Quarterly report [Sections 13 or 15(d)]

MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS

v3.25.2
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS
The following is a summary of marketable securities classified as trading and available for sale as of June 30, 2025 and December 31, 2024 (in millions):
Cost Unrealized
Gains		 Unrealized
Losses		 Estimated
Fair Value
June 30, 2025:
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 88  —  —  88 
Corporate debt securities 1  —  —  1 
Total available-for-sale marketable securities 89  —  —  89 
Total current marketable securities $ 92  $ —  $ —  $ 92 
  Cost Unrealized
Gains		 Unrealized
Losses		 Estimated
Fair Value
December 31, 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 165  —  (1) 164 
Corporate debt securities 39  —  —  39 
Total available-for-sale marketable securities 204  —  (1) 203 
Total current marketable securities $ 207  $ —  $ (1) $ 206 
Investment Impairments
We have concluded that no material impairment losses existed within marketable securities as of June 30, 2025. In making this determination, we considered the financial condition and prospects of each issuer, the magnitude of the losses compared with the cost, the probability that we will be unable to collect all amounts due according to the contractual terms of the security, the credit rating of the security and our ability and intent to hold these investments until the anticipated recovery in market value occurs.
Maturity Information
The amortized cost and estimated fair value of marketable securities as of June 30, 2025 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 $ 89  $ 89 
Due after one year through three years —  — 
Due after three years through five years —  — 
Due after five years —  — 
89  89 
Equity securities 3  3 
$ 92  $ 92 
Non-Current Investments
We hold non-current investments that are reported within Other Non-Current Assets in our consolidated balance sheets. Cash paid for these investments is included in Other investing activities in our statements of consolidated cash flows.
•Equity method investments: Equity securities accounted for under the equity method had a carrying value of $251 and $304 million as of June 30, 2025 and December 31, 2024, respectively. During the first quarter of 2025, we recorded a $19 million asset impairment charge within Investment income and other in our statement of consolidated income related to an equity method investment. During the second quarter of 2025, we sold this equity method investment with a carrying value of $31 million in exchange for a promissory note.
•Other equity securities: Certain equity securities that do not have readily determinable fair values are reported in accordance with the measurement alternative in ASC Topic 321. Equity securities accounted for under the measurement alternative had a carrying value of $48 and $42 million as of June 30, 2025 and December 31, 2024. In connection with the divestiture of a business within UPS Digital during the second quarter of 2025, we received equity securities valued at $23 million.
Fair Value Measurements
Marketable securities valued utilizing Level 1 inputs include most U.S. government debt securities, as these securities have quoted prices in active markets. Marketable securities valued utilizing Level 2 inputs include equity securities, and corporate bonds. These securities are valued using market corroborated pricing, matrix pricing or other models that utilize observable inputs such as yield curves.
The following table presents information about our investments measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, 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 
June 30, 2025:
Marketable Securities:
U.S. government and agency debt securities $ 88  $ —  $ —  $ 88 
Corporate debt securities —  1  —  1 
Equity securities —  3  —  3 
Total marketable securities 88  4  —  92 
Other non-current investments(1)
—  20  —  20 
Total $ 88  $ 24  $ —  $ 112 
(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, 2024:
Marketable Securities:
U.S. government and agency debt securities $ 164  $ —  $ —  $ 164 
Corporate debt securities 25  14  —  39 
Equity securities —  3  —  3 
Total marketable securities 189  17  —  206 
Other non-current investments(1)
—  19  —  19 
Total $ 189  $ 36  $ —  $ 225 
(1)    Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.