Quarterly report [Sections 13 or 15(d)]

SHAREOWNERS' EQUITY

v3.25.2
SHAREOWNERS' EQUITY
 6 Months Ended
Jun. 30, 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 NYSE under the symbol "UPS". Class A and B shares both have a $0.01 par value and, as of June 30, 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 June 30, 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 and six months ended June 30, 2025 and 2024 (in millions):
Three Months Ended
 June 30,		 Six Months Ended
 June 30,
2025 2024 2025 2024
Class A Common Stock:
Balance at beginning of period $ 2  $ 2  $ 2  $ 2 
Stock award plans —  —  —  — 
Common stock issuances —  —  —  — 
Conversions of class A to class B common stock —  —  —  — 
Class A shares issued at end of period $ 2  $ 2  $ 2  $ 2 
Class B Common Stock:
Balance at beginning of period $ 7  $ 7  $ 7  $ 7 
Common stock purchases —  —  —  — 
Conversions of class A to class B common stock —  —  —  — 
Class B shares issued at end of period $ 7  $ 7  $ 7  $ 7 
Additional Paid-In Capital:
Balance at beginning of period $ —  $ —  $ 136  $ — 
Stock award plans (4) 15  35  (103)
Common stock purchases —  —  (262) — 
Common stock issuances 87  121  183  239 
Other
 1  —  (8) — 
Balance at end of period $ 84  $ 136  $ 84  $ 136 
Retained Earnings:
Balance at beginning of period $ 19,939  $ 20,681  $ 20,882  $ 21,055 
Net income
 1,283  1,409  2,470  2,522 
Dividends ($1.64 and $1.63 per share for the three months ended June 30, 2025 and 2024, respectively, and $3.28 and $3.26 per share for the six months ended June 30, 2025 and 2024, respectively) (1)
(1,390) (1,398) (2,782) (2,812)
Common stock purchases —  —  (738) — 
Other (2)
—  —  —  (73)
Balance at end of period $ 19,832  $ 20,692  $ 19,832  $ 20,692 
Noncontrolling Interests:
Balance at beginning of period $ 24  $ 24  $ 25  $ 8 
Change in non-controlling interest 3  (1) 2  15 
Balance at end of period $ 27  $ 23  $ 27  $ 23 
(1)    The dividend per share amount is the same for both class A and class B common stock. Dividends include $41 and $45 million for the three months ended June 30, 2025 and 2024, respectively, and $85 and $111 million for the six months ended June 30, 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 six months ended June 30, 2025. We did not repurchase any shares under the share repurchase program during the six months ended June 30, 2024.
As of June 30, 2025, we had $1.3 billion available under the share repurchase authorization. We do not anticipate further share repurchases in 2025.
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) was as follows (in millions):
Three Months Ended
 June 30,		 Six Months Ended
 June 30,
2025 2024 2025 2024
Foreign Currency Translation Gain (Loss), Net of Tax:
Balance at beginning of period $ (1,457) $ (1,373) $ (1,586) $ (1,248)
Translation adjustment (net of tax effect of $4 and $(3) for the three months ended June 30, 2025 and 2024, respectively, and $3 for each of the six months ended June 30, 2025 and 2024, respectively)
 372  (58) 501  (183)
Balance at end of period (1,085) (1,431) (1,085) (1,431)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
Balance at beginning of period —  (3) (1) (2)
Current period changes in fair value (net of tax effect of $0 and $0)
 —  —  1  (1)
Balance at end of period —  (3) —  (3)
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
Balance at beginning of period (48) (3) 91  (76)
Current period changes in fair value (net of tax effect of $(91) and $11 for the three months ended June 30, 2025 and 2024, respectively, and $(121) and $44 for the six months ended June 30, 2025 and 2024, respectively)
 (288) 38  (384) 141 
Reclassification to earnings (net of tax effect of $(1) and $(10) for the three months ended June 30, 2025 and 2024, respectively, and $(14) and $(20) for the six months ended June 30, 2025 and 2024, respectively )
 (1) (35) (44) (65)
Balance at end of period (337) —  (337) — 
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of period (2,783) (2,402) (2,813) (2,432)
Reclassification to earnings (net of tax effect of $10 and $10 for the three months ended June 30, 2025 and 2024, respectively, and $19 and $18 for the six months ended June 30, 2025 and 2024, respectively)
 30  29  60  59 
Balance at end of period (2,753) (2,373) (2,753) (2,373)
Accumulated other comprehensive income (loss) at end of period $ (4,175) $ (3,807) $ (4,175) $ (3,807)
Detail of the gains (losses) reclassified from accumulated other comprehensive income (loss) to the statements of consolidated income is as follows (in millions):

Three Months Ended
 June 30,		 Six Months Ended
 June 30,
Affected Line Item in
2025 2024 2025 2024
the Income Statement
Unrealized Gain (Loss) on Cash Flow Hedges:
Interest rate contracts $ (2) $ (2) $ (3) $ (3) Interest expense
Foreign currency exchange contracts 4  47  61  88  Revenue
Income tax (expense) benefit (1) (10) (14) (20) Income tax expense
Impact on net income 1  35  44  65  Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs (40) (39) (79) (77) Investment income and other
Income tax (expense) benefit 10  10  19  18  Income tax expense
Impact on net income (30) (29) (60) (59) Net income
Total amount reclassified for the period $ (29) $ 6  $ (16) $ 6  Net income