |
Ending balance | $ 2,904 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, purchase accounting adjustments | $ 9,000,000 | ||
Goodwill | 4,249,000,000 | $ 4,223,000,000 | |
Indefinite-lived intangible assets | 204,000,000 | $ 204,000,000 | |
Impairment of finite lived intangible assets | 0 | $ 0 | |
Roadie | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 241,000,000 | ||
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 200,000,000 | ||
Licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 4,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,799 | $ 6,647 |
Accumulated Amortization | (4,192) | (4,055) |
Net Carrying Value | 2,607 | 2,592 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangible assets | 204 | 204 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 7,003 | 6,851 |
Accumulated Amortization | (4,192) | (4,055) |
Intangible Assets, Net | 2,811 | 2,796 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,300 | 5,186 |
Accumulated Amortization | (3,598) | (3,500) |
Net Carrying Value | 1,702 | 1,686 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (3,598) | (3,500) |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 55 | 55 |
Accumulated Amortization | (34) | (30) |
Net Carrying Value | 21 | 25 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (34) | (30) |
Franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 261 | 226 |
Accumulated Amortization | (39) | (37) |
Net Carrying Value | 222 | 189 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (39) | (37) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 880 | 872 |
Accumulated Amortization | (474) | (453) |
Net Carrying Value | 406 | 419 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (474) | (453) |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 126 | 125 |
Accumulated Amortization | (10) | (8) |
Net Carrying Value | 116 | 117 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (10) | (8) |
Trademarks, patents and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 177 | 183 |
Accumulated Amortization | (37) | (27) |
Net Carrying Value | 140 | 156 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (37) | $ (27) |
DEBT AND FINANCING ARRANGEMEN_3
DEBT AND FINANCING ARRANGEMENTS - Carrying Value of Outstanding Debt (Details) - USD ($) | Mar. 31, 2023 | Feb. 23, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Principal Amount | $ 22,377,000,000 | ||
Finance lease obligations | 365,000,000 | $ 390,000,000 | |
Total debt | 22,188,000,000 | 19,662,000,000 | |
Less: current maturities | (2,332,000,000) | (2,341,000,000) | |
Long-term debt | $ 19,856,000,000 | 17,321,000,000 | |
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 | $ 1,000,000,000 | 999,000,000 | |
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 | 499,000,000 | |
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 | $ 998,000,000 | 997,000,000 | |
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 | 499,000,000 | |
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 | 995,000,000 | |
Senior notes | 3.400% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 3.40% | ||
Principal Amount | $ 750,000,000 | ||
Total debt | $ 747,000,000 | 747,000,000 | |
Senior notes | 2.500% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.50% | ||
Principal Amount | $ 400,000,000 | ||
Total debt | $ 398,000,000 | 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 | $ 745,000,000 | 744,000,000 | |
Senior notes | 4.875% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.875% | 4.875% | |
Principal Amount | $ 900,000,000 | $ 900,000,000 | |
Total debt | $ 894,000,000 | 0 | |
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 | $ 1,485,000,000 | 1,485,000,000 | |
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 | 369,000,000 | |
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 | 5.050% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 5.05% | 5.05% | |
Principal Amount | $ 1,100,000,000 | $ 1,100,000,000 | |
Total debt | 1,083,000,000 | 0 | |
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 | 1,566,000,000 | ||
Total debt | $ 1,548,000,000 | 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 | $ 82,000,000 | ||
Total debt | $ 82,000,000 | 79,000,000 | |
Pound Sterling notes | 5.125% notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 5.125% | ||
Principal Amount | $ 563,000,000 | ||
Total debt | $ 535,000,000 | 521,000,000 | |
Euro Senior Notes | 0.375% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 0.375% | ||
Principal Amount | $ 762,000,000 | ||
Total debt | $ 761,000,000 | 745,000,000 | |
Euro Senior Notes | 1.625% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 1.625% | ||
Principal Amount | $ 762,000,000 | ||
Total debt | $ 760,000,000 | 744,000,000 | |
Euro Senior Notes | 1.000% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 1% | ||
Principal Amount | $ 544,000,000 | ||
Total debt | $ 542,000,000 | 531,000,000 | |
Euro Senior Notes | 1.500% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 1.50% | ||
Principal Amount | $ 544,000,000 | ||
Total debt | $ 542,000,000 | 530,000,000 | |
Canadian Senior Notes | 2.125% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.125% | ||
Principal Amount | $ 555,000,000 | ||
Total debt | 553,000,000 | 553,000,000 | |
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 | 13,000,000 | ||
Total debt | $ 13,000,000 | $ 36,000,000 |
DEBT AND FINANCING ARRANGEMEN_4
DEBT AND FINANCING ARRANGEMENTS - Additional Information (Details) € in Billions | 3 Months Ended | |||||
Apr. 01, 2023 USD ($) | Mar. 07, 2023 USD ($) | Mar. 31, 2023 USD ($) credit_agreement | Mar. 31, 2023 EUR (€) credit_agreement | Feb. 23, 2023 USD ($) series | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Number of debt instruments issued | series | 2 | |||||
Face value of debt instrument | $ 22,377,000,000 | |||||
Redemption price, minimum threshold, percentage | 1 | |||||
Number of credit agreements | credit_agreement | 2 | 2 | ||||
Covenants limit, amount of secured indebtedness and debt in sale-leaseback transactions, percentage of net tangible assets | 10% | 10% | ||||
Tangible capital, actual | $ 4,900,000,000 | |||||
Secured debt outstanding | 0 | |||||
Sale-lease back outstanding | 0 | |||||
Long-term debt fair value | 21,900,000,000 | $ 18,200,000,000 | ||||
Bomi Group | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of assumed debt | 16,000,000 | |||||
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 | |||||
2.500% senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.50% | 2.50% | ||||
Face value of debt instrument | $ 1,000,000,000 | |||||
2.500% senior notes | Senior notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.50% | |||||
Repayments of senior notes | $ 1,000,000,000 | |||||
Floating-rate senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face value of debt instrument | $ 500,000,000 | |||||
Floating-rate senior notes | Senior notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of senior notes | $ 500,000,000 | |||||
4.875% senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 4.875% | 4.875% | 4.875% | |||
Face value of debt instrument | $ 900,000,000 | $ 900,000,000 | ||||
5.050% senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 5.05% | 5.05% | 5.05% | |||
Face value of debt instrument | $ 1,100,000,000 | $ 1,100,000,000 | ||||
Floating Rate Senior Notes Due 2073 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face value of debt instrument | $ 529,000,000 | |||||
Callable, threshold period | 30 years | |||||
Floating Rate Senior Notes Due 2073 | Senior notes | Compounded Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.35% | |||||
Revolving Credit Facility Expiring In 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facilities | 1,000,000,000 | |||||
Amounts outstanding under this facility | $ 0 | |||||
Revolving Credit Facility Expiring In 2023 | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.10% | |||||
Revolving Credit Facility Expiring In 2023 | Aplicable Margin | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.70% | |||||
Revolving Credit Facility Expiring In 2023 | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Revolving Credit Facility Expiring In 2023 | Adjusted Term Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Revolving Credit Facility Expiring In 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facilities | $ 2,000,000,000 | |||||
Amounts outstanding under this facility | $ 0 | |||||
Revolving Credit Facility Expiring In 2026 | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.10% | |||||
Revolving Credit Facility Expiring In 2026 | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Revolving Credit Facility Expiring In 2026 | Adjusted Term Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Revolving Credit Facility Expiring In 2026 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.875% |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 207 | $ 183 |
Finance lease costs: | ||
Amortization of assets | 29 | 28 |
Interest on lease liabilities | 4 | 4 |
Total finance lease costs | 33 | 32 |
Variable lease costs | 72 | 68 |
Short-term lease costs | 277 | 302 |
Total lease costs | $ 589 | $ 585 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Finance lease, impairment loss | $ 0 | $ 0 |
Operating lease, impairment loss | 0 | $ 0 |
Lessee, finance lease and operating lease, lease not yet commenced, amount | $ 771,000,000 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Leases: | ||
Operating lease right-of-use assets | $ 4,089,000,000 | $ 3,755,000,000 |
Current maturities of operating leases | 668,000,000 | 621,000,000 |
Non-current operating leases | 3,539,000,000 | 3,238,000,000 |
Total lease obligations | 4,207,000,000 | 3,859,000,000 |
Finance Leases: | ||
Property, plant and equipment, net | $ 869,000,000 | $ 959,000,000 |
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 | $ 68,000,000 | $ 92,000,000 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Long-term debt and finance leases | $ 297,000,000 | $ 298,000,000 |
Total lease obligations | $ 365,000,000 | $ 390,000,000 |
Weighted average remaining lease term (in years): | ||
Operating leases | 11 years 2 months 12 days | 10 years 9 months 18 days |
Finance leases | 8 years 9 months 18 days | 8 years 4 months 24 days |
Weighted average discount rate: | ||
Operating leases | 2.73% | 2.32% |
Finance leases | 3.28% | 3.17% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in measurement of obligations: | ||
Operating cash flows from operating leases | $ 212 | $ 176 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | 48 | 18 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 498 | 119 |
Finance leases | $ 30 | $ 59 |
LEASES - Maturity Schedule Afte
LEASES - Maturity Schedule After Adoption (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Finance Leases | ||
2023 | $ 73,000,000 | |
2024 | 62,000,000 | |
2025 | 48,000,000 | |
2026 | 39,000,000 | |
2027 | 38,000,000 | |
Thereafter | 183,000,000 | |
Total lease payments | 443,000,000 | |
Less: Imputed interest | (78,000,000) | |
Total lease obligations | 365,000,000 | $ 390,000,000 |
Less: Current obligations | (68,000,000) | (92,000,000) |
Long-term lease obligations | 297,000,000 | 298,000,000 |
Operating Leases | ||
2023 | 576,000,000 | |
2024 | 705,000,000 | |
2025 | 632,000,000 | |
2026 | 543,000,000 | |
2027 | 472,000,000 | |
Thereafter | 2,038,000,000 | |
Total lease payments | 4,966,000,000 | |
Less: Imputed interest | (759,000,000) | |
Total lease obligations | 4,207,000,000 | 3,859,000,000 |
Less: Current obligations | (668,000,000) | (621,000,000) |
Long-term lease obligations | $ 3,539,000,000 | $ 3,238,000,000 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) | 1 Months Ended |
Aug. 31, 2016 defendant | |
CNMC | |
Loss Contingencies | |
Number of defendants | 10 |
SHAREOWNERS' EQUITY - Additiona
SHAREOWNERS' EQUITY - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 USD ($) class vote $ / shares shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Aug. 31, 2021 USD ($) | |
Stockholders Equity Note [Line Items] | |||||
Classes of common stock | class | 2 | ||||
Preferred stock, authorized (in shares) | shares | 200,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Preferred stock, issued (in shares) | shares | 0 | ||||
Common stock purchases (in shares) | shares | 4,100,000 | 1,200,000 | |||
Common stock, repurchased, value | $ 750 | $ 260 | |||
Purchases of common stock | $ 751 | $ 254 | |||
August 2021 Share Repurchase Program | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock purchases (in shares) | shares | 500,000 | 1,200,000 | |||
Common stock, repurchased, value | $ 82 | $ 260 | |||
Common stock authorized for purchase, amount | $ 5,000 | ||||
January 2023 Share Repurchase Program | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock purchases (in shares) | shares | 3,600,000 | ||||
Common stock, repurchased, value | $ 668 | ||||
Common stock authorized for purchase, amount | $ 5,000 | ||||
Share repurchase authorization available | $ 4,300 | ||||
January 2023 Share Repurchase Program | Forecast | |||||
Stockholders Equity Note [Line Items] | |||||
Projected repurchase value in 2023 | $ 3,000 | ||||
Class A common stock | |||||
Stockholders Equity Note [Line Items] | |||||
Votes per common share | vote | 10 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Common stock, authorized (in shares) | shares | 4,600,000,000 | ||||
Class B common stock | |||||
Stockholders Equity Note [Line Items] | |||||
Votes per common share | vote | 1 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Common stock, authorized (in shares) | shares | 5,600,000,000 |
SHAREOWNERS' EQUITY - Roll-forw
SHAREOWNERS' EQUITY - Roll-forward of Common Stock, Additional Paid-in Capital, Retained Earnings Accounts and Noncontrolling Interest (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | $ 19,786 | |
Common stock purchases (in shares) | (4.1) | (1.2) |
Common stock purchases | $ (750) | $ (260) |
Net income attributable to common shareowners | 1,895 | 2,662 |
Balance at end of period | 20,038 | |
Non-Controlling Interests: | ||
Balance at beginning of period | 17 | 16 |
Change in non-controlling minority interest | (2) | 2 |
Balance at end of period | $ 15 | $ 18 |
Common stock, cash paid for dividends (in dollars per share) | $ 1.62 | $ 1.52 |
Dividends, common stock | $ 105 | $ 122 |
Class A common stock | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period (in shares) | 134 | |
Balance at end of period (in shares) | 135 | |
Class B common stock | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period (in shares) | 725 | |
Balance at end of period (in shares) | 724 | |
Common Stock | Class A common stock | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period (in shares) | 134 | 138 |
Balance at beginning of period | $ 2 | $ 2 |
Stock award plans (in shares) | 3 | 4 |
Stock award plans | $ 0 | $ 0 |
Common stock issuances (in shares) | 1 | 1 |
Common stock issuances | $ 0 | $ 0 |
Conversions of Class A to Class B common stock (in shares) | (3) | (3) |
Conversions of class A to class B common stock | $ 0 | $ 0 |
Balance at end of period (in shares) | 135 | 140 |
Balance at end of period | $ 2 | $ 2 |
Common Stock | Class B common stock | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period (in shares) | 725 | 732 |
Balance at beginning of period | $ 7 | $ 7 |
Common stock purchases (in shares) | (4) | (1) |
Common stock purchases | $ 0 | $ 0 |
Conversions of Class A to Class B common stock (in shares) | (3) | (3) |
Conversions of class A to class B common stock | $ 0 | $ 0 |
Balance at end of period (in shares) | 724 | 734 |
Balance at end of period | $ 7 | $ 7 |
Additional Paid-In Capital | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | 0 | 1,343 |
Stock award plans | 345 | (35) |
Common stock issuances | 147 | 183 |
Common stock purchases | (492) | (260) |
Balance at end of period | 0 | 1,231 |
Retained Earnings | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | 21,326 | 16,179 |
Common stock purchases | (258) | 0 |
Net income attributable to common shareowners | 1,895 | 2,662 |
Dividends | (1,453) | (1,406) |
Other | 0 | (2) |
Balance at end of period | $ 21,510 | $ 17,433 |
SHAREOWNERS' EQUITY - Activity
SHAREOWNERS' EQUITY - Activity in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ (1,549) | |
Translation adjustment (net of tax effect of $(15) and $0) | 118 | $ (40) |
Current period changes in fair value (net of tax effect of $1 and $(2)) | 7 | (6) |
Current period changes in fair value (net of tax effect of $(8) and $23) | (77) | 43 |
Balance at end of period | (1,481) | (3,257) |
Foreign currency translation gain (loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (1,446) | (1,162) |
Translation adjustment (net of tax effect of $(15) and $0) | 115 | (40) |
Reclassification to earnings (net of tax effect of $0 and $0) | 3 | 0 |
Balance at end of period | (1,328) | (1,202) |
Translation adjustment, tax effect | (15) | 0 |
Reclassification to earnings, tax effect | 0 | 0 |
Unrealized gain (loss) on marketable securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (11) | (1) |
Current period changes in fair value (net of tax effect of $1 and $(2)) | 5 | (6) |
Reclassification to earnings (net of tax effect of $1 and $0) | 2 | 0 |
Balance at end of period | (4) | (7) |
Current period changes in fair value, tax effect | 1 | (2) |
Reclassification to earnings, tax effect | 1 | 0 |
Unrealized gain (loss) on cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | 167 | (17) |
Current period changes in fair value (net of tax effect of $(8) and $23) | (26) | 72 |
Reclassification to earnings (net of tax effect of $(16) and $(9)) | (51) | (29) |
Balance at end of period | 90 | 26 |
Current period changes in fair value, tax effect | (8) | 23 |
Reclassification to earnings, tax effect | (16) | (9) |
Unrecognized pension and postretirement benefit costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (259) | (2,098) |
Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $0 and $11) | 0 | 31 |
Reclassification to earnings (net of tax effect of $7 and $(3)) | 20 | (7) |
Balance at end of period | (239) | (2,074) |
Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities, tax effect | 0 | 11 |
Reclassification to earnings, tax effect | $ 7 | $ (3) |
SHAREOWNERS' EQUITY - Gains (Lo
SHAREOWNERS' EQUITY - Gains (Losses) Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, after tax | $ 26 | $ 36 |
Foreign currency translation gain (loss) | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, before tax | (3) | 0 |
Reclassification from accumulated other comprehensive income, tax | 0 | 0 |
Reclassification from accumulated other comprehensive income, after tax | (3) | 0 |
Unrealized gain (loss) on marketable securities | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, before tax | (3) | 0 |
Reclassification from accumulated other comprehensive income, tax | 1 | 0 |
Reclassification from accumulated other comprehensive income, after tax | (2) | 0 |
Unrealized gain (loss) on cash flow hedges | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, tax | (16) | (9) |
Reclassification from accumulated other comprehensive income, after tax | 51 | 29 |
Unrealized gain (loss) on cash flow hedges | Interest rate contracts | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, before tax | (1) | (3) |
Unrealized gain (loss) on cash flow hedges | Foreign currency exchange contracts | Revenue | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, before tax | 68 | 41 |
Prior service costs | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, before tax | (27) | (23) |
Curtailment of benefit obligation | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, before tax | 0 | 33 |
Unrecognized pension and postretirement benefit costs | ||
AmountsReclassifiedFromAOCI [Line Items] | ||
Reclassification from accumulated other comprehensive income, tax | 7 | (3) |
Reclassification from accumulated other comprehensive income, after tax | $ (20) | $ 7 |
SHAREOWNERS' EQUITY - Activit_2
SHAREOWNERS' EQUITY - Activity in Deferred Compensation Program (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | $ 19,786 | |
Balance at beginning of period (in shares) | 0.2 | |
Balance at end of period | $ 20,038 | |
Balance at end of period (in shares) | 0.2 | |
Deferred Compensation Obligations | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | $ 13 | $ 16 |
Reinvested dividends | 0 | 0 |
Benefit payments | (4) | (4) |
Balance at end of period | 9 | 12 |
Treasury Stock | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | $ (13) | $ (16) |
Balance at beginning of period (in shares) | 0 | 0 |
Reinvested dividends | $ 0 | $ 0 |
Reinvested dividends (in shares) | 0 | 0 |
Benefit payments | $ 4 | $ 4 |
Benefit payments (in shares) | 0 | 0 |
Balance at end of period | $ (9) | $ (12) |
Balance at end of period (in shares) | 0 | 0 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 segment country_and_territory | |
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 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 22,925 | $ 24,378 |
Operating profit | 2,541 | 3,251 |
U.S. Domestic Package | ||
Segment Reporting Information [Line Items] | ||
Revenue | 14,987 | 15,124 |
U.S. Domestic Package | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating profit | 1,466 | 1,662 |
International Package | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,543 | 4,876 |
International Package | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating profit | 828 | 1,116 |
Supply Chain Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,395 | 4,378 |
Supply Chain Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,395 | 4,378 |
Operating profit | $ 247 | $ 473 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income attributable to common shareowners | $ 1,895 | $ 2,662 |
Denominator: | ||
Weighted average shares (in shares) | 858 | 871 |
Vested portion of restricted units (in shares) | 4 | 3 |
Denominator for basic earnings per share (in shares) | 862 | 874 |
Effect of dilutive securities: | ||
Denominator for diluted earnings per share (in shares) | 865 | 879 |
Basic earnings per share (in dollars per share) | $ 2.20 | $ 3.05 |
Diluted earnings per share (in dollars per share) | $ 2.19 | $ 3.03 |
Restricted units | ||
Effect of dilutive securities: | ||
Effect of dilutive shares (in shares) | 2 | 4 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive shares (in shares) | 1 | 1 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Stock Options | ||
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 (in shares) | 0.2 | 0.1 |
DERIVATIVE INSTRUMENTS AND RI_3
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, collateral, obligation to return cash | $ 375,000,000 | $ 534,000,000 |
Collateral securities repledged, delivered, or used | 0 | 0 |
Commodity asset | 0 | $ 0 |
Pre-tax losses related to cash flow hedges that are currently deferred in AOCI and are expected to be reclassified to income within twelve months | $ 130,000,000 | |
Maximum term over hedging exposures to the variability of cash flow | 9 years |
DERIVATIVE INSTRUMENTS AND RI_4
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 CAD ($) | Mar. 31, 2023 HKD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2022 USD ($) |
Foreign exchange contracts | Euro | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | € | € 3,880 | € 4,115 | ||||||||
Foreign exchange contracts | British Pound Sterling | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | £ | £ 776 | £ 856 | ||||||||
Foreign exchange contracts | Canadian Dollar | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | $ 1,515 | $ 1,598 | ||||||||
Foreign exchange contracts | Hong Kong Dollar | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | $ 4,552 | $ 4,261 | ||||||||
Floating to Fixed Interest Rate Swaps | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | $ 28 | $ 28 |
DERIVATIVE INSTRUMENTS AND RI_5
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Location on the Balance Sheet of Derivative Assets and Liabilities (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Asset Derivatives | ||
Gross Amounts Presented in Consolidated Balance Sheets | $ 331 | $ 425 |
Net Amounts if Right of Offset had been Applied | 294 | 398 |
Derivative Liabilities [Abstract] | ||
Gross Amounts Presented in Consolidated Balance Sheets | 43 | 32 |
Net Amounts if Right of Offset had been Applied | 6 | 5 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Asset Derivatives | ||
Gross Amounts Presented in Consolidated Balance Sheets | 143 | 174 |
Net Amounts if Right of Offset had been Applied | 135 | 171 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other non-current assets | ||
Asset Derivatives | ||
Gross Amounts Presented in Consolidated Balance Sheets | 188 | 250 |
Net Amounts if Right of Offset had been Applied | 159 | 226 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Gross Amounts Presented in Consolidated Balance Sheets | 8 | 3 |
Net Amounts if Right of Offset had been Applied | 0 | 0 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Gross Amounts Presented in Consolidated Balance Sheets | 29 | 24 |
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] | ||
Gross Amounts Presented in Consolidated Balance Sheets | 5 | 5 |
Net Amounts if Right of Offset had been Applied | 5 | 5 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Asset Derivatives | ||
Gross Amounts Presented in Consolidated Balance Sheets | 0 | 1 |
Net Amounts if Right of Offset had been Applied | 0 | 1 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Gross Amounts Presented in Consolidated Balance Sheets | 1 | 0 |
Net Amounts if Right of Offset had been Applied | $ 1 | $ 0 |
DERIVATIVE INSTRUMENTS AND RI_6
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Fair Value Derivative Balance Sheet Location (Details) - Designated as Hedging Instrument - Long-term debt and finance leases - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of Hedged Liabilities | $ 280 | $ 280 |
Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Cumulative Amount of Fair Value Hedge Adjustments | $ 5 | $ 5 |
DERIVATIVE INSTRUMENTS AND RI_7
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Income Statement and AOCI Recognition of Designated Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | $ 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 | 68 | 41 |
Revenue | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives designated as hedging instruments | 0 | 0 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 |
Revenue | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 68 | 41 |
Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 0 | 8 |
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 | (1) | (3) |
Interest expense | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives designated as hedging instruments | 0 | (8) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income | (1) | (3) |
Interest expense | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 0 | 0 |
Investment income and other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 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 |
Investment income and other | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives designated as hedging instruments | 0 | 0 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income | 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 |
DERIVATIVE INSTRUMENTS AND RI_8
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI | $ (34) | $ 95 |
Derivative Instruments in Cash Flow Hedging Relationships | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI | 0 | 3 |
Derivative Instruments in Cash Flow Hedging Relationships | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI | (34) | 92 |
Non-derivative Instruments in Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI | (73) | 46 |
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 | $ (73) | $ 46 |
DERIVATIVE INSTRUMENTS AND RI_9
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Amount Recorded in Income Statements for Foreign Currency Forward Contracts Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | $ 4 | $ (28) |
Foreign currency exchange contracts | Investment income and other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | $ 4 | $ (28) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 24.90% | 21.50% |
Decrease in unrecognized tax benefits is reasonably possible | $ 180 |
TRANSFORMATION STRATEGY COSTS_2
TRANSFORMATION STRATEGY COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transformation Strategy Costs: | ||
Compensation and benefits | $ (12) | $ 33 |
Total other expenses | 15 | 22 |
Total Transformation Strategy Costs | 3 | 55 |
Income Tax Benefit from Transformation Strategy Costs | 0 | (12) |
After-Tax Transformation Strategy Costs | $ 3 | $ 43 |