Annual report [Section 13 and 15(d), not S-K Item 405]

MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS

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MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS
NOTE 3. MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS
The following is a summary of marketable securities classified as trading and available-for-sale as of December 31, 2025 and 2024 (in millions):
Cost Unrealized
Losses		 Estimated
Fair Value
2025
Current trading marketable securities:
Equity securities $ 3  $ —  $ 3 
Current available-for-sale marketable securities:
U.S. government and agency debt securities —  —  — 
Corporate debt securities —  —  — 
Total available-for-sale marketable securities —  —  — 
Total current marketable securities $ 3  $ —  $ 3 

Cost Unrealized
Losses		 Estimated
Fair Value
2024
Current trading marketable securities:
Equity securities $ 3  $ —  $ 3 
Current available-for-sale marketable 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 
Total current marketable securities pledged as collateral for our self-insurance requirements had estimated fair values of $177 million as of December 31, 2024. No marketable securities were pledged as collateral for our self-insurance requirements as of December 31, 2025.

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, excluding investments obtained through business acquisitions, is included in Other investing activities in our statements of consolidated cash flows.
•Equity method investments: As of December 31, 2025 and 2024, equity securities accounted for under the equity method had carrying values of $254 and $304 million, respectively.
•Other equity securities: Certain securities that do not have readily determinable fair values are reported in accordance with the measurement alternative in Accounting Standards Codification Topic 321 Investments – Equity Securities. As of December 31, 2025 and 2024, we had equity securities of $46 and $42 million, respectively, accounted for under this measurement alternative.
•Other investments: We hold an investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan with a fair market value of $21 and $19 million as of December 31, 2025 and 2024, respectively.
Fair Value Measurements
Marketable securities valued utilizing Level 1 inputs include certificates of deposits and most U.S. government debt securities, as these securities all 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. There were no Level 3 investments during 2025 or 2024.
The following table presents information about our investments measured at fair value on a recurring basis as of December 31, 2025 and 2024, and indicates the fair value hierarchy of the valuation techniques utilized (in millions):

Level 1

Level 2

Level 3
 Total
2025
Marketable Securities:
U.S. government and agency debt securities $ —  $ —  $ —  $ — 
Corporate debt securities —  —  —  — 
Equity securities —  3  —  3 
Total marketable securities —  3  —  3 
Other non-current investments —  21  —  21 
Total $ —  $ 24  $ —  $ 24 
 

Level 1

Level 2

Level 3
 Total
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
 —  19  —  19 
Total $ 189  $ 36  $ —  $ 225 

There were no transfers of investments into or out of Level 3 during 2025 or 2024.