Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We have two reportable segments: U.S. Domestic Package and International Package, which are together referred to as our global small package operations. Our remaining businesses are reported as SCS. Global small package operations represent our most significant business and are broken down into regional operations around the world. Regional operations managers are responsible for both domestic and export products within their geographic area. SCS comprises the results of non-reportable operating segments that do not meet the quantitative and qualitative criteria of a reportable segment as defined under ASC Topic 280.
U.S. Domestic Package
U.S. Domestic Package operations include the time-definite delivery of letters, documents and packages throughout the United States.

International Package
International Package operations include delivery to more than 200 countries and territories worldwide, including shipments wholly outside the United States, as well as shipments with either an origin or destination outside the United States. We offer a wide selection of guaranteed day- and time-definite international transportation services supported by our brokerage capabilities that facilitate cross‑border clearance for international shipments. International Package includes our operations in Europe, Middle East and Africa ("EMEA"), Canada and Latin America (together "Americas") and Asia.
SCS
SCS includes our Forwarding, Logistics, digital and other businesses. Our Forwarding and Logistics businesses operate globally, offering international air and ocean freight forwarding, customs brokerage, mail services, healthcare logistics, distribution and post-sales services. Our digital businesses leverage technology to enable a range of on-demand services such as same-day delivery, end-to-end return services and integrated supply chain and high-value shipment insurance solutions.
Segment information
We consider our Chief Executive Officer to be our chief operating decision maker ("CODM"). The CODM is responsible for setting the Company's strategic direction, managing overall operations, and is the main point of communication between the Board and key operational personnel within the organization.
The CODM utilizes operating profit as a primary measure of segment performance because it reflects the underlying business performance and provides the CODM with a basis for making resource allocation decisions. Operating profit is defined as income before investment income and other, interest expense and income tax expense.
The CODM regularly reviews segment-level expense details which include compensation and benefits for the Domestic Package segment and compensation, benefits and purchased transportation for the International Package segment, when assessing operating segment performance. These expense categories represent the primary metrics used by the CODM to assess segment performance. For the Domestic Package segment, compensation and benefits are evaluated separately, whereas for the International Package segment, these categories are assessed in aggregate.
Certain expenses are allocated between the segments using activity-based costing methods. These activity-based costing methods require us to make estimates that impact the amount of each expense category that is attributed to each segment. Changes in these estimates directly impact the amount of expense allocated to each segment, and therefore the operating profit of each reporting segment. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. There were no significant changes to our allocation methodologies in the first quarter of 2026.
As we operate an integrated, global multimodal network, we evaluate many of our capital expenditure decisions at a network level. Accordingly, expenditures on property, plant and equipment by segment are not presented.
Segment results of operations for the three months ended March 31, 2026 and 2025 were as follows (in millions):
Three Months Ended
 March 31,
2026 2025
U.S. Domestic Package:
Revenue $ 14,125  $ 14,460 
Less:
Compensation 4,774  5,098 
Benefits 4,101  4,169 
Other segment items(1)
4,735  4,214 
U.S. Domestic Operating profit/(loss) $ 515  $ 979 
International Package:
Revenue $ 4,540  $ 4,373 
Less:
Compensation and benefits 1,036  957 
Purchased transportation 949  905 
Other segment items(1)
2,008  1,870 
International Operating profit/(loss) $ 547  $ 641 
Reconciliation of revenue:
Total U.S. Domestic Package and International Package Revenue $ 18,665  $ 18,833 
Other revenues(2)
2,537  2,713 
Total Consolidated Revenue $ 21,202  $ 21,546 
Reconciliation of segment operating profit to income before income taxes:
Total U.S. Domestic Package and International Package Operating profit/(loss) $ 1,062  $ 1,620 
Other profit/(loss)(2)
205  46 
Other pension income (expense) 67  37 
Investment income and other
 56  42 
Interest expense (266) (222)
Total Consolidated Income Before Income Taxes $ 1,124  $ 1,523 
(1)    Other segment items include purchased transportation (applicable only to our U.S. Domestic Package segment), repairs and maintenance, depreciation and amortization, fuel, other occupancy, and allocated costs for our air network, information services, and general and administrative service expenses.
(2)    Revenue and operating profit/(loss) from segments below the quantitative thresholds are attributable to operating segments which provide supply chain solutions.
The amounts of depreciation and amortization by reportable segment disclosed for the three months ended March 31, 2026 and 2025 are included within the other segment items captions in the table above. These totals are presented after applying activity-based costing methods to allocate expenses between segments as noted above.
Three Months Ended
 March 31,
2026 2025
Depreciation and amortization
U.S. Domestic Package $ 683  $ 623 
International Package 194  202 
Other depreciation and amortization(1)
108  87 
Consolidated Depreciation and Amortization $ 985  $ 912 
(1)    Depreciation and amortization from segments below the quantitative thresholds are attributable to operating segments which provide supply chain solutions.
Assets by reportable segment as of March 31, 2026 and December 31, 2025 consisted of the following (in millions):
2026 2025
Segment Assets
U.S. Domestic Package $ 37,667  $ 38,359 
International Package 18,079  18,214 
Other assets(1)
12,356  12,693 
Unallocated assets(2)
3,707  3,824 
Consolidated Assets $ 71,809  $ 73,090 
(1)    Assets from segments below the quantitative thresholds are attributable to operating segments which provide supply chain solutions.
(2)    Unallocated assets consist primarily of cash held by our centralized investment entity.