Annual report pursuant to Section 13 and 15(d)

ASSETS HELD FOR SALE

v3.20.4
ASSETS HELD FOR SALE
 12 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
ASSETS HELD FOR SALE ASSETS HELD FOR SALE
On January 24, 2021, we entered into a definitive agreement to divest our UPS Freight business to TFI International Inc. for $800 million, subject to working capital and other adjustments. The following table summarizes the carrying values of the assets and liabilities classified as held for sale in our consolidated balance sheet as of December 31, 2020 (in millions):
2020
Assets:
Accounts receivable, net $ 263 
Other current assets 62 
Property, plant and equipment, net 940 
Other non-current assets 124 
Total assets 1,389 
Valuation allowance (192)
Total assets held for sale $ 1,197 
Liabilities:
Accounts payable $ 50 
Other current liabilities 112 
Other non-current liabilities 185 
Total liabilities to be disposed of $ 347 
Net assets held for sale $ 850 
Self-insurance reserves for the UPS Freight business and obligations for benefits earned within UPS-sponsored pension and postretirement medical benefit plans will be retained by us at closing and are not included in the amounts presented above.
Upon classification as held for sale, we recognized a total impairment charge of $686 million within Other expenses in the statements of consolidated income. This was comprised of a goodwill impairment charge of $494 million and a valuation allowance to adjust the carrying value of the disposal group to fair value less cost to sell of $192 million.
We expect the transaction, which is subject to customary closing conditions and regulatory approvals, to close during the second quarter of 2021.