United Parcel Service, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS (Tables)

MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

The following is a summary of marketable securities classified as trading and available for sale as of September 30, 2024 and December 31, 2023 (in millions):


	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
September 30, 2024:
Current trading marketable securities:




Equity securities	$	3	$	—	$	—	$	3



Total trading marketable securities	3		—		—		3

Current available-for-sale securities:
U.S. government and agency debt securities	178		—		(1)		177
Mortgage and asset-backed debt securities	—		—		—		—
Corporate debt securities	25		—		—		25


Non-U.S. government debt securities	—		—		—		—


Total available-for-sale marketable securities	203		—		(1)		202

Total current marketable securities	$	206	$	—	$	(1)	$	205

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
December 31, 2023:
Current trading marketable securities:




Equity securities	$	4	$	—	$	—	$	4



Total trading marketable securities	4		—		—		4

Current available-for-sale securities:
U.S. government and agency debt securities	963		2		(4)		961
Mortgage and asset-backed debt securities	3		—		—		3
Corporate debt securities	1,891		4		(4)		1,891


Non-U.S. government debt securities	7		—		—		7


Total available-for-sale marketable securities	2,864		6		(8)		2,862

Total current marketable securities	$	2,868	$	6	$	(8)	$	2,866

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of marketable securities as of September 30, 2024 by contractual maturity are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations with or without prepayment penalties.


	Cost		Estimated Fair Value
Due in one year or less	$	123	$	122
Due after one year through three years	80		80
Due after three years through five years	—		—
Due after five years	—		—
	203		202
Equity securities	3		3
	$	206	$	205

Fair Value, Assets Measured on Recurring Basis

The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023, 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)		Total
September 30, 2024:
Marketable Securities:
U.S. government and agency debt securities	$	177	$	—	$	—	$	177
Mortgage and asset-backed debt securities	—		—		—		—
Corporate debt securities	—		25		—		25

Equity securities	—		3		—		3
Non-U.S. government debt securities	—		—		—		—


Total marketable securities	177		28		—		205
Other non-current investments(1)	—		20		—		20
Total	$	177	$	48	$	—	$	225

(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.



	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2023:
Marketable Securities:
U.S. government and agency debt securities	$	961	$	—	$	—	$	961
Mortgage and asset-backed debt securities	—		3		—		3
Corporate debt securities	—		1,891		—		1,891

Equity securities	—		4		—		4

Non-U.S. government debt securities	—		7		—		7

Total marketable securities	961		1,905		—		2,866
Other non-current investments(1)	—		19		—		19
Total	$	961	$	1,924	$	—	$	2,885

(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.