Quarterly report [Sections 13 or 15(d)]

PROPERTY, PLANT AND EQUIPMENT

v3.26.1
PROPERTY, PLANT AND EQUIPMENT
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of June 30, 2026 and December 31, 2025 consisted of the following (in millions):
2026 2025
Vehicles $ 11,735  $ 11,787 
Aircraft(1)
24,605  24,149 
Land 2,027  2,046 
Buildings 6,969  6,906 
Building and leasehold improvements 5,711  5,686 
Plant equipment 20,403  19,817 
Technology equipment 2,694  2,635 
Construction-in-progress 2,320  2,136 
76,464  75,162 
Less: Accumulated depreciation and amortization(1)
(38,570) (37,431)
Property, Plant and Equipment, Net $ 37,894  $ 37,731 
(1) Includes MD-11 airframes and engines that were fully depreciated as of December 31, 2025.
Depreciation and amortization expense for property, plant and equipment during the six months ended June 30, 2026 and 2025 was $1.6 and $1.5 billion, respectively. As of June 30, 2026 and December 31, 2025, we determined that $74 and $54 million, respectively, of assets within our U.S. Domestic Package segment met the criteria to be classified as held for sale and, as a result, are presented within Other current assets in our consolidated balance sheets.
Network Reconfiguration and Efficiency Reimagined
During the six months ended June 30, 2026, as part of our Network Reconfiguration and Efficiency Reimagined initiatives, we closed 45 leased and owned buildings, 44 of which have been permanently closed. We will continue to review changes in volume in our integrated air and ground network and may identify additional buildings for closure. 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 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 16.
Disposals
For the three months ended June 30, 2026 and 2025, we recorded $101 and $20 million, respectively, and for the six months ended June 30, 2026 and 2025, we recorded $168 and $55 million, respectively, primarily related to gains on sales of properties and aircraft parts. These gains were primarily within our U.S. Domestic Package segment and are included within Other expenses in our unaudited, statements of consolidated income. For additional information, see note 16.
Impairment
There were no material impairment charges to property, plant and equipment during the six months ended June 30, 2026 or 2025. We will continue to monitor our long-lived asset groups for impairment.