Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Jul. 29, 2014 | Jul. 29, 2014 | |
Class A common stock | Class B common stock | ||
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Trading Symbol | 'UPS | ' | ' |
Entity Registrant Name | 'UNITED PARCEL SERVICE INC | ' | ' |
Entity Central Index Key | '0001090727 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 207,146,352 | 706,356,536 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $3,056 | $4,665 |
Marketable securities | 1,543 | 580 |
Accounts receivable, net | 5,845 | 6,502 |
Deferred income tax assets | 638 | 684 |
Other current assets | 1,259 | 956 |
Total Current Assets | 12,341 | 13,387 |
Property, Plant and Equipment, Net | 17,787 | 17,961 |
Goodwill | 2,202 | 2,190 |
Intangible Assets, Net | 830 | 775 |
Non-Current Investments and Restricted Cash | 445 | 444 |
Derivative Assets, Noncurrent | 342 | 323 |
Other Non-Current Assets | 914 | 1,132 |
Total Assets | 34,861 | 36,212 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt and commercial paper | 1,902 | 48 |
Accounts payable | 2,106 | 2,478 |
Accrued wages and withholdings | 2,060 | 2,325 |
Self-insurance reserves | 660 | 719 |
Other current liabilities | 1,609 | 1,561 |
Total Current Liabilities | 8,337 | 7,131 |
Long-Term Debt | 9,940 | 10,824 |
Pension and Postretirement Benefit Obligations | 6,639 | 7,051 |
Deferred Tax Liabilities, Net, Noncurrent | 933 | 1,244 |
Self-Insurance Reserves | 2,041 | 2,059 |
Other Non-Current Liabilities | 1,386 | 1,415 |
Shareowners' Equity: | ' | ' |
Additional paid-in capital | 0 | 0 |
Retained earnings | 6,155 | 6,925 |
Accumulated other comprehensive loss | -596 | -460 |
Deferred compensation obligations | 58 | 69 |
Less: Treasury stock (2 shares in 2013 and 2012) | -58 | -69 |
Total Equity for Controlling Interests | 5,568 | 6,474 |
Total Equity for Non-Controlling Interests | 17 | 14 |
Total Shareowners' Equity | 5,585 | 6,488 |
Total Liabilities and Shareowners' Equity | 34,861 | 36,212 |
Common Class A [Member] | ' | ' |
Shareowners' Equity: | ' | ' |
Common stock | 2 | 2 |
Total Equity for Controlling Interests | 2 | 2 |
Common Class B [Member] | ' | ' |
Shareowners' Equity: | ' | ' |
Common stock | 7 | 7 |
Total Equity for Controlling Interests | $7 | $7 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Treasury stock, shares | 1 | 1 | ' | ' |
Class A common stock | ' | ' | ' | ' |
Common stock, shares issued | 208 | 212 | 218 | 225 |
Class B common stock | ' | ' | ' | ' |
Common stock, shares issued | 707 | 712 | 721 | 729 |
STATEMENTS_OF_CONSOLIDATED_INC
STATEMENTS OF CONSOLIDATED INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $14,268 | $13,507 | $28,047 | $26,941 |
Operating Expenses: | ' | ' | ' | ' |
Compensation and benefits | 8,375 | 6,981 | 15,640 | 13,949 |
Repairs and maintenance | 341 | 309 | 670 | 618 |
Depreciation and amortization | 473 | 466 | 941 | 940 |
Purchased transportation | 1,988 | 1,731 | 3,896 | 3,511 |
Fuel | 980 | 992 | 1,952 | 1,998 |
Other occupancy | 241 | 225 | 538 | 478 |
Other expenses | 1,123 | 1,061 | 2,150 | 2,125 |
Total Operating Expenses | 13,521 | 11,765 | 25,787 | 23,619 |
Operating Profit | 747 | 1,742 | 2,260 | 3,322 |
Other Income and (Expense): | ' | ' | ' | ' |
Investment income | 25 | 3 | 25 | 8 |
Interest expense | -89 | -98 | -179 | -194 |
Total Other Income and (Expense) | -64 | -95 | -154 | -186 |
Income Before Income Taxes | 683 | 1,647 | 2,106 | 3,136 |
Income Tax Expense | 229 | 576 | 741 | 1,028 |
Net Income | $454 | $1,071 | $1,365 | $2,108 |
Basic Earnings Per Share | $0.49 | $1.14 | $1.48 | $2.22 |
Diluted Earnings Per Share | $0.49 | $1.13 | $1.47 | $2.21 |
STATEMENTS_OF_CONSOLIDATED_COM
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $454 | $1,071 | $1,365 | $2,108 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 39 | -24 | 3 | -327 |
Change in unrealized gain (loss) on marketable securities, net of tax | 2 | -6 | 2 | -8 |
Change in unrealized gain (loss) on cash flow hedges, net of tax | -21 | 20 | -41 | 58 |
Change in unrecognized pension and postretirement benefit costs, net of tax | -127 | 28 | -100 | 54 |
Comprehensive income | $347 | $1,089 | $1,229 | $1,885 |
STATEMENTS_OF_CONSOLIDATED_CAS
STATEMENTS OF CONSOLIDATED CASH FLOWS (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net income | $1,365 | $2,108 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' |
Depreciation and amortization | 941 | 940 |
Pension and postretirement benefit expense | 1,523 | 562 |
Pension and postretirement benefit contributions | -115 | -114 |
Increase (Decrease) in Pension and Postretirement Obligations | -1,995 | 0 |
Self-insurance reserves | -77 | 4 |
Deferred taxes, credits and other | -192 | -282 |
Stock compensation expense | 306 | 288 |
Other (gains) losses | 144 | -98 |
Change in assets and liabilities, net of effect of acquisitions | ' | ' |
Accounts receivable | 585 | 542 |
Other current assets | -269 | -15 |
Accounts payable | -357 | -209 |
Accrued wages and withholdings | -241 | -49 |
Other current liabilities | 207 | -147 |
Other operating activities | 7 | -99 |
Net cash from operating activities | 1,832 | 3,431 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -813 | -990 |
Proceeds from disposals of property, plant, and equipment | 10 | 24 |
Purchases of marketable securities | -1,813 | -1,615 |
Sales and maturities of marketable securities | 854 | 717 |
Net decrease in finance receivables | 13 | 19 |
Cash paid for business acquisitions | -22 | 0 |
Other investing activities | -31 | -8 |
Net cash used in investing activities | -1,802 | -1,853 |
Cash Flows From Financing Activities: | ' | ' |
Net change in short-term debt | 1,096 | 1,045 |
Proceeds from long-term borrowings | 764 | 100 |
Repayments of long-term borrowings | -1,020 | -1,861 |
Purchases of common stock | -1,379 | -1,867 |
Issuances of common stock | 149 | 293 |
Dividends | -1,192 | -1,140 |
Other financing activities | -50 | -611 |
Net cash used in financing activities | -1,632 | -4,041 |
Effect Of Exchange Rate Changes On Cash And Cash Equivalents | -7 | -56 |
Net Increase In Cash And Cash Equivalents | -1,609 | -2,519 |
Cash And Cash Equivalents: | ' | ' |
Beginning of period | 4,665 | 7,327 |
End of period | $3,056 | $4,808 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Principles of Consolidation | |
In our opinion, the accompanying interim, unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly our financial position as of June 30, 2014, our results of operations for the three and six months ended June 30, 2014 and 2013, and cash flows for the six months ended June 30, 2014 and 2013. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
For interim consolidated financial statement purposes, we provide for accruals under our various employee benefit plans and self-insurance reserves for each three month period based on one quarter of the estimated annual expense. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no impact on our financial position or results of operations. | |
Fair Value of Financial Instruments | |
The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of June 30, 2014. The fair values of our investment securities are disclosed in note 4, recognized multiemployer pension withdrawal liabilities are disclosed in note 6, our short and long-term debt in note 8 and our derivative instruments in note 13. We utilized Level 1 inputs in the fair value hierarchy of valuation techniques to determine the fair value of our cash and cash equivalents, and Level 2 inputs to determine the fair value of our accounts receivable, finance receivables and accounts payable. | |
Accounting Estimates | |
The preparation of the accompanying interim, unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information and actual results could differ materially from those estimates. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
Adoption of New Accounting Standards | |
In January 2014, the FASB issued an accounting standards update that adds new disclosure requirements for investments in qualified affordable housing projects through limited liability entities. If certain conditions are met, the cost of an entity's investment in proportion to the tax credits and other tax benefits it receives may be amortized and included as a component of income tax expense. In January 2008, we adopted the fair value option for our investments in certain investment partnerships that were previously accounted for under the equity method; therefore, this accounting standards update did not have any effect on our consolidated financial position or results of operations. | |
Other accounting pronouncements adopted during the periods covered by the consolidated financial statements had an immaterial impact on our consolidated financial position and results of operations. | |
Accounting Standards Issued But Not Yet Effective | |
In May 2014, the FASB issued an accounting standards update that provides a single comprehensive model for entities in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The underlying principle within the update is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The update requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. The update is effective for us beginning in the first quarter of 2017 and early adoption is not permitted. The Company is currently evaluating the update to determine the impact of its adoption on our consolidated financial position and results of operations. | |
Other accounting pronouncements issued, but not effective until after June 30, 2014, are not expected to have a significant impact on our consolidated financial position or results of operations. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||
STOCK-BASED COMPENSATION | ' | |||||
STOCK-BASED COMPENSATION | ||||||
We issue employee share-based awards under the UPS Incentive Compensation Plan, which permits the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock and stock units, and restricted performance shares and performance units, to eligible employees (restricted stock and stock units, and restricted performance shares and performance units are herein referred to as "Restricted Units"). The primary compensation programs offered under the UPS Incentive Compensation Plan include the UPS Management Incentive Award program, the UPS Long-Term Incentive Performance Award program and the UPS Stock Option program. We also maintain an employee stock purchase plan which allows eligible employees to purchase shares of UPS class A common stock at a discount. Additionally, our matching contributions to the primary employee defined contribution savings plan are made in shares of UPS class A common stock. | ||||||
Management Incentive Award Program ("MIP") | ||||||
During the first quarter of 2014, we granted Restricted Units under MIP to eligible management employees. Restricted Units granted under MIP will generally vest over a five-year period with approximately 20% of the award vesting on January 15th of each of the years following the grant date (except in the case of death, disability, or retirement, in which case immediate vesting occurs). The entire grant is expensed on a straight-line basis over the requisite service period. Based on the date that the eligible management population and performance targets were approved for MIP, we determined the award measurement date to be February 4, 2014 (for U.S.-based employees) and March 17, 2014 (for international-based employees); therefore, the Restricted Unit grant was valued for stock compensation expense purposes using the closing New York Stock Exchange price of $93.89 and $96.99 on those dates, respectively. | ||||||
Long-Term Incentive Performance Award Program ("LTIP") | ||||||
We award Restricted Units under LTIP to certain eligible management employees. For grants prior to 2014, 90% of the target award was divided into three substantially equal tranches, one for each calendar year in the three-year award cycle, using performance criteria targets established each year. The targets consisted of consolidated operating return on invested capital and growth in consolidated revenue. The remaining 10% of the total award was based upon our achievement of adjusted earnings per share compared to a target established at the grant date. The performance targets for these historical awards will continue to be determined each year, and the awards will continue to vest through 2016. | ||||||
Beginning with the LTIP grant in the first quarter of 2014, the performance targets are equally-weighted among consolidated operating return on invested capital, growth in consolidated revenue, and total shareowner return relative to a peer group of companies. These Restricted Units generally vest at the end of a three-year period (except in the case of death, disability, or retirement, in which case immediate vesting occurs on a prorated basis). The number of Restricted Units earned will be based on the percentage achievement of the performance targets set forth on the grant date. The range of percentage achievement can vary from 0% to 200% of the target award. | ||||||
For the two-thirds of the award related to consolidated operating return on invested capital and growth in consolidated revenue, we recognize the grant-date fair value of these Restricted Units (less estimated forfeitures) as compensation expense ratably over the vesting period, based on the number of awards expected to be earned. The remaining one-third of the award related to total shareowner return relative to a peer group is valued using a Monte Carlo model. This portion of the award was valued at a share payout of 109.84% of the target grant, and is recognized as compensation expense (less estimated forfeitures) ratably over the vesting period. Based on the date that the eligible management population and performance targets were approved for the 2014 LTIP Award, we determined the award measurement date to be March 4, 2014; therefore the target Restricted Units grant was valued for stock compensation expense using the closing New York Stock Exchange price of $96.98 on that date. | ||||||
Nonqualified Stock Options | ||||||
During the first quarter of 2014, we granted nonqualified stock option awards to a limited group of eligible senior management employees under the UPS Stock Option program. Stock option awards generally vest over a five-year period with approximately 20% of the award vesting at each anniversary date of the grant (except in the case of death, disability, or retirement, in which case immediate vesting occurs). The options granted will expire ten years after the date of the grant. In the first quarter of 2014 and 2013, we granted 0.1 and 0.2 million stock options, respectively, at a weighted average grant price of $96.98 and $82.93, respectively. The weighted average fair value of our employee stock options granted, as determined by the Black-Scholes valuation model, was $20.48 and $15.50 for 2014 and 2013, respectively, using the following assumptions: | ||||||
2014 | 2013 | |||||
Expected life (in years) | 7.5 | 7.5 | ||||
Risk-free interest rate | 2.4 | % | 1.38 | % | ||
Expected volatility | 24.26 | % | 24.85 | % | ||
Expected dividend yield | 2.56 | % | 2.75 | % | ||
Compensation expense for share-based awards recognized in net income for the three months ended June 30, 2014 and 2013 was $142 and $131 million pre-tax, respectively. Compensation expense for share-based awards recognized in net income for the six months ended June 30, 2014 and 2013 was $306 and $288 million pre-tax, respectively. |
INVESTMENTS_AND_RESTRICTED_CAS
INVESTMENTS AND RESTRICTED CASH | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
CASH AND INVESTMENTS | ' | |||||||||||||||
INVESTMENTS AND RESTRICTED CASH | ||||||||||||||||
The following is a summary of marketable securities classified as available-for-sale as of June 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Gains | Losses | Fair Value | ||||||||||||||
June 30, 2014 | ||||||||||||||||
Current marketable securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 332 | $ | 1 | $ | (1 | ) | $ | 332 | |||||||
Mortgage and asset-backed debt securities | 92 | 1 | (1 | ) | 92 | |||||||||||
Corporate debt securities | 1,045 | 1 | — | 1,046 | ||||||||||||
Other debt and equity securities | 73 | — | — | 73 | ||||||||||||
Total marketable securities | $ | 1,542 | $ | 3 | $ | (2 | ) | $ | 1,543 | |||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Gains | Losses | Fair Value | ||||||||||||||
December 31, 2013 | ||||||||||||||||
Current marketable securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 355 | $ | — | $ | (1 | ) | $ | 354 | |||||||
Mortgage and asset-backed debt securities | 76 | 1 | (2 | ) | 75 | |||||||||||
Corporate debt securities | 146 | 1 | (1 | ) | 146 | |||||||||||
Other debt and equity securities | 5 | — | — | 5 | ||||||||||||
Total marketable securities | $ | 582 | $ | 2 | $ | (4 | ) | $ | 580 | |||||||
Investment Other-Than-Temporary Impairments | ||||||||||||||||
We have concluded that no other-than-temporary impairment losses existed as of June 30, 2014. In making this determination, we considered the financial condition and prospects of the issuers, the magnitude of the losses compared with the investments’ cost, the length of time the investments have been in an unrealized loss position, the probability that we will be unable to collect all amounts due according to the contractual terms of the securities, the credit rating of the securities and our ability and intent to hold these investments until the anticipated recovery in market value occurs. | ||||||||||||||||
Maturity Information | ||||||||||||||||
The amortized cost and estimated fair value of marketable securities at June 30, 2014, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | ||||||||||||||||
Cost | Estimated | |||||||||||||||
Fair Value | ||||||||||||||||
Due in one year or less | $ | 990 | $ | 990 | ||||||||||||
Due after one year through three years | 445 | 445 | ||||||||||||||
Due after three years through five years | 15 | 15 | ||||||||||||||
Due after five years | 90 | 91 | ||||||||||||||
1,540 | 1,541 | |||||||||||||||
Equity securities | 2 | 2 | ||||||||||||||
$ | 1,542 | $ | 1,543 | |||||||||||||
Non-Current Investments and Restricted Cash | ||||||||||||||||
We had $426 and $425 million of restricted cash related to our self-insurance requirements as of June 30, 2014 and December 31, 2013, respectively, which is reported in “Non-Current Investments and Restricted Cash” on the consolidated balance sheets. This restricted cash is invested in money market funds and similar cash-equivalent type assets. | ||||||||||||||||
At June 30, 2014 and December 31, 2013, we held a $19 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan. This investment is classified as “Non-Current Investments and Restricted Cash” in the consolidated balance sheets with the quarterly change in investment value recognized in the statements of consolidated income. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Marketable securities utilizing Level 1 inputs include active exchange-traded equity securities and equity index funds, and most U.S. Government debt securities, as these securities all have quoted prices in active markets. Marketable securities utilizing Level 2 inputs include asset-backed securities, corporate bonds and municipal bonds. These securities are valued using market corroborated pricing, matrix pricing or other models that utilize observable inputs such as yield curves. | ||||||||||||||||
We maintain holdings in certain investment partnerships that are measured at fair value utilizing Level 3 inputs (classified as “Other investments” in the tables below and as “Other Non-Current Assets” in the consolidated balance sheets). These partnership holdings do not have quoted prices, nor can they be valued using inputs based on observable market data. These investments are valued internally using a discounted cash flow model with two significant inputs: (1) the after-tax cash flow projections for each partnership and (2) the risk-adjusted discount rate consistent with the duration of the expected cash flows for each partnership. The weighted-average discount rates used to value these investments were 8.20% and 8.65% as of June 30, 2014 and December 31, 2013, respectively. These inputs and the resulting fair values are updated on a quarterly basis. | ||||||||||||||||
The following table presents information about our investments measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): | ||||||||||||||||
Quoted Prices | Significant Other | Significant | Balance | |||||||||||||
in Active | Observable Inputs | Unobservable | ||||||||||||||
Markets for | (Level 2) | Inputs | ||||||||||||||
Identical | (Level 3) | |||||||||||||||
Assets | ||||||||||||||||
(Level 1) | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Marketable Securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 332 | $ | — | $ | — | $ | 332 | ||||||||
Mortgage and asset-backed debt securities | — | 92 | — | 92 | ||||||||||||
Corporate debt securities | — | 1,046 | — | 1,046 | ||||||||||||
Other debt and equity securities | — | 73 | — | 73 | ||||||||||||
Total marketable securities | 332 | 1,211 | — | 1,543 | ||||||||||||
Other investments | 19 | — | 95 | 114 | ||||||||||||
Total | $ | 351 | $ | 1,211 | $ | 95 | $ | 1,657 | ||||||||
Quoted Prices | Significant Other | Significant | Balance | |||||||||||||
in Active | Observable Inputs | Unobservable | ||||||||||||||
Markets for | (Level 2) | Inputs | ||||||||||||||
Identical | (Level 3) | |||||||||||||||
Assets | ||||||||||||||||
(Level 1) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Marketable Securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 353 | $ | 1 | $ | — | $ | 354 | ||||||||
Mortgage and asset-backed debt securities | — | 75 | — | 75 | ||||||||||||
Corporate debt securities | — | 146 | — | 146 | ||||||||||||
Other debt and equity securities | — | 5 | — | 5 | ||||||||||||
Total marketable securities | 353 | 227 | — | 580 | ||||||||||||
Other investments | 19 | — | 110 | 129 | ||||||||||||
Total | $ | 372 | $ | 227 | $ | 110 | $ | 709 | ||||||||
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on April 1, 2014 | $ | — | $ | 99 | $ | 99 | ||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (4 | ) | (4 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2014 | $ | — | $ | 95 | $ | 95 | ||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on April 1, 2013 | $ | — | $ | 150 | $ | 150 | ||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (14 | ) | (14 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2013 | $ | — | $ | 136 | $ | 136 | ||||||||||
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on January 1, 2014 | $ | — | 110 | 110 | ||||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (15 | ) | (15 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2014 | $ | — | $ | 95 | $ | 95 | ||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on January 1, 2013 | $ | — | 163 | 163 | ||||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (27 | ) | (27 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2013 | $ | — | $ | 136 | $ | 136 | ||||||||||
There were no transfers of investments between Level 1 and Level 2 during the three and six months ended June 30, 2014 and 2013. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment as of June 30, 2014 and December 31, 2013 consist of the following (in millions): | ||||||||
2014 | 2013 | |||||||
Vehicles | $ | 7,036 | $ | 6,762 | ||||
Aircraft | 15,785 | 15,772 | ||||||
Land | 1,164 | 1,163 | ||||||
Buildings | 3,310 | 3,260 | ||||||
Building and leasehold improvements | 3,150 | 3,116 | ||||||
Plant equipment | 7,367 | 7,221 | ||||||
Technology equipment | 1,600 | 1,569 | ||||||
Equipment under operating leases | 41 | 44 | ||||||
Construction-in-progress | 209 | 244 | ||||||
39,662 | 39,151 | |||||||
Less: Accumulated depreciation and amortization | (21,875 | ) | (21,190 | ) | ||||
$ | 17,787 | $ | 17,961 | |||||
We continually monitor our aircraft fleet utilization in light of current and projected volume levels, aircraft fuel prices and other factors. Additionally, we monitor our other property, plant and equipment categories for any indicators that the carrying value of the assets exceeds the fair value. There were no indicators of impairment in our property, plant and equipment, and no impairment charges were recorded, during the three and six months ended June 30, 2014 and 2013. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||||||
Company-Sponsored Benefit Plans | ||||||||||||||||||||||||
Information about net periodic benefit cost for our company-sponsored pension and postretirement benefit plans is as follows for the three and six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||||
U.S. Pension Benefits | U.S. Postretirement | International | ||||||||||||||||||||||
Medical Benefits | Pension Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||||
Service cost | $ | 285 | $ | 337 | $ | 18 | $ | 26 | $ | 15 | $ | 11 | ||||||||||||
Interest cost | 401 | 363 | 34 | 47 | 14 | 11 | ||||||||||||||||||
Expected return on assets | (565 | ) | (537 | ) | (6 | ) | (9 | ) | (15 | ) | (14 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | ||||||||||||||||||
Prior service cost | 43 | 43 | (4 | ) | 1 | (3 | ) | — | ||||||||||||||||
Other net (gain) loss | — | — | — | — | — | — | ||||||||||||||||||
Actuarial (gain) loss | — | — | 746 | — | — | — | ||||||||||||||||||
Settlement and curtailment loss | — | — | 320 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 164 | $ | 206 | $ | 1,108 | $ | 65 | $ | 11 | $ | 8 | ||||||||||||
U.S. Pension Benefits | U.S. Postretirement | International | ||||||||||||||||||||||
Medical Benefits | Pension Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||||
Service cost | $ | 569 | $ | 675 | $ | 39 | $ | 52 | $ | 27 | $ | 26 | ||||||||||||
Interest cost | 802 | 725 | 86 | 93 | 26 | 22 | ||||||||||||||||||
Expected return on assets | (1,129 | ) | (1,074 | ) | (12 | ) | (17 | ) | (30 | ) | (28 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | ||||||||||||||||||
Prior service cost | 85 | 86 | (3 | ) | 2 | (3 | ) | — | ||||||||||||||||
Other net (gain) loss | — | — | — | — | — | — | ||||||||||||||||||
Actuarial (gain) loss | — | — | 746 | — | — | — | ||||||||||||||||||
Settlement and curtailment loss | — | — | 320 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 327 | $ | 412 | $ | 1,176 | $ | 130 | $ | 20 | $ | 20 | ||||||||||||
During the first six months of 2014, we contributed $51 and $64 million to our company-sponsored pension and postretirement medical benefit plans, respectively. We also expect to contribute $49 and $36 million over the remainder of the year to the pension and U.S. postretirement medical benefit plans, respectively. | ||||||||||||||||||||||||
Multiemployer Benefit Plans | ||||||||||||||||||||||||
We contribute to a number of multiemployer defined benefit and health and welfare plans under terms of collective bargaining agreements that cover our union-represented employees. Our current collective bargaining agreements set forth the annual contribution increases allotted to the plans that we participate in, and we are in compliance with these contribution rates. These limitations on annual contribution rates will remain in effect throughout the terms of the existing collective bargaining agreements. | ||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013 we had $882 and $884 million, respectively, recognized in "Other Non-Current Liabilities" on our consolidated balance sheets associated with our previous withdrawal from a multiemployer pension plan. This liability is payable in equal monthly installments over a remaining term of approximately 48 years. Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of this withdrawal liability as of June 30, 2014 and December 31, 2013 was $782 and $783 million, respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. | ||||||||||||||||||||||||
Status of Collective Bargaining Agreements | ||||||||||||||||||||||||
As of December 31, 2013, we had approximately 253,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the International Brotherhood of Teamsters (“Teamsters”). These agreements ran through July 31, 2013, but had been indefinitely extended pending the ratification of a new agreement with the Teamsters. On April 24, 2014, the Teamsters ratified a new national master agreement with UPS that will expire on July 31, 2018 (discussed further below). | ||||||||||||||||||||||||
We have approximately 2,600 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association ("IPA"), which became amendable at the end of 2011. In February 2014, UPS and the IPA requested mediation by the National Mediation Board for the ongoing contract negotiations. | ||||||||||||||||||||||||
Our airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727, which became amendable November 1, 2013. In addition, approximately 3,100 of our auto and maintenance mechanics who are not employed under agreements with the Teamsters are employed under collective bargaining agreements with the International Association of Machinists and Aerospace Workers (“IAM”). Our previous agreements with the IAM ran through July 31, 2014; on July 28, 2014, the IAM ratified new collective bargaining agreements that will expire on July 31, 2019. | ||||||||||||||||||||||||
Ratification of New Collective Bargaining Agreements | ||||||||||||||||||||||||
On April 24, 2014, the Teamsters ratified a new national master agreement (“NMA”) with UPS that will expire on July 31, 2018. The UPS Freight business unit ratified its national master agreement in January 2014. | ||||||||||||||||||||||||
The economic provisions in the NMA include wage rate increases, as well as increased contribution rates for healthcare and pension benefits. Most of these economic provisions are retroactive to August 1, 2013, which is the effective date of the NMA. In the second quarter of 2014, we remitted $278 million for these retroactive economic benefits; this payment had an immaterial impact on net income, as these retroactive economic benefits had been accrued since the July 31, 2013 expiration of the prior agreement. | ||||||||||||||||||||||||
In addition to the retroactive economic provisions of the NMA, there are certain changes to the delivery of healthcare benefits that are effective at various dates. These changes impact approximately 36,000 full-time and 73,000 part-time active employees covered by the NMA and the UPS Freight collective bargaining agreement (collectively referred to as the “NMA Group”), as well as approximately 16,000 employees covered by other collective bargaining agreements (the “Non-NMA Group”). These provisions are discussed further below. | ||||||||||||||||||||||||
Changes to the Delivery of Active and Postretirement Healthcare Benefits | ||||||||||||||||||||||||
Prior to ratification, the NMA Group and Non-NMA Group employees received their healthcare benefits through UPS-sponsored active and postretirement health and welfare benefit plans. Effective June 1, 2014, we ceased providing healthcare benefits to active NMA Group employees through these UPS-sponsored benefit plans, and the responsibility for providing healthcare benefits for active employees was assumed by three separate multiemployer healthcare funds (the “Funds”). The responsibility for providing healthcare benefits for the active Non-NMA Group employees will also be assumed by the Funds on dates ranging from October 1, 2014 through January 1, 2015, depending on the ratification date of the applicable collective bargaining agreement. We will make contributions to the Funds based on negotiated fixed hourly or monthly contribution rates for the duration of the NMA and other applicable collective bargaining agreements. | ||||||||||||||||||||||||
Additionally, the Funds assumed the obligation to provide postretirement healthcare benefits to the employees in the NMA Group who retire on or after January 1, 2014. The postretirement healthcare benefit obligation for the employees in the Non-NMA Group will be assumed by the Funds for employees retiring on or after January 1, 2014 or January 1, 2015, depending on the applicable collective bargaining agreement. In exchange for the assumption of the obligation to provide postretirement healthcare benefits to the NMA Group and Non-NMA Group, we transferred cash totaling $2.271 billion to the Funds in the second quarter of 2014. UPS-sponsored health and welfare benefit plans retained responsibility for providing postretirement healthcare coverage for employees in the NMA Group who retired from UPS prior to January 1, 2014, and for employees in the Non-NMA Group who retire from UPS prior to the January 1, 2014 or January 1, 2015 effective date in the applicable collective bargaining agreement. | ||||||||||||||||||||||||
Accounting Impact of Health and Welfare Plan Changes | ||||||||||||||||||||||||
Second Quarter 2014 - Income Statement Impact: | ||||||||||||||||||||||||
We recorded a pre-tax charge of $1.066 billion ($665 million after-tax) in the second quarter of 2014 for the health and welfare plan changes described above. The components of this charge, which was included in "Compensation and benefits" expense on the statement of consolidated income, are as follows: | ||||||||||||||||||||||||
• | Partial Plan Curtailment: We recorded a $112 million pre-tax curtailment loss due to the elimination of future service benefit accruals. This curtailment loss represents the accelerated recognition of unamortized prior service costs. | |||||||||||||||||||||||
• | Remeasurement of Postretirement Obligation: We recorded a $746 million pre-tax loss due to the remeasurement of the postretirement benefit obligations of the affected UPS-sponsored health and welfare benefit plans. | |||||||||||||||||||||||
• | Settlement: We recorded a $208 million pre-tax settlement loss, which represents the recognition of unamortized actuarial losses associated with the postretirement obligation for the NMA Group. | |||||||||||||||||||||||
Second Quarter 2014 - Balance Sheet and Cash Flow Impact: | ||||||||||||||||||||||||
During the second quarter of 2014, we transferred cash totaling $2.271 billion to the Funds for the assumption of the postretirement healthcare benefit obligations. Of this cash transfer amount, $1.995 billion was accounted for as a settlement of our postretirement obligation for the NMA Group, while the remaining $276 million was accounted for as a prepaid deposit asset (recorded in "Other Current Assets" on the consolidated balance sheets) until the ratification of the collective bargaining agreements covering the Non-NMA Group. We have received approximately $375 million of cash tax benefits (through reduced U.S. Federal and state quarterly income tax payments) as of June 30, 2014, and we anticipate receiving the remaining cash tax benefits of approximately $479 million resulting from these payments over the remainder of 2014. | ||||||||||||||||||||||||
For NMA Group employees who retired prior to January 1, 2014 and remain with the UPS-sponsored health and welfare plans, the changes to the contributions, benefits and cost sharing provisions in these plans resulted in an increase in the postretirement benefit obligation, and a corresponding decrease in pre-tax accumulated other comprehensive income, of $13 million upon ratification. | ||||||||||||||||||||||||
After the remeasurement and settlement of the obligation for the NMA Group, the total postretirement medical benefit obligation was reduced by $858 million from $3.691 billion at December 31, 2013 to $2.833 billion at June 30, 2014. | ||||||||||||||||||||||||
Remainder of 2014: | ||||||||||||||||||||||||
Upon ratification of the collective bargaining agreements covering the Non-NMA Group, we plan to record a pre-tax charge of approximately $31 million for the remeasurement and settlement of the postretirement obligation associated with these employees. At the same time, the $276 million prepaid deposit asset, described previously, will be used to settle the postretirement benefit obligation for the Non-NMA Group. We anticipate the ratification of these agreements covering the Non-NMA Group will occur prior to December 31, 2014. | ||||||||||||||||||||||||
Based on the anticipated expense and contribution levels for the remainder of 2014, in addition to the remeasurement and settlement of the obligations, we expect that the total postretirement medical benefit obligation will be reduced by approximately $1.094 billion from $3.691 billion at December 31, 2013 to approximately $2.597 billion at December 31, 2014. | ||||||||||||||||||||||||
The accounting charges and other amounts described above are estimates based on actuarial valuation assumptions, and will be updated as necessary for any changes in discount rates, final collective bargaining agreement details and similar factors for the Non-NMA Group. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
The following table indicates the allocation of goodwill by reportable segment as of June 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
U.S. Domestic | International | Supply Chain & | Consolidated | |||||||||||||
Package | Package | Freight | ||||||||||||||
December 31, 2013: | $ | — | $ | 420 | $ | 1,770 | $ | 2,190 | ||||||||
Acquired | — | — | 11 | 11 | ||||||||||||
Currency / Other | — | 3 | (2 | ) | 1 | |||||||||||
June 30, 2014: | $ | — | $ | 423 | $ | 1,779 | $ | 2,202 | ||||||||
The goodwill acquired in the Supply Chain & Freight segment was related to our February 2014 acquisition of Polar Speed Distribution Limited ("Polar Speed"), a U.K.-based company that provides temperature-sensitive pharmaceutical supply chain solutions in the U.K. and continental Europe. The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. The acquisition of Polar Speed was not material to our consolidated financial position or results of operations. | ||||||||||||||||
The remaining change in goodwill for both the International Package and Supply Chain & Freight segments was due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. | ||||||||||||||||
The following is a summary of intangible assets as of June 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | ||||||||||||||
Amount | Amortization | Value | ||||||||||||||
June 30, 2014: | ||||||||||||||||
Capitalized software | $ | 2,547 | $ | (1,953 | ) | $ | 594 | |||||||||
Licenses | 225 | (121 | ) | 104 | ||||||||||||
Franchise rights | 117 | (74 | ) | 43 | ||||||||||||
Customer lists | 125 | (61 | ) | 64 | ||||||||||||
Trademarks, patents, and other | 37 | (12 | ) | 25 | ||||||||||||
Total Intangible Assets, Net | $ | 3,051 | $ | (2,221 | ) | $ | 830 | |||||||||
December 31, 2013: | ||||||||||||||||
Capitalized software | $ | 2,420 | $ | (1,897 | ) | $ | 523 | |||||||||
Licenses | 220 | (97 | ) | 123 | ||||||||||||
Franchise rights | 117 | (70 | ) | 47 | ||||||||||||
Customer lists | 118 | (62 | ) | 56 | ||||||||||||
Trademarks, patents, and other | 37 | (11 | ) | 26 | ||||||||||||
Total Intangible Assets, Net | $ | 2,912 | $ | (2,137 | ) | $ | 775 | |||||||||
DEBT_AND_FINANCING_ARRANGEMENT
DEBT AND FINANCING ARRANGEMENTS | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
DEBT AND FINANCING ARRANGEMENTS | ' | |||||||||||||
DEBT AND FINANCING ARRANGEMENTS | ||||||||||||||
The carrying value of our outstanding debt as of June 30, 2014 and December 31, 2013 consists of the following (in millions): | ||||||||||||||
Principal | Carrying Value | |||||||||||||
Amount | Maturity | 2014 | 2013 | |||||||||||
Commercial paper | $ | 1,860 | 2014 | $ | 1,860 | $ | — | |||||||
Fixed-rate senior notes: | ||||||||||||||
3.875% senior notes | — | 2014 | — | 1,007 | ||||||||||
1.125% senior notes | 375 | 2017 | 370 | 367 | ||||||||||
5.50% senior notes | 750 | 2018 | 817 | 821 | ||||||||||
5.125% senior notes | 1,000 | 2019 | 1,085 | 1,079 | ||||||||||
3.125% senior notes | 1,500 | 2021 | 1,613 | 1,579 | ||||||||||
2.45% senior notes | 1,000 | 2022 | 955 | 913 | ||||||||||
6.20% senior notes | 1,500 | 2038 | 1,481 | 1,481 | ||||||||||
4.875% senior notes | 500 | 2040 | 489 | 489 | ||||||||||
3.625% senior notes | 375 | 2042 | 367 | 367 | ||||||||||
8.375% Debentures: | ||||||||||||||
8.375% debentures | 424 | 2020 | 483 | 479 | ||||||||||
8.375% debentures | 276 | 2030 | 283 | 283 | ||||||||||
Pound Sterling notes: | ||||||||||||||
5.50% notes | 113 | 2031 | 109 | 105 | ||||||||||
5.125% notes | 775 | 2050 | 738 | 714 | ||||||||||
Floating rate senior notes | 372 | 2049-2053 | 369 | 370 | ||||||||||
Capital lease obligations | 486 | 2014-3004 | 486 | 473 | ||||||||||
Facility notes and bonds | 320 | 2015-2036 | 320 | 320 | ||||||||||
Other debt | 17 | 2014-2022 | 17 | 25 | ||||||||||
Total Debt | $ | 11,643 | 11,842 | 10,872 | ||||||||||
Less: Current Maturities | (1,902 | ) | (48 | ) | ||||||||||
Long-term Debt | $ | 9,940 | $ | 10,824 | ||||||||||
Debt Repayments | ||||||||||||||
On April 1, 2014, our $1.0 billion 3.875% senior notes matured and were repaid in full. The principal balance of the senior notes was repaid from the proceeds of short-term commercial paper issuances. | ||||||||||||||
Sources of Credit | ||||||||||||||
We are authorized to borrow up to $10.0 billion under the U.S. commercial paper program we maintain. We had $1.860 billion outstanding under this program as of June 30, 2014, with an average interest rate of 0.10%. We also maintain a European commercial paper program under which we are authorized to borrow up to €5.0 billion in a variety of currencies. As of June 30, 2014, there were no amounts outstanding under this program. As of June 30, 2014, we have classified the entire commercial paper balance as a current liability on our consolidated balance sheet. | ||||||||||||||
We maintain two credit agreements with a consortium of banks. One of these agreements provides revolving credit facilities of $1.5 billion, and expires on March 27, 2015. Generally, amounts outstanding under this facility bear interest at a periodic fixed rate equal to LIBOR for the applicable interest period and currency denomination, plus an applicable margin. Alternatively, a fluctuating rate of interest equal to the highest of (1) JPMorgan Chase Bank’s publicly announced prime rate; (2) the Federal Funds effective rate plus 0.50%; and (3) LIBOR for a one month interest period plus 1.00%, plus an applicable margin, may be used at our discretion. In each case, the applicable margin for advances bearing interest based on LIBOR is a percentage determined by quotations from Markit Group Ltd. for our 1-year credit default swap spread, subject to a minimum rate of 0.10% and a maximum rate of 0.75%. The applicable margin for advances bearing interest based on the prime rate is 1.00% below the applicable margin for LIBOR advances (but not lower than 0.00%). We are also able to request advances under this facility based on competitive bids for the applicable interest rate. There were no amounts outstanding under this facility as of June 30, 2014. | ||||||||||||||
The second agreement provides revolving credit facilities of $1.0 billion, and expires on March 28, 2019. Generally, amounts outstanding under this facility bear interest at a periodic fixed rate equal to LIBOR for the applicable interest period and currency denomination, plus an applicable margin. Alternatively, a fluctuating rate of interest equal to the highest of (1) JPMorgan Chase Bank’s publicly announced prime rate; (2) the Federal Funds effective rate plus 0.50%; and (3) LIBOR for a one month interest period plus 1.00%, plus an applicable margin, may be used at our discretion. In each case, the applicable margin for advances bearing interest based on LIBOR is a percentage determined by quotations from Markit Group Ltd. for our credit default swap spread, interpolated for a period from the date of determination of such credit default swap spread in connection with a new interest period until the latest maturity date of this facility then in effect (but not less than a period of one year). The minimum applicable margin rate is 0.10% and the maximum applicable margin rate is 0.75% per annum. The applicable margin for advances bearing interest based on the prime rate is 1.00% below the applicable margin for LIBOR advances (but not less than 0.00%). We are also able to request advances under this facility based on competitive bids. There were no amounts outstanding under this facility as of June 30, 2014. | ||||||||||||||
Debt Covenants | ||||||||||||||
Our existing debt instruments and credit facilities subject us to certain financial covenants. As of June 30, 2014 and for all prior periods, we have satisfied these financial covenants. These covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions, to 10% of net tangible assets. As of June 30, 2014, 10% of net tangible assets was equivalent to $2.349 billion; however, we have no covered sale-leaseback transactions or secured indebtedness outstanding. We do not expect these covenants to have a material impact on our financial condition or liquidity. | ||||||||||||||
Fair Value of Debt | ||||||||||||||
Based on the borrowing rates currently available to the Company for long-term debt with similar terms and maturities, the fair value of long-term debt, including current maturities, was approximately $13.046 and $11.756 billion as of June 30, 2014 and December 31, 2013, respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of all of our debt instruments. |
LEGAL_PROCEEDINGS_AND_CONTINGE
LEGAL PROCEEDINGS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
LEGAL PROCEEDINGS AND CONTINGENCIES | ' |
LEGAL PROCEEDINGS AND CONTINGENCIES | |
We are involved in a number of judicial proceedings and other matters arising from the conduct of our business activities. | |
Although there can be no assurance as to the ultimate outcome, we have generally denied, or believe we have a meritorious defense and will deny, liability in all litigation pending against us, including (except as otherwise noted herein) the matters described below, and we intend to defend vigorously each case. We have accrued for legal claims when, and to the extent that, amounts associated with the claims become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for those claims. | |
For those matters as to which we are not able to estimate a possible loss or range of loss, we are not able to determine whether the loss will have a material adverse effect on our business, financial condition or results of operations or liquidity. For matters in this category, we have indicated in the descriptions that follow the reasons that we are unable to estimate the possible loss or range of loss. | |
Judicial Proceedings | |
We are a defendant in a number of lawsuits filed in state and federal courts containing various class action allegations under state wage-and-hour laws. At this time, we do not believe that any loss associated with these matters would have a material adverse effect on our financial condition, results of operations or liquidity. | |
UPS and our subsidiary Mail Boxes Etc., Inc. are defendants in a lawsuit in California Superior Court about the rebranding of The UPS Store franchises. In the Morgate case, the plaintiffs are (1) 125 individual franchisees who did not rebrand to The UPS Store; and (2) a certified class of all franchisees who did rebrand. With respect to the 125 individual franchisees described in (1) above, the trial court entered judgment against a bellwether individual plaintiff, which was affirmed in January 2012. In March 2013, we reached a settlement with the remaining individual plaintiffs who did not rebrand; this settlement did not have a material adverse effect on our financial condition, results of operations or liquidity. The trial court granted our motion for summary judgment against the certified class described in (2) above, which was reversed in January 2012. We have not reached a settlement with this class of franchisees, and the claims of the class remain pending. The trial is scheduled for February 2015. | |
There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from the remaining aspects of this case, including: (1) we are vigorously defending ourselves and believe we have a number of meritorious legal defenses; and (2) it remains uncertain what evidence of damages, if any, plaintiffs will be able to present. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. | |
In AFMS LLC v. UPS and FedEx Corporation, a lawsuit filed in federal court in the Central District of California in August 2010, the plaintiff asserts that UPS and FedEx violated U.S. antitrust law by conspiring to refuse to negotiate with third-party negotiators retained by shippers and by individually imposing policies that prevent shippers from using such negotiators. UPS and FedEx have moved for summary judgment. There has been no ruling on those motions. The case does not have a trial date scheduled. The Antitrust Division of the U.S. Department of Justice (“DOJ”) has an ongoing civil investigation of our policies and practices for dealing with third-party negotiators. We are cooperating with this investigation. We deny any liability with respect to these matters and intend to vigorously defend ourselves. There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from these matters including: (1) we believe that we have a number of meritorious defenses; (2) the Court has not ruled on the pending dispositive motions; and (3) the DOJ investigation is pending. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from these matters or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. | |
In Canada, four purported class-action cases were filed against us in British Columbia (2006); Ontario (2007) and Québec (2006 and 2013). The cases each allege inadequate disclosure concerning the existence and cost of brokerage services provided by us under applicable provincial consumer protection legislation and infringement of interest restriction provisions under the Criminal Code of Canada. The British Columbia class action was declared inappropriate for certification and dismissed by the trial judge. That decision was upheld by the British Columbia Court of Appeal in March 2010, which ended the case in our favor. The Ontario class action was certified in September 2011. Partial summary judgment was granted to us and the plaintiffs by the Ontario motions court. The complaint under the Criminal Code was dismissed. No appeal is being taken from that decision. The allegations of inadequate disclosure were granted and we are appealing that decision. The motion to authorize the 2006 Québec litigation as a class action was dismissed by the motions judge in October 2012; there was no appeal, which ended that case in our favor. The 2013 Québec litigation also has been dismissed. We deny all liability and are vigorously defending the one outstanding case in Ontario. There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from this matter, including: (1) we are vigorously defending ourselves and believe that we have a number of meritorious legal defenses; and (2) there are unresolved questions of law and fact that could be important to the ultimate resolution of this matter. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. | |
Other Matters | |
On March 29, 2013, we entered into a Non-Prosecution Agreement (“NPA”) with the United States Attorney's Office in the Northern District of California in connection with an investigation by the Drug Enforcement Administration of shipments by illicit online pharmacies. Under the NPA, we forfeited $40 million to the government, admitted to a Statement of Facts describing the conduct leading to the agreement, and agreed to implement an online pharmacy compliance program. The term of the NPA is two years. We have petitioned the government to shorten that term in its discretion to a lesser period pursuant to the terms of the NPA. The NPA did not have a material impact on our financial condition, results of operations or liquidity in 2013. | |
In August 2010, competition authorities in Brazil opened an administrative proceeding to investigate alleged anticompetitive behavior in the freight forwarding industry. Approximately 45 freight forwarding companies and individuals are named in the proceeding, including UPS, UPS SCS Transportes (Brasil) S.A., and a former employee in Brazil. UPS submitted its written defenses to these allegations in April 2014. In November 2012, the Commerce Commission of Singapore initiated an investigation with respect to similar matters. | |
We are cooperating with each of these investigations, and intend to continue to vigorously defend ourselves. There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from these matters including: (1) we are vigorously defending each matter and believe that we have a number of meritorious legal defenses; (2) there are unresolved questions of law that could be of importance to the ultimate resolutions of these matters, including the calculation of any potential fine; and (3) there is uncertainty about the time period that is the subject of the investigations. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from these matters or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. | |
In January 2008, a class action complaint was filed in the United States District Court for the Eastern District of New York alleging price-fixing activities relating to the provision of freight forwarding services. UPS was not named in this case. In July 2009, the plaintiffs filed a First Amended Complaint naming numerous global freight forwarders as defendants. UPS and UPS Supply Chain Solutions are among the 60 defendants named in the amended complaint. The plaintiffs filed a Second Amended Complaint in October 2010, which we moved to dismiss. In August 2012, the Court granted our motion to dismiss all claims relevant to UPS in the Second Amended Complaint, with leave to amend. The plaintiffs filed a Third Amended Complaint in November 2012. We filed another motion to dismiss. In January 2014, the Court dismissed UPS from one of the claims in the Third Amended Complaint with prejudice, but denied UPS's motion to dismiss with respect to the other claims asserted against UPS. In June 2014, UPS entered into an agreement in principle with the plaintiffs to settle the remaining claims asserted against UPS for an immaterial amount. This agreement in principle is subject to the negotiation of final settlement documents and court approval of the settlement. | |
In January 2014, we received a Civil Investigative Demand from the Department of Justice seeking documents related to possible violations of the False Claims Act ("FCA") in connection with delivery services provided to government customers where guaranteed commitment times allegedly were not met. The General Services Administration - Office of Inspector General had previously sought similar documents. We have been contacted by several states requesting similar information. The Company has been cooperating with these inquiries. | |
It is not possible to predict the potential outcome of these matters at this stage, or to reasonably estimate the range or amount of possible loss, if any, that may result from these investigations based on a number of factors, including: (1) the investigations are not complete; (2) these matters are at an early stage and there are unresolved questions of law and fact that could be of importance to the ultimate resolution of these matters; (3) the scope and size of potentially affected government customers and the time period covered by potential claims remains uncertain; and (4) our current intention to vigorously defend any claims of FCA violations. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from these matters or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. | |
We are a defendant in various other lawsuits that arose in the normal course of business. We do not believe that the eventual resolution of these other lawsuits (either individually or in the aggregate), including any reasonably possible losses in excess of current accruals, will have a material adverse effect on our financial condition, results of operations or liquidity. |
SHAREOWNERS_EQUITY
SHAREOWNERS' EQUITY | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
SHAREOWNERS' EQUITY | ' | |||||||||||||
SHAREOWNERS' EQUITY | ||||||||||||||
Capital Stock, Additional Paid-In Capital and Retained Earnings | ||||||||||||||
We maintain two classes of common stock, which are distinguished from each other primarily by their respective voting rights. Class A shares are entitled to 10 votes per share, whereas class B shares are entitled to one vote per share. Class A shares are primarily held by UPS employees and retirees, and these shares are fully convertible on a one-to-one basis into class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange under the symbol “UPS”. Class A and B shares both have a $0.01 par value, and as of June 30, 2014, there were 4.6 billion class A shares and 5.6 billion class B shares authorized to be issued. Additionally, there are 200 million preferred shares, with a $0.01 par value, authorized to be issued; as of June 30, 2014, no preferred shares had been issued. | ||||||||||||||
The following is a rollforward of our common stock, additional paid-in capital and retained earnings accounts for the six months ended June 30, 2014 and 2013 (in millions, except per share amounts): | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||
Class A Common Stock | ||||||||||||||
Balance at beginning of period | 212 | $ | 2 | 225 | $ | 3 | ||||||||
Common stock purchases | (3 | ) | — | (4 | ) | (1 | ) | |||||||
Stock award plans | 4 | — | 5 | — | ||||||||||
Common stock issuances | 1 | — | 2 | — | ||||||||||
Conversions of class A to class B common stock | (6 | ) | — | (10 | ) | — | ||||||||
Class A shares issued at end of period | 208 | $ | 2 | 218 | $ | 2 | ||||||||
Class B Common Stock | ||||||||||||||
Balance at beginning of period | 712 | $ | 7 | 729 | $ | 7 | ||||||||
Common stock purchases | (11 | ) | — | (18 | ) | — | ||||||||
Conversions of class A to class B common stock | 6 | — | 10 | — | ||||||||||
Class B shares issued at end of period | 707 | $ | 7 | 721 | $ | 7 | ||||||||
Additional Paid-In Capital | ||||||||||||||
Balance at beginning of period | $ | — | $ | — | ||||||||||
Stock award plans | 232 | 364 | ||||||||||||
Common stock purchases | (481 | ) | (114 | ) | ||||||||||
Common stock issuances | 147 | 149 | ||||||||||||
Option premiums received (paid) | 102 | (399 | ) | |||||||||||
Balance at end of period | $ | — | $ | — | ||||||||||
Retained Earnings | ||||||||||||||
Balance at beginning of period | $ | 6,925 | $ | 7,997 | ||||||||||
Net income attributable to common shareowners | 1,365 | 2,108 | ||||||||||||
Dividends ($1.34 and $1.24 per share) | (1,253 | ) | (1,199 | ) | ||||||||||
Common stock purchases | (882 | ) | (1,721 | ) | ||||||||||
Balance at end of period | $ | 6,155 | $ | 7,185 | ||||||||||
In total, we repurchased 13.7 million shares of class A and class B common stock for $1.363 billion during the six months ended June 30, 2014, and 21.8 million shares for $1.836 billion during the six months ended June 30, 2013. In February 2013, the Board of Directors approved a new share repurchase authorization of $10.0 billion, which has no expiration date. Share repurchases may take the form of accelerated share repurchases, open market purchases, or other such methods as we deem appropriate. The timing of our share repurchases will depend upon market conditions. Unless terminated earlier by the resolution of our Board, the program will expire when we have purchased all shares authorized for repurchase under the program. As of June 30, 2014, we had $5.451 billion of this share repurchase authorization available. | ||||||||||||||
From time to time, we enter into share repurchase programs with large financial institutions to assist in our buyback of company stock. These programs allow us to repurchase our shares at a price below the weighted average UPS share price for a given period. During the second quarter of 2014, we entered into an accelerated share repurchase program which allowed us to repurchase 2.8 million shares for $325 million. The program was completed in June 2014. | ||||||||||||||
In order to lower the average cost of acquiring shares in our ongoing share repurchase program, we periodically enter into structured repurchase agreements involving the use of capped call options for the purchase of UPS class B shares. We pay a fixed sum of cash upon execution of each agreement in exchange for the right to receive either a pre-determined amount of cash or stock. Upon expiration of each agreement, if the closing market price of our common stock is above the pre-determined price, we will have our initial investment returned with a premium in either cash or shares (at our election). If the closing market price of our common stock is at or below the pre-determined price, we will receive the number of shares specified in the agreement. During the six months ended June 30, 2014, we settled $200 million in options that resulted in the receipt of $2 million in premiums (in excess of our initial investment). Of the total options settled, $100 million were entered into during the fourth quarter of 2013. As of June 30, 2013, we paid premiums of $400 million on options for the purchase of 5.3 million shares that settled in the second half of 2013. During the six months ended June 30, 2013, we settled options that resulted in the receipt of $1 million in premiums (in excess of our initial investment). | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
We experience activity in AOCI for unrealized holding gains and losses on available-for-sale securities, foreign currency translation adjustments, unrealized gains and losses from derivatives that qualify as hedges of cash flows and unrecognized pension and postretirement benefit costs. The activity in AOCI for the six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||
2014 | 2013 | |||||||||||||
Foreign currency translation gain (loss): | ||||||||||||||
Balance at beginning of period | $ | (126 | ) | $ | 134 | |||||||||
Reclassification to earnings (no tax impact in either period) | — | (161 | ) | |||||||||||
Translation adjustment (net of tax effect of $3 and $3) | 3 | (166 | ) | |||||||||||
Balance at end of period | (123 | ) | (193 | ) | ||||||||||
Unrealized gain (loss) on marketable securities, net of tax: | ||||||||||||||
Balance at beginning of period | (1 | ) | 6 | |||||||||||
Current period changes in fair value (net of tax effect of $1 and $(5)) | 2 | (8 | ) | |||||||||||
Reclassification to earnings (no tax impact in either period) | — | — | ||||||||||||
Balance at end of period | 1 | (2 | ) | |||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||||||||||
Balance at beginning of period | (219 | ) | (286 | ) | ||||||||||
Current period changes in fair value (net of tax effect of $(27) and $(14)) | (44 | ) | (22 | ) | ||||||||||
Reclassification to earnings (net of tax effect of $1 and $48) | 3 | 80 | ||||||||||||
Balance at end of period | (260 | ) | (228 | ) | ||||||||||
Unrecognized pension and postretirement benefit costs, net of tax: | ||||||||||||||
Balance at beginning of period | (114 | ) | (3,208 | ) | ||||||||||
Reclassification to earnings (net of tax effect of $430 and $34) | 715 | 54 | ||||||||||||
Remeasurement of plan assets and liabilities (net of tax effect of $(488) and $0) | (815 | ) | — | |||||||||||
Balance at end of period | (214 | ) | (3,154 | ) | ||||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (596 | ) | $ | (3,577 | ) | ||||||||
Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||
Three Months Ended June 30: | ||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Income Statement | |||||||||||||
2014 | 2013 | |||||||||||||
Foreign currency translation gain (loss): | ||||||||||||||
Liquidation of foreign subsidiary | $ | — | $ | — | Other expenses | |||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | — | Net income | |||||||||||
Unrealized gain (loss) on marketable securities: | ||||||||||||||
Realized gain (loss) on sale of securities | — | — | Investment income | |||||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | — | Net income | |||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||
Interest rate contracts | (5 | ) | (5 | ) | Interest expense | |||||||||
Foreign exchange contracts | 20 | 6 | Interest expense | |||||||||||
Foreign exchange contracts | (12 | ) | (12 | ) | Revenue | |||||||||
Commodity contracts | — | (38 | ) | Fuel expense | ||||||||||
Income tax (expense) benefit | (2 | ) | 18 | Income tax expense | ||||||||||
Impact on net income | 1 | (31 | ) | Net income | ||||||||||
Unrecognized pension and postretirement benefit costs: | ||||||||||||||
Prior service costs | (36 | ) | (44 | ) | Compensation and benefits | |||||||||
Settlement and curtailment loss | (320 | ) | — | Compensation and benefits | ||||||||||
Remeasurement of benefit obligation | (746 | ) | — | Compensation and benefits | ||||||||||
Income tax (expense) benefit | 414 | 16 | Income tax expense | |||||||||||
Impact on net income | (688 | ) | (28 | ) | Net income | |||||||||
Total amount reclassified for the period | $ | (687 | ) | $ | (59 | ) | Net income | |||||||
Six Months Ended June 30: | ||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Income Statement | |||||||||||||
2014 | 2013 | |||||||||||||
Foreign currency translation gain (loss): | ||||||||||||||
Liquidation of foreign subsidiary | $ | — | $ | 161 | Other expenses | |||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | 161 | Net income | |||||||||||
Unrealized gain (loss) on marketable securities: | ||||||||||||||
Realized gain (loss) on sale of securities | — | — | Investment income | |||||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | — | Net income | |||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||
Interest rate contracts | (11 | ) | (10 | ) | Interest expense | |||||||||
Foreign exchange contracts | 28 | (44 | ) | Interest expense | ||||||||||
Foreign exchange contracts | (21 | ) | (26 | ) | Revenue | |||||||||
Commodity contracts | — | (48 | ) | Fuel expense | ||||||||||
Income tax (expense) benefit | 1 | 48 | Income tax expense | |||||||||||
Impact on net income | (3 | ) | (80 | ) | Net income | |||||||||
Unrecognized pension and postretirement benefit costs: | ||||||||||||||
Prior service costs | (79 | ) | (88 | ) | Compensation and benefits | |||||||||
Settlement and curtailment loss | (320 | ) | — | Compensation and benefits | ||||||||||
Remeasurement of benefit obligation | (746 | ) | — | Compensation and benefits | ||||||||||
Income tax (expense) benefit | 430 | 34 | Income tax expense | |||||||||||
Impact on net income | (715 | ) | (54 | ) | Net income | |||||||||
Total amount reclassified for the period | $ | (718 | ) | $ | 27 | Net income | ||||||||
Deferred Compensation Obligations and Treasury Stock | ||||||||||||||
Activity in the deferred compensation program for the six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||
Deferred Compensation Obligations: | ||||||||||||||
Balance at beginning of period | $ | 69 | $ | 78 | ||||||||||
Reinvested dividends | 1 | 2 | ||||||||||||
Benefit payments | (12 | ) | (13 | ) | ||||||||||
Balance at end of period | $ | 58 | $ | 67 | ||||||||||
Treasury Stock: | ||||||||||||||
Balance at beginning of period | (1 | ) | $ | (69 | ) | (1 | ) | $ | (78 | ) | ||||
Reinvested dividends | — | (1 | ) | — | (2 | ) | ||||||||
Benefit payments | — | 12 | — | 13 | ||||||||||
Balance at end of period | (1 | ) | $ | (58 | ) | (1 | ) | $ | (67 | ) | ||||
Noncontrolling Interests: | ||||||||||||||
We have noncontrolling interests in certain consolidated subsidiaries in our International Package and Supply Chain & Freight segments. The activity related to our noncontrolling interests is presented below for the six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||
2014 | 2013 | |||||||||||||
Noncontrolling Interests: | ||||||||||||||
Balance at beginning of period | $ | 14 | $ | 80 | ||||||||||
Acquired noncontrolling interests | 3 | (67 | ) | |||||||||||
Dividends attributable to noncontrolling interests | — | — | ||||||||||||
Net income attributable to noncontrolling interests | — | — | ||||||||||||
Balance at end of period | $ | 17 | $ | 13 | ||||||||||
The reduction in our noncontrolling interests in 2013 primarily relates to our purchase of the remaining noncontrolling interest in a joint venture that operates in the Middle East, Turkey and portions of the Central Asia region for $70 million. After this transaction, we own 100% of this entity. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
We report our operations in three segments: U.S. Domestic Package operations, International Package operations and Supply Chain & Freight operations. Package operations represent our most significant business and are broken down into regional operations around the world. Regional operations managers are responsible for both domestic and export operations within their geographic area. | ||||||||||||||||
U.S. Domestic Package | ||||||||||||||||
Domestic Package operations include the time-definite delivery of letters, documents and packages throughout the United States. | ||||||||||||||||
International Package | ||||||||||||||||
International Package operations include delivery to more than 220 countries and territories worldwide, including shipments wholly outside the United States, as well as U.S. export and U.S. import shipments. Our International Package reporting segment includes the operations of our Europe, Asia, Americas and ISMEA (Indian Subcontinent, Middle East and Africa) operating segments. | ||||||||||||||||
Supply Chain & Freight | ||||||||||||||||
Supply Chain & Freight includes the operations of our forwarding, logistics and freight units, as well as other aggregated businesses. Our forwarding and logistics business provides services in more than 195 countries and territories worldwide, and includes supply chain design and management, freight distribution, customs brokerage, mail and consulting services. UPS Freight offers a variety of less-than-truckload (“LTL”) and truckload (“TL”) services to customers in North America. Other aggregated business units within this segment include The UPS Store and UPS Capital. | ||||||||||||||||
In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating profit is before investment income, interest expense and income taxes. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies included in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013, with certain expenses allocated between the segments using activity-based costing methods. Unallocated assets are comprised primarily of cash, marketable securities and investments in limited partnerships. | ||||||||||||||||
Segment information for the three and six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
U.S. Domestic Package | $ | 8,668 | $ | 8,241 | $ | 17,156 | $ | 16,512 | ||||||||
International Package | 3,252 | 3,062 | 6,379 | 6,040 | ||||||||||||
Supply Chain & Freight | 2,348 | 2,204 | 4,512 | 4,389 | ||||||||||||
Consolidated | $ | 14,268 | $ | 13,507 | $ | 28,047 | $ | 26,941 | ||||||||
Operating Profit: | ||||||||||||||||
U.S. Domestic Package | $ | 209 | $ | 1,132 | $ | 1,136 | $ | 2,217 | ||||||||
International Package | 444 | 451 | 882 | 803 | ||||||||||||
Supply Chain & Freight | 94 | 159 | 242 | 302 | ||||||||||||
Consolidated | $ | 747 | $ | 1,742 | $ | 2,260 | $ | 3,322 | ||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to common shareowners | $ | 454 | $ | 1,071 | $ | 1,365 | $ | 2,108 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares | 916 | 941 | 918 | 945 | ||||||||||||
Deferred compensation obligations | 1 | 1 | 1 | 1 | ||||||||||||
Vested portion of restricted shares | 1 | 1 | 1 | 2 | ||||||||||||
Denominator for basic earnings per share | 918 | 943 | 920 | 948 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted shares | 8 | 8 | 8 | 7 | ||||||||||||
Stock options | 1 | 1 | 1 | 1 | ||||||||||||
Denominator for diluted earnings per share | 927 | 952 | 929 | 956 | ||||||||||||
Basic earnings per share | $ | 0.49 | $ | 1.14 | $ | 1.48 | $ | 2.22 | ||||||||
Diluted earnings per share | $ | 0.49 | $ | 1.13 | $ | 1.47 | $ | 2.21 | ||||||||
Diluted earnings per share for the three months ended June 30, 2014 and 2013 exclude the effect of 0.1 and 0.0 million shares of common stock (0.1 million for the six months ended June 30, 2014 and 2013) respectively, that may be issued upon the exercise of employee stock options because such effect would be antidilutive. |
DERIVATIVE_INSTRUMENTS_AND_RIS
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | ' | |||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | ||||||||||||||||||||||
Risk Management Policies | ||||||||||||||||||||||
We are exposed to market risk, primarily related to foreign exchange rates, commodity prices and interest rates. These exposures are actively monitored by management. To manage the volatility relating to certain of these exposures, we enter into a variety of derivative financial instruments. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency rates, commodity prices and interest rates. It is our policy and practice to use derivative financial instruments only to the extent necessary to manage exposures. As we use price sensitive instruments to hedge a certain portion of our existing and anticipated transactions, we expect that any loss in value for those instruments generally would be offset by increases in the value of those hedged transactions. We do not hold or issue derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||||||
Credit Risk Management | ||||||||||||||||||||||
The forward contracts, swaps and options discussed below contain an element of risk that the counterparties may be unable to meet the terms of the agreements; however, we minimize such risk exposures for these instruments by limiting the counterparties to banks and financial institutions that meet established credit guidelines, and by monitoring counterparty credit risk to prevent concentrations of credit risk with any single counterparty. | ||||||||||||||||||||||
We have agreements with all of our active counterparties (covering the majority of our derivative positions) containing early termination rights and/or zero threshold bilateral collateral provisions whereby cash is required based on the net fair value of derivatives associated with those counterparties. Events such as a counterparty credit rating downgrade (depending on the ultimate rating level) could also allow us to take additional protective measures such as the early termination of trades. At June 30, 2014, we held cash collateral of $188 million under these agreements. | ||||||||||||||||||||||
In connection with the zero threshold bilateral collateral provisions described above, we were required to post $10 million in collateral with our counterparties as of June 30, 2014. As of that date, there were no instruments in a net liability position that were not covered by the zero threshold bilateral collateral provisions. Additionally, in connection with the agreements described above, we could be required to terminate transactions with certain counterparties in the event of a downgrade of our credit rating. | ||||||||||||||||||||||
We have not historically incurred, and do not expect to incur in the future, any losses as a result of counterparty default. | ||||||||||||||||||||||
Accounting Policy for Derivative Instruments | ||||||||||||||||||||||
We recognize all derivative instruments as assets or liabilities in the consolidated balance sheets at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the derivative, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge or a hedge of a net investment in a foreign operation. | ||||||||||||||||||||||
A cash flow hedge refers to hedging the exposure to variability in expected future cash flows that is attributable to a particular risk. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI, and reclassified into earnings in the same period during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, or hedge components excluded from the assessment of effectiveness, are recognized in the statements of consolidated income during the current period. | ||||||||||||||||||||||
A fair value hedge refers to hedging the exposure to changes in the fair value of an existing asset or liability on the consolidated balance sheets that is attributable to a particular risk. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument is recognized in the statements of consolidated income during the current period, as well as the offsetting gain or loss on the hedged item. | ||||||||||||||||||||||
A net investment hedge refers to the use of cross currency swaps, forward contracts or foreign currency denominated debt to hedge portions of our net investments in foreign operations. For hedges that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in the cumulative translation adjustment within AOCI. The remainder of the change in value of such instruments is recorded in earnings. | ||||||||||||||||||||||
Types of Hedges | ||||||||||||||||||||||
Commodity Risk Management | ||||||||||||||||||||||
Currently, the fuel surcharges that we apply to our domestic and international package and LTL services are the primary means of reducing the risk of adverse fuel price changes on our business. We periodically enter into option contracts on energy commodity products to manage the price risk associated with forecasted transactions involving refined fuels, principally jet-A, diesel and unleaded gasoline. The objective of the hedges is to reduce the variability of cash flows, due to changing fuel prices, associated with the forecasted transactions involving those products. We have designated and account for these contracts as cash flow hedges of the underlying forecasted transactions involving these fuel products and, therefore, the resulting gains and losses from these hedges are recognized as a component of fuel expense or revenue when the underlying transactions occur. | ||||||||||||||||||||||
Foreign Currency Risk Management | ||||||||||||||||||||||
To protect against the reduction in value of forecasted foreign currency cash flows from our international package business, we maintain a foreign currency cash flow hedging program. Our most significant foreign currency exposures relate to the Euro, British Pound Sterling, Canadian Dollar, Chinese Renminbi and Hong Kong Dollar. We hedge portions of our forecasted revenue denominated in foreign currencies with option contracts. We have designated and account for these contracts as cash flow hedges of anticipated foreign currency denominated revenue and, therefore, the resulting gains and losses from these hedges are recognized as a component of international package revenue when the underlying sales transactions occur. | ||||||||||||||||||||||
We also hedge portions of our anticipated cash settlements of intercompany transactions subject to foreign currency remeasurement using foreign currency forward contracts. We have designated and account for these contracts as cash flow hedges of forecasted foreign currency denominated transactions; therefore, the resulting gains and losses from these hedges are recognized as a component of other operating expense when the underlying transactions are subject to currency remeasurement. | ||||||||||||||||||||||
We have foreign currency denominated debt obligations and capital lease obligations associated with our aircraft. For some of these debt obligations and leases, we hedge the foreign currency denominated contractual payments using cross-currency interest rate swaps, which effectively convert the foreign currency denominated contractual payments into U.S. Dollar denominated payments. We have designated and account for these swaps as cash flow hedges of the forecasted contractual payments; therefore, the resulting gains and losses from these hedges are recognized in the statements of consolidated income when the currency remeasurement gains and losses on the underlying debt obligations and leases are incurred. | ||||||||||||||||||||||
Interest Rate Risk Management | ||||||||||||||||||||||
Our indebtedness under our various financing arrangements creates interest rate risk. We use a combination of derivative instruments, including interest rate swaps and cross-currency interest rate swaps, as part of our program to manage the fixed and floating interest rate mix of our total debt portfolio and related overall cost of borrowing. The notional amount, interest payment date and maturity date of the swaps match the terms of the associated debt being hedged. Interest rate swaps allow us to maintain a target range of floating rate debt within our capital structure. | ||||||||||||||||||||||
We have designated and account for the majority of our interest rate swaps that convert fixed rate interest payments into floating rate interest payments as hedges of the fair value of the associated debt instruments. Therefore, the gains and losses resulting from fair value adjustments to the interest rate swaps and fair value adjustments to the associated debt instruments are recorded to interest expense in the period in which the gains and losses occur. We have designated and account for interest rate swaps that convert floating rate interest payments into fixed rate interest payments as cash flow hedges of the forecasted payment obligations. The gains and losses resulting from fair value adjustments to the interest rate swaps are recorded to AOCI. | ||||||||||||||||||||||
We periodically hedge the forecasted fixed-coupon interest payments associated with anticipated debt offerings, using forward starting interest rate swaps, interest rate locks or similar derivatives. These agreements effectively lock a portion of our interest rate exposure between the time the agreement is entered into and the date when the debt offering is completed, thereby mitigating the impact of interest rate changes on future interest expense. These derivatives are settled commensurate with the issuance of the debt, and any gain or loss upon settlement is amortized as an adjustment to the effective interest yield on the debt. | ||||||||||||||||||||||
Outstanding Positions | ||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the notional amounts of our outstanding derivative positions were as follows (in millions): | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Currency hedges: | ||||||||||||||||||||||
British Pound Sterling | GBP | 1,308 | GBP | 1,097 | ||||||||||||||||||
Canadian Dollar | CAD | 436 | CAD | 218 | ||||||||||||||||||
Euro | EUR | 3,479 | EUR | 2,637 | ||||||||||||||||||
Indian Rupee | INR | 214 | INR | — | ||||||||||||||||||
Malaysian Ringgit | MYR | 155 | MYR | — | ||||||||||||||||||
Mexican Peso | MXN | 1,176 | MXN | 583 | ||||||||||||||||||
Chinese Renminbi | CNH | 211 | CNH | — | ||||||||||||||||||
Interest rate hedges: | ||||||||||||||||||||||
Fixed to Floating Interest Rate Swaps | $ | 5,799 | $ | 6,799 | ||||||||||||||||||
Floating to Fixed Interest Rate Swaps | $ | 780 | $ | 780 | ||||||||||||||||||
Interest Rate Basis Swaps | $ | 1,500 | $ | 2,500 | ||||||||||||||||||
Balance Sheet Recognition and Fair Value Measurements | ||||||||||||||||||||||
The following table indicates the location on the consolidated balance sheets in which our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives (in millions). The table is segregated between those derivative instruments that qualify and are designated as hedging instruments and those that are not, as well as by type of contract and whether the derivative is in an asset or liability position. | ||||||||||||||||||||||
We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded on our consolidated balance sheets. The columns labeled "Net Amounts if Right of Offset had been Applied" indicate the potential net fair value positions by type of contract and location on the consolidated balance sheets had we elected to apply the right of offset. | ||||||||||||||||||||||
Fair Value Hierarchy Level | Gross Amounts Presented in | Net Amounts if Right of | ||||||||||||||||||||
Consolidated Balance Sheets | Offset had been Applied | |||||||||||||||||||||
Asset Derivatives | Balance Sheet Location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current assets | Level 2 | $ | 8 | $ | 10 | $ | 8 | $ | 4 | ||||||||||||
Interest rate contracts | Other current assets | Level 2 | — | 7 | — | 7 | ||||||||||||||||
Foreign exchange contracts | Other non-current assets | Level 2 | 43 | 59 | 39 | 59 | ||||||||||||||||
Interest rate contracts | Other non-current assets | Level 2 | 242 | 204 | 191 | 110 | ||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current assets | Level 2 | 9 | 7 | 8 | 5 | ||||||||||||||||
Interest rate contracts | Other non-current assets | Level 2 | 57 | 60 | 57 | 57 | ||||||||||||||||
Total Asset Derivatives | $ | 359 | $ | 347 | $ | 303 | $ | 242 | ||||||||||||||
Fair Value Hierarchy Level | Gross Amounts Presented in | Net Amounts if Right of | ||||||||||||||||||||
Consolidated Balance Sheets | Offset had been Applied | |||||||||||||||||||||
Liability Derivatives | Balance Sheet Location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current liabilities | Level 2 | $ | 8 | $ | 6 | $ | 8 | $ | — | ||||||||||||
Foreign exchange contracts | Other non-current liabilities | Level 2 | 41 | — | 37 | — | ||||||||||||||||
Interest rate contracts | Other non-current liabilities | Level 2 | 54 | 104 | 3 | 10 | ||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current liabilities | Level 2 | 9 | 7 | 8 | 5 | ||||||||||||||||
Interest rate contracts | Other current liabilities | Level 2 | 3 | 1 | 3 | 1 | ||||||||||||||||
Interest rate contracts | Other non-current liabilities | Level 2 | — | 3 | — | — | ||||||||||||||||
Total Liability Derivatives | $ | 115 | $ | 121 | $ | 59 | $ | 16 | ||||||||||||||
Our foreign currency, interest rate and energy derivatives are largely comprised of over-the-counter derivatives, which are primarily valued using pricing models that rely on market observable inputs such as yield curves, currency exchange rates and commodity forward prices; therefore, these derivatives are classified as Level 2. | ||||||||||||||||||||||
Income Statement and Other Comprehensive Income Recognition | ||||||||||||||||||||||
The following table indicates the amount of gains and losses that have been recognized in other comprehensive income for the three and six months ended June 30, 2014 and 2013 for those derivatives designated as cash flow hedges (in millions): | ||||||||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||
Derivative Instruments in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (1 | ) | $ | 2 | |||||||||||||||||
Foreign exchange contracts | (31 | ) | 10 | |||||||||||||||||||
Commodity contracts | — | (30 | ) | |||||||||||||||||||
Total | $ | (32 | ) | $ | (18 | ) | ||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||
Derivative Instruments in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | 3 | |||||||||||||||||
Foreign exchange contracts | (68 | ) | 9 | |||||||||||||||||||
Commodity contracts | — | (48 | ) | |||||||||||||||||||
Total | $ | (71 | ) | $ | (36 | ) | ||||||||||||||||
As of June 30, 2014, $80 million of pre-tax losses related to cash flow hedges that are currently deferred in AOCI are expected to be reclassified to income over the 12 month period ended June 30, 2015. The actual amounts that will be reclassified to income over the next 12 months will vary from this amount as a result of changes in market conditions. The maximum term over which we are hedging exposures to the variability of cash flow is 36 years. | ||||||||||||||||||||||
The amount of ineffectiveness recognized in income on derivative instruments designated in cash flow hedging relationships was immaterial for the three and six months ended June 30, 2014 and 2013. | ||||||||||||||||||||||
The following table indicates the amount and location in the statements of consolidated income in which derivative gains and losses, as well as the associated gains and losses on the underlying exposure, have been recognized for those derivatives designated as fair value hedges for the three and six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||
Derivative Instruments | Location of Gain (Loss) Recognized in Income | Amount of Gain (Loss) | Hedged Items in | Location of | Amount of Gain (Loss) | |||||||||||||||||
in Fair Value | Recognized in Income | Fair Value | Gain (Loss) | Recognized in Income | ||||||||||||||||||
Hedging Relationships | Hedging | Recognized In | ||||||||||||||||||||
2014 | 2013 | Relationships | Income | 2014 | 2013 | |||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest Expense | $ | 53 | $ | (187 | ) | Fixed-Rate | Interest | $ | (53 | ) | $ | 187 | |||||||||
Debt and | Expense | |||||||||||||||||||||
Capital Leases | ||||||||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest | $ | 83 | $ | (233 | ) | Fixed-Rate | Interest | $ | (83 | ) | $ | 233 | |||||||||
Expense | Debt and | Expense | ||||||||||||||||||||
Capital Leases | ||||||||||||||||||||||
Additionally, we maintain some interest rate swap and foreign exchange forward contracts that are not designated as hedges. These interest rate swap contracts are intended to provide an economic hedge of a portfolio of interest bearing receivables. These foreign exchange forward contracts are intended to provide an economic offset to foreign currency remeasurement and settlement risk for certain assets and liabilities on our consolidated balance sheets. | ||||||||||||||||||||||
We also periodically terminate interest rate swaps and foreign currency options by entering into offsetting swap and foreign currency positions with different counterparties. As part of this process, we de-designate our original swap and foreign currency contracts. These transactions provide an economic offset that effectively eliminates the effects of changes in market valuation. | ||||||||||||||||||||||
We have entered into several interest rate basis swaps, which effectively convert cash flows based on variable LIBOR-based interest rates to cash flows based on the prevailing federal funds interest rate. These swaps are not designated as hedges, and all amounts related to fair value changes and settlements are recorded to interest expense in the statements of consolidated income. | ||||||||||||||||||||||
The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these interest rate swaps and foreign currency forward contracts not designated as hedges for the three and six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||
Derivative Instruments not Designated in | Location of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||||||
Hedging Relationships | Recognized in Income | Recognized in Income | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest Expense | $ | (1 | ) | $ | (4 | ) | |||||||||||||||
Foreign exchange contracts | Other Operating Expenses | (2 | ) | (3 | ) | |||||||||||||||||
Foreign exchange contracts | Investment Income | 2 | 20 | |||||||||||||||||||
$ | (1 | ) | $ | 13 | ||||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest Expense | $ | (3 | ) | $ | (4 | ) | |||||||||||||||
Foreign exchange contracts | Other Operating Expenses | (4 | ) | 84 | ||||||||||||||||||
Foreign exchange contracts | Investment Income | 2 | 15 | |||||||||||||||||||
$ | (5 | ) | $ | 95 | ||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
Our effective tax rate decreased to 33.5% in the second quarter of 2014 compared with 35.0% in the same period of 2013, primarily due to the $1.066 billion pre-tax charge associated with certain health and welfare benefit plan changes (discussed further in note 6), which generated a tax benefit at a rate higher than the effective tax rate. This was partially offset by a decrease in U.S. Federal and state tax credits relative to total pre-tax income. | |
On a year-to-date basis, our effective tax rate increased to 35.2% in 2014 from 32.8% in 2013, as a portion of the gain from liquidating a foreign subsidiary in 2013 was non-taxable (discussed further in note 15). | |
In June 2011, we received an IRS Revenue Agent Report ("RAR") covering income taxes for tax years 2005 through 2007. The income tax RAR proposed adjustments related to the value of acquired software and intangibles, research credit expenditures, and the amount of deductible costs associated with our British Pound Sterling Notes exchange offer completed in May 2007. Receipt of the RAR represents only the conclusion of the examination process. We disagreed with some of the proposed adjustments related to these matters. Therefore, we filed protests and, in the third quarter of 2011, the IRS responded to our protests and forwarded the case to IRS Appeals. | |
In July 2013, we began resolution discussions with IRS Appeals on the income tax matters. In April 2014, we reached a final resolution with IRS Appeals on all income tax matters for the 2005 through 2007 tax years and received a net refund of tax and interest totaling $145 million during the second quarter of 2014. The resolution of these matters and subsequent refund of tax and interest had an immaterial impact on net income. | |
In February 2014 we began resolution discussions with IRS Appeals related to an RAR received for tax years 2008 and 2009. We expect the resolution discussions to be concluded within the next twelve months. | |
At this time, we do not believe the ultimate resolution of these income tax matters will have a material effect on our financial condition, results of operations, or liquidity. | |
A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. Items that may cause changes to unrecognized tax benefits include the timing of interest deductions and the allocation of income and expense between tax jurisdictions. These changes could result from the settlement of ongoing litigation, the completion of ongoing examinations, the expiration of the statute of limitations or other unforeseen circumstances. At this time, we are unable to make an estimate of the reasonably possible changes to unrecognized tax benefits. |
TERMINATION_OF_TNT_TRANSACTION
TERMINATION OF TNT TRANSACTION | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations [Abstract] | ' |
BUSINESS ACQUISITIONS | ' |
TERMINATION OF TNT TRANSACTION | |
TNT Termination Fee and Related Costs | |
On January 30, 2013, the European Commission issued a formal decision prohibiting our proposed acquisition of TNT Express N.V. (“TNT Express”). As a result of the prohibition by the European Commission, the condition of our offer requiring European Union competition clearance was not fulfilled, and our proposed acquisition of TNT Express could not be completed. Given this outcome, UPS and TNT Express entered a separate agreement to terminate the merger protocol, and we withdrew our formal offer for TNT Express. We paid a termination fee to TNT Express of €200 million ($268 million) under this agreement, and also incurred transaction-related expenses of $16 million during the first quarter of 2013. The combination of these items resulted in a pre-tax charge of $284 million ($177 million after-tax), which impacted our International Package segment. | |
Gain upon the Liquidation of a Foreign Subsidiary | |
Subsequent to the termination of the merger protocol, we liquidated a foreign subsidiary that would have been used to acquire the outstanding shares of TNT Express in connection with the proposed acquisition. Upon the liquidation of this subsidiary in the first quarter of 2013, we realized a pre-tax foreign currency gain of $245 million ($213 million after-tax), which impacted our International Package segment. |
BASIS_OF_PRESENTATION_BASIS_OF
BASIS OF PRESENTATION BASIS OF PRESENTATION (Policies) (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
In our opinion, the accompanying interim, unaudited, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly our financial position as of June 30, 2014, our results of operations for the three and six months ended June 30, 2014 and 2013, and cash flows for the six months ended June 30, 2014 and 2013. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
For interim consolidated financial statement purposes, we provide for accruals under our various employee benefit plans and self-insurance reserves for each three month period based on one quarter of the estimated annual expense. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of June 30, 2014. The fair values of our investment securities are disclosed in note 4, recognized multiemployer pension withdrawal liabilities are disclosed in note 6, our short and long-term debt in note 8 and our derivative instruments in note 13. We utilized Level 1 inputs in the fair value hierarchy of valuation techniques to determine the fair value of our cash and cash equivalents, and Level 2 inputs to determine the fair value of our accounts receivable, finance receivables and accounts payable. | |
Accounting Estimates | ' |
Accounting Estimates | |
The preparation of the accompanying interim, unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information and actual results could differ materially from those estimates. | |
Change in Accounting Methodology | ' |
The preparation of the accompanying interim, unaudited, consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information and actual results could differ materially from those estimates. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||
Fair Value of Employee Stock Options Granted and Determined by Black-Scholes Valuation Model Assumptions | ' | |||||
The weighted average fair value of our employee stock options granted, as determined by the Black-Scholes valuation model, was $20.48 and $15.50 for 2014 and 2013, respectively, using the following assumptions: | ||||||
2014 | 2013 | |||||
Expected life (in years) | 7.5 | 7.5 | ||||
Risk-free interest rate | 2.4 | % | 1.38 | % | ||
Expected volatility | 24.26 | % | 24.85 | % | ||
Expected dividend yield | 2.56 | % | 2.75 | % |
INVESTMENTS_AND_RESTRICTED_CAS1
INVESTMENTS AND RESTRICTED CASH (tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||
The following is a summary of marketable securities classified as available-for-sale as of June 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Gains | Losses | Fair Value | ||||||||||||||
June 30, 2014 | ||||||||||||||||
Current marketable securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 332 | $ | 1 | $ | (1 | ) | $ | 332 | |||||||
Mortgage and asset-backed debt securities | 92 | 1 | (1 | ) | 92 | |||||||||||
Corporate debt securities | 1,045 | 1 | — | 1,046 | ||||||||||||
Other debt and equity securities | 73 | — | — | 73 | ||||||||||||
Total marketable securities | $ | 1,542 | $ | 3 | $ | (2 | ) | $ | 1,543 | |||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Gains | Losses | Fair Value | ||||||||||||||
December 31, 2013 | ||||||||||||||||
Current marketable securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 355 | $ | — | $ | (1 | ) | $ | 354 | |||||||
Mortgage and asset-backed debt securities | 76 | 1 | (2 | ) | 75 | |||||||||||
Corporate debt securities | 146 | 1 | (1 | ) | 146 | |||||||||||
Other debt and equity securities | 5 | — | — | 5 | ||||||||||||
Total marketable securities | $ | 582 | $ | 2 | $ | (4 | ) | $ | 580 | |||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||
The amortized cost and estimated fair value of marketable securities at June 30, 2014, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | ||||||||||||||||
Cost | Estimated | |||||||||||||||
Fair Value | ||||||||||||||||
Due in one year or less | $ | 990 | $ | 990 | ||||||||||||
Due after one year through three years | 445 | 445 | ||||||||||||||
Due after three years through five years | 15 | 15 | ||||||||||||||
Due after five years | 90 | 91 | ||||||||||||||
1,540 | 1,541 | |||||||||||||||
Equity securities | 2 | 2 | ||||||||||||||
$ | 1,542 | $ | 1,543 | |||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | |||||||||||||||
The following table presents information about our investments measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): | ||||||||||||||||
Quoted Prices | Significant Other | Significant | Balance | |||||||||||||
in Active | Observable Inputs | Unobservable | ||||||||||||||
Markets for | (Level 2) | Inputs | ||||||||||||||
Identical | (Level 3) | |||||||||||||||
Assets | ||||||||||||||||
(Level 1) | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Marketable Securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 332 | $ | — | $ | — | $ | 332 | ||||||||
Mortgage and asset-backed debt securities | — | 92 | — | 92 | ||||||||||||
Corporate debt securities | — | 1,046 | — | 1,046 | ||||||||||||
Other debt and equity securities | — | 73 | — | 73 | ||||||||||||
Total marketable securities | 332 | 1,211 | — | 1,543 | ||||||||||||
Other investments | 19 | — | 95 | 114 | ||||||||||||
Total | $ | 351 | $ | 1,211 | $ | 95 | $ | 1,657 | ||||||||
Quoted Prices | Significant Other | Significant | Balance | |||||||||||||
in Active | Observable Inputs | Unobservable | ||||||||||||||
Markets for | (Level 2) | Inputs | ||||||||||||||
Identical | (Level 3) | |||||||||||||||
Assets | ||||||||||||||||
(Level 1) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Marketable Securities: | ||||||||||||||||
U.S. government and agency debt securities | $ | 353 | $ | 1 | $ | — | $ | 354 | ||||||||
Mortgage and asset-backed debt securities | — | 75 | — | 75 | ||||||||||||
Corporate debt securities | — | 146 | — | 146 | ||||||||||||
Other debt and equity securities | — | 5 | — | 5 | ||||||||||||
Total marketable securities | 353 | 227 | — | 580 | ||||||||||||
Other investments | 19 | — | 110 | 129 | ||||||||||||
Total | $ | 372 | $ | 227 | $ | 110 | $ | 709 | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | |||||||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on January 1, 2014 | $ | — | 110 | 110 | ||||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (15 | ) | (15 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2014 | $ | — | $ | 95 | $ | 95 | ||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on January 1, 2013 | $ | — | 163 | 163 | ||||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (27 | ) | (27 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2013 | $ | — | $ | 136 | $ | 136 | ||||||||||
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on April 1, 2014 | $ | — | $ | 99 | $ | 99 | ||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (4 | ) | (4 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2014 | $ | — | $ | 95 | $ | 95 | ||||||||||
Marketable | Other | Total | ||||||||||||||
Securities | Investments | |||||||||||||||
Balance on April 1, 2013 | $ | — | $ | 150 | $ | 150 | ||||||||||
Transfers into (out of) Level 3 | — | — | — | |||||||||||||
Net realized and unrealized gains (losses): | ||||||||||||||||
Included in earnings (in investment income) | — | (14 | ) | (14 | ) | |||||||||||
Included in accumulated other comprehensive income (pre-tax) | — | — | — | |||||||||||||
Purchases | — | — | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Balance on June 30, 2013 | $ | — | $ | 136 | $ | 136 | ||||||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property, plant and equipment as of June 30, 2014 and December 31, 2013 consist of the following (in millions): | ||||||||
2014 | 2013 | |||||||
Vehicles | $ | 7,036 | $ | 6,762 | ||||
Aircraft | 15,785 | 15,772 | ||||||
Land | 1,164 | 1,163 | ||||||
Buildings | 3,310 | 3,260 | ||||||
Building and leasehold improvements | 3,150 | 3,116 | ||||||
Plant equipment | 7,367 | 7,221 | ||||||
Technology equipment | 1,600 | 1,569 | ||||||
Equipment under operating leases | 41 | 44 | ||||||
Construction-in-progress | 209 | 244 | ||||||
39,662 | 39,151 | |||||||
Less: Accumulated depreciation and amortization | (21,875 | ) | (21,190 | ) | ||||
$ | 17,787 | $ | 17,961 | |||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | |||||||||||||||||||||||
Information about net periodic benefit cost for our company-sponsored pension and postretirement benefit plans is as follows for the three and six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||||
U.S. Pension Benefits | U.S. Postretirement | International | ||||||||||||||||||||||
Medical Benefits | Pension Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||||
Service cost | $ | 285 | $ | 337 | $ | 18 | $ | 26 | $ | 15 | $ | 11 | ||||||||||||
Interest cost | 401 | 363 | 34 | 47 | 14 | 11 | ||||||||||||||||||
Expected return on assets | (565 | ) | (537 | ) | (6 | ) | (9 | ) | (15 | ) | (14 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | ||||||||||||||||||
Prior service cost | 43 | 43 | (4 | ) | 1 | (3 | ) | — | ||||||||||||||||
Other net (gain) loss | — | — | — | — | — | — | ||||||||||||||||||
Actuarial (gain) loss | — | — | 746 | — | — | — | ||||||||||||||||||
Settlement and curtailment loss | — | — | 320 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 164 | $ | 206 | $ | 1,108 | $ | 65 | $ | 11 | $ | 8 | ||||||||||||
U.S. Pension Benefits | U.S. Postretirement | International | ||||||||||||||||||||||
Medical Benefits | Pension Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||||
Service cost | $ | 569 | $ | 675 | $ | 39 | $ | 52 | $ | 27 | $ | 26 | ||||||||||||
Interest cost | 802 | 725 | 86 | 93 | 26 | 22 | ||||||||||||||||||
Expected return on assets | (1,129 | ) | (1,074 | ) | (12 | ) | (17 | ) | (30 | ) | (28 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | ||||||||||||||||||
Prior service cost | 85 | 86 | (3 | ) | 2 | (3 | ) | — | ||||||||||||||||
Other net (gain) loss | — | — | — | — | — | — | ||||||||||||||||||
Actuarial (gain) loss | — | — | 746 | — | — | — | ||||||||||||||||||
Settlement and curtailment loss | — | — | 320 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 327 | $ | 412 | $ | 1,176 | $ | 130 | $ | 20 | $ | 20 | ||||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||
The following table indicates the allocation of goodwill by reportable segment as of June 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
U.S. Domestic | International | Supply Chain & | Consolidated | |||||||||||||
Package | Package | Freight | ||||||||||||||
December 31, 2013: | $ | — | $ | 420 | $ | 1,770 | $ | 2,190 | ||||||||
Acquired | — | — | 11 | 11 | ||||||||||||
Currency / Other | — | 3 | (2 | ) | 1 | |||||||||||
June 30, 2014: | $ | — | $ | 423 | $ | 1,779 | $ | 2,202 | ||||||||
Schedule of Intangible Assets (Excluding Goodwill) | ' | |||||||||||||||
The following is a summary of intangible assets as of June 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | ||||||||||||||
Amount | Amortization | Value | ||||||||||||||
June 30, 2014: | ||||||||||||||||
Capitalized software | $ | 2,547 | $ | (1,953 | ) | $ | 594 | |||||||||
Licenses | 225 | (121 | ) | 104 | ||||||||||||
Franchise rights | 117 | (74 | ) | 43 | ||||||||||||
Customer lists | 125 | (61 | ) | 64 | ||||||||||||
Trademarks, patents, and other | 37 | (12 | ) | 25 | ||||||||||||
Total Intangible Assets, Net | $ | 3,051 | $ | (2,221 | ) | $ | 830 | |||||||||
December 31, 2013: | ||||||||||||||||
Capitalized software | $ | 2,420 | $ | (1,897 | ) | $ | 523 | |||||||||
Licenses | 220 | (97 | ) | 123 | ||||||||||||
Franchise rights | 117 | (70 | ) | 47 | ||||||||||||
Customer lists | 118 | (62 | ) | 56 | ||||||||||||
Trademarks, patents, and other | 37 | (11 | ) | 26 | ||||||||||||
Total Intangible Assets, Net | $ | 2,912 | $ | (2,137 | ) | $ | 775 | |||||||||
DEBT_AND_FINANCING_ARRANGEMENT1
DEBT AND FINANCING ARRANGEMENTS (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||
The carrying value of our outstanding debt as of June 30, 2014 and December 31, 2013 consists of the following (in millions): | ||||||||||||||
Principal | Carrying Value | |||||||||||||
Amount | Maturity | 2014 | 2013 | |||||||||||
Commercial paper | $ | 1,860 | 2014 | $ | 1,860 | $ | — | |||||||
Fixed-rate senior notes: | ||||||||||||||
3.875% senior notes | — | 2014 | — | 1,007 | ||||||||||
1.125% senior notes | 375 | 2017 | 370 | 367 | ||||||||||
5.50% senior notes | 750 | 2018 | 817 | 821 | ||||||||||
5.125% senior notes | 1,000 | 2019 | 1,085 | 1,079 | ||||||||||
3.125% senior notes | 1,500 | 2021 | 1,613 | 1,579 | ||||||||||
2.45% senior notes | 1,000 | 2022 | 955 | 913 | ||||||||||
6.20% senior notes | 1,500 | 2038 | 1,481 | 1,481 | ||||||||||
4.875% senior notes | 500 | 2040 | 489 | 489 | ||||||||||
3.625% senior notes | 375 | 2042 | 367 | 367 | ||||||||||
8.375% Debentures: | ||||||||||||||
8.375% debentures | 424 | 2020 | 483 | 479 | ||||||||||
8.375% debentures | 276 | 2030 | 283 | 283 | ||||||||||
Pound Sterling notes: | ||||||||||||||
5.50% notes | 113 | 2031 | 109 | 105 | ||||||||||
5.125% notes | 775 | 2050 | 738 | 714 | ||||||||||
Floating rate senior notes | 372 | 2049-2053 | 369 | 370 | ||||||||||
Capital lease obligations | 486 | 2014-3004 | 486 | 473 | ||||||||||
Facility notes and bonds | 320 | 2015-2036 | 320 | 320 | ||||||||||
Other debt | 17 | 2014-2022 | 17 | 25 | ||||||||||
Total Debt | $ | 11,643 | 11,842 | 10,872 | ||||||||||
Less: Current Maturities | (1,902 | ) | (48 | ) | ||||||||||
Long-term Debt | $ | 9,940 | $ | 10,824 | ||||||||||
SHAREOWNERS_EQUITY_Tables
SHAREOWNERS' EQUITY (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
Schedule of Stockholders Equity | ' | |||||||||||||
The following is a rollforward of our common stock, additional paid-in capital and retained earnings accounts for the six months ended June 30, 2014 and 2013 (in millions, except per share amounts): | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||
Class A Common Stock | ||||||||||||||
Balance at beginning of period | 212 | $ | 2 | 225 | $ | 3 | ||||||||
Common stock purchases | (3 | ) | — | (4 | ) | (1 | ) | |||||||
Stock award plans | 4 | — | 5 | — | ||||||||||
Common stock issuances | 1 | — | 2 | — | ||||||||||
Conversions of class A to class B common stock | (6 | ) | — | (10 | ) | — | ||||||||
Class A shares issued at end of period | 208 | $ | 2 | 218 | $ | 2 | ||||||||
Class B Common Stock | ||||||||||||||
Balance at beginning of period | 712 | $ | 7 | 729 | $ | 7 | ||||||||
Common stock purchases | (11 | ) | — | (18 | ) | — | ||||||||
Conversions of class A to class B common stock | 6 | — | 10 | — | ||||||||||
Class B shares issued at end of period | 707 | $ | 7 | 721 | $ | 7 | ||||||||
Additional Paid-In Capital | ||||||||||||||
Balance at beginning of period | $ | — | $ | — | ||||||||||
Stock award plans | 232 | 364 | ||||||||||||
Common stock purchases | (481 | ) | (114 | ) | ||||||||||
Common stock issuances | 147 | 149 | ||||||||||||
Option premiums received (paid) | 102 | (399 | ) | |||||||||||
Balance at end of period | $ | — | $ | — | ||||||||||
Retained Earnings | ||||||||||||||
Balance at beginning of period | $ | 6,925 | $ | 7,997 | ||||||||||
Net income attributable to common shareowners | 1,365 | 2,108 | ||||||||||||
Dividends ($1.34 and $1.24 per share) | (1,253 | ) | (1,199 | ) | ||||||||||
Common stock purchases | (882 | ) | (1,721 | ) | ||||||||||
Balance at end of period | $ | 6,155 | $ | 7,185 | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
The activity in AOCI for the six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||
2014 | 2013 | |||||||||||||
Foreign currency translation gain (loss): | ||||||||||||||
Balance at beginning of period | $ | (126 | ) | $ | 134 | |||||||||
Reclassification to earnings (no tax impact in either period) | — | (161 | ) | |||||||||||
Translation adjustment (net of tax effect of $3 and $3) | 3 | (166 | ) | |||||||||||
Balance at end of period | (123 | ) | (193 | ) | ||||||||||
Unrealized gain (loss) on marketable securities, net of tax: | ||||||||||||||
Balance at beginning of period | (1 | ) | 6 | |||||||||||
Current period changes in fair value (net of tax effect of $1 and $(5)) | 2 | (8 | ) | |||||||||||
Reclassification to earnings (no tax impact in either period) | — | — | ||||||||||||
Balance at end of period | 1 | (2 | ) | |||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||||||||||
Balance at beginning of period | (219 | ) | (286 | ) | ||||||||||
Current period changes in fair value (net of tax effect of $(27) and $(14)) | (44 | ) | (22 | ) | ||||||||||
Reclassification to earnings (net of tax effect of $1 and $48) | 3 | 80 | ||||||||||||
Balance at end of period | (260 | ) | (228 | ) | ||||||||||
Unrecognized pension and postretirement benefit costs, net of tax: | ||||||||||||||
Balance at beginning of period | (114 | ) | (3,208 | ) | ||||||||||
Reclassification to earnings (net of tax effect of $430 and $34) | 715 | 54 | ||||||||||||
Remeasurement of plan assets and liabilities (net of tax effect of $(488) and $0) | (815 | ) | — | |||||||||||
Balance at end of period | (214 | ) | (3,154 | ) | ||||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (596 | ) | $ | (3,577 | ) | ||||||||
Schedule of Reclassifications from Accumulated Other Comprehensive Income (Loss) to Earnings | ' | |||||||||||||
Six Months Ended June 30: | ||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Income Statement | |||||||||||||
2014 | 2013 | |||||||||||||
Foreign currency translation gain (loss): | ||||||||||||||
Liquidation of foreign subsidiary | $ | — | $ | 161 | Other expenses | |||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | 161 | Net income | |||||||||||
Unrealized gain (loss) on marketable securities: | ||||||||||||||
Realized gain (loss) on sale of securities | — | — | Investment income | |||||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | — | Net income | |||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||
Interest rate contracts | (11 | ) | (10 | ) | Interest expense | |||||||||
Foreign exchange contracts | 28 | (44 | ) | Interest expense | ||||||||||
Foreign exchange contracts | (21 | ) | (26 | ) | Revenue | |||||||||
Commodity contracts | — | (48 | ) | Fuel expense | ||||||||||
Income tax (expense) benefit | 1 | 48 | Income tax expense | |||||||||||
Impact on net income | (3 | ) | (80 | ) | Net income | |||||||||
Unrecognized pension and postretirement benefit costs: | ||||||||||||||
Prior service costs | (79 | ) | (88 | ) | Compensation and benefits | |||||||||
Settlement and curtailment loss | (320 | ) | — | Compensation and benefits | ||||||||||
Remeasurement of benefit obligation | (746 | ) | — | Compensation and benefits | ||||||||||
Income tax (expense) benefit | 430 | 34 | Income tax expense | |||||||||||
Impact on net income | (715 | ) | (54 | ) | Net income | |||||||||
Total amount reclassified for the period | $ | (718 | ) | $ | 27 | Net income | ||||||||
Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||
Three Months Ended June 30: | ||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Income Statement | |||||||||||||
2014 | 2013 | |||||||||||||
Foreign currency translation gain (loss): | ||||||||||||||
Liquidation of foreign subsidiary | $ | — | $ | — | Other expenses | |||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | — | Net income | |||||||||||
Unrealized gain (loss) on marketable securities: | ||||||||||||||
Realized gain (loss) on sale of securities | — | — | Investment income | |||||||||||
Income tax (expense) benefit | — | — | Income tax expense | |||||||||||
Impact on net income | — | — | Net income | |||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||
Interest rate contracts | (5 | ) | (5 | ) | Interest expense | |||||||||
Foreign exchange contracts | 20 | 6 | Interest expense | |||||||||||
Foreign exchange contracts | (12 | ) | (12 | ) | Revenue | |||||||||
Commodity contracts | — | (38 | ) | Fuel expense | ||||||||||
Income tax (expense) benefit | (2 | ) | 18 | Income tax expense | ||||||||||
Impact on net income | 1 | (31 | ) | Net income | ||||||||||
Unrecognized pension and postretirement benefit costs: | ||||||||||||||
Prior service costs | (36 | ) | (44 | ) | Compensation and benefits | |||||||||
Settlement and curtailment loss | (320 | ) | — | Compensation and benefits | ||||||||||
Remeasurement of benefit obligation | (746 | ) | — | Compensation and benefits | ||||||||||
Income tax (expense) benefit | 414 | 16 | Income tax expense | |||||||||||
Impact on net income | (688 | ) | (28 | ) | Net income | |||||||||
Total amount reclassified for the period | $ | (687 | ) | $ | (59 | ) | Net income | |||||||
Schedule of Deferred Compensation and Treasury Stock Activity | ' | |||||||||||||
Activity in the deferred compensation program for the six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||
Deferred Compensation Obligations: | ||||||||||||||
Balance at beginning of period | $ | 69 | $ | 78 | ||||||||||
Reinvested dividends | 1 | 2 | ||||||||||||
Benefit payments | (12 | ) | (13 | ) | ||||||||||
Balance at end of period | $ | 58 | $ | 67 | ||||||||||
Treasury Stock: | ||||||||||||||
Balance at beginning of period | (1 | ) | $ | (69 | ) | (1 | ) | $ | (78 | ) | ||||
Reinvested dividends | — | (1 | ) | — | (2 | ) | ||||||||
Benefit payments | — | 12 | — | 13 | ||||||||||
Balance at end of period | (1 | ) | $ | (58 | ) | (1 | ) | $ | (67 | ) | ||||
Activity Related to Noncontrolling Interests | ' | |||||||||||||
The activity related to our noncontrolling interests is presented below for the six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||
2014 | 2013 | |||||||||||||
Noncontrolling Interests: | ||||||||||||||
Balance at beginning of period | $ | 14 | $ | 80 | ||||||||||
Acquired noncontrolling interests | 3 | (67 | ) | |||||||||||
Dividends attributable to noncontrolling interests | — | — | ||||||||||||
Net income attributable to noncontrolling interests | — | — | ||||||||||||
Balance at end of period | $ | 17 | $ | 13 | ||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment information for the three and six months ended June 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
U.S. Domestic Package | $ | 8,668 | $ | 8,241 | $ | 17,156 | $ | 16,512 | ||||||||
International Package | 3,252 | 3,062 | 6,379 | 6,040 | ||||||||||||
Supply Chain & Freight | 2,348 | 2,204 | 4,512 | 4,389 | ||||||||||||
Consolidated | $ | 14,268 | $ | 13,507 | $ | 28,047 | $ | 26,941 | ||||||||
Operating Profit: | ||||||||||||||||
U.S. Domestic Package | $ | 209 | $ | 1,132 | $ | 1,136 | $ | 2,217 | ||||||||
International Package | 444 | 451 | 882 | 803 | ||||||||||||
Supply Chain & Freight | 94 | 159 | 242 | 302 | ||||||||||||
Consolidated | $ | 747 | $ | 1,742 | $ | 2,260 | $ | 3,322 | ||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to common shareowners | $ | 454 | $ | 1,071 | $ | 1,365 | $ | 2,108 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares | 916 | 941 | 918 | 945 | ||||||||||||
Deferred compensation obligations | 1 | 1 | 1 | 1 | ||||||||||||
Vested portion of restricted shares | 1 | 1 | 1 | 2 | ||||||||||||
Denominator for basic earnings per share | 918 | 943 | 920 | 948 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted shares | 8 | 8 | 8 | 7 | ||||||||||||
Stock options | 1 | 1 | 1 | 1 | ||||||||||||
Denominator for diluted earnings per share | 927 | 952 | 929 | 956 | ||||||||||||
Basic earnings per share | $ | 0.49 | $ | 1.14 | $ | 1.48 | $ | 2.22 | ||||||||
Diluted earnings per share | $ | 0.49 | $ | 1.13 | $ | 1.47 | $ | 2.21 | ||||||||
DERIVATIVE_INSTRUMENTS_AND_RIS1
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | |||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the notional amounts of our outstanding derivative positions were as follows (in millions): | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Currency hedges: | ||||||||||||||||||||||
British Pound Sterling | GBP | 1,308 | GBP | 1,097 | ||||||||||||||||||
Canadian Dollar | CAD | 436 | CAD | 218 | ||||||||||||||||||
Euro | EUR | 3,479 | EUR | 2,637 | ||||||||||||||||||
Indian Rupee | INR | 214 | INR | — | ||||||||||||||||||
Malaysian Ringgit | MYR | 155 | MYR | — | ||||||||||||||||||
Mexican Peso | MXN | 1,176 | MXN | 583 | ||||||||||||||||||
Chinese Renminbi | CNH | 211 | CNH | — | ||||||||||||||||||
Interest rate hedges: | ||||||||||||||||||||||
Fixed to Floating Interest Rate Swaps | $ | 5,799 | $ | 6,799 | ||||||||||||||||||
Floating to Fixed Interest Rate Swaps | $ | 780 | $ | 780 | ||||||||||||||||||
Interest Rate Basis Swaps | $ | 1,500 | $ | 2,500 | ||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||||||||||
The following table indicates the location on the consolidated balance sheets in which our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives (in millions). The table is segregated between those derivative instruments that qualify and are designated as hedging instruments and those that are not, as well as by type of contract and whether the derivative is in an asset or liability position. | ||||||||||||||||||||||
We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded on our consolidated balance sheets. The columns labeled "Net Amounts if Right of Offset had been Applied" indicate the potential net fair value positions by type of contract and location on the consolidated balance sheets had we elected to apply the right of offset. | ||||||||||||||||||||||
Fair Value Hierarchy Level | Gross Amounts Presented in | Net Amounts if Right of | ||||||||||||||||||||
Consolidated Balance Sheets | Offset had been Applied | |||||||||||||||||||||
Asset Derivatives | Balance Sheet Location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current assets | Level 2 | $ | 8 | $ | 10 | $ | 8 | $ | 4 | ||||||||||||
Interest rate contracts | Other current assets | Level 2 | — | 7 | — | 7 | ||||||||||||||||
Foreign exchange contracts | Other non-current assets | Level 2 | 43 | 59 | 39 | 59 | ||||||||||||||||
Interest rate contracts | Other non-current assets | Level 2 | 242 | 204 | 191 | 110 | ||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current assets | Level 2 | 9 | 7 | 8 | 5 | ||||||||||||||||
Interest rate contracts | Other non-current assets | Level 2 | 57 | 60 | 57 | 57 | ||||||||||||||||
Total Asset Derivatives | $ | 359 | $ | 347 | $ | 303 | $ | 242 | ||||||||||||||
Fair Value Hierarchy Level | Gross Amounts Presented in | Net Amounts if Right of | ||||||||||||||||||||
Consolidated Balance Sheets | Offset had been Applied | |||||||||||||||||||||
Liability Derivatives | Balance Sheet Location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current liabilities | Level 2 | $ | 8 | $ | 6 | $ | 8 | $ | — | ||||||||||||
Foreign exchange contracts | Other non-current liabilities | Level 2 | 41 | — | 37 | — | ||||||||||||||||
Interest rate contracts | Other non-current liabilities | Level 2 | 54 | 104 | 3 | 10 | ||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||
Foreign exchange contracts | Other current liabilities | Level 2 | 9 | 7 | 8 | 5 | ||||||||||||||||
Interest rate contracts | Other current liabilities | Level 2 | 3 | 1 | 3 | 1 | ||||||||||||||||
Interest rate contracts | Other non-current liabilities | Level 2 | — | 3 | — | — | ||||||||||||||||
Total Liability Derivatives | $ | 115 | $ | 121 | $ | 59 | $ | 16 | ||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||
The following table indicates the amount of gains and losses that have been recognized in other comprehensive income for the three and six months ended June 30, 2014 and 2013 for those derivatives designated as cash flow hedges (in millions): | ||||||||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||
Derivative Instruments in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (1 | ) | $ | 2 | |||||||||||||||||
Foreign exchange contracts | (31 | ) | 10 | |||||||||||||||||||
Commodity contracts | — | (30 | ) | |||||||||||||||||||
Total | $ | (32 | ) | $ | (18 | ) | ||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||
Derivative Instruments in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | 3 | |||||||||||||||||
Foreign exchange contracts | (68 | ) | 9 | |||||||||||||||||||
Commodity contracts | — | (48 | ) | |||||||||||||||||||
Total | $ | (71 | ) | $ | (36 | ) | ||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||||
The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these interest rate swaps and foreign currency forward contracts not designated as hedges for the three and six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||
Derivative Instruments not Designated in | Location of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||||||
Hedging Relationships | Recognized in Income | Recognized in Income | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest Expense | $ | (1 | ) | $ | (4 | ) | |||||||||||||||
Foreign exchange contracts | Other Operating Expenses | (2 | ) | (3 | ) | |||||||||||||||||
Foreign exchange contracts | Investment Income | 2 | 20 | |||||||||||||||||||
$ | (1 | ) | $ | 13 | ||||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest Expense | $ | (3 | ) | $ | (4 | ) | |||||||||||||||
Foreign exchange contracts | Other Operating Expenses | (4 | ) | 84 | ||||||||||||||||||
Foreign exchange contracts | Investment Income | 2 | 15 | |||||||||||||||||||
$ | (5 | ) | $ | 95 | ||||||||||||||||||
The following table indicates the amount and location in the statements of consolidated income in which derivative gains and losses, as well as the associated gains and losses on the underlying exposure, have been recognized for those derivatives designated as fair value hedges for the three and six months ended June 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||
Derivative Instruments | Location of Gain (Loss) Recognized in Income | Amount of Gain (Loss) | Hedged Items in | Location of | Amount of Gain (Loss) | |||||||||||||||||
in Fair Value | Recognized in Income | Fair Value | Gain (Loss) | Recognized in Income | ||||||||||||||||||
Hedging Relationships | Hedging | Recognized In | ||||||||||||||||||||
2014 | 2013 | Relationships | Income | 2014 | 2013 | |||||||||||||||||
Three Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest Expense | $ | 53 | $ | (187 | ) | Fixed-Rate | Interest | $ | (53 | ) | $ | 187 | |||||||||
Debt and | Expense | |||||||||||||||||||||
Capital Leases | ||||||||||||||||||||||
Six Months Ended June 30: | ||||||||||||||||||||||
Interest rate contracts | Interest | $ | 83 | $ | (233 | ) | Fixed-Rate | Interest | $ | (83 | ) | $ | 233 | |||||||||
Expense | Debt and | Expense | ||||||||||||||||||||
Capital Leases |
STOCKBASED_COMPENSATION_Additi
STOCK-BASED COMPENSATION - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 17, 2014 | Feb. 04, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Employee Stock Option [Member] | Employee Stock Option [Member] | Nonqualified Stock Options [Member] | Nonqualified Stock Options [Member] | Long-Term Incentive Performance Award [Member] | Long-Term Incentive Performance Award [Member] | Management Incentive Award [Member] | Management Incentive Award [Member] | Management Incentive Award [Member] | Minimum [Member] | Maximum [Member] | |||||
Tranches | Long-Term Incentive Performance Award [Member] | Long-Term Incentive Performance Award [Member] | |||||||||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the award vesting at each anniversary date of the grant | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | 20.00% | ' | ' | ' | ' |
Closing New York Stock Exchange price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $96.98 | ' | $96.99 | $93.89 | ' | ' |
Percentage of target restricted performance units award that will be divided into three substantially equal tranches in the three-year award cycle from 2011 to 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' |
Number of tranches included in award cycle | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Number of award tranches for each calendar year | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Cycle Period | '3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining target award based upon our achievement of adjusted earnings per share for the year ending 2013 compared to a target established at the beginning of the award cycle | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
Percentage of achievement used to determine RPUs earned of the target RPUs for each tranche | ' | ' | ' | ' | ' | ' | ' | ' | 109.84% | ' | ' | ' | ' | 0.00% | 200.00% |
Stock options granted | ' | ' | ' | ' | ' | ' | 0.1 | 0.2 | ' | ' | ' | ' | ' | ' | ' |
Grant price of stock options and RPU | ' | ' | ' | ' | $20.48 | $15.50 | $96.98 | $82.93 | ' | ' | ' | ' | ' | ' | ' |
Compensation expense for share-based awards recognized in net income, pre-tax | $142 | $131 | $306 | $288 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | '5 years | ' | '3 years | ' | '5 years | ' | ' | ' | ' |
Period from grant date to expiration | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Employee_Stock_O
Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Detail) (Nonqualified Stock Options [Member]) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Nonqualified Stock Options [Member] | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Expected life (in years) | '7 years 6 months | '7 years 6 months |
Risk-free interest rate | 2.40% | 1.38% |
Expected volatility | 24.26% | 24.85% |
Expected dividend yield | 2.56% | 2.75% |
Summary_of_Marketable_Securiti
Summary of Marketable Securities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $1,542 | $582 |
Available-for-sale Securities, Gross Unrealized Gain(1) | 3 | 2 |
Available-for-sale Securities, Gross Unrealized Loss(1) | 2 | 4 |
Total Estimated Fair Value | 1,543 | 580 |
U.S. government and agency debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 332 | 355 |
Available-for-sale Securities, Gross Unrealized Gain(1) | 1 | 0 |
Available-for-sale Securities, Gross Unrealized Loss(1) | 1 | 1 |
Total Estimated Fair Value | 332 | 354 |
Mortgage and asset-backed debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 92 | 76 |
Available-for-sale Securities, Gross Unrealized Gain(1) | 1 | 1 |
Available-for-sale Securities, Gross Unrealized Loss(1) | 1 | 2 |
Total Estimated Fair Value | 92 | 75 |
Corporate debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 1,045 | 146 |
Available-for-sale Securities, Gross Unrealized Gain(1) | 1 | 1 |
Available-for-sale Securities, Gross Unrealized Loss(1) | 0 | 1 |
Total Estimated Fair Value | 1,046 | 146 |
Other debt and equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 73 | 5 |
Available-for-sale Securities, Gross Unrealized Gain(1) | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss(1) | 0 | 0 |
Total Estimated Fair Value | $73 | $5 |
INVESTMENTS_AND_RESTRICTED_CAS2
INVESTMENTS AND RESTRICTED CASH - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Gain (Loss) on Investments [Line Items] | ' | ' |
Restricted Cash and Investments, Noncurrent | $445 | $444 |
Fair Value Inputs, Discount Rate | 8.20% | 8.65% |
Self-insurance requirements [Member] | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Restricted Cash and Investments, Noncurrent | 426 | 425 |
Variable life insurance policy | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Restricted Cash and Investments, Noncurrent | $19 | $19 |
Amortized_Cost_and_Estimated_F
Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cost | ' | ' |
Due in one year or less | $990 | ' |
Due after one year through three years | 445 | ' |
Due after three years through five years | 15 | ' |
Due after five years | 90 | ' |
Marketable Securities, Debt Maturities, Amortized Cost, Total | 1,540 | ' |
Equity securities | 2 | ' |
Total Amortized Cost | 1,542 | 582 |
Estimated Fair Value | ' | ' |
Due in one year or less | 990 | ' |
Due after one year through three years | 445 | ' |
Due after three years through five years | 15 | ' |
Due after five years | 91 | ' |
Marketable Securities, Debt Maturities, Fair Value, Total | 1,541 | ' |
Equity securities | 2 | ' |
Total Estimated Fair Value | $1,543 | ' |
Investments_Measured_at_Fair_V
Investments Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | $1,657 | $709 |
Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 1,543 | 580 |
Marketable securities | U.S. government and agency debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 332 | 354 |
Marketable securities | Mortgage and asset-backed debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 92 | 75 |
Marketable securities | Corporate debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 1,046 | 146 |
Marketable securities | Other debt and equity securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 73 | 5 |
Other Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 114 | 129 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 351 | 372 |
Fair Value, Inputs, Level 1 | Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 332 | 353 |
Fair Value, Inputs, Level 1 | Marketable securities | U.S. government and agency debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 332 | 353 |
Fair Value, Inputs, Level 1 | Marketable securities | Mortgage and asset-backed debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 1 | Marketable securities | Corporate debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 1 | Marketable securities | Other debt and equity securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 1 | Other Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 19 | 19 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 1,211 | 227 |
Fair Value, Inputs, Level 2 | Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 1,211 | 227 |
Fair Value, Inputs, Level 2 | Marketable securities | U.S. government and agency debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 1 |
Fair Value, Inputs, Level 2 | Marketable securities | Mortgage and asset-backed debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 92 | 75 |
Fair Value, Inputs, Level 2 | Marketable securities | Corporate debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 1,046 | 146 |
Fair Value, Inputs, Level 2 | Marketable securities | Other debt and equity securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 73 | 5 |
Fair Value, Inputs, Level 2 | Other Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 95 | 110 |
Fair Value, Inputs, Level 3 | Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 3 | Marketable securities | U.S. government and agency debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 3 | Marketable securities | Mortgage and asset-backed debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 3 | Marketable securities | Corporate debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 3 | Marketable securities | Other debt and equity securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Inputs, Level 3 | Other Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | $95 | $110 |
Changes_in_Level_3_Instruments
Changes in Level 3 Instruments Measured on a Recurring Basis (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | $99 | $150 | $110 | $163 |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Net realized and unrealized gains (losses): | ' | ' | ' | ' |
Included in earnings (in investment income) | -4 | -14 | -15 | -27 |
Included in accumulated other comprehensive income (pre-tax) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Ending Balance | 95 | 136 | 95 | 136 |
Marketable securities | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 0 | 0 | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Net realized and unrealized gains (losses): | ' | ' | ' | ' |
Included in earnings (in investment income) | 0 | 0 | 0 | 0 |
Included in accumulated other comprehensive income (pre-tax) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Other Long-term Investments | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 99 | 150 | 110 | 163 |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Net realized and unrealized gains (losses): | ' | ' | ' | ' |
Included in earnings (in investment income) | -4 | -14 | -15 | -27 |
Included in accumulated other comprehensive income (pre-tax) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Ending Balance | $95 | $136 | $95 | $136 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $39,662 | $39,151 |
Less: Accumulated depreciation and amortization | -21,875 | -21,190 |
Property, plant and equipment, net | 17,787 | 17,961 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 7,036 | 6,762 |
Aircraft (including aircraft under capital leases) [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 15,785 | 15,772 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 1,164 | 1,163 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 3,310 | 3,260 |
Building and leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 3,150 | 3,116 |
Plant Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 7,367 | 7,221 |
Technology equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 1,600 | 1,569 |
Equipment under operating leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 41 | 44 |
Construction-in-progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $209 | $244 |
Net_Periodic_Benefit_Cost_for_
Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
U.S. Pension Benefits | ' | ' | ' | ' |
Net Periodic Cost: | ' | ' | ' | ' |
Service cost | $285 | $337 | $569 | $675 |
Interest cost | 401 | 363 | 802 | 725 |
Expected return on assets | -565 | -537 | -1,129 | -1,074 |
Amortization of: | ' | ' | ' | ' |
Transition obligation | 0 | 0 | 0 | 0 |
Other net (gain) loss | 0 | 0 | 0 | 0 |
Prior service cost | 43 | 43 | 85 | 86 |
Actuarial (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 164 | 206 | 327 | 412 |
U.S. Postretirement Medical Benefits | ' | ' | ' | ' |
Net Periodic Cost: | ' | ' | ' | ' |
Service cost | 18 | 26 | 39 | 52 |
Interest cost | 34 | 47 | 86 | 93 |
Expected return on assets | -6 | -9 | -12 | -17 |
Amortization of: | ' | ' | ' | ' |
Transition obligation | 0 | 0 | 0 | 0 |
Other net (gain) loss | 0 | 0 | 0 | 0 |
Prior service cost | -4 | 1 | -3 | 2 |
Actuarial (gain) loss | 746 | 0 | 746 | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 320 | ' | 320 | ' |
Net periodic benefit cost | 1,108 | 65 | 1,176 | 130 |
International Pension Benefits | ' | ' | ' | ' |
Net Periodic Cost: | ' | ' | ' | ' |
Service cost | 15 | 11 | 27 | 26 |
Interest cost | 14 | 11 | 26 | 22 |
Expected return on assets | -15 | -14 | -30 | -28 |
Amortization of: | ' | ' | ' | ' |
Transition obligation | 0 | 0 | 0 | 0 |
Other net (gain) loss | 0 | 0 | 0 | 0 |
Prior service cost | -3 | 0 | -3 | 0 |
Actuarial (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $11 | $8 | $20 | $20 |
EMPLOYEE_BENEFIT_PLANS_Additio
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Employees | Defined Benefit Pension Plan | Defined Benefit Postretirement Medical Benefit Plan | Defined Benefit Postretirement Medical Benefit Plan | Defined Benefit Postretirement Medical Benefit Plan | Multiemployer Plans, Pension [Member] | Multiemployer Plans, Pension [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Non-National Master Agreement (Non-NMA) [Member] | National Master Agreement (NMA) [Member] | National Master Agreement (NMA) [Member] | remeasurement of postretirement obligation [Member] | defined benefit plan settlement losses [Member] | partial plan curtailment [Member] | |||
Defined Benefit Postretirement Medical Benefit Plan | Employees | Employees | Employees | National Master Agreement (NMA) [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
other employees under collective bargaining agreements affected by changes in healthcare benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000 | ' | ' | ' | ' | ' |
Amount contributed to company- sponsored benefit plans | ' | ' | ' | $51 | ' | $64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated future employer contributions to defined benefit plan, current fiscal year | ' | ' | ' | '49 | ' | '36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees under a national master agreement and various supplemental agreements with local unions affiliated with Teamsters | ' | ' | 253,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Majority of ground mechanics not employed under agreements | ' | ' | 3,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Benefits Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278 | ' | ' | ' | ' |
Full-time employees affected by change in healthcare benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000 | 36,000 | ' | ' | ' |
part-time employees affected by changes in healthcare benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,000 | 73,000 | ' | ' | ' |
Multiemployer Plans, Withdrawal Obligation, Present Value | ' | ' | ' | ' | ' | ' | ' | 882 | 884 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multi-employer Plans, Withdrawal Obligation, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | 782 | 783 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of pilots under a collective bargaining agreement with the Independent Pilots Association | ' | ' | 2,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | ' | ' | ' | ' | -320 | -320 | ' | ' | ' | ' | ' | ' | 31 | ' | 1,066 | 746 | 208 | 112 |
DefinedBenefitPlanRecognizedNetGainLossDuetoSettlementsandCurtailmentsAfterTax | ' | 665 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement payments to fund for assumption of postretirement benefit obligation | 2,271 | 2,271 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 276 | 1,995 | 1,995 | ' | ' | ' |
CashTaxBenefitDueToSettlementofBenefitObligation | ' | 375 | ' | ' | ' | ' | ' | ' | ' | 479 | ' | ' | ' | ' | ' | ' | ' | ' |
ChangeInPostRetirementBenefitandAOCI | 13 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Curtailments | 858 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,094 | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Benefit Obligation | ' | ' | ' | ' | $2,833 | $2,833 | $3,691 | ' | ' | ' | ' | $2,597 | ' | ' | ' | ' | ' | ' |
Allocation_of_Goodwill_by_Repo
Allocation of Goodwill by Reportable Segment (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Beginning balance | $2,190 |
Acquired | 11 |
Currency / Other | 1 |
Ending balance | 2,202 |
U.S. Domestic Package | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 0 |
Acquired | 0 |
Currency / Other | 0 |
Ending balance | 0 |
International Package | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 420 |
Acquired | 0 |
Currency / Other | 3 |
Ending balance | 423 |
Supply Chain & Freight | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 1,770 |
Acquired | 11 |
Currency / Other | -2 |
Ending balance | $1,779 |
Summary_of_Intangible_Assets_D
Summary of Intangible Assets (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $3,051 | $2,912 |
Accumulated Amortization | -2,221 | -2,137 |
Net Carrying Value | 830 | 775 |
Capitalized software | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 2,547 | 2,420 |
Accumulated Amortization | -1,953 | -1,897 |
Net Carrying Value | 594 | 523 |
Licenses | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 225 | 220 |
Accumulated Amortization | -121 | -97 |
Net Carrying Value | 104 | 123 |
Franchise rights | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 117 | 117 |
Accumulated Amortization | -74 | -70 |
Net Carrying Value | 43 | 47 |
Customer lists | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 125 | 118 |
Accumulated Amortization | -61 | -62 |
Net Carrying Value | 64 | 56 |
Trademarks, patents, and other | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 37 | 37 |
Accumulated Amortization | -12 | -11 |
Net Carrying Value | $25 | $26 |
Carrying_Value_of_Outstanding_
Carrying Value of Outstanding Debt (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | $11,643 | ' |
Long-term Debt and Capital Lease Obligations | 11,842 | 10,872 |
Less current maturities | -1,902 | -48 |
Long-Term Debt | 9,940 | 10,824 |
3.875% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 1,000 | ' |
Commercial Paper | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 1,860 | ' |
Maturity - Minimum Date | 31-Dec-14 | ' |
Maturity - Maximum Date | 31-Dec-14 | ' |
Total debt | 1,860 | 0 |
Senior notes | 3.875% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 0 | ' |
Maturity - Maximum Date | 15-Apr-14 | ' |
Debt instrument, stated interest rate | 3.88% | ' |
Total debt | 0 | 1,007 |
Senior notes | 5.50% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 750 | ' |
Maturity - Maximum Date | 15-Jan-18 | ' |
Debt instrument, stated interest rate | 5.50% | ' |
Total debt | 817 | 821 |
Senior notes | 5.125% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 1,000 | ' |
Maturity - Maximum Date | 15-Apr-19 | ' |
Debt instrument, stated interest rate | 5.13% | ' |
Total debt | 1,085 | 1,079 |
Senior notes | Debentures 8 Point 375 Percent Due 2030 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 276 | ' |
Total debt | 283 | 283 |
Senior notes | 3.125% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 1,500 | ' |
Maturity - Maximum Date | 15-Jan-21 | ' |
Debt instrument, stated interest rate | 3.13% | ' |
Total debt | 1,613 | 1,579 |
Senior notes | 6.20% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 1,500 | ' |
Maturity - Maximum Date | 15-Jan-38 | ' |
Debt instrument, stated interest rate | 6.20% | ' |
Total debt | 1,481 | 1,481 |
Senior notes | 4.875% stated rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 500 | ' |
Maturity - Maximum Date | 15-Nov-40 | ' |
Debt instrument, stated interest rate | 4.88% | ' |
Total debt | 489 | 489 |
Senior notes | A1125SeniorNotes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 375 | ' |
Maturity - Maximum Date | 1-Oct-17 | ' |
Debt instrument, stated interest rate | 1.13% | ' |
Total debt | 370 | 367 |
Senior notes | 2.45% senior notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 1,000 | ' |
Maturity - Maximum Date | 1-Oct-22 | ' |
Debt instrument, stated interest rate | 2.45% | ' |
Total debt | 955 | 913 |
Senior notes | 3.625% senior notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 375 | ' |
Maturity - Maximum Date | 1-Oct-42 | ' |
Debt instrument, stated interest rate | 3.63% | ' |
Total debt | 367 | 367 |
Senior notes | Debentures 8 Point 375 Percent Due 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 424 | ' |
Total debt | 483 | 479 |
Senior notes | Floating rate senior notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 372 | ' |
Maturity - Minimum Date | 1-Jan-49 | ' |
Maturity - Maximum Date | 1-Jan-53 | ' |
Total debt | 369 | 370 |
Debentures [Member] | 8.375% debentures due 2030 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity - Maximum Date | 1-Jan-30 | ' |
Debt instrument, stated interest rate | 8.38% | ' |
Debentures [Member] | 8.375% debentures due 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity - Minimum Date | 1-Jan-20 | ' |
Debt instrument, stated interest rate | 8.38% | ' |
Facility notes and bonds | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 320 | ' |
Maturity - Minimum Date | 1-Jan-15 | ' |
Maturity - Maximum Date | 1-Jan-36 | ' |
Total debt | 320 | 320 |
Pound Sterling notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity - Minimum Date | 1-Jan-31 | ' |
Maturity - Maximum Date | 1-Jan-50 | ' |
Pound Sterling notes | Pound Sterling Notes 5 Point 5 Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 113 | ' |
Total debt | 109 | 105 |
Pound Sterling notes | Pound Sterling Notes 5 Point 13 Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 775 | ' |
Total debt | 738 | 714 |
Capital Lease Obligations | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 486 | ' |
Maturity - Minimum Date | 31-Dec-14 | ' |
Maturity - Maximum Date | 1-Jan-04 | ' |
Total debt | 486 | 473 |
Other debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 17 | ' |
Maturity - Minimum Date | 1-Jan-14 | ' |
Maturity - Maximum Date | 1-Jan-22 | ' |
Total debt | $17 | $25 |
DEBT_AND_FINANCING_ARRANGEMENT2
DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | USD ($) | USD ($) | 3.875% senior notes [Member] | U.S. Commercial Paper Program | Foreign Commercial Paper Program | Revolving Credit Facility Expiring In 2015 [Member] | Revolving Credit Facility Expiring In 2017 | Revolving Credit Facility Expiring In 2017 | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | LIBOR rate | LIBOR rate | LIBOR rate | LIBOR rate | LIBOR rate | Citibank base rate | Citibank base rate | Federal Funds Rate [Member] | Federal Funds Rate [Member] | |
Credit_Agreements | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | Minimum [Member] | A1125SeniorNotes [Member] | A1125SeniorNotes [Member] | 2.45% senior notes [Member] | 2.45% senior notes [Member] | 3.625% senior notes [Member] | 3.625% senior notes [Member] | 3.875% senior notes [Member] | 3.875% senior notes [Member] | Revolving Credit Facility Expiring In 2015 [Member] | Revolving Credit Facility Expiring In 2015 [Member] | Revolving Credit Facility Expiring In 2017 | Revolving Credit Facility Expiring In 2017 | Revolving Credit Facility Expiring In 2017 | Revolving Credit Facility Expiring In 2015 [Member] | Revolving Credit Facility Expiring In 2015 [Member] | Revolving Credit Facility Expiring In 2015 [Member] | Revolving Credit Facility Expiring In 2017 | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of debt instrument | $11,643,000,000 | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | $375,000,000 | ' | $1,000,000,000 | ' | $375,000,000 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.13% | ' | 2.45% | ' | 3.63% | ' | 3.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from long-term borrowings | 764,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper program, authorized to borrow | ' | ' | ' | ' | 10,000,000,000 | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | ' | ' | ' | ' | 1,860,000,000 | 0 | ' | ' | ' | 370,000,000 | 367,000,000 | 955,000,000 | 913,000,000 | 367,000,000 | 367,000,000 | 0 | 1,007,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, weighted average interest rate | ' | ' | ' | ' | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of credit agreements | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facilities | ' | ' | ' | ' | ' | ' | 1,500,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity | ' | ' | ' | ' | ' | ' | 27-Mar-15 | 28-Mar-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.75% | 1.00% | 0.10% | 0.75% | 0.00% | 1.00% | 0.50% | 0.50% |
Applicable margin for base rate below LIBOR | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenants limit, amount of secured indebtedness and debt in sale-leaseback transactions, percentage of net tangible assets | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenants that limit the amount of secured indebtedness and amount of attributable debt in sale-leaseback transactions, net tangible assets amount | 2,349,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt fair value | $13,046,000,000 | ' | $11,756,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LEGAL_PROCEEDINGS_AND_CONTINGE1
LEGAL PROCEEDINGS AND CONTINGENCIES LEGAL PROCEEDINGS AND CONTINGENCIES (Loss Contingencies) (Details) (USD $) | 1 Months Ended | 24 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2013 | Dec. 31, 2007 |
Cases | ||
Loss Contingencies [Line Items] | ' | ' |
Loss Contingency, New Claims Filed, Number | ' | 4 |
Loss Contingency Accrual, Carrying Value, Provision | $40 | ' |
LEGAL_PROCEEDINGS_AND_CONTINGE2
LEGAL PROCEEDINGS AND CONTINGENCIES LEGAL PROCEEDINGS AND CONTINGENCIES (Details) | 1 Months Ended | 6 Months Ended | 24 Months Ended | |
Aug. 31, 2010 | Jul. 31, 2009 | Jun. 30, 2014 | Dec. 31, 2007 | |
Freight_Forwarding_Companies | Defendants | Cases | Cases | |
Franchisees | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Number of Freight Forwarding Companies | 45 | ' | ' | ' |
Number of Defendants | ' | 60 | ' | ' |
Loss Contingency, New Claims Filed, Number | ' | ' | ' | 4 |
Number of Outstanding Cases | ' | ' | 1 | ' |
Number of Franchisees | ' | ' | 125 | ' |
SHAREOWNERS_EQUITY_Additional_
SHAREOWNERS' EQUITY - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||||||
Feb. 14, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Classes_of_Common_Stock | Class A common stock | Class A common stock | Class B common stock | Class B common stock | Settled Options | Settled Options | Settled Options | Corporate Joint Venture [Member] | accelerated share repurchase program [Domain] | Accelerated Share Repurchase Program September 2011 [Member] | ||||
Vote | Vote | |||||||||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Step Acquisition, Purchase of Remaining Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $70,000,000 | ' | ' |
Classes of Common Stock, Number | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Votes per common share | ' | ' | ' | ' | 10 | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | ' | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | 4,600,000,000 | ' | 5,600,000,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total of Class A and Class B common stock, repurchased, value | ' | ' | 1,363,000,000 | 1,836,000,000 | 0 | 1,000,000 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Common stock authorized for purchase, amount | 10,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | 5,451,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option premiums received (paid) | ' | ' | ' | ' | ' | ' | ' | ' | -100,000,000 | -200,000,000 | -400,000,000 | ' | ' | ' |
Options Premiums Received | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | $1,000,000 | ' | ' | ' |
Common stock purchases | ' | ' | 13,700,000 | 21,800,000 | 3,000,000 | 4,000,000 | 11,000,000 | 18,000,000 | ' | ' | 5,300,000 | ' | 2,800,000 | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Rollforward_of_Common_Stock_Ad
Roll-forward of Common Stock, Additional Paid-in Capital, and Retained Earnings Accounts (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stockholders Equity Note [Roll Forward] | ' | ' | ' | ' |
Common stock purchases | ' | ' | -13.7 | -21.8 |
Balance at beginning of period | ' | ' | $6,474 | ' |
Net income | 454 | 1,071 | 1,365 | 2,108 |
Common stock purchases | ' | ' | -1,363 | -1,836 |
Balance at end of period | 5,568 | ' | 5,568 | ' |
Class A common stock | ' | ' | ' | ' |
Stockholders Equity Note [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 212 | 225 |
Common stock purchases | ' | ' | -3 | -4 |
Stock award plans | ' | ' | 4 | 5 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | ' | ' | 0 | 0 |
Common stock issuances | ' | ' | 1 | 2 |
Conversions of Class A to Class B common stock | ' | ' | -6 | -10 |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | ' | 0 | 0 |
Balance at end of period | 208 | 218 | 208 | 218 |
Balance at beginning of period | ' | ' | 2 | 3 |
Common stock issuances | ' | ' | 0 | 0 |
Common stock purchases | ' | ' | 0 | -1 |
Balance at end of period | 2 | 2 | 2 | 2 |
Class B common stock | ' | ' | ' | ' |
Stockholders Equity Note [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 712 | 729 |
Common stock purchases | ' | ' | -11 | -18 |
Conversions of Class A to Class B common stock | ' | ' | -6 | -10 |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | ' | 0 | 0 |
Balance at end of period | 707 | 721 | 707 | 721 |
Balance at beginning of period | ' | ' | 7 | 7 |
Common stock purchases | ' | ' | 0 | 0 |
Balance at end of period | 7 | 7 | 7 | 7 |
Additional Paid-in Capital | ' | ' | ' | ' |
Stockholders Equity Note [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 0 | 0 |
Stock award plans | ' | ' | 232 | 364 |
Common stock issuances | ' | ' | 147 | 149 |
Option premiums received (paid) | ' | ' | 102 | -399 |
Common stock purchases | ' | ' | -481 | -114 |
Balance at end of period | 0 | 0 | 0 | 0 |
Retained Earnings | ' | ' | ' | ' |
Stockholders Equity Note [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 6,925 | 7,997 |
Net income | ' | ' | 1,365 | 2,108 |
Dividends ($0.57 and $0.52 per share) | ' | ' | -1,253 | -1,199 |
Common stock purchases | ' | ' | -882 | -1,721 |
Balance at end of period | $6,155 | $7,185 | $6,155 | $7,185 |
Common stock, cash paid for dividends, per share | ' | ' | $1.34 | $1.24 |
Activity_in_Accumulated_Other_
Activity in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ($460) | ' |
Aggregate adjustment for the period (net of tax effect of $0 and $(9)) | 39 | -24 | 3 | -327 |
Current period changes in fair value (net of tax effect of $0, and $2) | 2 | -6 | 2 | -8 |
Current period changes in fair value (net of tax effect of $(25) and $(32)) | -21 | 20 | -41 | 58 |
Balance at end of period | -596 | -3,577 | -596 | -3,577 |
Foreign currency translation gain (loss): | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -126 | 134 |
Aggregate adjustment for the period (net of tax effect of $0 and $(9)) | ' | ' | 3 | -166 |
Balance at end of period | -123 | -193 | -123 | -193 |
Unrealized gain (loss) on marketable securities, net of tax: | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -1 | 6 |
Current period changes in fair value (net of tax effect of $0, and $2) | ' | ' | 2 | -8 |
Reclassification to earnings (net of tax effect of $(1) and $(4)) | ' | ' | 0 | 0 |
Balance at end of period | 1 | -2 | 1 | -2 |
Unrealized gain (loss) on cash flow hedges, net of tax: | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -219 | -286 |
Current period changes in fair value (net of tax effect of $(25) and $(32)) | ' | ' | -44 | -22 |
Reclassification to earnings (net of tax effect of $0 and $(6)) | ' | ' | 3 | 80 |
Balance at end of period | -260 | -228 | -260 | -228 |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -114 | -3,208 |
Reclassification to earnings (net of tax effect of $16 and $28) | ' | ' | 715 | 54 |
Balance at end of period | -214 | -3,154 | -214 | -3,154 |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | ' | ' | ($815) | $0 |
Activity_in_Accumulated_Other_1
Activity in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign currency translation gain (loss): | Foreign currency translation gain (loss): | Foreign currency translation gain (loss): | Foreign currency translation gain (loss): | Unrealized gain (loss) on marketable securities, net of tax: | Unrealized gain (loss) on marketable securities, net of tax: | Unrealized gain (loss) on marketable securities, net of tax: | Unrealized gain (loss) on marketable securities, net of tax: | Unrealized gain (loss) on cash flow hedges, net of tax: | Unrealized gain (loss) on cash flow hedges, net of tax: | Unrealized gain (loss) on cash flow hedges, net of tax: | Unrealized gain (loss) on cash flow hedges, net of tax: | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($596) | ($3,577) | ($596) | ($3,577) | ($460) | ($123) | ($193) | ($126) | $134 | $1 | ($2) | ($1) | $6 | ($260) | ($228) | ($219) | ($286) | ($214) | ($3,154) | ($114) | ($3,208) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, Net of Tax | ' | ' | ' | ' | ' | 0 | -161 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 39 | -24 | 3 | -327 | ' | 3 | -166 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate adjustment for the period, tax | ' | ' | ' | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current period changes in fair value, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification to earnings, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current period changes in fair value, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27 | -14 | ' | ' | ' | ' | ' | ' |
Reclassification to earnings, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 48 | ' | ' | ' | ' | ' | ' |
Reclassification to earnings, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 430 | 34 | ' | ' |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($488) | $0 | ' | ' |
Activity_in_Deferred_Compensat
Activity in Deferred Compensation Program (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | Treasury Stock [Member] | Treasury Stock [Member] | Deferred Compensation Obligations | Deferred Compensation Obligations | ||
Stockholders Equity Note [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | -1 | -1 | -1 | -1 | ' | ' |
Reinvested dividends | ' | ' | 0 | 0 | ' | ' |
Benefit payments | ' | ' | 0 | 0 | ' | ' |
Balance at end of period | -1 | -1 | -1 | -1 | ' | ' |
Balance at beginning of period | $5,568 | $6,474 | ($69) | ($78) | $69 | $78 |
Reinvested dividends | ' | ' | -1 | -2 | 1 | 2 |
Benefit payments | ' | ' | 12 | 13 | -12 | -13 |
Balance at end of period | $5,568 | $6,474 | ($58) | ($67) | $58 | $67 |
Activity_Related_to_Noncontrol
Activity Related to Noncontrolling Interests (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Noncontrolling Interest [Line Items] | ' | ' |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $3 | ($67) |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ' | ' |
Balance at beginning of period | 14 | 80 |
Dividends attributable to noncontrolling interests | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 |
Balance at end of period | $17 | $13 |
SHAREOWNERS_EQUITY_Amounts_Rec
SHAREOWNERS' EQUITY Amounts Reclassified from AOCI (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $39 | ($24) | $3 | ($327) |
Net Income [Member] [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
TotalOtherComprehensiveIncomeReclassification, Net of Tax | -687 | -59 | -718 | 27 |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | ' | ' | 3 | -166 |
Accumulated Translation Adjustment [Member] | Other Expense [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, before Tax | 0 | 0 | 0 | 161 |
Accumulated Translation Adjustment [Member] | Income Tax Expense Benefit [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Translation Reclassification Adjustment Realized upon Sale or Liquidation, Tax | 0 | 0 | 0 | 0 |
Accumulated Translation Adjustment [Member] | Net Income [Member] [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | 161 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | ' | ' | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | ' | ' | 0 | 0 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Investment Income [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | 0 | 0 | 0 | 0 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Income Tax Expense Benefit [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 0 | 0 | 0 | 0 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Net Income [Member] [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 0 | 0 | 0 |
Unrealized gain (loss) on cash flow hedges, net of tax: | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | ' | ' | 1 | 48 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | ' | ' | -3 | -80 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Income Tax Expense Benefit [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | -2 | 18 | 1 | 48 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Net Income [Member] [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 1 | -31 | -3 | -80 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Interest Rate Contract [Member] | Interest Expense [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -5 | -5 | -11 | -10 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Foreign Exchange Contract [Member] | Interest Expense [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | 20 | 6 | 28 | -44 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Foreign Exchange Contract [Member] | Revenue [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -12 | -12 | -21 | -26 |
Unrealized gain (loss) on cash flow hedges, net of tax: | Commodity Contract [Member] | Fuel Expense [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | 0 | -38 | 0 | -48 |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | ' | ' | 715 | 54 |
Accumulated Defined Benefit Plans Adjustment [Member] | LaborAndRelatedExpense [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | -36 | -44 | -79 | -88 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | -320 | 0 | -320 | 0 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | -746 | 0 | -746 | 0 |
Accumulated Defined Benefit Plans Adjustment [Member] | Income Tax Expense Benefit [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 414 | 16 | 430 | 34 |
Accumulated Defined Benefit Plans Adjustment [Member] | Net Income [Member] [Member] | ' | ' | ' | ' |
AmountsReclassifiedFromAOCI [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | ($688) | ($28) | ($715) | ($54) |
SEGMENT_INFORMATION_Additional
SEGMENT INFORMATION - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2014 | |
Segments | |
Segment Reporting Information [Line Items] | ' |
Operating Segments, Number | 3 |
International Package | Minimum | ' |
Segment Reporting Information [Line Items] | ' |
Number of countries and territories in which service is rendered | 220 |
Supply Chain & Freight | Minimum | ' |
Segment Reporting Information [Line Items] | ' |
Number of countries and territories in which service is rendered | 195 |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $14,268 | $13,507 | $28,047 | $26,941 |
Operating Income (Loss) | 747 | 1,742 | 2,260 | 3,322 |
U.S. Domestic Package | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 8,668 | 8,241 | 17,156 | 16,512 |
Operating Income (Loss) | 209 | 1,132 | 1,136 | 2,217 |
International Package | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 3,252 | 3,062 | 6,379 | 6,040 |
Operating Income (Loss) | 444 | 451 | 882 | 803 |
Supply Chain & Freight | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 2,348 | 2,204 | 4,512 | 4,389 |
Operating Income (Loss) | $94 | $159 | $242 | $302 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income attributable to common shareowners | $454 | $1,071 | $1,365 | $2,108 |
Denominator: | ' | ' | ' | ' |
Weighted average shares | 916 | 941 | 918 | 945 |
Deferred compensation obligations | 1 | 1 | 1 | 1 |
Vested portion of restricted shares | 1 | 1 | 1 | 2 |
Denominator for basic earnings per share | 918 | 943 | 920 | 948 |
Denominator for diluted earnings per share | 927 | 952 | 929 | 956 |
Basic earnings per share | $0.49 | $1.14 | $1.48 | $2.22 |
Diluted earnings per share | $0.49 | $1.13 | $1.47 | $2.21 |
Restricted performance units | ' | ' | ' | ' |
Denominator: | ' | ' | ' | ' |
Incremental common shares attributable to share-based payment arrangements | 8 | 8 | 8 | 7 |
Stock option plans | ' | ' | ' | ' |
Denominator: | ' | ' | ' | ' |
Incremental common shares attributable to share-based payment arrangements | 1 | 1 | 1 | 1 |
EARNINGS_PER_SHARE_Additional_
EARNINGS PER SHARE - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Shares excluded from diluted earnings per share that may be issued upon the exercise of employee stock options because such effect would be antidilutive | 0.1 | 0 | 0.1 | 0.1 |
DERIVATIVE_INSTRUMENTS_AND_RIS2
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Collateral received under contractual provisions | $188 |
Maximum term over hedging exposures to the variability of cash flow | '36 years |
Pre-tax losses related to cash flow hedges that are currently deferred in AOCI and are expected to be reclassified to income within twelve months | 80 |
Derivative, Collateral, Right to Reclaim Cash | $10 |
Notional_Amounts_of_Outstandin
Notional Amounts of Outstanding Derivative Positions (Detail) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | CAD | CNY | EUR (€) | GBP (£) | INR | MXN | MYR | CAD | CNY | EUR (€) | GBP (£) | INR | MXN | MYR | Fixed to Floating Interest Rate Swaps | Fixed to Floating Interest Rate Swaps | Floating to Fixed Interest Rate Swaps | Floating to Fixed Interest Rate Swaps | Basis Interest Rate Swaps | Basis Interest Rate Swaps |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 436 | 211 | € 3,479 | £ 1,308 | 214 | 1,176 | 155 | 218 | 0 | € 2,637 | £ 1,097 | 0 | 583 | 0 | $5,799 | $6,799 | $780 | $780 | $1,500 | $2,500 |
Location_on_the_Balance_Sheet_
Location on the Balance Sheet of Derivative Assets and Liabilities (Detail) (Fair Value, Inputs, Level 2, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Asset Derivatives | ' | ' |
Asset Derivatives | $359 | $347 |
Derivative Asset, Fair Value, Net | 303 | 242 |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 115 | 121 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 59 | 16 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets | ' | ' |
Asset Derivatives | ' | ' |
Asset Derivatives | 8 | 10 |
Derivative Asset, Fair Value, Net | 8 | 4 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other noncurrent assets | ' | ' |
Asset Derivatives | ' | ' |
Asset Derivatives | 43 | 59 |
Derivative Asset, Fair Value, Net | 39 | 59 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other current liabilities | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 8 | 6 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 8 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other non-current liabilities | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 41 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 37 | 0 |
Designated as Hedging Instrument | Interest Rate Contracts | Other current assets | ' | ' |
Asset Derivatives | ' | ' |
Asset Derivatives | 0 | 7 |
Derivative Asset, Fair Value, Net | 0 | 7 |
Designated as Hedging Instrument | Interest Rate Contracts | Other noncurrent assets | ' | ' |
Asset Derivatives | ' | ' |
Asset Derivatives | 242 | 204 |
Derivative Asset, Fair Value, Net | 191 | 110 |
Designated as Hedging Instrument | Interest Rate Contracts | Other non-current liabilities | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 54 | 104 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 3 | 10 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets | ' | ' |
Asset Derivatives | ' | ' |
Asset Derivatives | 9 | 7 |
Derivative Asset, Fair Value, Net | 8 | 5 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current liabilities | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 9 | 7 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 8 | 5 |
Not Designated as Hedging Instrument | Interest Rate Contracts | Other noncurrent assets | ' | ' |
Asset Derivatives | ' | ' |
Asset Derivatives | 57 | 60 |
Derivative Asset, Fair Value, Net | 57 | 57 |
Not Designated as Hedging Instrument | Interest Rate Contracts | Other current liabilities | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 3 | 1 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 3 | 1 |
Not Designated as Hedging Instrument | Interest Rate Contracts | Other non-current liabilities | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Liability Derivatives | 0 | 3 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $0 | $0 |
Amount_and_Location_in_the_Inc
Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Detail) (Cash Flow Hedging [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | ($32) | ($18) | ($71) | ($36) |
Interest Rate Contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -1 | 2 | -3 | 3 |
Foreign Exchange Contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -31 | 10 | -68 | 9 |
Commodity Contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $0 | ($30) | $0 | ($48) |
Amount_and_Location_in_the_Inc1
Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges (Detail) (Fair Value Hedging, Interest Expense [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Rate Contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | $53 | ($187) | $83 | ($233) |
Fixed-Rate Debt and Capital Leases | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ($53) | $187 | ($83) | $233 |
Amount_Recorded_in_Income_Stat
Amount Recorded in Income Statements for Foreign Currency Forward Contracts Not Designated as Hedges (Detail) (Not Designated as Hedging Instrument, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ($1) | $13 | ($5) | $95 |
Foreign Exchange Contracts | Other Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | -2 | -3 | -4 | 84 |
Foreign Exchange Contracts | Investment Income [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | 2 | 20 | 2 | 15 |
Interest Rate Contract [Member] | Interest Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ($1) | ($4) | ($3) | ($4) |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income Tax Data [Line Items] | ' | ' | ' | ' |
Effective tax rate | 33.50% | 35.00% | 35.20% | 32.80% |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $145 | ' | $145 | ' |
TNT_Termination_Details
TNT Termination (Details) | 3 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2013 | |
USD ($) | EUR (€) | |
Business Combinations [Abstract] | ' | ' |
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | $245,000,000 | ' |
DeconsolidationRevaluationOfRetainedInvestmentGainOrLossAmountAfterTax | 213,000,000 | ' |
OtherTransactionRelatedExpenses | 16,000,000 | ' |
TotalTerminationFee(pretax) | 284,000,000 | ' |
TotalTerminationFee(aftertax) | 177,000,000 | ' |
Termination of Business Acquisition, Termination Fee | $268,000,000 | € 200,000,000 |