Quarterly report [Sections 13 or 15(d)]

PROPERTY, PLANT AND EQUIPMENT

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PROPERTY, PLANT AND EQUIPMENT
 9 Months Ended
Sep. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of September 30, 2026 and December 31, 2025 consisted of the following (in millions):
2026 2025
Vehicles $ 11,744  $ 11,787 
Aircraft(1)
24,851  24,149 
Land 2,014  2,046 
Buildings 6,960  6,906 
Building and leasehold improvements 5,738  5,686 
Plant equipment 20,419  19,817 
Technology equipment 2,711  2,635 
Construction-in-progress 2,438  2,136 
76,875  75,162 
Less: Accumulated depreciation and amortization(1)
(38,958) (37,431)
Property, Plant and Equipment, Net $ 37,917  $ 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 both of the nine months ended September 30, 2026 and 2025 was $2.3 billion. As of September 30, 2026 and December 31, 2025, we determined that $52 and $54 million, respectively, of assets primarily 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 nine months ended September 30, 2026, as part of our Network Reconfiguration and Efficiency Reimagined initiatives, we closed 47 leased or owned buildings, 46 of which have been permanently closed. While the planned volume reductions from our largest customer were completed in the second quarter of 2026, our Efficiency Reimagined initiative is not expected to conclude until the fourth quarter of 2027. 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.
Asset Disposals
For the three months ended September 30, 2026 and 2025, we recorded $180 and $354 million respectively, of gains on sales of assets, and for the nine months ended September 30, 2026 and 2025, we recorded $370 and $436 million, respectively.
The 2026 gains were related to real estate and aircraft parts and were primarily within our U.S. Domestic Package segment.
The 2025 gains primarily related to sale-leaseback transactions involving a data center and real estate and were primarily within our Supply Chain Solutions businesses. We concluded that each qualified as a sale; accordingly, we derecognized the carrying amounts of the properties and recognized the related operating lease right-of-use assets and lease liabilities at lease commencement. During the three months ended September 30, 2025, we received cash proceeds of approximately $415 million and recognized gains of $330 million. During the nine months ended September 30, 2025 we received cash proceeds of approximately $465 million and recognized gains of $362 million. In the three and nine months ended September 30, 2026 sale-leaseback transactions were immaterial.
These gains were recognized within Other (gains) losses in our statements of consolidated cash flows and within Other expenses in our statements of consolidated income.
Impairment
There were no material impairment charges to property, plant and equipment during the nine months ended September 30, 2026 or 2025. We will continue to monitor our long-lived asset groups for impairment.