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, 2023

The carrying value of our outstanding debt obligations, as of December 31, 2023 and 2022 consists of the following (in millions):


	Principal			Carrying Value
	Amount		Maturity	2023		2022
Commercial paper	$	2,195	2024	$	2,172	$	—
Fixed-rate senior notes:
2.500% senior notes	—		2023	—		999
2.800% senior notes	500		2024	499		499
2.200% senior notes	400		2024	400		399
3.900% senior notes	1,000		2025	999		997
2.400% senior notes	500		2026	499		499
3.050% senior notes	1,000		2027	996		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	1,138		1,137
4.250% senior notes	750		2049	743		743
3.400% senior notes	700		2049	689		688
5.300% senior notes	1,250		2050	1,232		1,231
5.050% senior notes	1,100		2053	1,083		—
Floating-rate senior notes:
Floating-rate senior notes	—		2023	—		500
Floating-rate senior notes	1,562		2049-2073	1,545		1,027
Debentures:
7.620% debentures	276		2030	280		280
Pound Sterling Notes:
5.500% notes	85		2031	84		79
5.125% notes	579		2050	550		521
Euro Senior Notes:
0.375% senior notes	—		2023	—		745
1.625% senior notes	775		2025	774		744
1.000% senior notes	554		2028	551		531
1.500% senior notes	554		2032	551		530
Canadian senior notes:
2.125% senior notes	567		2024	566		553
Finance lease obligations (see note 11)	472		2024 – 2046	472		390
Facility notes and bonds	320		2029 – 2045	320		320
Other debt	6		2024 – 2025	6		36
Total debt	$	22,470		22,264		19,662
Less: current maturities				(3,348)		(2,341)
Long-term debt				$	18,916	$	17,321

Debt Instruments, Average Effective Interest Rate

The average interest rates payable on the notes where fixed interest rates were swapped to variable interest rates, including the impact of the interest rate swaps, for the years ended December 31, 2023 and 2022 were as follows:


	Principal		Average Effective Interest Rate
	Value	Maturity	2023		2022

2.450% senior notes	1,000	2022	—	%	1.75	%

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 on our long-term debt and our projected aggregate annual purchase commitments (in millions):


Year	Debt Principal		Purchase Commitments (1)
2024	$	3,668	$	1,873
2025	1,775		1,177
2026	500		457
2027	1,000		39
2028	554		26
After 2028	14,501		8
Total	$	21,998	$	3,580

(1) Purchase commitments include estimates of future amounts yet to be recognized in our financial statements.

- 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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