PROPERTY, PLANT AND EQUIPMENT |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of June 30, 2025 and December 31, 2024 consisted of the following (in millions):
Property, plant and equipment purchased on account was $279 and $227 million as of June 30, 2025 and December 31, 2024, respectively.
During the three months ended June 30, 2025, we recognized $29 million in non-cash additions to construction-in-progress and a corresponding increase in financing obligations.
Our Network of the Future initiative is intended to enhance our efficiency through automation and operational sort consolidation in our U.S. Domestic network. In connection with our strategic execution of planned volume declines from our largest customer, we began our Network Reconfiguration initiative, which is an expansion of Network of the Future and will lead to a reduction in the number of buildings, vehicles and aircraft in our network. As of June 30, 2025, we have incurred $37 million in accelerated depreciation and asset retirement obligations related to closed facilities and abandoned equipment. We are continuing to evaluate our network and it is reasonably possible that these plans will result in revisions to our estimates of the useful lives and salvage values of certain of our long-lived assets. Any revision to these plans could further accelerate depreciation expense and lead to the recognition of additional charges related to early retirements in future periods. For additional information, see note 17 to the unaudited, consolidated financial statements.
There were no material impairment charges for the six months ended June 30, 2025 or 2024. We will continue to monitor our long-lived asset groups for impairment.
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