Quarterly report [Sections 13 or 15(d)]

SHAREOWNERS' EQUITY

v3.25.1
SHAREOWNERS' EQUITY
 3 Months Ended
Mar. 31, 2025
Stockholders' Equity Note [Abstract]  
SHAREOWNERS' EQUITY SHAREOWNERS' EQUITY
Capital Stock, Additional Paid-In Capital, Retained Earnings and Noncontrolling Interests
We are authorized to issue two classes of common stock, which are distinguished from each other primarily by their respective voting rights. Class A shares of UPS are entitled to 10 votes per share, whereas class B shares are entitled to one vote per share. Class A shares are primarily held by UPS employees and retirees, as well as trusts and descendants of the Company's founders, and these shares are fully convertible into class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange under the symbol "UPS". Class A and B shares both have a $0.01 par value and, as of March 31, 2025, there were 4.6 billion class A shares and 5.6 billion class B shares authorized to be issued. Additionally, there are 200 million preferred shares authorized to be issued, with a par value of $0.01 per share. As of March 31, 2025, no preferred shares had been issued.
The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling interests accounts for the three months ended March 31, 2025 and 2024 (in millions, except per share amounts):
Three Months Ended March 31: 2025 2024
Shares Dollars Shares Dollars
Class A Common Stock:
Balance at beginning of period 121  $ 2  127  $ 2 
Stock award plans —  —  2  — 
Common stock issuances 1  —  —  — 
Conversions of class A to class B common stock (8) —  (3) — 
Class A shares issued at end of period 114  $ 2  126  $ 2 
Class B Common Stock:
Balance at beginning of period 733  $ 7  726  $ 7 
Common stock purchases (8) —  —  — 
Conversions of class A to class B common stock 8  —  3  — 
Class B shares issued at end of period 733  $ 7  729  $ 7 
Additional Paid-In Capital:
Balance at beginning of period $ 136  $ — 
Stock award plans 39  (118)
Common stock purchases (262) — 
Common stock issuances 96  118 
Other
 (9) — 
Balance at end of period $ —  $ — 
Retained Earnings:
Balance at beginning of period $ 20,882  $ 21,055 
Net income attributable to controlling interests 1,187  1,113 
Dividends ($1.64 and $1.63 per share) (1)
(1,392) (1,414)
Common stock purchases (738) — 
Other (2)
—  (73)
Balance at end of period $ 19,939  $ 20,681 
Noncontrolling Interests:
Balance at beginning of period $ 25  $ 8 
Change in non-controlling interest (1) 16 
Balance at end of period $ 24  $ 24 
(1)    The dividend per share amount is the same for both class A and class B common stock. Dividends include $44 and $66 million as of March 31, 2025 and 2024, respectively, that were settled in shares of class A common stock.
(2)    Includes adjustments related to certain stock-based awards.
In January 2023, the Board of Directors approved a share repurchase authorization for $5.0 billion of class A and class B common stock. This share repurchase authorization has no expiration date. We repurchased 8.6 million shares of class B common stock for $1.0 billion under the share repurchase program during the three months ended March 31, 2025. We did not repurchase any shares under the share repurchase program during the three months ended March 31, 2024.
As of March 31, 2025, we had $1.3 billion available under the share repurchase authorization. We do not anticipate further share repurchases in 2025.
Accumulated Other Comprehensive Income (Loss)
We recognize activity in other comprehensive income (loss) for foreign currency translation adjustments, unrealized holding gains and losses on available-for-sale securities, unrealized gains and losses from derivatives that qualify as hedges of cash flows and unrecognized pension and postretirement benefit costs. The activity in accumulated other comprehensive income (loss) for the three months ended March 31, 2025 and 2024 was as follows (in millions):
Three Months Ended March 31: 2025 2024
Foreign Currency Translation Gain (Loss), Net of Tax:
Balance at beginning of period $ (1,586) $ (1,248)
Translation adjustment (net of tax effect of $(1) and $6)
 129  (125)
Balance at end of period (1,457) (1,373)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
Balance at beginning of period (1) (2)
Current period changes in fair value (net of tax effect of $0 and $0)
 1  (1)
Balance at end of period —  (3)
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
Balance at beginning of period 91  (76)
Current period changes in fair value (net of tax effect of $(30) and $33)
 (96) 103 
Reclassification to earnings (net of tax effect of $(13) and $(10))
 (43) (30)
Balance at end of period (48) (3)
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of period (2,813) (2,432)
Reclassification to earnings (net of tax effect of $9 and $8)
 30  30 
Balance at end of period (2,783) (2,402)
Accumulated other comprehensive income (loss) at end of period $ (4,288) $ (3,781)
Detail of the gains (losses) reclassified from accumulated other comprehensive income (loss) to the statements of consolidated income for the three months ended March 31, 2025 and 2024 is as follows (in millions):
Amount Reclassified from AOCI(1)
Affected Line Item in the Income Statement
Three Months Ended March 31: 2025 2024
Unrealized Gain (Loss) on Cash Flow Hedges:
Interest rate contracts $ (1) $ (1) Interest expense
Foreign currency exchange contracts 57  41  Revenue
Income tax (expense) benefit (13) (10) Income tax expense
Impact on net income 43  30  Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs (39) (38) Investment income and other
Income tax (expense) benefit 9  8  Income tax expense
Impact on net income (30) (30) Net income
Total amount reclassified for the period $ 13  $ —  Net income
(1)    Accumulated other comprehensive income (loss)