Quarterly report [Sections 13 or 15(d)]

REVENUE RECOGNITION

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REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 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
 June 30,		 Six Months Ended
 June 30,
2025 2024 2025 2024
Revenue:
Next Day Air $ 2,293  $ 2,309  $ 4,654  $ 4,625 
Deferred 1,024  1,107  2,073  2,263 
Ground 10,484  10,703  21,193  21,465 
Cargo and Other 282  82  623  114 
     U.S. Domestic Package 14,083  14,201  28,543  28,467 
Domestic 830  770  1,601  1,528 
Export 3,484  3,437  6,928  6,787 
Cargo and Other
 171  163  329  311 
    International Package 4,485  4,370  8,858  8,626 
Forwarding 732  1,315  1,458  2,595 
Logistics 1,476  1,546  3,048  3,088 
Other 445  386  860  748 
    Supply Chain Solutions 2,653  3,247  5,366  6,431 
Consolidated revenue $ 21,221  $ 21,818  $ 42,767  $ 43,524 
Contract Assets and Liabilities
During the six months ended June 30, 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 June 30, 2025 and December 31, 2024 were as follows (in millions):
Balance Sheet Location
June 30, 2025
 December 31, 2024
Contract Assets:
Revenue related to in-transit packages Other current assets $ 272  $ 307 
Contract Liabilities:
Short-term advance payments from customers Other current liabilities $ 15  $ 13 
Long-term advance payments from customers Other non-current liabilities $ 55  $ 27 
Accounts Receivable, Net
During the six months ended June 30, 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 June 30, 2025 and December 31, 2024 was $161 and $136 million, respectively. Amounts for credit losses charged to expense, before recoveries, during the three months ended June 30, 2025 and 2024 were $103 and $63 million, respectively, and during the six months ended June 30, 2025 and 2024 were $172 and $136 million, respectively.