United Parcel Service, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

DEBT AND FINANCING ARRANGEMENTS (Tables)

DEBT AND FINANCING ARRANGEMENTS (Tables)

12 Months Ended

Dec. 31, 2020

The carrying value of our outstanding debt obligations, as of December 31, 2020 and 2019 consists of the following (in millions):


	Principal			Carrying Value
	Amount		Maturity	2020		2019
Commercial paper	$	15	2021	$	15	$	3,234
Fixed-rate senior notes:
3.125% senior notes	1,500		2021	1,507		1,524
2.050% senior notes	700		2021	700		699
2.450% senior notes	1,000		2022	1,028		1,003
2.350% senior notes	600		2022	599		598
2.500% senior notes	1,000		2023	997		995
2.800% senior notes	500		2024	498		497
2.200% senior notes	400		2024	398		398
3.900% senior notes	1,000		2025	995		—
2.400% senior notes	500		2026	498		498
3.050% senior notes	1,000		2027	993		992
3.400% senior notes	750		2029	746		745
2.500% senior notes	400		2029	397		397
4.450% senior notes	750		2030	743		—
6.200% senior notes	1,500		2038	1,483		1,483
5.200% senior notes	500		2040	493		—
4.875% senior notes	500		2040	490		490
3.625% senior notes	375		2042	368		368
3.400% senior notes	500		2046	491		491
3.750% senior notes	1,150		2047	1,137		1,136
4.250% senior notes	750		2049	742		742
3.400% senior notes	700		2049	688		688
5.300% senior notes	1,250		2050	1,231		—
Floating-rate senior notes:
Floating-rate senior notes	350		2021	350		349
Floating-rate senior notes	400		2022	399		399
Floating-rate senior notes	500		2023	499		499
Floating-rate senior notes	1,039		2049-2067	1,027		1,028
8.375% Debentures:
8.375% debentures	—		2020	—		426
8.375% debentures	276		2030	281		281
Pound Sterling Notes:
5.500% notes	90		2031	90		86
5.125% notes	618		2050	586		566
Euro Senior Notes:
0.375% senior notes	860		2023	857		779
1.625% senior notes	860		2025	856		779
1.000% senior notes	614		2028	611		556
1.500% senior notes	614		2032	611		556
Floating-rate senior notes	—		2020	—		559
Canadian senior notes:
2.125% senior notes	585		2024	583		571
Finance lease obligations	342		2021 – 2159	342		498
Facility notes and bonds	320		2029 – 2045	320		320
Other debt	6		2021 – 2025	5		8
Total debt	$	24,814		24,654		25,238
Less: current maturities				(2,623)		(3,420)
Long-term debt				$	22,031	$	21,818

Debt Instruments, Average Effective Interest Rate

The average interest rate payable on the notes where fixed interest rates were swapped to variable-based interest rates, including the impact of the interest rate swaps, for 2020 and 2019 were as follows:


	Principal			Average Effective Interest Rate
	Value		Maturity	2020		2019

5.125% senior notes	$	1,000	2019	—	%	4.48	%
3.125% senior notes	1,500		2021	1.60	%	2.59	%
2.450% senior notes	1,000		2022	1.55	%	3.03	%

Aggregate Minimum Lease Payments, Annual Principal Payments and Amounts Expected to be Spent for Purchase Commitments

The following table sets forth the aggregate annual principal payments due under our long-term debt and the aggregate amounts expected to be spent for purchase commitments (in millions):


Year	Debt Principal		Purchase Commitments
2021	$	2,568	$	2,730
2022	2,001		1,415
2023	2,360		404
2024	1,485		201
2025	1,860		60
After 2025	14,198		1
Total	$	24,472	$	4,811

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details