United Parcel Service, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2026

Intangible Asset, Goodwill and Other [Abstract]

The following table indicates the allocation of goodwill as of June 30, 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	—		(12)		(55)		(67)
Balance as of June 30, 2026	$	847	$	584	$	4,339	$	5,770

Changes in goodwill during the six months ended June 30, 2026 resulted from:

•The impact of U.S. Dollar exchange rate movements on non‑U.S. Dollar goodwill balances.

•An increase in goodwill as part of purchase accounting allocations relating to our acquisition of Andlauer Healthcare Group ("AHG") in the fourth quarter of 2025. Certain areas of purchase accounting, including our estimates of tax positions, remain preliminary as of June 30, 2026.

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 six months ended June 30, 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, included in SCS. Based on our 2025 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 June 30, 2026 and December 31, 2025 (in millions):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
June 30, 2026:
Capitalized software	$	7,148	$	(4,855)	$	2,293
Customer relationships	1,390		(337)		1,053
Trademarks, patents and other	370		(178)		192
Franchise rights	378		(73)		305
Trade name	116		(48)		68
Licenses	86		(48)		38
Amortizable intangible assets	$	9,488	$	(5,539)	$	3,949
Indefinite-lived intangible assets	5		—		5
Total Intangible Assets	$	9,493	$	(5,539)	$	3,954
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 six months ended June 30, 2026, there were no impairment charges for finite-lived intangible assets.

For the six months ended June 30, 2025, we recorded impairment charges of $33 million ($25 million after tax) within Other expenses in our statement of consolidated income. These charges primarily consisted of software impairment charges related to the divestiture of a