Quarterly report [Sections 13 or 15(d)]

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill as of March 31, 2026 and December 31, 2025 (in millions):
U.S. Domestic
Package		 International
Package
SCS
 Consolidated
Balance as of December 31, 2025 $ 847  $ 596  $ 4,394  $ 5,837 
Currency / Other —  (8) (33) (41)
Balance as of March 31, 2026
 $ 847  $ 588  $ 4,361  $ 5,796 
Changes during the three months ended March 31, 2026 reflect the impact of U.S. Dollar exchange rate movements on non‑U.S. Dollar goodwill balances.
For each of our reporting units, we continue to monitor the impact of macroeconomic conditions and business performance on our estimates of fair value. During the three months ended March 31, 2026, none of our reporting units had indications that an impairment was more likely than not. As of our July 1, 2025 testing date, approximately $877 and $738 million of our $4.8 billion consolidated goodwill balance was represented by our Global Freight Forwarding ("GFF") and Healthcare Logistics and Distribution ("HLD") reporting units, respectively. Based on our most recent annual impairment evaluation, both reporting units exhibited a limited excess of fair value above carrying value and reflect a greater risk of an impairment occurring in future periods. Actual reporting unit performance, revisions to our forecasts of future-performance, market factors, changes in global trade policy, changes in estimates or assumptions in future impairment testing, or a combination thereof could result in a non-cash impairment charge in one or more of our reporting units during a future period. An interim quantitative test for goodwill impairment was performed in the fourth quarter of 2025 on the GFF reporting unit which resulted in no impairment. For further discussion see note 7 to the audited, consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025.
The following table summarizes intangible assets as of March 31, 2026 and December 31, 2025 (in millions):
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
March 31, 2026:
Capitalized software $ 6,963  $ (4,717) $ 2,246 
Customer relationships 1,416  (317) 1,099 
Trademarks, patents and other 369  (165) 204 
Franchise rights 377  (68) 309 
Trade name 116  (42) 74 
Licenses 90  (46) 44 
Amortizable intangible assets $ 9,331  $ (5,355) $ 3,976 
Indefinite-lived intangible assets 5  —  5 
Total Intangible Assets
 $ 9,336  $ (5,355) $ 3,981 
December 31, 2025:
Capitalized software $ 6,810  $ (4,593) $ 2,217 
Customer relationships 1,438  (293) 1,145 
Trademarks, patents and other 368  (154) 214 
Franchise rights 382  (68) 314 
Trade name 116  (39) 77 
Licenses 88  (39) 49 
Amortizable intangible assets $ 9,202  $ (5,186) $ 4,016 
Indefinite-lived intangible assets 5  —  5 
Total Intangible Assets
 $ 9,207  $ (5,186) $ 4,021 
Impairment tests for finite-lived intangible assets are performed when a triggering event occurs that may indicate that the carrying value of the intangible asset may not be recoverable. For the three months ended March 31, 2026, there were no impairment charges for finite-lived intangible assets.
For the three months ended March 31, 2025, we recorded an impairment charge of $32 million ($24 million after tax) within Other expenses in our statement of consolidated income. This charge represented software impairment within our digital businesses