Quarterly report pursuant to Section 13 or 15(d)

ASSETS HELD FOR SALE

v3.21.1
ASSETS HELD FOR SALE
 3 Months Ended
Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
ASSETS HELD FOR SALE ASSETS HELD FOR SALE
On January 24, 2021, we entered into a definitive agreement to divest our UPS Freight business to TFI International Inc. for $800 million, subject to working capital and other adjustments. The following table summarizes the carrying values of the assets and liabilities classified as held for sale in our consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in millions):
2021 2020
Assets:
Accounts receivable, net $ 284  $ 263 
Other current assets 67  62 
Property, plant and equipment, net 949  940 
Other non-current assets 93  124 
Total assets 1,393  1,389 
Valuation allowance (258) (192)
Total assets held for sale $ 1,135  $ 1,197 
Liabilities:
Accounts payable $ 47  $ 50 
Other current liabilities 118  112 
Other non-current liabilities 131  185 
Total liabilities to be disposed of $ 296  $ 347 
Net assets held for sale $ 839  $ 850 
Self-insurance reserves for the UPS Freight business and obligations for benefits earned within UPS-sponsored pension and postretirement medical benefit plans will be retained by us at closing and are not included in the amounts presented above.
As of December 31, 2020, we recognized a total pre-tax impairment charge of $686 million ($629 million after tax), comprised of a goodwill impairment charge of $494 million and a valuation allowance of $192 million to adjust the carrying value of the disposal group to fair value less cost to sell.
As of March 31, 2021, we increased the valuation allowance by $66 million ($50 million after tax) to adjust the carrying value of the disposal group to our current estimate of fair value less cost to sell. This charge was recognized within Other expenses in the statements of consolidated income.
On April 30, 2021, we completed the previously announced divestiture of UPS Freight.