Quarterly report [Sections 13 or 15(d)]

REVENUE RECOGNITION

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REVENUE RECOGNITION
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Revenue Recognition
Substantially all of our revenues are from contracts associated with the pickup, transportation and delivery of packages and freight ("transportation services"). These services may be carried out by or arranged by us and generally occur over a short period of time. Additionally, we provide value-added logistics services to customers through our global network of distribution centers and field stocking locations.
The vast majority of our contracts with customers are for transportation services that include only one performance obligation: the transportation services themselves. We generally recognize revenue over time, based on the extent of progress towards completion of the services in the contract. All of our major businesses act as a principal in their revenue arrangements and as such, we report revenue and the associated purchased transportation costs on a gross basis within our statements of consolidated income.
Disaggregation of Revenue
Three Months Ended
 March 31,
2025 2024
Revenue:
Next Day Air $ 2,361  $ 2,316 
Deferred 1,049  1,156 
Ground 10,709  10,762 
Cargo and Other 341  32 
     U.S. Domestic Package 14,460  14,266 
Domestic 771  758 
Export 3,444  3,350 
Cargo and Other
 158  148 
    International Package 4,373  4,256 
Forwarding 726  1,280 
Logistics 1,572  1,542 
Other 415  362 
    Supply Chain Solutions 2,713  3,184 
Consolidated revenue $ 21,546  $ 21,706 
Contract Assets and Liabilities
During the three months ended March 31, 2025, there were no material changes to our accounting policy for contract assets and liabilities described in note 2 to the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024.
Contract assets and liabilities as of March 31, 2025 and December 31, 2024 were as follows (in millions):
Balance Sheet Location
March 31, 2025
 December 31, 2024
Contract Assets:
Revenue related to in-transit packages Other current assets $ 276  $ 307 
Contract Liabilities:
Short-term advance payments from customers Other current liabilities $ 28  $ 13 
Long-term advance payments from customers Other non-current liabilities $ 46  $ 27 
Accounts Receivable, Net
During the three months ended March 31, 2025, there were no material changes to our accounting policy for accounts receivable or how we estimate expected credit losses, as described in note 2 to the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024.
Our allowance for credit losses as of March 31, 2025 and December 31, 2024 was $142 and $136 million, respectively. Amounts for credit losses charged to expense, before recoveries, during each of the three months ended March 31, 2025 and 2024 were $69 and $73 million, respectively.