000109072712/313/31/20202020Q1FALSEP5YP3YP5Y00010907272020-01-012020-03-310001090727ups:FloatingRateSeniorNotesDue2020Member2020-01-012020-03-310001090727ups:SeniorNotes1.625Due2025Member2020-01-012020-03-310001090727ups:SeniorNotes1Due2028Member2020-01-012020-03-310001090727ups:SeniorNotes0.375Due2023Member2020-01-012020-03-310001090727ups:SeniorNotes1.500Due2032Member2020-01-012020-03-31xbrli:shares0001090727us-gaap:CommonClassAMember2020-04-230001090727us-gaap:CommonClassBMember2020-04-23iso4217:USD00010907272020-03-3100010907272019-12-310001090727us-gaap:CommonClassAMember2020-03-310001090727us-gaap:CommonClassAMember2019-12-310001090727us-gaap:CommonClassBMember2020-03-310001090727us-gaap:CommonClassBMember2019-12-3100010907272019-01-012019-03-310001090727us-gaap:MaintenanceMember2020-01-012020-03-310001090727us-gaap:MaintenanceMember2019-01-012019-03-310001090727us-gaap:CargoAndFreightMember2020-01-012020-03-310001090727us-gaap:CargoAndFreightMember2019-01-012019-03-31iso4217:USDxbrli:shares00010907272018-12-3100010907272019-03-310001090727ups:NextDayAirMembercountry:US2020-01-012020-03-310001090727ups:NextDayAirMembercountry:US2019-01-012019-03-310001090727country:USups:DeferredMember2020-01-012020-03-310001090727country:USups:DeferredMember2019-01-012019-03-310001090727ups:GroundMembercountry:US2020-01-012020-03-310001090727ups:GroundMembercountry:US2019-01-012019-03-310001090727ups:USDomesticPackageMember2020-01-012020-03-310001090727ups:USDomesticPackageMember2019-01-012019-03-310001090727ups:InternationalMemberups:DomesticMember2020-01-012020-03-310001090727ups:InternationalMemberups:DomesticMember2019-01-012019-03-310001090727ups:InternationalMemberups:ExportMember2020-01-012020-03-310001090727ups:InternationalMemberups:ExportMember2019-01-012019-03-310001090727ups:InternationalMemberups:CargoMember2020-01-012020-03-310001090727ups:InternationalMemberups:CargoMember2019-01-012019-03-310001090727ups:InternationalPackageMember2020-01-012020-03-310001090727ups:InternationalPackageMember2019-01-012019-03-310001090727ups:ForwardingMember2020-01-012020-03-310001090727ups:ForwardingMember2019-01-012019-03-310001090727ups:LogisticMember2020-01-012020-03-310001090727ups:LogisticMember2019-01-012019-03-310001090727ups:FreightMember2020-01-012020-03-310001090727ups:FreightMember2019-01-012019-03-310001090727ups:OtherProductsandServicesMember2020-01-012020-03-310001090727ups:OtherProductsandServicesMember2019-01-012019-03-310001090727ups:SupplyChainFreightMember2020-01-012020-03-310001090727ups:SupplyChainFreightMember2019-01-012019-03-310001090727ups:ManagementIncentiveAwardProgramMember2020-01-012020-03-310001090727ups:ManagementIncentiveAwardProgramMember2020-02-060001090727ups:ManagementIncentiveAwardProgramMember2020-02-120001090727ups:ManagementIncentiveAwardProgramMember2020-03-230001090727ups:LongTermIncentivePerformanceAwardMember2020-01-012020-03-310001090727ups:LongTermIncentivePerformanceAwardMember2019-03-220001090727ups:LongTermIncentivePerformanceAwardMember2019-07-01xbrli:pure0001090727ups:LongTermIncentivePerformanceAwardMember2019-01-012019-12-310001090727ups:NonqualifiedStockOptionsMember2020-01-012020-03-310001090727ups:NonqualifiedStockOptionsMember2020-02-122020-02-120001090727ups:NonqualifiedStockOptionsMember2019-01-012019-03-310001090727ups:NonqualifiedStockOptionsMember2019-02-142019-02-140001090727ups:NonqualifiedStockOptionsMember2020-01-012020-03-310001090727ups:NonqualifiedStockOptionsMember2019-01-012019-03-310001090727us-gaap:CorporateDebtSecuritiesMember2020-03-310001090727us-gaap:EquitySecuritiesMember2020-03-310001090727us-gaap:USTreasuryAndGovernmentMember2020-03-310001090727us-gaap:AssetBackedSecuritiesMember2020-03-310001090727us-gaap:ForeignGovernmentDebtSecuritiesMember2020-03-310001090727us-gaap:CorporateDebtSecuritiesMember2019-12-310001090727us-gaap:EquitySecuritiesMember2019-12-310001090727us-gaap:USTreasuryAndGovernmentMember2019-12-310001090727us-gaap:AssetBackedSecuritiesMember2019-12-310001090727us-gaap:ForeignGovernmentDebtSecuritiesMember2019-12-310001090727ups:VariableLifeInsurancePolicyMember2020-03-310001090727ups:VariableLifeInsurancePolicyMember2019-12-310001090727ups:CashheldinescrowMember2020-03-310001090727ups:CashheldinescrowMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueInputsLevel3Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727us-gaap:FairValueMeasurementsRecurringMember2020-03-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727ups:MarketableSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueInputsLevel3Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:FairValueMeasurementsRecurringMember2019-12-310001090727us-gaap:VehiclesMember2020-03-310001090727us-gaap:VehiclesMember2019-12-310001090727us-gaap:AirTransportationEquipmentMember2020-03-310001090727us-gaap:AirTransportationEquipmentMember2019-12-310001090727us-gaap:LandMember2020-03-310001090727us-gaap:LandMember2019-12-310001090727us-gaap:BuildingMember2020-03-310001090727us-gaap:BuildingMember2019-12-310001090727us-gaap:BuildingAndBuildingImprovementsMember2020-03-310001090727us-gaap:BuildingAndBuildingImprovementsMember2019-12-310001090727ups:PlantEquipmentMember2020-03-310001090727ups:PlantEquipmentMember2019-12-310001090727us-gaap:TechnologyEquipmentMember2020-03-310001090727us-gaap:TechnologyEquipmentMember2019-12-310001090727us-gaap:ConstructionInProgressMember2020-03-310001090727us-gaap:ConstructionInProgressMember2019-12-310001090727us-gaap:PensionPlansDefinedBenefitMembercountry:US2020-01-012020-03-310001090727us-gaap:PensionPlansDefinedBenefitMembercountry:US2019-01-012019-03-310001090727us-gaap:PostemploymentRetirementBenefitsMembercountry:US2020-01-012020-03-310001090727us-gaap:PostemploymentRetirementBenefitsMembercountry:US2019-01-012019-03-310001090727us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2020-01-012020-03-310001090727us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2019-01-012019-03-310001090727us-gaap:PensionPlansDefinedBenefitMembercountry:US2020-03-310001090727us-gaap:MultiemployerPlansPensionMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-03-310001090727us-gaap:MultiemployerPlansPensionMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001090727us-gaap:MultiemployerPlansPensionMemberus-gaap:OtherCurrentLiabilitiesMember2019-12-310001090727us-gaap:MultiemployerPlansPensionMemberus-gaap:OtherCurrentLiabilitiesMember2020-03-310001090727us-gaap:MultiemployerPlansPensionMember2020-03-310001090727us-gaap:MultiemployerPlansPensionMember2019-12-310001090727us-gaap:MultiemployerPlansPensionMemberups:CentralStatesPensionFundMember2007-12-312007-12-310001090727us-gaap:MultiemployerPlansPensionMemberups:CentralStatesPensionFundMember2019-01-012019-12-310001090727us-gaap:MultiemployerPlansPensionMembersrt:MaximumMemberups:CentralStatesPensionFundMembersrt:ProFormaMember2020-01-012020-03-310001090727us-gaap:MultiemployerPlansPensionMemberups:CentralStatesPensionFundMember2020-03-31ups:Employees0001090727ups:USDomesticPackageMember2019-12-310001090727ups:InternationalPackageMember2019-12-310001090727ups:SupplyChainFreightMember2019-12-310001090727ups:USDomesticPackageMember2020-03-310001090727ups:InternationalPackageMember2020-03-310001090727ups:SupplyChainFreightMember2020-03-310001090727us-gaap:ComputerSoftwareIntangibleAssetMember2020-03-310001090727us-gaap:LicensingAgreementsMember2020-03-310001090727us-gaap:FranchiseRightsMember2020-03-310001090727us-gaap:CustomerListsMember2020-03-310001090727us-gaap:TradeNamesMember2020-03-310001090727ups:TrademarkspatentsandotherMemberMember2020-03-310001090727us-gaap:ComputerSoftwareIntangibleAssetMember2019-12-310001090727us-gaap:LicensingAgreementsMember2019-12-310001090727us-gaap:FranchiseRightsMember2019-12-310001090727us-gaap:CustomerListsMember2019-12-310001090727us-gaap:TradeNamesMember2019-12-310001090727ups:TrademarkspatentsandotherMemberMember2019-12-310001090727us-gaap:TradeNamesMember2020-03-310001090727us-gaap:LicensingAgreementsMember2020-03-310001090727us-gaap:CommercialPaperMember2020-03-310001090727us-gaap:CommercialPaperMember2019-12-310001090727ups:A3125SeniorNotesMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:A3125SeniorNotesMemberus-gaap:SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A2.050seniornotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A2.050seniornotesMember2019-12-310001090727ups:A245SeniorNotesMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:A245SeniorNotesMemberus-gaap:SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A2350SeniorNotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A2350SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A2.500seniornotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A2.500seniornotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A2.800seniornotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A2.800seniornotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A2.20seniornotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A2.20seniornotesMember2019-12-310001090727ups:A3900SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2020-03-310001090727ups:A3900SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2019-12-310001090727ups:A2.40seniornotesMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:A2.40seniornotesMemberus-gaap:SeniorNotesMember2019-12-310001090727ups:A3.050seniornotesMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:A3.050seniornotesMemberus-gaap:SeniorNotesMember2019-12-310001090727ups:A3.400seniornotesDue2029Memberus-gaap:SeniorNotesMember2020-03-310001090727ups:A3.400seniornotesDue2029Memberus-gaap:SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A2.500seniornotesDue2029Member2020-03-310001090727us-gaap:SeniorNotesMemberups:A2.500seniornotesDue2029Member2019-12-310001090727us-gaap:SeniorNotesMemberups:A4450SeniorNotesDue2030Member2020-03-310001090727us-gaap:SeniorNotesMemberups:A4450SeniorNotesDue2030Member2019-12-310001090727us-gaap:SeniorNotesMemberups:A620SeniorNotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A620SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A5200SeniorNotesDue2040Member2020-03-310001090727us-gaap:SeniorNotesMemberups:A5200SeniorNotesDue2040Member2019-12-310001090727us-gaap:SeniorNotesMemberups:A4875SeniorNotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A4875SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A3625SeniorNotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A3625SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A3.40seniornotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A3.40seniornotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A3.750seniornotesMember2020-03-310001090727us-gaap:SeniorNotesMemberups:A3.750seniornotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A4.250seniornotes2049Member2020-03-310001090727us-gaap:SeniorNotesMemberups:A4.250seniornotes2049Member2019-12-310001090727ups:A3.400seniornotesMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:A3.400seniornotesMemberus-gaap:SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:A5300SeniorNotesDue2050Member2020-03-310001090727us-gaap:SeniorNotesMemberups:A5300SeniorNotesDue2050Member2019-12-310001090727ups:FloatingRateSeniorNotes2Memberus-gaap:SeniorNotesMember2020-03-310001090727ups:FloatingRateSeniorNotes2Memberus-gaap:SeniorNotesMember2019-12-310001090727ups:FloatingRateSeniorNotesMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:FloatingRateSeniorNotesMemberus-gaap:SeniorNotesMember2019-12-310001090727us-gaap:SeniorNotesMemberups:FloatingRateSeniorNotes3Member2020-03-310001090727us-gaap:SeniorNotesMemberups:FloatingRateSeniorNotes3Member2019-12-310001090727us-gaap:SeniorNotesMemberups:FloatingRateSeniorNotes4Member2020-03-310001090727us-gaap:SeniorNotesMemberups:FloatingRateSeniorNotes4Member2019-12-310001090727us-gaap:SeniorNotesMemberups:Debentures8Point375PercentDue2020Member2020-03-310001090727us-gaap:SeniorNotesMemberups:Debentures8Point375PercentDue2020Member2019-12-310001090727us-gaap:SeniorNotesMemberups:Debentures8Point375PercentDue2030Member2020-03-310001090727us-gaap:SeniorNotesMemberups:Debentures8Point375PercentDue2030Member2019-12-310001090727ups:PoundSterlingNotes5Point5PercentMemberups:PoundSterlingNotesMember2020-03-310001090727ups:PoundSterlingNotes5Point5PercentMemberups:PoundSterlingNotesMember2019-12-310001090727ups:PoundSterlingNotesMemberups:PoundSterlingNotes5Point125PercentMember2020-03-310001090727ups:PoundSterlingNotesMemberups:PoundSterlingNotes5Point125PercentMember2019-12-310001090727ups:EuroSeniorNotesMemberups:A0.375EuroSeniorNotesMember2020-03-310001090727ups:EuroSeniorNotesMemberups:A0.375EuroSeniorNotesMember2019-12-310001090727ups:A1.625EuroSeniorNotesMemberups:EuroSeniorNotesMember2020-03-310001090727ups:A1.625EuroSeniorNotesMemberups:EuroSeniorNotesMember2019-12-310001090727ups:A1.000EuroSeniorNotesMemberups:EuroSeniorNotesMember2020-03-310001090727ups:A1.000EuroSeniorNotesMemberups:EuroSeniorNotesMember2019-12-310001090727ups:A1.500EuroSeniorNotesMemberups:EuroSeniorNotesMember2020-03-310001090727ups:A1.500EuroSeniorNotesMemberups:EuroSeniorNotesMember2019-12-310001090727ups:FloatingRateEuroSeniorNotesMemberups:EuroSeniorNotesMember2020-03-310001090727ups:FloatingRateEuroSeniorNotesMemberups:EuroSeniorNotesMember2019-12-310001090727ups:CanadianSeniorNote2.125NoteMemberus-gaap:SeniorNotesMember2020-03-310001090727ups:CanadianSeniorNote2.125NoteMemberus-gaap:SeniorNotesMember2019-12-310001090727us-gaap:CapitalLeaseObligationsMember2020-03-310001090727us-gaap:CapitalLeaseObligationsMember2019-12-310001090727ups:FacilityNotesAndBondsMember2020-03-310001090727ups:FacilityNotesAndBondsMember2019-12-310001090727ups:OtherDebtMember2020-03-310001090727ups:OtherDebtMember2019-12-310001090727ups:USCommercialPaperProgramMember2020-03-31iso4217:EUR0001090727ups:ForeignCommercialPaperProgramMember2020-03-310001090727us-gaap:CommercialPaperMemberups:USCommercialPaperProgramMember2020-03-310001090727ups:ForeignCommercialPaperProgramMemberus-gaap:CommercialPaperMember2020-03-310001090727ups:Debentures3Point125PercentDue2021Memberus-gaap:SeniorNotesMember2020-03-310001090727ups:A3900SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2020-03-240001090727us-gaap:SeniorNotesMemberups:A4450SeniorNotesDue2030Member2020-03-240001090727us-gaap:SeniorNotesMemberups:A5200SeniorNotesDue2040Member2020-03-240001090727us-gaap:SeniorNotesMemberups:A5300SeniorNotesDue2050Member2020-03-24ups:Credit_Agreements0001090727ups:RevolvingCreditFacilityExpiringIn2020Member2020-03-310001090727ups:RevolvingCreditFacilityExpiringIn2020Member2020-01-012020-03-310001090727ups:FederalFundsRateMemberups:RevolvingCreditFacilityExpiringIn2020Member2020-01-012020-03-310001090727us-gaap:LondonInterbankOfferedRateLIBORMemberups:RevolvingCreditFacilityExpiringIn2020Member2020-01-012020-03-310001090727ups:LiborMemberups:RevolvingCreditFacilityExpiringIn2020Membersrt:MinimumMember2020-01-012020-03-310001090727srt:MaximumMemberups:LiborMemberups:RevolvingCreditFacilityExpiringIn2020Member2020-01-012020-03-310001090727srt:MaximumMemberups:RevolvingCreditFacilityExpiringIn2020Member2020-01-012020-03-310001090727ups:RevolvingCreditFacilityExpiringIn2020Membersrt:MinimumMember2020-01-012020-03-310001090727ups:RevolvingCreditFacilityExpiringIn2023Member2020-03-310001090727ups:RevolvingCreditFacilityExpiringIn2023Member2020-01-012020-03-310001090727ups:FederalFundsRateMemberups:RevolvingCreditFacilityExpiringIn2023Member2020-01-012020-03-310001090727us-gaap:LondonInterbankOfferedRateLIBORMemberups:RevolvingCreditFacilityExpiringIn2023Member2020-01-012020-03-310001090727ups:LiborMemberups:RevolvingCreditFacilityExpiringIn2023Membersrt:MinimumMember2020-01-012020-03-310001090727srt:MaximumMemberups:LiborMemberups:RevolvingCreditFacilityExpiringIn2023Member2020-01-012020-03-310001090727srt:MaximumMemberups:RevolvingCreditFacilityExpiringIn2023Member2020-01-012020-03-310001090727ups:RevolvingCreditFacilityExpiringIn2023Membersrt:MinimumMember2020-01-012020-03-310001090727srt:MinimumMember2020-01-012020-03-310001090727srt:MaximumMember2020-01-012020-03-31ups:aircraft0001090727ups:U.S.DistrictCourtfortheSouthernDistrictofNewYorkMember2017-05-252017-05-250001090727ups:U.S.DistrictCourtfortheSouthernDistrictofNewYorkMember2019-11-072019-11-070001090727ups:U.S.DistrictCourtfortheSouthernDistrictofNewYorkMember2020-03-310001090727ups:U.S.DistrictCourtfortheSouthernDistrictofNewYorkMember2019-12-31ups:Defendants0001090727ups:NationalMarketsandCompetitionCommissionMember2016-08-012016-08-310001090727ups:NationalMarketsandCompetitionCommissionMember2018-03-082018-03-080001090727ups:TurkishCompetitionAuthorityMember2018-04-012018-04-30ups:Classes_of_Common_Stockups:Vote0001090727us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-12-310001090727us-gaap:CommonClassAMemberus-gaap:CommonStockMember2018-12-310001090727us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-01-012020-03-310001090727us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-01-012019-03-310001090727us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-03-310001090727us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-03-310001090727us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-12-310001090727us-gaap:CommonClassBMemberus-gaap:CommonStockMember2018-12-310001090727us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-01-012020-03-310001090727us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-01-012019-03-310001090727us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-03-310001090727us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-03-310001090727us-gaap:AdditionalPaidInCapitalMember2019-12-310001090727us-gaap:AdditionalPaidInCapitalMember2018-12-310001090727us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001090727us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001090727us-gaap:AdditionalPaidInCapitalMember2020-03-310001090727us-gaap:AdditionalPaidInCapitalMember2019-03-310001090727us-gaap:RetainedEarningsMember2019-12-310001090727us-gaap:RetainedEarningsMember2018-12-310001090727us-gaap:RetainedEarningsMember2020-01-012020-03-310001090727us-gaap:RetainedEarningsMember2019-01-012019-03-310001090727us-gaap:RetainedEarningsMember2020-03-310001090727us-gaap:RetainedEarningsMember2019-03-310001090727us-gaap:CommonClassAMember2020-01-012020-03-310001090727us-gaap:CommonClassAMember2019-01-012019-03-3100010907272016-05-310001090727ups:ClassAandBCommonStockMember2020-01-012020-03-310001090727ups:ClassAandBCommonStockMember2019-01-012019-03-310001090727us-gaap:OptionMember2019-01-012019-03-310001090727us-gaap:OptionMember2020-03-310001090727us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001090727us-gaap:AccumulatedTranslationAdjustmentMember2018-12-310001090727us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-03-310001090727us-gaap:AccumulatedTranslationAdjustmentMember2019-01-012019-03-310001090727us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310001090727us-gaap:AccumulatedTranslationAdjustmentMember2019-03-310001090727us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-310001090727us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-12-310001090727us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-01-012020-03-310001090727us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-01-012019-03-310001090727us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-03-310001090727us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-12-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-01-012019-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-03-310001090727us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310001090727us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-310001090727us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-03-310001090727us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-03-310001090727us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-03-310001090727us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2020-01-012020-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2019-01-012019-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberups:RevenueMemberus-gaap:ForeignExchangeContractMember2020-01-012020-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberups:RevenueMemberus-gaap:ForeignExchangeContractMember2019-01-012019-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberups:IncomeTaxExpenseBenefitMember2020-01-012020-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberups:IncomeTaxExpenseBenefitMember2019-01-012019-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberups:NetIncomeMemberMember2020-01-012020-03-310001090727us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberups:NetIncomeMemberMember2019-01-012019-03-310001090727ups:InvestmentIncomeAndOtherMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-03-310001090727ups:InvestmentIncomeAndOtherMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-03-310001090727ups:IncomeTaxExpenseBenefitMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-03-310001090727ups:IncomeTaxExpenseBenefitMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-03-310001090727ups:NetIncomeMemberMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-03-310001090727ups:NetIncomeMemberMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-03-310001090727ups:NetIncomeMemberMember2020-01-012020-03-310001090727ups:NetIncomeMemberMember2019-01-012019-03-310001090727us-gaap:DeferredCompensationShareBasedPaymentsMember2019-12-310001090727us-gaap:DeferredCompensationShareBasedPaymentsMember2018-12-310001090727us-gaap:DeferredCompensationShareBasedPaymentsMember2020-01-012020-03-310001090727us-gaap:DeferredCompensationShareBasedPaymentsMember2019-01-012019-03-310001090727us-gaap:DeferredCompensationShareBasedPaymentsMember2020-03-310001090727us-gaap:DeferredCompensationShareBasedPaymentsMember2019-03-310001090727us-gaap:TreasuryStockMember2019-12-310001090727us-gaap:TreasuryStockMember2018-12-310001090727us-gaap:TreasuryStockMember2020-01-012020-03-310001090727us-gaap:TreasuryStockMember2019-01-012019-03-310001090727us-gaap:TreasuryStockMember2020-03-310001090727us-gaap:TreasuryStockMember2019-03-31ups:Segmentsups:Countries_and_Territories0001090727ups:InternationalPackageMembersrt:MinimumMember2020-03-310001090727srt:MinimumMemberups:SupplyChainFreightMember2020-03-310001090727ups:RestrictedPerformanceUnitsMember2020-01-012020-03-310001090727ups:RestrictedPerformanceUnitsMember2019-01-012019-03-310001090727ups:StockOptionPlansMember2020-01-012020-03-310001090727ups:StockOptionPlansMember2019-01-012019-03-310001090727us-gaap:EmployeeStockOptionMember2020-01-012020-03-310001090727us-gaap:EmployeeStockOptionMember2019-01-012019-03-310001090727us-gaap:UnfavorableRegulatoryActionMember2020-03-310001090727us-gaap:UnfavorableRegulatoryActionMember2019-12-31iso4217:GBPiso4217:CADiso4217:HKD0001090727ups:FixedToFloatingInterestRateSwapsMember2020-03-310001090727ups:FixedToFloatingInterestRateSwapsMember2019-12-310001090727ups:FloatingToFixedInterestRateSwapsMember2020-03-310001090727ups:FloatingToFixedInterestRateSwapsMember2019-12-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:NondesignatedMember2020-03-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:NondesignatedMember2019-12-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2020-03-310001090727us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2019-12-310001090727us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2020-03-310001090727us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2019-12-310001090727us-gaap:FairValueInputsLevel2Member2020-03-310001090727us-gaap:FairValueInputsLevel2Member2019-12-310001090727us-gaap:OtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:OtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2020-03-310001090727us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2019-12-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMember2020-03-310001090727us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMember2019-12-310001090727us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-03-310001090727us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001090727ups:RevenueMember2020-01-012020-03-310001090727us-gaap:InterestExpenseMember2020-01-012020-03-310001090727ups:RevenueMember2019-01-012019-03-310001090727us-gaap:InterestExpenseMember2019-01-012019-03-310001090727ups:RevenueMemberus-gaap:InterestRateContractMember2020-01-012020-03-310001090727us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2020-01-012020-03-310001090727ups:RevenueMemberus-gaap:InterestRateContractMember2019-01-012019-03-310001090727us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2019-01-012019-03-310001090727ups:RevenueMemberus-gaap:ForeignExchangeContractMember2020-01-012020-03-310001090727us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2020-01-012020-03-310001090727ups:RevenueMemberus-gaap:ForeignExchangeContractMember2019-01-012019-03-310001090727us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2019-01-012019-03-310001090727us-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2020-01-012020-03-310001090727us-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2019-01-012019-03-310001090727us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2020-01-012020-03-310001090727us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2019-01-012019-03-310001090727us-gaap:CashFlowHedgingMember2020-01-012020-03-310001090727us-gaap:CashFlowHedgingMember2019-01-012019-03-310001090727us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMember2020-01-012020-03-310001090727us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMember2019-01-012019-03-310001090727us-gaap:NetInvestmentHedgingMember2020-01-012020-03-310001090727us-gaap:NetInvestmentHedgingMember2019-01-012019-03-310001090727us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2020-01-012020-03-310001090727us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2019-01-012019-03-310001090727us-gaap:InvestmentIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2020-01-012020-03-310001090727us-gaap:InvestmentIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2019-01-012019-03-310001090727us-gaap:NondesignatedMember2020-01-012020-03-310001090727us-gaap:NondesignatedMember2019-01-012019-03-31
Table of Contents
United States
Securities and Exchange Commission
Washington, D.C. 20549
_____________________________________ 
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020 or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             
Commission file number 001-15451
_____________________________________ 
ups-20200331_g1.jpg
United Parcel Service, Inc.
(Exact name of registrant as specified in its charter)
Delaware 58-2480149
(State or Other Jurisdiction of
Incorporation or Organization)
 (IRS Employer
Identification No.)
55 Glenlake Parkway N.E. AtlantaGeorgia30328
(Address of Principal Executive Offices) (Zip Code)
(404) 828-6000
(Registrant’s telephone number, including area code)
____________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Class B common stock, par value $0.01 per shareUPSNew York Stock Exchange
Floating-Rate Senior Notes due 2020UPS20ANew York Stock Exchange
1.625% Senior Notes due 2025UPS25New York Stock Exchange
1% Senior Notes due 2028UPS28New York Stock Exchange
0.375% Senior Notes due 2023UPS23ANew York Stock Exchange
1.500% Senior Notes due 2032UPS32New York Stock Exchange
  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See definitions of “accelerated filer”, “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Check one:
Large accelerated filer
x
Accelerated filer
Non-accelerated filer  
Smaller reporting company
Emerging growth company
        If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
There were 158,059,668 Class A shares, and 704,116,869 Class B shares, with a par value of $0.01 per share, outstanding at April 23, 2020.


Table of Contents
TABLE OF CONTENTS
PART I—FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II—OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.



Table of Contents
PART I. FINANCIAL INFORMATION

Cautionary Statement About Forward-Looking Statements
This report, our Annual Report on Form 10-K for the year ended December 31, 2019 and our other filings with the Securities and Exchange Commission contain and refer to “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than those of current or historical fact, and all statements accompanied by terms such as “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and variations thereof, and similar terms, are intended to be forward-looking statements. Forward-looking statements are made subject to the safe harbor provisions of the federal securities laws pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
From time to time, we also include forward-looking statements in other publicly disclosed materials. Such statements may relate to our intent, belief and current expectations about our strategic direction, prospects and future results, and give our current expectations or forecasts of future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made.
Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience, present expectations or anticipated results. These risks and uncertainties, many of which are outside of our control, include, but are not limited to: uncertainties related to the impact of the COVID-19 pandemic on our business and operations, financial condition, financial results and financial position, our customers and suppliers, and on the global economy; changes in general economic conditions, in the U.S. or internationally; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; changes in the complex and stringent regulation in the U.S. and internationally (including tax laws and regulations); increased physical or data security requirements that may increase our costs of operations and reduce operating efficiencies; legal, regulatory or market responses to global climate change; results of negotiations and ratifications of labor contracts; strikes, work stoppages or slowdowns by our employees; the effects of changing prices of energy, including gasoline, diesel and jet fuel, and interruptions in supplies of these commodities; changes in exchange rates or interest rates; uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; our ability to maintain the image of our brand; breaches in data security; disruptions to the Internet or our technology infrastructure; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; our ability to accurately forecast our future capital investment needs; exposure to changing economic, political and social developments in international and emerging markets; changes in business strategy, government regulations, or economic or market conditions that may result in substantial impairment of our assets; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; potential additional tax liabilities in the U.S. or internationally; the potential for various claims and litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; our ability to realize the anticipated benefits from acquisitions, joint ventures or strategic alliances; our ability to realize the anticipated benefits from our transformation initiatives; cyclical and seasonal fluctuations in our operating results; our ability to manage insurance and claims expenses; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2019, this Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of information contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law.

1

Table of Contents
Item 1. Financial Statements
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2020 (unaudited) and December 31, 2019 (In millions)
March 31,
2020
December 31,
2019
ASSETS
Current Assets:
Cash and cash equivalents$8,955  $5,238  
Marketable securities505  503  
Accounts receivable8,245  9,645  
Less: Allowance for credit losses(119) (93) 
Accounts receivable, net 8,126  9,552  
Other current assets1,803  1,810  
Total Current Assets19,389  17,103  
Property, Plant and Equipment, Net30,908  30,482  
Operating Lease Right-Of-Use Assets3,041  2,856  
Goodwill3,776  3,813  
Intangible Assets, Net2,176  2,167  
Investments and Restricted Cash23  24  
Deferred Income Tax Assets299  330  
Other Non-Current Assets1,283  1,082  
Total Assets$60,895  $57,857  
LIABILITIES AND SHAREOWNERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$4,405  $3,420  
Current maturities of operating leases526  538  
Accounts payable4,779  5,555  
Accrued wages and withholdings2,606  2,552  
Self-insurance reserves980  914  
Accrued group welfare and retirement plan contributions790  793  
Other current liabilities1,760  1,641  
Total Current Liabilities15,846  15,413  
Long-Term Debt and Finance Leases24,196  21,818  
Non-Current Operating Leases2,493  2,391  
Pension and Postretirement Benefit Obligations10,477  10,601  
Deferred Income Tax Liabilities1,787  1,632  
Other Non-Current Liabilities2,783  2,719  
Shareowners’ Equity:
Class A common stock (158 and 156 shares issued in 2020 and 2019, respectively)
2  2  
Class B common stock (703 and 701 shares issued in 2020 and 2019, respectively)
7  7  
Additional paid-in capital29  150  
Retained earnings9,137  9,105  
Accumulated other comprehensive loss(5,876) (5,997) 
Deferred compensation obligations19  26  
Less: Treasury stock (0.4 shares in 2020 and 2019)
(19) (26) 
Total Equity for Controlling Interests3,299  3,267  
Noncontrolling interests14  16  
Total Shareowners’ Equity3,313  3,283  
Total Liabilities and Shareowners’ Equity$60,895  $57,857  
See notes to unaudited, consolidated financial statements.
2

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
(In millions, except per share amounts)
(unaudited)
 
 Three Months Ended
March 31,
20202019
Revenue$18,035  $17,160  
Operating Expenses:
Compensation and benefits10,086  9,317  
Repairs and maintenance563  434  
Depreciation and amortization648  568  
Purchased transportation2,931  2,966  
Fuel761  770  
Other occupancy383  371  
Other expenses1,591  1,340  
Total Operating Expenses16,963  15,766  
Operating Profit1,072  1,394  
Other Income and (Expense):
Investment income and other345  215  
Interest expense(167) (169) 
Total Other Income and (Expense)178  46  
Income Before Income Taxes1,250  1,440  
Income Tax Expense285  329  
Net Income$965  $1,111  
Basic Earnings Per Share$1.12  $1.28  
Diluted Earnings Per Share$1.11  $1.28  

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
(In millions)
(unaudited)
 
 Three Months Ended
March 31,
 20202019
Net Income$965  $1,111  
Change in foreign currency translation adjustment, net of tax(141) 53  
Change in unrealized gain (loss) on marketable securities, net of tax2  4  
Change in unrealized gain (loss) on cash flow hedges, net of tax217  76  
Change in unrecognized pension and postretirement benefit costs, net of tax43  43  
Comprehensive Income$1,086  $1,287  
           
See notes to unaudited, consolidated financial statements.
3

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions)
(unaudited)
 Three Months Ended
March 31,
 20202019
Cash Flows From Operating Activities:
Net income$965  $1,111  
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization648  568  
Pension and postretirement benefit expense160  188  
Pension and postretirement benefit contributions(222) (214) 
Self-insurance reserves124  (74) 
Deferred tax (benefit) expense86  78  
Stock compensation expense231  308  
Other (gains) losses33  40  
Changes in assets and liabilities, net of effects of business acquisitions:
Accounts receivable1,223  1,301  
Other assets209  128  
Accounts payable(1,101) (1,143) 
Accrued wages and withholdings83  (94) 
Other liabilities102  87  
Other operating activities9  (7) 
Net cash from operating activities2,550  2,277  
Cash Flows From Investing Activities:
Capital expenditures(933) (1,514) 
Proceeds from disposals of property, plant and equipment1  4  
Purchases of marketable securities(80) (248) 
Sales and maturities of marketable securities80  349  
Net change in finance receivables3  10  
Cash paid for business acquisitions, net of cash and cash equivalents acquired  (1) 
Other investing activities(5) (16) 
Net cash used in investing activities(934) (1,416) 
Cash Flows From Financing Activities:
Net change in short-term debt(91) (1,217) 
Proceeds from long-term borrowings4,253  2,141  
Repayments of long-term borrowings(687) (439) 
Purchases of common stock(220) (246) 
Issuances of common stock70  47  
Dividends(840) (799) 
Other financing activities(318) (182) 
Net cash from (used in) financing activities2,167  (695) 
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(65) 9  
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash3,718  175  
Cash, Cash Equivalents and Restricted Cash:
Beginning of period5,238  4,367  
End of period$8,956  $4,542  
           
See notes to unaudited, consolidated financial statements.
4

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES
Principles of Consolidation
In our opinion, the accompanying interim, unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("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, 2020, our results of operations for the three months ended March 31, 2020 and 2019, and our cash flows for the three months ended March 31, 2020 and 2019. 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, 2019.
Fair Value of Financial Instruments
The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of March 31, 2020 and December 31, 2019. The fair values of our investment securities are disclosed in note 5, our recognized multiemployer pension withdrawal liabilities in note 7, our short- and long-term debt in note 9 and our derivative instruments in note 15. We utilized Level 1 inputs in the fair value hierarchy of valuation techniques to determine the fair value of our cash and cash equivalents, and Level 2 inputs to determine the fair value of our accounts receivable, finance receivables and accounts payable.
Use of Estimates
The preparation of the accompanying interim unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of 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. In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration of the COVID-19 pandemic, and the resulting economic consequences, are uncertain, rapidly changing and difficult to predict. As a result, our accounting estimates and assumptions may change over time as a consequence of the effects of COVID-19.
Such changes could result in future impairments of goodwill, intangible assets, long-lived assets and investment securities, incremental credit losses on financial assets, decreases in the carrying amount of our tax assets, increases in our self-insurance liabilities or increases in our net pension obligations at the time of a measurement event.
For interim unaudited, consolidated financial statement purposes, we provide for accruals under our various employee benefit plans for each three month period based on one quarter of the estimated annual expense.

5

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS
Adoption of New Accounting Standards
In June 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") introducing an expected credit loss methodology for the measurement of financial assets not accounted for at fair value. The methodology replaced the probable, incurred loss model for those assets. We adopted this standard on January 1, 2020. Upon adoption, we updated our process for calculating our allowance for credit losses to include reasonable and supportable forecasts that could affect expected collectability. In the first quarter of 2020, we increased our allowance for credit losses by $23 million based upon our current forecasts that reflect increased economic uncertainty resulting from the COVID-19 pandemic.
In January 2017, the FASB issued an ASU to simplify the accounting for goodwill impairment by eliminating the requirement to calculate the implied fair value of goodwill using a hypothetical purchase price allocation. Under this ASU, goodwill impairment is the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. We adopted this standard on January 1, 2020. Upon adoption, this ASU did not have a material impact on our consolidated financial position, results of operations or cash flows.
For accounting standards adopted in the period ended March 31, 2019, refer to note 1 to our audited, consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019.
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
In December 2019, the FASB issued an ASU to simplify the accounting for income taxes. The update removes certain exceptions to the general income tax principles. The standard will be effective for us in the first quarter of 2021. We are evaluating the impact of its adoption on our consolidated financial statements and internal control over financial reporting environment, but do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows.
In March 2020, the FASB issued an ASU to provide optional guidance to temporarily ease the potential burden in accounting for reference rate reform. The update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. The guidance was effective upon issuance and generally can be applied through December 31, 2022. We are evaluating the impact of this update on our consolidated financial position, results of operations and cash flows.
Other accounting pronouncements issued, but not effective until after March 31, 2020, are not expected to have a material impact on our consolidated financial position, results of operations or cash flows.
6

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3. REVENUE RECOGNITION
Revenue Recognition
Substantially all of our revenues are from contracts associated with the pick-up, transportation and delivery of packages and freight (“transportation services”), whether carried out by or arranged by UPS, either domestically or internationally, which generally occurs over a short period of time. Additionally, we provide value-added logistics services to customers, both domestically and internationally, through our global network of company-owned and leased distribution centers and field stocking locations.
Disaggregation of Revenue
Three Months Ended
March 31,
20202019
Revenue: 
Next Day Air$2,055   $1,841  
Deferred 1,197  1,089  
Ground8,204   7,550  
     U.S. Domestic Package11,456  10,480  
Domestic688   690  
Export2,561  2,631  
Cargo & Other134   138  
    International Package3,383  3,459  
Forwarding1,373   1,416  
Logistics845  832  
Freight766   773  
Other212  200  
    Supply Chain & Freight3,196  3,221  
Consolidated revenue$18,035  $17,160  

We account for a contract when both parties have approved the contract and are committed to perform their obligations, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.
Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the basis of revenue recognition in accordance with GAAP. To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as a single contract, and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires judgment, and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Within most of our contracts, the customer contracts with us to provide distinct services, such as transportation services. The vast majority of our contracts with customers for transportation services include only one performance obligation; the transportation services themselves. However, if a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We frequently sell standard transportation services with observable standalone sales prices. In these instances, the observable standalone sales are used to determine the standalone selling price.
7

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

In certain business units, such as Logistics, we sell customized, customer-specific solutions in which we integrate a complex set of tasks and components into a single capability (even if that single capability results in the delivery of multiple units). Hence, the entire contract is accounted for as one performance obligation. In these cases we typically use the expected cost plus a margin approach to estimate the standalone selling price of each performance obligation.
Satisfaction of Performance Obligations
We generally recognize revenue over time as we perform the services in the contract because of the continuous transfer of control to the customer. Our customers receive the benefit of our services as the goods are transported from one location to another. Further, if we were unable to complete delivery to the final location, another entity would not need to re-perform the transportation service already performed.
As control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost measure of progress for our package delivery contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including ancillary or accessorial fees and reductions for estimated customer incentives, are recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our freight and freight forwarding contracts, an output method of progress based on time-in-transit is utilized as the timing of costs incurred does not best depict the transfer of control to the customer. In our Logistics business, we have a right to consideration from customers in an amount that corresponds directly with the value to the customers of our performance completed to date, and as such we recognize revenue in the amount to which we have a right to invoice the customer.
Variable Consideration
It is common for our contracts to contain customer incentives, guaranteed service refunds or other provisions that can either increase or decrease the transaction price. These variable amounts are generally dependent upon achievement of certain incentive tiers or performance metrics. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts of revenue, which may be reduced by incentives or other contract provisions, in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of anticipated customer spending and all information (historical, current and forecasted) that is reasonably available to us.
Contract Modifications
Contracts are often modified to account for changes in the rates we charge our customers or to add additional distinct services. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Contract modifications that add additional distinct goods or services are treated as separate contracts. Contract modifications that do not add distinct goods or services typically change the price of existing services. These contract modifications are accounted for prospectively as the remaining performance obligations are distinct.
Payment Terms
Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (i.e. every 14 days, 30 days, 45 days, etc.) for shipments included on invoices received. Invoices are generated each week on the week-ending day, which is Saturday for the majority of our U.S. Domestic Package business, but could be another day depending on the business unit or the specific agreement with the customer. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our contracts with customers.
8

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Principal vs. Agent Considerations
In our transportation businesses, we utilize independent contractors and third-party carriers in the performance of some transportation services. GAAP requires us to evaluate, using a control model, whether our businesses themselves promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent). Based on our evaluation of the control model, we determined that all of our major businesses act as the principal rather than the agent within their revenue arrangements. Revenue and the associated purchased transportation costs are both reported on a gross basis within our statements of consolidated income.
Accounts Receivable, Net
Accounts receivable, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. Losses on accounts receivable are recognized when 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. These estimates require 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.
In the first quarter of 2020, we increased our allowance for credit losses by $23 million based upon current forecasts that reflect increased economic uncertainty resulting from the COVID-19 pandemic. Our allowance for credit losses as of March 31, 2020 and December 31, 2019 was $119 and $93 million, respectively. Our provision for credit losses charged to expense before recoveries during the quarters ended March 31, 2020 and 2019 was $69 and $37 million, respectively.
Contract Assets and Liabilities
Contract assets include billed and unbilled amounts resulting from in-transit packages, as we have an unconditional right to payment only once all performance obligations have been completed (i.e., packages have been delivered), and our right to payment is not solely based on the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current and the full balance is converted each quarter based on the short-term nature of the transactions.
Contract liabilities consist of advance payments and billings in excess of revenue as well as deferred revenue. Advance payments and billings in excess of revenue represent payments received from our customers that will be earned over the contract term. Deferred revenue represents the amount of consideration due from customers related to in-transit shipments that has not yet been recognized as revenue based on our selected measure of progress. We classify advance payments and billings in excess of revenue as either current or long-term, depending on the period over which the advance payment will be earned. We classify deferred revenue as current based on the timing of when we expect to recognize revenue, which typically occurs within a short window after period-end. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that deferred revenue balance.
Contract assets related to in-transit packages were $222 and $272 million at March 31, 2020 and December 31, 2019, respectively, net of deferred revenue related to in-transit packages of $298 and $264 million at March 31, 2020 and December 31, 2019, respectively. Contract assets are included within "Other current assets" in the consolidated balance sheets. Short-term contract liabilities related to advance payments from customers were $7 million at both March 31, 2020 and December 31, 2019. Short-term contract liabilities are included within "Other current liabilities" in the consolidated balance sheets. Long-term contract liabilities related to advance payments from customers were $26 million at both March 31, 2020 and December 31, 2019. Long-term contract liabilities are included within "Other Non-Current Liabilities" in the consolidated balance sheets.

9

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4. STOCK-BASED COMPENSATION
We issue employee share-based awards under various incentive compensation plans, which permit the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock and stock units, and restricted performance shares and performance units to eligible employees (restricted stock and stock units, restricted performance shares and performance units are herein referred to as "Restricted Units"). Upon vesting, Restricted Units result in the issuance of the equivalent number of UPS class A common shares after required tax withholdings. Dividends accrued on Restricted Units are reinvested in additional Restricted Units at each dividend payable date, and are subject to the same vesting and forfeiture conditions as the underlying Restricted Units upon which they are earned.
The primary compensation programs offered under the UPS Incentive Compensation Plan include the UPS Management Incentive Award program, the UPS Long-Term Incentive Performance Award program and the UPS Stock Option program. We also maintain an employee stock purchase plan which allows eligible employees to purchase shares of UPS class A common stock at a discount. Additionally, our matching contributions to the primary employee defined contribution savings plan are made in shares of UPS class A common stock.
Management Incentive Award Program ("MIP")
We award Restricted Units under the MIP to certain eligible management employees. For Restricted Units granted under the MIP prior to 2019, vesting generally occurs ratably over a five-year period on January 15th of each of the years following the grant date (except in the case of death, disability or retirement, in which case immediate vesting occurs). The grant value is expensed on a straight-line basis (less estimated forfeitures) over the requisite service period (except in the case of death, disability or retirement, in which case immediate expensing occurs). These historical awards will continue to vest through 2023.
Beginning with the MIP grant in the first quarter of 2019, Restricted Units vest one year following the grant date (except in the case of death, disability or retirement, in which case immediate vesting occurs). The grant value is expensed on a straight-line basis (less estimated forfeitures) over the requisite service period (except in the case of death, disability or retirement, in which case immediate expensing occurs).
Based on the date that the eligible management population and performance targets were approved for the MIP, we determined the award measurement dates to be February 6, 2020 (for U.S.-based employees), February 12, 2020 (for management committee employees) and March 23, 2020 (for international-based employees); therefore, the Restricted Units awarded were valued for stock compensation expense purposes using the closing New York Stock Exchange ("NYSE") price of $106.51, $105.54 and $91.90 on those dates, respectively.
Long-Term Incentive Performance Award Program ("LTIP")
We award Restricted Units under the LTIP to certain eligible management employees. These Restricted Units generally vest at the end of a three-year performance period (except in the case of death, disability or retirement, in which case immediate vesting occurs on a prorated basis). For outstanding awards, the number of Restricted Units earned will be based on the achievement of the performance targets established on the grant date. These performance targets are equally-weighted among consolidated operating return on invested capital ("ROIC"), growth in currency-constant consolidated revenue and total shareholder return ("RTSR") relative to a peer group of companies.
For the two-thirds of the award related to ROIC and growth in currency-constant consolidated revenue, we recognize the grant date fair value of these Restricted Units (less estimated forfeitures) as compensation expense ratably over the vesting period, based on the number of awards expected to be earned. The remaining one-third of the award related to RTSR is valued using a Monte Carlo model. We recognize the grant date fair value of this portion of the award (less estimated forfeitures) as compensation expense ratably over the vesting period.
There were no awards granted under the LTIP in the first quarter of 2020.
Based on the date that the eligible management employees and performance targets were approved for the 2019 LTIP award, we determined the award measurement date to be March 22, 2019; therefore, the target Restricted Units awarded for the ROIC and growth in currency-constant consolidated revenue portions of the award were valued for stock compensation expense using the closing NYSE price of $107.35 on that date.
10

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
During the third quarter of 2019, we awarded a one-time grant of Restricted Units that will vest over the same period as the 2019 LTIP award. Based on the date that the Compensation Committee approved this award, we determined the award measurement date to be July 1, 2019; therefore, the target Restricted Units awarded for the ROIC and growth in currency-constant consolidated revenue portions of the award were valued for stock compensation expense using the closing NYSE price of $102.97 on that date.
The weighted-average assumptions used and the calculated weighted-average fair values of the RTSR portion of the LTIP awards granted in 2019 are as follows:
2019
Risk-free interest rate2.23 %
Expected volatility19.64 %
Weighted-average fair value of units granted $123.44  
Share payout115.04 %
There is no expected dividend yield as units earn dividend equivalents.
Non-Qualified Stock Options
We grant non-qualified stock option awards to a limited group of eligible senior management employees under the UPS Stock Option program. Stock option awards generally vest over a five-year period with approximately 20% of the award vesting at each anniversary of the grant date (except in the case of death, disability or retirement, in which case immediate vesting occurs). The options granted expire 10 years after the date of the grant. In the first quarter of 2020, we granted 0.3 million stock options at a grant price of $105.54, which is based on the closing NYSE price on February 12, 2020. In the first quarter of 2019, we granted 0.3 million stock options at a grant price of $111.80, which is based on the closing NYSE price on February 14, 2019.
The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the calculated weighted-average fair values of options granted in 2020 and 2019 are as follows:
20202019
Expected dividend yield3.47 %2.94 %
Risk-free interest rate1.50 %2.60 %
Expected life (in years)7.57.5
Expected volatility18.64 %17.79 %
Weighted-average fair value of options granted$11.93  $16.34  
Compensation expense for share-based awards recognized in "Compensation and benefits" on the statements of consolidated income for the three months ended March 31, 2020 and 2019 was $231 and $308 million pre-tax, respectively.

11

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5. CASH AND INVESTMENTS
The following is a summary of marketable securities classified as trading and available-for-sale as of March 31, 2020 and December 31, 2019 (in millions):
CostUnrealized
Gains
Unrealized
Losses
Estimated
Fair Value
March 31, 2020:
Current trading marketable securities:
Corporate debt securities$110  $  $  $110  
Equity securities2      2  
Total trading marketable securities112      112  
Current available-for-sale securities:
U.S. government and agency debt securities194  7    201  
Mortgage and asset-backed debt securities42  2  (1) 43  
Corporate debt securities138  1  (1) 138  
Non-U.S. government debt securities11      11  
Total available-for-sale marketable securities385  10  (2) 393  
Total current marketable securities$497  $10  $(2) $505  
 CostUnrealized
Gains
Unrealized
Losses
Estimated
Fair Value
December 31, 2019:
Current trading marketable securities:
Corporate debt securities$112  $  $  $112  
Equity securities2      2  
Total trading marketable securities114      114  
Current available-for-sale securities:
U.S. government and agency debt securities191  2    193  
Mortgage and asset-backed debt securities46  1    47  
Corporate debt securities130  3    133  
Non-U.S. government debt securities16      16  
Total available-for-sale marketable securities383  6    389  
Total current marketable securities$497  $6  $  $503  
Investment Impairments
We have concluded that no material impairment losses existed as of March 31, 2020. 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.
12

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Maturity Information
The amortized cost and estimated fair value of marketable securities at March 31, 2020, 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.
CostEstimated
Fair Value
Due in one year or less$125  $124  
Due after one year through three years323  330  
Due after three years through five years6  6  
Due after five years41  43  
495  503  
Equity securities2  2  
$497  $505  
Non-Current Investments and Restricted Cash
We held a $19 and $21 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan at March 31, 2020 and December 31, 2019, respectively. The quarterly change in investment fair value is recognized in "Investment income and other" in the statements of consolidated income. Additionally, we held escrowed cash related to the acquisition and disposition of certain assets of $2 and $3 million as of March 31, 2020 and December 31, 2019, respectively. We previously held various marketable securities and cash equivalents as collateral under an escrow agreement to guarantee our self-insurance obligations. In 2019 we liquidated this investment balance and pledged the required collateral with a surety bond. At March 31, 2020 and December 31, 2019, we had $1 and $0 million, respectively, in restricted cash.
A reconciliation of cash and cash equivalents and restricted cash from the consolidated balance sheets to the statements of consolidated cash flows is shown below (in millions):
March 31, 2020December 31, 2019March 31, 2019
Cash and cash equivalents$8,955  $5,238  $4,399  
Restricted cash1    143  
Total cash, cash equivalents and restricted cash$8,956  $5,238  $4,542  
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.


13

Table of Contents
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following table presents information about our investments measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions):
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Balance 
March 31, 2020:
Marketable Securities:
U.S. government and agency debt securities$201  $  $  $201  
Mortgage and asset-backed debt securities