United Parcel Service, Inc. Quarterly report [Sections 13 or 15(d)]

LEASES (Tables)

6 Months Ended

Jun. 30, 2025

The components of lease expense for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease costs	$	232	$	231	$	463	$	462
Finance lease costs:
Amortization of assets	27		31		62		66
Interest on lease obligations	5		5		12		10
Total finance lease costs	32		36		74		76
Variable lease costs	118		78		190		154
Short-term lease costs	207		192		419		391
Total lease costs(1)	$	589	$	537	$	1,146	$	1,083

(1) This table excludes sublease income as it was not material for the three and six months ended June 30, 2025 and 2024.

Supplemental cash flow information related to leases is as follows (in millions):


	Six Months Ended June 30,
	2025		2024
Cash paid for amounts included in measurement of obligations:
Operating cash flows from operating leases	$	472	$	448
Operating cash flows from finance leases	7		10
Financing cash flows from finance leases	58		58

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	107	$	232
Finance leases	236		23

Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions):


	June 30, 2025		December 31, 2024
Operating Leases:
Operating lease right-of-use assets	$	3,979	$	4,149

Current maturities of operating leases	$	724	$	733
Non-current operating leases	3,445		3,635
Total operating lease obligations	$	4,169	$	4,368

Finance Leases:
Property, plant and equipment, net	$	826	$	657

Current maturities of long-term debt, commercial paper and finance leases	$	98	$	104
Long-term debt and finance leases	418		351
Total finance lease obligations	$	516	$	455

Maturities of lease obligations as of June 30, 2025 were as follows (in millions):

Maturities of lease obligations as of June 30, 2025 were as follows (in millions):