United Parcel Service, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

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

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

NOTE 4. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, including owned assets and assets subject to finance leases, consisted of the following as of December 31, 2025 and 2024 (in millions):


	2025		2024
Aircraft(1)	$	24,149	$	23,768
Plant equipment	19,817		18,495
Vehicles	11,787		11,912
Buildings	6,906		6,714
Building and leasehold improvements	5,686		5,601
Technology equipment	2,635		2,735
Land	2,046		2,104

Construction-in-progress	2,136		1,967
	75,162		73,296
Less: Accumulated depreciation and amortization(1)	(37,431)		(36,117)
Property, Plant and Equipment, Net	$	37,731	$	37,179

(1) Includes MD-11 airframe and engines that were fully depreciated as of December 31, 2025.

Depreciation and amortization expense for property, plant and equipment during 2025, 2024 and 2023 was $3.0, $3.0 and $2.8 billion, respectively.

Network Reconfiguration and Efficiency Reimagined

As part of our Network Reconfiguration and Efficiency Reimagined initiatives, we incurred $58 million of accelerated depreciation and asset retirement obligations related to the 93 closed facilities and abandoned equipment. In connection with these initiatives, we recorded $72 million in gains on sale of those properties during 2025, which were primarily within our U.S. Domestic Package segment and are included within Other expenses in our statement of consolidated income.

We have also determined that $54 million of certain long-lived assets within our U.S. Domestic Package segment meet the criteria to be classified as held for sale and have presented the carrying value of these assets within Other Non-Current Liabilities in our consolidated balance sheets as of December 31, 2025.

We have identified 24 buildings for closure in the first half of 2026 and we continue to review expected changes in volume in our integrated air and ground network to identify additional buildings for closure, and it is reasonably possible that our plans will also result in further revisions to our estimates of the useful lives and salvage values of certain of our long-lived assets. Any further revisions 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 18.

Impairments

During the fourth quarter of 2025, we recognized $182 million charge related to the retirement of our MD-11 fleet, of which $119 million was impairment of property, plant and equipment. These charges are primarily within our U.S. Domestic Package segment and are recorded within Other expenses in our statement of consolidated income. There were no material impairment charges to property, plant and equipment during 2024 or 2023. We will continue to monitor our long-lived asset groups for impairment.

Sale-Leaseback Transactions

In 2025, we entered into sale-leaseback transactions, involving a data center and real estate properties that qualified as sales. Accordingly, we derecognized the carrying amounts of the properties and recognized the related operating lease right-of-use assets and lease liabilities at lease commencement. Cash proceeds of approximately $465 million were received and gains on sale of $362 million were recognized within Other (gains) losses in our statement of consolidated cash flows and within Other expenses in our statement of consolidated income.