Quarterly report [Sections 13 or 15(d)]

REVENUE RECOGNITION

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REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Revenue Recognition
Substantially all of our revenues are from contracts associated with the pickup, transportation and delivery of packages and freight ("transportation services") that include only one performance obligation: the transportation services themselves. These services may be carried out by or arranged by us and generally occur over a short period of time. We generally recognize revenue over time, based on the extent of progress towards completion of the services in the contract. All of our major businesses act as a principal in their revenue arrangements and as such, we report revenue and the associated purchased transportation costs on a gross basis within our statements of consolidated income.
Disaggregation of Revenue
Three Months Ended
 June 30,		 Six Months Ended
 June 30,
2026 2025 2026 2025
Revenue:
Next Day Air $ 2,578  $ 2,293  $ 4,932  $ 4,654 
Deferred 1,102  1,024  2,147  2,073 
Ground 10,908  10,484  21,346  21,193 
Cargo and Other 342  282  630  623 
     U.S. Domestic Package 14,930  14,083  29,055  28,543 
Domestic 869  830  1,704  1,601 
Export 3,962  3,484  7,510  6,928 
Cargo and Other
 213  171  370  329 
    International Package 5,044  4,485  9,584  8,858 
Forwarding 791  732  1,447  1,458 
Logistics 1,540  1,476  2,949  3,048 
Other 529  445  1,001  860 
    Supply Chain Solutions ("SCS")
 2,860  2,653  5,397  5,366 
Consolidated revenue $ 22,834  $ 21,221  $ 44,036  $ 42,767 
Accounts Receivable, Net

As part of our working capital management, we have an accounts receivable factoring program with third parties, in which we may sell certain customer receivables on a revolving basis. Any such transactions are accounted for as sales and, accordingly, receivables sold are removed from Accounts receivable, Net in our consolidated balance sheets and the proceeds
are reflected in Cash Flows from Operating Activities in our statements of consolidated cash flows. Our continuing involvement in these receivables is primarily limited to servicing and, under limited circumstances, recourse. Total accounts which may be outstanding under the program are $860 million and, as of June 30, 2026, $410 million was available. In connection with this program, we recognized a liability, measured at fair value, related to our estimated recourse obligations recorded within Other current liabilities in our applicable consolidated balance sheets. As of June 30, 2026 and December 31, 2025 cash collections of $109 and $59 million, respectively, were not yet remitted to third-party purchasers. These obligations are included within Other current liabilities in our consolidated balance sheets, with changes in such obligations reflected within Cash Flows from Financing Activities in our statements of consolidated cash flows. As of June 30, 2026 and December 31, 2025, accounts receivable outstanding under our factoring program were $450 and $491 million, respectively.
Our allowance for credit losses as of June 30, 2026 and December 31, 2025 was $213 and $180 million, respectively. Amounts for credit losses charged to expense, before recoveries, during the three months ended June 30, 2026 and 2025 were $102 and $103 million, respectively, and during the six months ended June 30, 2026 and 2025 were $201 and $172 million, respectively.
Contract Assets and Liabilities
Contract assets were $289 and $275 million as of June 30, 2026 and December 31, 2025, respectively, and were recorded within Other current assets in our consolidated balance sheets. Contract liabilities recorded within Other Non-Current Liabilities were $43 and $49 million as of June 30, 2026 and December 31, 2025, respectively. Short-term contract liabilities were immaterial as of June 30, 2026 and December 31, 2025.