Annual report of employee stock purchase, savings and similar plans

FAIR VALUE MEASUREMENTS

v3.26.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2025
EBP 004  
EBP, Investment, Fair Value and NAV [Line Items]  
FAIR VALUE MEASUREMENTS
3 FAIR VALUE MEASUREMENTS
ASC 820, Fair Value Measurements and Disclosures, provides a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows:
•Level 1 - securities valued using unadjusted quoted prices from active markets for identical assets.
•Level 2 - securities not traded on an active market but for which observable market inputs are readily available.
•Level 3 - securities valued based on significant unobservable inputs.
Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The following table presents information about our investments measured at fair value on a recurring basis at December 31, 2025 and 2024, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in thousands): 
  Fair Value Measurements at December 31, 2025
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		 Significant
Other
Observable
Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)		 Total
Self-managed accounts*:
Common stock $ 816,248  $ —  $ —  $ 816,248 
Mutual funds 66,504  —  —  66,504 
Interest-bearing cash 100,170  —  —  100,170 
U.S. government securities 5,225  —  —  5,225 
Corporate debt securities
 —  13,747  —  13,747 
Interest-bearing cash 36,111  —  —  36,111 
Common and collective trusts:
Equity funds —  7,580,787  —  7,580,787 
Fixed-income funds —  1,246,667  —  1,246,667 
Lifestyle funds —  3,432,403  —  3,432,403 
Multi-asset funds —  77,761  —  77,761 
U.S. government securities —  321,912  —  321,912 
UPS stock fund 1,097,612  —  —  1,097,612 
Total investments — at fair value $ 2,121,870  $ 12,673,277  $ —  $ 14,795,147 
  Fair Value Measurements at December 31, 2024
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		 Significant
Other
Observable
Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)		 Total
Self-managed accounts*:
Common stock $ 683,669  $ —  $ —  $ 683,669 
Mutual funds 57,655  —  —  57,655 
Interest-bearing cash 90,094  —  —  90,094 
U.S government securities 7,226  —  —  7,226 
Corporate debt securities —  16,823  —  16,823 
Interest-bearing cash 23,229  —  —  23,229 
Common and collective trusts:
Equity funds —  6,630,548  —  6,630,548 
Fixed-income funds —  1,120,109  —  1,120,109 
Lifestyle funds —  2,837,792  —  2,837,792 
Multi-asset funds —  73,093  —  73,093 
U.S. government securities —  337,093  —  337,093 
UPS Stock Fund 1,449,946  —  1,449,946 
Total investments - at fair value $ 2,311,819  $ 11,015,458  $ —  $ 13,327,277 
* The investments within the self-managed accounts include a variety of categories of common stock, mutual funds, bonds and cash.
The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period.

We evaluate the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits. There were no transfers into or out of Level 3 during 2025 or 2024.