Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Entity Registrant Name | UNITED PARCEL SERVICE INC | |
Trading Symbol | UPS | |
Entity Central Index Key | 1,090,727 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 197,740,294 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 698,448,250 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - Major Types of Debt and Equity Securities [Domain] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 3,430 | $ 2,291 |
Marketable securities | 2,792 | 992 |
Accounts receivable, net | 5,618 | 6,661 |
Deferred income tax assets | 554 | 590 |
Other current assets | 1,374 | 1,274 |
Total Current Assets | 13,768 | 11,808 |
Property, Plant and Equipment, Net | 17,970 | 18,281 |
Goodwill | 2,214 | 2,184 |
Intangible Assets, Net | 878 | 847 |
Non-Current Investments and Restricted Cash | 469 | 489 |
Derivative Assets, Noncurrent | 435 | 515 |
Deferred Income Taxes and Other Assets, Noncurrent | 821 | 652 |
Other Non-Current Assets | 696 | 695 |
Total Assets | 37,251 | 35,471 |
Current Liabilities: | ||
Current maturities of long-term debt and commercial paper | 3,252 | 923 |
Accounts payable | 2,150 | 2,754 |
Accrued wages and withholdings | 2,148 | 2,373 |
Derivative, Collateral, Obligation to Return Cash | 753 | 548 |
Self-insurance reserves | 621 | 656 |
Other current liabilities | 1,379 | 1,385 |
Total Current Liabilities | 10,303 | 8,639 |
Long-Term Debt | 9,900 | 9,864 |
Pension and Postretirement Benefit Obligations | 11,814 | 11,452 |
Self-Insurance Reserves | 1,927 | 1,916 |
Other Non-Current Liabilities | 1,339 | 1,442 |
Shareowners' Equity: | ||
Additional paid-in capital | 0 | 0 |
Retained earnings | 5,668 | 5,726 |
Accumulated other comprehensive loss | (3,727) | (3,594) |
Deferred compensation obligations | 50 | 59 |
Less: Treasury stock | (50) | (59) |
Total Equity for Controlling Interests | 1,950 | 2,141 |
Total Equity for Non-Controlling Interests | 18 | 17 |
Total Shareowners' Equity | 1,968 | 2,158 |
Total Liabilities and Shareowners' Equity | 37,251 | 35,471 |
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) - shares shares in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Treasury stock, shares | 1 | 1 | ||
Class A common stock | ||||
Common stock, shares issued | 199 | 201 | 208 | 212 |
Class B common stock | ||||
Common stock, shares issued | 698 | 705 | 707 | 712 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 14,095 | $ 14,268 | $ 28,072 | $ 28,047 |
Operating Expenses: | ||||
Compensation and benefits | 7,502 | 8,375 | 15,066 | 15,640 |
Repairs and maintenance | 357 | 341 | 707 | 670 |
Depreciation and amortization | 510 | 473 | 1,016 | 941 |
Purchased transportation | 1,777 | 1,988 | 3,631 | 3,896 |
Fuel | 639 | 980 | 1,283 | 1,952 |
Other occupancy | 230 | 241 | 524 | 538 |
Other expenses | 1,120 | 1,123 | 2,212 | 2,150 |
Total Operating Expenses | 12,135 | 13,521 | 24,439 | 25,787 |
Operating Profit | 1,960 | 747 | 3,633 | 2,260 |
Other Income and (Expense): | ||||
Investment income | 4 | 25 | 8 | 25 |
Interest expense | (86) | (89) | (173) | (179) |
Total Other Income and (Expense) | (82) | (64) | (165) | (154) |
Income Before Income Taxes | 1,878 | 683 | 3,468 | 2,106 |
Income Tax Expense | 648 | 229 | 1,212 | 741 |
Net Income | $ 1,230 | $ 454 | $ 2,256 | $ 1,365 |
Basic Earnings Per Share | $ 1.37 | $ 0.49 | $ 2.50 | $ 1.48 |
Diluted Earnings Per Share | $ 1.35 | $ 0.49 | $ 2.48 | $ 1.47 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,230 | $ 454 | $ 2,256 | $ 1,365 |
Change in foreign currency translation adjustment, net of tax | 101 | 39 | (203) | 3 |
Change in unrealized gain (loss) on marketable securities, net of tax | (1) | 2 | 1 | 2 |
Change in unrealized gain (loss) on cash flow hedges, net of tax | (159) | (21) | 17 | (41) |
Change in unrecognized pension and postretirement benefit costs, net of tax | 20 | (127) | 52 | (100) |
Comprehensive income | $ 1,191 | $ 347 | $ 2,123 | $ 1,229 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities: | ||
Net income | $ 2,256 | $ 1,365 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 1,016 | 941 |
Pension and postretirement benefit expense | 539 | 1,523 |
Pension and postretirement benefit contributions | (99) | (115) |
Settlement of postretirement benefit obligation | 0 | (1,995) |
Self-insurance reserves | (22) | (77) |
Deferred taxes, credits and other | (140) | (192) |
Stock compensation expense | 328 | 306 |
Other (gains) losses | (51) | 144 |
Change in assets and liabilities, net of effect of acquisitions | ||
Accounts receivable | 880 | 585 |
Other current assets | 301 | (269) |
Accounts payable | (558) | (357) |
Accrued wages and withholdings | (179) | (241) |
Other current liabilities | 14 | 207 |
Other operating activities | (46) | 7 |
Net cash from operating activities | 4,239 | 1,832 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (958) | (813) |
Proceeds from disposals of property, plant, and equipment | 8 | 10 |
Purchases of marketable securities | (4,553) | (1,813) |
Sales and maturities of marketable securities | 2,840 | 854 |
Net decrease in finance receivables | (13) | 13 |
Cash paid for business acquisitions | (90) | (22) |
Other investing activities | (10) | (31) |
Net cash (used in) investing activities | (2,776) | (1,802) |
Cash Flows From Financing Activities: | ||
Net change in short-term debt | 2,319 | 1,096 |
Proceeds from long-term borrowings | 1,572 | 764 |
Repayments of long-term borrowings | (1,488) | (1,020) |
Purchases of common stock | (1,348) | (1,379) |
Issuances of common stock | 140 | 149 |
Dividends | (1,270) | (1,192) |
Other financing activities | (177) | (50) |
Net cash (used in) financing activities | (252) | (1,632) |
Effect Of Exchange Rate Changes On Cash And Cash Equivalents | (72) | (7) |
Net Increase In Cash And Cash Equivalents | 1,139 | (1,609) |
Cash And Cash Equivalents: | ||
Beginning of period | 2,291 | 4,665 |
End of period | $ 3,430 | $ 3,056 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 , our results of operations for the three and six months ended June 30, 2015 and 2014 , and cash flows for the six months ended June 30, 2015 and 2014 . 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, 2014 . 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, 2015 . 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 PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In June 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update for companies that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. This new guidance became effective for us in the first quarter of 2015, and did not have a material impact on our consolidated balance sheets and statements of income. Other accounting pronouncements adopted during the periods covered by the consolidated financial statements did not have a material impact on our consolidated balance sheets and statements of income. Accounting Standards Issued But Not Yet Effective In May 2015, the FASB issued an accounting standards update that changes the disclosure requirement for reporting investments at fair value. This update removes the requirement to categorize investments for which fair value is measured using the net asset value per share practical expedient within the fair value hierarchy. These disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. This new guidance will be applied retrospectively and becomes effective for us in the first quarter of 2016, but early adoption is permitted. At this time, we do not expect this new guidance to have a material impact on our consolidated balance sheets or the related disclosures in the financial statements. In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This standard amends existing guidance to require the presentation of debt issuance costs in the consolidated balance sheets as a direct deduction from the carrying amount of the associated debt liability instead of a deferred charge. This new guidance will be applied retrospectively and becomes effective for us in the first quarter of 2016, but early adoption is permitted. This new guidance will not have a material impact on our consolidated balance sheets. In May 2014, the FASB issued an accounting standards update that changes the revenue recognition for companies that enter into contracts with customers to transfer goods or services. This amended guidance requires revenue to be recognized in an amount that reflects the consideration to which the company expects to be entitled for those goods and services when the performance obligation has been satisfied. This amended guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. On July 9, 2015, the FASB voted to defer the effective date of this guidance by one year to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date beginning after December 15, 2016. At this time, we do not expect this accounting standards update to have a material impact on our consolidated balance sheets or statements of income. Other accounting pronouncements issued, but not effective until after June 30, 2015 , are not expected to have a material impact on our consolidated balance sheets or statements of income. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
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"). Upon vesting, Restricted Units result in the issuance of the equivalent number of UPS class A common shares after required tax withholdings. Dividends accrued on Restricted Units are reinvested in additional Restricted Units at each dividend payable date, and are subject to the same vesting and forfeiture conditions as the underlying Restricted Units upon which they are earned. 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 2015 , 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 5, 2015 (for U.S.-based employees) and March 30, 2015 (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 $101.46 and $97.27 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 65.86% 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 2015 LTIP Award, we determined the award measurement date to be March 26, 2015; therefore the target Restricted Units grant was valued for stock compensation expense using the closing New York Stock Exchange price of $ 96.64 on that date. Nonqualified Stock Options During the first quarter of 2015 , 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 2015 and 2014 , we granted 0.2 and 0.1 million stock options, respectively, at a weighted average grant price of $101.93 and $ 96.98 , respectively. The weighted average fair value of our employee stock options granted, as determined by the Black-Scholes valuation model, was $18.07 and $ 20.48 for 2015 and 2014 , respectively, using the following assumptions: 2015 2014 Expected life (in years) 7.5 7.5 Risk-free interest rate 2.07 % 2.40 % Expected volatility 20.61 % 24.26 % Expected dividend yield 2.63 % 2.56 % Compensation expense for share-based awards recognized in net income for the three months ended June 30, 2015 and 2014 was $134 and $142 million pre-tax, respectively. Compensation expense for share-based awards recognized in net income for the six months ended June 30, 2015 and 2014 was $ 328 and $ 306 million pre-tax, respectively. |
INVESTMENTS AND RESTRICTED CASH
INVESTMENTS AND RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2015 | |
Marketable Securities [Abstract] | |
INVESTMENTS AND RESTRICTED CASH | INVESTMENTS AND RESTRICTED CASH The following is a summary of marketable securities classified as trading and available-for-sale as of June 30, 2015 and December 31, 2014 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value June 30, 2015: Current marketable securities: U.S. government and agency debt securities $ 319 $ 1 $ — $ 320 Mortgage and asset-backed debt securities 82 — — 82 Corporate debt securities 1,835 1 (1 ) 1,835 Other debt, equity and investment securities 546 11 (2 ) 555 Total marketable securities $ 2,782 $ 13 $ (3 ) $ 2,792 December 31, 2014: Current marketable securities: U.S. government and agency debt securities $ 321 $ 1 $ (1 ) $ 321 Mortgage and asset-backed debt securities 89 1 (1 ) 89 Corporate debt securities 534 — — 534 Other debt, equity and investment securities 48 — — 48 Total marketable securities $ 992 $ 2 $ (2 ) $ 992 Of the total estimated fair value in marketable securities listed above, $ 2.007 billion and $ 430 million as of June 30, 2015 and December 31, 2014 , respectively, have been classified as "trading", with unrealized gains and losses recognized in investment income within the statements of consolidated income. The remaining estimated fair value of marketable securities was classified as "available-for-sale", with related unrealized gains and losses, net of tax, recognized in accumulated other comprehensive income ("AOCI"). Investment Other-Than-Temporary Impairments We have concluded that no other-than-temporary impairment losses existed as of June 30, 2015 . 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, 2015 , 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 $ 2,039 $ 2,039 Due after one year through three years 428 428 Due after three years through five years 14 15 Due after five years 73 73 2,554 2,555 Equity and other investment securities 228 237 $ 2,782 $ 2,792 Non-Current Investments and Restricted Cash We had $ 442 million of restricted cash related to our self-insurance requirements as of June 30, 2015 and December 31, 2014 , 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, 2015 and December 31, 2014 , we held a $19 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan. Additionally, we held escrowed cash related to the acquisition and disposition of certain assets of $8 and $28 million as of June 30, 2015 and December 31, 2014 , respectively. The amounts described above are classified as “non-current investments and restricted cash” on the consolidated balance sheets, while the quarterly change in investment fair value is recognized in "investment income" on 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 non-current 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 8.29% and 7.81% as of June 30, 2015 and December 31, 2014 , 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, 2015 and December 31, 2014 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance June 30, 2015: Marketable Securities: U.S. government and agency debt securities $ 320 $ — $ — $ 320 Mortgage and asset-backed debt securities — 82 — 82 Corporate debt securities — 1,835 — 1,835 Other debt, equity and investment securities — 555 — 555 Total marketable securities 320 2,472 — 2,792 Other non-current investments 19 — 48 67 Total $ 339 $ 2,472 $ 48 $ 2,859 December 31, 2014: Marketable Securities: U.S. government and agency debt securities $ 321 $ — $ — $ 321 Mortgage and asset-backed debt securities — 89 — 89 Corporate debt securities — 534 — 534 Other debt, equity and investment securities — 48 — 48 Total marketable securities 321 671 — 992 Other non-current investments 19 — 64 83 Total $ 340 $ 671 $ 64 $ 1,075 The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended June 30, 2015 and 2014 (in millions): Marketable Securities Other Non-Current Investments Total Balance on April 1, 2015 $ — $ 56 $ 56 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income) — (8 ) (8 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on June 30, 2015 $ — $ 48 $ 48 Marketable Securities Other Non-Current Investments Total 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 The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the six months ended June 30, 2015 and 2014 (in millions): Marketable Securities Other Investments Total Balance on January 1, 2015 $ — 64 64 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income) — (16 ) (16 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on June 30, 2015 $ — $ 48 $ 48 Marketable Securities Other Investments Total 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 There were no transfers of investments between Level 1 and Level 2 during the three and six months ended June 30, 2015 and 2014 . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of June 30, 2015 and December 31, 2014 consist of the following (in millions): 2015 2014 Vehicles $ 7,667 $ 7,542 Aircraft 15,808 15,801 Land 1,190 1,145 Buildings 3,225 3,276 Building and leasehold improvements 3,319 3,266 Plant equipment 7,630 7,649 Technology equipment 1,678 1,608 Equipment under operating leases 30 34 Construction-in-progress 398 299 40,945 40,620 Less: Accumulated depreciation and amortization (22,975 ) (22,339 ) $ 17,970 $ 18,281 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 of potential impairment. No impairment charges on property, plant and equipment were recorded during the three and six months ended June 30, 2015 and 2014 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2015 2014 2015 2014 2015 2014 Three Months Ended June 30: Service cost $ 381 $ 285 $ 8 $ 18 $ 13 $ 15 Interest cost 424 401 30 34 11 14 Expected return on assets (622 ) (565 ) (4 ) (6 ) (16 ) (15 ) Amortization of: Transition obligation — — — — — — Prior service cost 42 43 1 (4 ) 1 (3 ) Other net (gain) loss — — — — — — Actuarial (gain) loss — — — 746 — — Settlement and curtailment loss — — — $ 320 — — Net periodic benefit cost $ 225 $ 164 $ 35 $ 1,108 $ 9 $ 11 U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2015 2014 2015 2014 2015 2014 Six Months Ended June 30: Service cost $ 763 $ 569 $ 17 $ 39 $ 25 $ 27 Interest cost 847 802 61 86 22 26 Expected return on assets (1,244 ) (1,129 ) (8 ) (12 ) (31 ) (30 ) Amortization of: Transition obligation — — — — — — Prior service cost 84 85 2 (3 ) 1 (3 ) Other net (gain) loss — — — — — — Actuarial (gain) loss — — — 746 — — Settlement and curtailment loss — — — $ 320 — — Net periodic benefit cost $ 450 $ 327 $ 72 $ 1,176 $ 17 $ 20 During the first six months of 2015 , we contributed $45 and $54 million to our company-sponsored pension and postretirement medical benefit plans, respectively. We also expect to contribute $1.075 billion and $50 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, 2015 and December 31, 2014 we had $ 875 and $878 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 47 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, 2015 and December 31, 2014 was $ 834 and $ 913 million , respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. Collective Bargaining Agreements As of December 31, 2014, we had approximately 270,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the International Brotherhood of Teamsters (“Teamsters”). In addition, our airline pilots, airline mechanics, ground mechanics and certain other employees are employed under other collective bargaining agreements. During the second quarter of 2014, the Teamsters ratified a new national master agreement (“NMA”) with UPS that will expire on July 31, 2018. The economic provisions in the NMA included wage rate increases, as well as increased contribution rates for healthcare and pension benefits. Most of these economic provisions were retroactive to August 1, 2013, which was 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 were certain changes to the delivery of healthcare benefits that were 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 in the "Changes to the Delivery of Active and Postretirement Healthcare Benefits" section. 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. The ongoing contract negotiations between UPS and the IPA are in mediation by the National Mediation Board. 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”) that will expire on July 31, 2019. 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 was also assumed by the Funds on various dates up to 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 was 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 $2.271billion 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 retired 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 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 in 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. Balance Sheet and Cash Flow Impact: During the second quarter of 2014, as part of the health and welfare plan changes described previously, we transferred cash totaling $ 2.271 billion to the Funds, which was accounted for as a settlement of our postretirement benefit obligations. As of June 30, 2014, we had received approximately $ 375 million of cash tax benefits (through reduced U.S. Federal and state quarterly income tax payments) and we received 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 remained 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 AOCI, of $ 13 million upon ratification. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and December 31, 2014 (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated December 31, 2014: $ — $ 449 $ 1,735 $ 2,184 Acquired — — 72 72 Currency / Other — (16 ) (26 ) (42 ) June 30, 2015: $ — $ 433 $ 1,781 $ 2,214 The goodwill acquired in the Supply Chain & Freight segment was related to our March 2015 acquisition of Poltraf Sp. z.o.o. ("Poltraf"), a Polish-based pharmaceutical logistics company recognized for its temperature-sensitive warehousing and transportation solutions, and our June 2015 acquisitions of Parcel Pro, Inc. ("Parcel Pro") and the Insured Parcel Services division of G4S International Logistics ("IPS"), which are businesses that provide services and insurance coverage for the transport of high value luxury goods. The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. Our purchase price allocations for Parcel Pro and IPS have not been finalized. These acquisitions were 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, 2015 and December 31, 2014 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value June 30, 2015: Capitalized software $ 2,613 $ (1,934 ) $ 679 Licenses 214 (152 ) 62 Franchise rights 121 (80 ) 41 Customer lists 144 (71 ) 73 Trademarks, patents, and other 35 (12 ) 23 Total Intangible Assets, Net $ 3,127 $ (2,249 ) $ 878 December 31, 2014: Capitalized software $ 2,641 $ (1,997 ) $ 644 Licenses 217 (133 ) 84 Franchise rights 117 (77 ) 40 Customer lists 123 (66 ) 57 Trademarks, patents, and other 31 (9 ) 22 Total Intangible Assets, Net $ 3,129 $ (2,282 ) $ 847 |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt as of June 30, 2015 and December 31, 2014 consists of the following (in millions): Principal Amount Carrying Value Maturity 2015 2014 Commercial paper $ 3,210 2015 $ 3,209 $ 772 Fixed-rate senior notes: 1.125% senior notes 375 2017 372 370 5.50% senior notes 750 2018 798 802 5.125% senior notes 1,000 2019 1,073 1,076 3.125% senior notes 1,500 2021 1,612 1,617 2.45% senior notes 1,000 2022 975 977 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 368 367 8.375% Debentures: 8.375% debentures 424 2020 477 480 8.375% debentures 276 2030 283 283 Pound Sterling notes: 5.50% notes 105 2031 101 99 5.125% notes 717 2050 683 673 Floating rate senior notes 463 2049-2064 459 459 Capital lease obligations 434 2015-3005 434 505 Facility notes and bonds 320 2015-2036 320 320 Other debt 18 2015-2022 18 17 Total Debt $ 12,967 13,152 10,787 Less: Current Maturities (3,252 ) (923 ) Long-term Debt $ 9,900 $ 9,864 Sources of Credit We are authorized to borrow up to $ 10.0 billion under the U.S. commercial paper program we maintain. We had $ 2.547 billion outstanding under this program as of June 30, 2015 , 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. We had £ 420 million ($ 662 million) outstanding under this program as of June 30, 2015 with an average interest rate of 0.49% . As of June 30, 2015 , 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 26, 2016 . 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, 2015 . The second agreement provides revolving credit facilities of $ 3.0 billion, and expires on March 27, 2020 . 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, 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, 2015 . Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of June 30, 2015 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, 2015 , 10% of net tangible assets was equivalent to $2.386 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 $ 14.337 and $ 12.257 billion as of June 30, 2015 and December 31, 2014 , 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 CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
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 The UPS Store, Inc., are defendants in Morgate v. The UPS Store, Inc. et al. an action in the Los Angeles Superior Court brought on behalf of a certified class of all franchisees who chose to rebrand their Mail Boxes Etc. franchises to The UPS Store in March 2003. Plaintiff alleges that UPS and The UPS Store, Inc. misrepresented and omitted facts to the class about the market tests that were conducted before offering the class the choice of whether to rebrand to The UPS Store. The court has scheduled a trial for November 2015, limited to the claim of the class representative. After that trial is complete, the court will consider how to proceed with respect to the claims of the other class members. 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. The Court granted these motions on April 30, 2015, entered judgment in favor of UPS and FedEx, and dismissed the case. On May 21, 2015, plaintiff filed a notice of appeal to the Court of Appeals for the Ninth Circuit. The Antitrust Division of the U.S. Department of Justice (“DOJ”) has an open civil investigation of our policies and practices for dealing with third-party negotiators. We have cooperated 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) the DOJ investigation is pending; (2) the Court granted our motion for summary judgment; and (3) plaintiff has filed a notice of appeal. 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 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. After two rounds of motions to dismiss, in October 2014, UPS entered into a settlement agreement with the plaintiffs to settle the remaining claims asserted against UPS for an immaterial amount. The court granted preliminary approval of the settlement on December 16, 2014. The settlement is subject to final court approval, which is currently scheduled to be considered by the Court on November 2, 2015. 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. UPS intends to continue to defend itself in these proceedings. In November 2012, the Commerce Commission of Singapore initiated an investigation with respect to similar matters. On May 29, 2015, the Commerce Commission of Singapore informed UPS that it was closing the investigation with no action. 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 this matter including: (1) we are vigorously defending the 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 this matter, 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 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 January 2014, we received a Civil Investigative Demand from the DOJ seeking documents related to possible damages under 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 also have been contacted by multiple states requesting this information. The Company cooperated with these inquiries. The Company reached agreements in principle during the second quarter of 2015 with the DOJ and a group of state and local governments to resolve all of their respective claims. We do not believe that the terms of the settlements will have a material adverse effect on our financial condition, results of operations or liquidity. In February 2015, the State and City of New York filed suit against UPS in the U.S. District Court for the Southern District of New York, arising from alleged shipments of cigarettes to New York State and City residents. The complaint asserts claims under various federal and state laws. The complaint also includes a claim that UPS violated the Assurance of Discontinuance it entered into with the New York Attorney General in 2005 concerning cigarette deliveries. The court held a hearing on our motion to dismiss in July 2015. There are multiple factors that prevent us from being able to estimate the amount of loss, if any, that may result from this case, including: (1) we are vigorously defending ourselves and believe we have a number of meritorious factual and legal defenses; and (2) it remains uncertain what evidence of their claims and 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. 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, 2015 | |
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, 2015 , 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, 2015 , 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, 2015 and 2014 (in millions, except per share amounts): 2015 2014 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 201 $ 2 212 $ 2 Common stock purchases (2 ) — (3 ) — Stock award plans 4 — 4 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (5 ) — (6 ) — Class A shares issued at end of period 199 $ 2 208 $ 2 Class B Common Stock Balance at beginning of period 705 $ 7 712 $ 7 Common stock purchases (12 ) — (11 ) — Conversions of class A to class B common stock 5 — 6 — Class B shares issued at end of period 698 $ 7 707 $ 7 Additional Paid-In Capital Balance at beginning of period $ — $ — Stock award plans 265 232 Common stock purchases (392 ) (481 ) Common stock issuances 173 147 Option premiums received (paid) (46 ) 102 Balance at end of period $ — $ — Retained Earnings Balance at beginning of period $ 5,726 $ 6,925 Net income attributable to common shareowners 2,256 1,365 Dividends ($1.46 and $1.34 per share) (1,348 ) (1,253 ) Common stock purchases (966 ) (882 ) Balance at end of period $ 5,668 $ 6,155 In total, we repurchased 13.5 million shares of class A and class B common stock for $1.358 billion during the six months ended June 30, 2015 , and 13.7 million shares for $1.363 billion during the six months ended June 30, 2014 . In February 2013, the Board of Directors approved a new share repurchase authorization of $10.0 billion, which has no expiration date. As of June 30, 2015 , we had $2.794 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 2015, we entered into an accelerated share repurchase program which allowed us to repurchase 4.0 million shares for $ 400 million. The program was completed in June 2015. 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. We received (paid) net premiums of $(46) and $102 million during the first six months of 2015 and 2014 , respectively, related to entering into and settling capped call options for the purchase of class B shares. As of June 30, 2015 , we had outstanding options for the purchase of 2.3 million shares, with a weighted average strike price of $ 89.91 per share, that will settle in the third and fourth quarters of 2015. 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, 2015 and 2014 is as follows (in millions): 2015 2014 Foreign currency translation gain (loss): Balance at beginning of period $ (457 ) $ (126 ) Reclassification to earnings (no tax impact in either period) — — Translation adjustment (net of tax effect of $0 and $3) (203 ) 3 Balance at end of period (660 ) (123 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period — (1 ) Current period changes in fair value (net of tax effect of $0 and $1) 1 2 Reclassification to earnings (no tax impact in either period) — — Balance at end of period 1 1 Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 61 (219 ) Current period changes in fair value (net of tax effect of $56 and $(27)) 91 (44 ) Reclassification to earnings (net of tax effect of $(45) and $1) (74 ) 3 Balance at end of period 78 (260 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,198 ) (114 ) Reclassification to earnings (net of tax effect of $35 and $430) 52 715 Remeasurement of plan assets and liabilities (net of tax effect of $0 and $(488)) — (815 ) Balance at end of period (3,146 ) (214 ) Accumulated other comprehensive income (loss) at end of period $ (3,727 ) $ (596 ) Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and six months ended June 30, 2015 and 2014 is as follows (in millions): Three Months Ended June 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2015 2014 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 (6 ) (5 ) Interest expense Foreign exchange contracts 11 20 Interest expense Foreign exchange contracts 77 (12 ) Revenue Income tax (expense) benefit (31 ) (2 ) Income tax expense Impact on net income 51 1 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (44 ) (36 ) Compensation and benefits Settlement and curtailment loss — (320 ) Compensation and benefits Remeasurement of benefit obligation — (746 ) Compensation and benefits Income tax (expense) benefit 18 414 Income tax expense Impact on net income (26 ) (688 ) Net income Total amount reclassified for the period $ 25 $ (687 ) Net income Six Months Ended June 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2015 2014 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 (12 ) (11 ) Interest expense Foreign exchange contracts (25 ) 28 Interest expense Foreign exchange contracts 156 (21 ) Revenue Income tax (expense) benefit (45 ) 1 Income tax expense Impact on net income 74 (3 ) Net income Unrecognized pension and postretirement benefit costs: Prior service costs (87 ) (79 ) Compensation and benefits Settlement and curtailment loss — (320 ) Compensation and benefits Remeasurement of benefit obligation — (746 ) Compensation and benefits Income tax (expense) benefit 35 430 Income tax expense Impact on net income (52 ) (715 ) Net income Total amount reclassified for the period $ 22 $ (718 ) Net income Deferred Compensation Obligations and Treasury Stock Activity in the deferred compensation program for the six months ended June 30, 2015 and 2014 is as follows (in millions): 2015 2014 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 59 $ 69 Reinvested dividends 2 1 Benefit payments (11 ) (12 ) Balance at end of period $ 50 $ 58 Treasury Stock: Balance at beginning of period (1 ) $ (59 ) (1 ) $ (69 ) Reinvested dividends — (2 ) — (1 ) Benefit payments — 11 — 12 Balance at end of period (1 ) $ (50 ) (1 ) $ (58 ) Noncontrolling Interests: We have noncontrolling interests in certain consolidated subsidiaries in our International Package and Supply Chain & Freight segments. Noncontrolling interests increased $1 and $3 million for the six months ended June 30, 2015 and 2014 , respectively, mainly due to noncontrolling interests associated with acquisitions during the period. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014 , 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, 2015 and 2014 is as follows (in millions): Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenue: U.S. Domestic Package $ 8,808 $ 8,668 $ 17,622 $ 17,156 International Package 3,045 3,252 6,015 6,379 Supply Chain & Freight 2,242 2,348 4,435 4,512 Consolidated $ 14,095 $ 14,268 $ 28,072 $ 28,047 Operating Profit: U.S. Domestic Package $ 1,201 $ 209 $ 2,225 $ 1,136 International Package 552 444 1,050 882 Supply Chain & Freight 207 94 358 242 Consolidated $ 1,960 $ 747 $ 3,633 $ 2,260 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 (in millions, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Numerator: Net income attributable to common shareowners $ 1,230 $ 454 $ 2,256 $ 1,365 Denominator: Weighted average shares 899 916 901 918 Deferred compensation obligations 1 1 1 1 Vested portion of restricted units 1 1 1 1 Denominator for basic earnings per share 901 918 903 920 Effect of dilutive securities: Restricted units 6 8 7 8 Stock options 1 1 1 1 Denominator for diluted earnings per share 908 927 911 929 Basic earnings per share $ 1.37 $ 0.49 $ 2.50 $ 1.48 Diluted earnings per share $ 1.35 $ 0.49 $ 2.48 $ 1.47 Diluted earnings per share for the three months ended June 30, 2015 and 2014 excluded the effect of 0.2 and 0.1 million shares of common stock, respectively ( 0.2 and 0.1 million for the six months ended June 30, 2015 and 2014 , respectively), that may be issued upon the exercise of employee stock options because such effect would be antidilutive. |
DERIVATIVE INSTRUMENTS AND RISK
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and December 31, 2014 , we held cash collateral of $ 753 and $ 548 million, respectively, under these agreements; this collateral is included in "cash and cash equivalents" on the consolidated balance sheets and its use by UPS is not restricted. In connection with the zero threshold bilateral collateral provisions described above, we were required to post $ 4 and $ 1 million in collateral with our counterparties as of June 30, 2015 and December 31, 2014 , respectively. As of those dates, 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. Interest Rate Risk Management Our indebtedness under our various financing arrangements creates interest rate risk. We use a combination of derivative instruments 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, 2015 and December 31, 2014 , the notional amounts of our outstanding derivative positions were as follows (in millions): June 30, 2015 December 31, 2014 Currency hedges: British Pound Sterling GBP 1,282 GBP 1,149 Canadian Dollar CAD 320 CAD 293 Euro EUR 2,148 EUR 2,833 Indian Rupee INR 231 INR 85 Malaysian Ringgit MYR — MYR 150 Mexican Peso MXN 5,977 MXN 152 Interest rate hedges: Fixed to Floating Interest Rate Swaps $ 5,799 $ 5,799 Floating to Fixed Interest Rate Swaps $ 779 $ 779 Interest Rate Basis Swaps $ — $ 1,500 Investment market price hedges: Marketable Securities EUR 202 EUR — 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 Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Asset Derivatives Balance Sheet Location June 30, December 31, June 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 337 $ 204 $ 337 $ 204 Foreign exchange contracts Derivative assets Level 2 161 229 161 229 Interest rate contracts Derivative assets Level 2 218 227 185 194 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 19 2 19 2 Investment market price contracts Other current assets Level 2 1 — — — Interest rate contracts Derivative assets Level 2 56 59 54 57 Total Asset Derivatives $ 792 $ 721 $ 756 $ 686 Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Liability Derivatives Balance Sheet Location June 30, December 31, June 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other non-current liabilities Level 2 $ — $ 34 $ — $ 34 Interest rate contracts Other non-current liabilities Level 2 34 35 1 2 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 2 — 2 — Interest rate contracts Other current liabilities Level 2 — 1 — 1 Investment market price contracts Other current liabilities Level 2 10 — 9 — Interest rate contracts Other non-current liabilities Level 2 8 7 6 5 Total Liability Derivatives $ 54 $ 77 $ 18 $ 42 Our foreign currency, interest rate and investment market price 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 investment forward prices; therefore, these derivatives are classified as Level 2. Income Statement and AOCI Recognition The following table indicates the amount of gains and losses that have been recognized in AOCI for the three and six months ended June 30, 2015 and 2014 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 AOCI on Derivative (Effective Portion) 2015 2014 Interest rate contracts $ 1 $ (1 ) Foreign exchange contracts (173 ) (31 ) Total $ (172 ) $ (32 ) Six Months Ended June 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) 2015 2014 Interest rate contracts $ — $ (3 ) Foreign exchange contracts 147 (68 ) Total $ 147 $ (71 ) As of June 30, 2015 , $ 278 million of pre-tax gains 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, 2016 . 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 17 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, 2015 and 2014 . 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, 2015 and 2014 (in millions): Derivative Instruments in Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Hedged Items in Fair Value Hedging Relationships Location of Gain (Loss) Recognized In Income Amount of Gain (Loss) Recognized in Income 2015 2014 2015 2014 Three Months Ended June 30: Interest rate contracts Interest Expense $ (64 ) $ 53 Fixed-Rate Debt and Capital Leases Interest Expense $ 64 $ (53 ) Six Months Ended June 30: Interest rate contracts Interest Expense $ (9 ) $ 83 Fixed-Rate Debt and Capital Leases Interest Expense $ 9 $ (83 ) Additionally, we maintain some interest rate swap, foreign currency forward, and investment market price 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. These investment market price forward contracts are intended to provide an economic offset to fair value fluctuations of certain investments in marketable securities. 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 eliminate the effects of changes in market valuation. 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, foreign currency forward and investment market price forward contracts not designated as hedges for the three and six months ended June 30, 2015 and 2014 (in millions): Derivative Instruments Not Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income 2015 2014 Three Months Ended June 30: Interest rate contracts Interest Expense $ (2 ) $ (1 ) Foreign exchange contracts Other Operating Expenses (5 ) (2 ) Foreign exchange contracts Investment Income 33 2 Foreign exchange contracts Interest Expense 36 — Investment market price contracts Investment Income (7 ) — $ 55 $ (1 ) Six Months Ended June 30: Interest rate contracts Interest Expense $ (3 ) $ (3 ) Foreign exchange contracts Other Operating Expenses 16 (4 ) Foreign exchange contracts Investment Income 35 2 Foreign exchange contracts Interest Expense 36 — Investment market price contracts Investment Income (9 ) — $ 75 $ (5 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our consolidated effective tax rate increased to 34.5% in the second quarter of 2015 compared with 33.5% in the same period of 2014 , primarily due to the $1.066 billion pre-tax charge in the prior year associated with certain health and welfare benefit plan changes, which generated a tax benefit at a rate higher than the consolidated effective tax rate. This was partially offset by favorable changes in the proportion of our taxable income in certain U.S. and non-U.S. jurisdictions and an increase in U.S. Federal and state tax credits realized in comparison to amounts previously estimated. On a year-to-date basis, our consolidated effective tax rate decreased to 34.9% in 2015 from 35.2% in 2014 , due to favorable changes in the proportion of our taxable income in certain U.S. and non-U.S. jurisdictions and an increase in U.S. Federal and state tax credits realized in comparison to amounts previously estimated. In July 2013, we began resolution discussions with IRS Appeals on several income tax matters. In the second quarter of 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 did not have a material impact on net income. As discussed in our Annual Report on Form 10-K for the year ended December 31, 2014 , we have recognized liabilities for uncertain tax positions. We reevaluate these uncertain tax positions on a quarterly basis. 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, an estimate of the range of the reasonably possible change cannot be made. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENT On July 31, 2015, we announced that we have entered into a definitive purchase agreement to acquire Coyote Logistics Holdings, LLC, a technology-driven, non-asset based truckload freight brokerage company for $ 1.8 billion. The closing, which is subject to customary conditions and regulatory approvals, is expected to take place in the third quarter of 2015. The transaction will be financed with available cash resources and through existing and new debt arrangements. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 , our results of operations for the three and six months ended June 30, 2015 and 2014 , and cash flows for the six months ended June 30, 2015 and 2014 . 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, 2014 . 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, 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, 2015 . 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. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 $18.07 and $ 20.48 for 2015 and 2014 , respectively, using the following assumptions: 2015 2014 Expected life (in years) 7.5 7.5 Risk-free interest rate 2.07 % 2.40 % Expected volatility 20.61 % 24.26 % Expected dividend yield 2.63 % 2.56 % |
INVESTMENTS AND RESTRICTED CA24
INVESTMENTS AND RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities | The following is a summary of marketable securities classified as trading and available-for-sale as of June 30, 2015 and December 31, 2014 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value June 30, 2015: Current marketable securities: U.S. government and agency debt securities $ 319 $ 1 $ — $ 320 Mortgage and asset-backed debt securities 82 — — 82 Corporate debt securities 1,835 1 (1 ) 1,835 Other debt, equity and investment securities 546 11 (2 ) 555 Total marketable securities $ 2,782 $ 13 $ (3 ) $ 2,792 December 31, 2014: Current marketable securities: U.S. government and agency debt securities $ 321 $ 1 $ (1 ) $ 321 Mortgage and asset-backed debt securities 89 1 (1 ) 89 Corporate debt securities 534 — — 534 Other debt, equity and investment securities 48 — — 48 Total marketable securities $ 992 $ 2 $ (2 ) $ 992 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of marketable securities at June 30, 2015 , 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 $ 2,039 $ 2,039 Due after one year through three years 428 428 Due after three years through five years 14 15 Due after five years 73 73 2,554 2,555 Equity and other investment securities 228 237 $ 2,782 $ 2,792 |
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, 2015 and December 31, 2014 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance June 30, 2015: Marketable Securities: U.S. government and agency debt securities $ 320 $ — $ — $ 320 Mortgage and asset-backed debt securities — 82 — 82 Corporate debt securities — 1,835 — 1,835 Other debt, equity and investment securities — 555 — 555 Total marketable securities 320 2,472 — 2,792 Other non-current investments 19 — 48 67 Total $ 339 $ 2,472 $ 48 $ 2,859 December 31, 2014: Marketable Securities: U.S. government and agency debt securities $ 321 $ — $ — $ 321 Mortgage and asset-backed debt securities — 89 — 89 Corporate debt securities — 534 — 534 Other debt, equity and investment securities — 48 — 48 Total marketable securities 321 671 — 992 Other non-current investments 19 — 64 83 Total $ 340 $ 671 $ 64 $ 1,075 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Marketable Securities Other Investments Total Balance on January 1, 2015 $ — 64 64 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income) — (16 ) (16 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on June 30, 2015 $ — $ 48 $ 48 Marketable Securities Other Investments Total 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 The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended June 30, 2015 and 2014 (in millions): Marketable Securities Other Non-Current Investments Total Balance on April 1, 2015 $ — $ 56 $ 56 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income) — (8 ) (8 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on June 30, 2015 $ — $ 48 $ 48 Marketable Securities Other Non-Current Investments Total 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 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment as of June 30, 2015 and December 31, 2014 consist of the following (in millions): 2015 2014 Vehicles $ 7,667 $ 7,542 Aircraft 15,808 15,801 Land 1,190 1,145 Buildings 3,225 3,276 Building and leasehold improvements 3,319 3,266 Plant equipment 7,630 7,649 Technology equipment 1,678 1,608 Equipment under operating leases 30 34 Construction-in-progress 398 299 40,945 40,620 Less: Accumulated depreciation and amortization (22,975 ) (22,339 ) $ 17,970 $ 18,281 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2015 2014 2015 2014 2015 2014 Three Months Ended June 30: Service cost $ 381 $ 285 $ 8 $ 18 $ 13 $ 15 Interest cost 424 401 30 34 11 14 Expected return on assets (622 ) (565 ) (4 ) (6 ) (16 ) (15 ) Amortization of: Transition obligation — — — — — — Prior service cost 42 43 1 (4 ) 1 (3 ) Other net (gain) loss — — — — — — Actuarial (gain) loss — — — 746 — — Settlement and curtailment loss — — — $ 320 — — Net periodic benefit cost $ 225 $ 164 $ 35 $ 1,108 $ 9 $ 11 U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2015 2014 2015 2014 2015 2014 Six Months Ended June 30: Service cost $ 763 $ 569 $ 17 $ 39 $ 25 $ 27 Interest cost 847 802 61 86 22 26 Expected return on assets (1,244 ) (1,129 ) (8 ) (12 ) (31 ) (30 ) Amortization of: Transition obligation — — — — — — Prior service cost 84 85 2 (3 ) 1 (3 ) Other net (gain) loss — — — — — — Actuarial (gain) loss — — — 746 — — Settlement and curtailment loss — — — $ 320 — — Net periodic benefit cost $ 450 $ 327 $ 72 $ 1,176 $ 17 $ 20 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table indicates the allocation of goodwill by reportable segment as of June 30, 2015 and December 31, 2014 (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated December 31, 2014: $ — $ 449 $ 1,735 $ 2,184 Acquired — — 72 72 Currency / Other — (16 ) (26 ) (42 ) June 30, 2015: $ — $ 433 $ 1,781 $ 2,214 |
Schedule of Intangible Assets (Excluding Goodwill) | The following is a summary of intangible assets as of June 30, 2015 and December 31, 2014 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value June 30, 2015: Capitalized software $ 2,613 $ (1,934 ) $ 679 Licenses 214 (152 ) 62 Franchise rights 121 (80 ) 41 Customer lists 144 (71 ) 73 Trademarks, patents, and other 35 (12 ) 23 Total Intangible Assets, Net $ 3,127 $ (2,249 ) $ 878 December 31, 2014: Capitalized software $ 2,641 $ (1,997 ) $ 644 Licenses 217 (133 ) 84 Franchise rights 117 (77 ) 40 Customer lists 123 (66 ) 57 Trademarks, patents, and other 31 (9 ) 22 Total Intangible Assets, Net $ 3,129 $ (2,282 ) $ 847 |
DEBT AND FINANCING ARRANGEMEN28
DEBT AND FINANCING ARRANGEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of our outstanding debt as of June 30, 2015 and December 31, 2014 consists of the following (in millions): Principal Amount Carrying Value Maturity 2015 2014 Commercial paper $ 3,210 2015 $ 3,209 $ 772 Fixed-rate senior notes: 1.125% senior notes 375 2017 372 370 5.50% senior notes 750 2018 798 802 5.125% senior notes 1,000 2019 1,073 1,076 3.125% senior notes 1,500 2021 1,612 1,617 2.45% senior notes 1,000 2022 975 977 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 368 367 8.375% Debentures: 8.375% debentures 424 2020 477 480 8.375% debentures 276 2030 283 283 Pound Sterling notes: 5.50% notes 105 2031 101 99 5.125% notes 717 2050 683 673 Floating rate senior notes 463 2049-2064 459 459 Capital lease obligations 434 2015-3005 434 505 Facility notes and bonds 320 2015-2036 320 320 Other debt 18 2015-2022 18 17 Total Debt $ 12,967 13,152 10,787 Less: Current Maturities (3,252 ) (923 ) Long-term Debt $ 9,900 $ 9,864 |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 (in millions, except per share amounts): 2015 2014 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 201 $ 2 212 $ 2 Common stock purchases (2 ) — (3 ) — Stock award plans 4 — 4 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (5 ) — (6 ) — Class A shares issued at end of period 199 $ 2 208 $ 2 Class B Common Stock Balance at beginning of period 705 $ 7 712 $ 7 Common stock purchases (12 ) — (11 ) — Conversions of class A to class B common stock 5 — 6 — Class B shares issued at end of period 698 $ 7 707 $ 7 Additional Paid-In Capital Balance at beginning of period $ — $ — Stock award plans 265 232 Common stock purchases (392 ) (481 ) Common stock issuances 173 147 Option premiums received (paid) (46 ) 102 Balance at end of period $ — $ — Retained Earnings Balance at beginning of period $ 5,726 $ 6,925 Net income attributable to common shareowners 2,256 1,365 Dividends ($1.46 and $1.34 per share) (1,348 ) (1,253 ) Common stock purchases (966 ) (882 ) Balance at end of period $ 5,668 $ 6,155 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The activity in AOCI for the six months ended June 30, 2015 and 2014 is as follows (in millions): 2015 2014 Foreign currency translation gain (loss): Balance at beginning of period $ (457 ) $ (126 ) Reclassification to earnings (no tax impact in either period) — — Translation adjustment (net of tax effect of $0 and $3) (203 ) 3 Balance at end of period (660 ) (123 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period — (1 ) Current period changes in fair value (net of tax effect of $0 and $1) 1 2 Reclassification to earnings (no tax impact in either period) — — Balance at end of period 1 1 Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period 61 (219 ) Current period changes in fair value (net of tax effect of $56 and $(27)) 91 (44 ) Reclassification to earnings (net of tax effect of $(45) and $1) (74 ) 3 Balance at end of period 78 (260 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,198 ) (114 ) Reclassification to earnings (net of tax effect of $35 and $430) 52 715 Remeasurement of plan assets and liabilities (net of tax effect of $0 and $(488)) — (815 ) Balance at end of period (3,146 ) (214 ) Accumulated other comprehensive income (loss) at end of period $ (3,727 ) $ (596 ) |
Schedule of Reclassifications from Accumulated Other Comprehensive Income (Loss) to Earnings | Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and six months ended June 30, 2015 and 2014 is as follows (in millions): Three Months Ended June 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2015 2014 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 (6 ) (5 ) Interest expense Foreign exchange contracts 11 20 Interest expense Foreign exchange contracts 77 (12 ) Revenue Income tax (expense) benefit (31 ) (2 ) Income tax expense Impact on net income 51 1 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (44 ) (36 ) Compensation and benefits Settlement and curtailment loss — (320 ) Compensation and benefits Remeasurement of benefit obligation — (746 ) Compensation and benefits Income tax (expense) benefit 18 414 Income tax expense Impact on net income (26 ) (688 ) Net income Total amount reclassified for the period $ 25 $ (687 ) Net income Six Months Ended June 30: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2015 2014 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 (12 ) (11 ) Interest expense Foreign exchange contracts (25 ) 28 Interest expense Foreign exchange contracts 156 (21 ) Revenue Income tax (expense) benefit (45 ) 1 Income tax expense Impact on net income 74 (3 ) Net income Unrecognized pension and postretirement benefit costs: Prior service costs (87 ) (79 ) Compensation and benefits Settlement and curtailment loss — (320 ) Compensation and benefits Remeasurement of benefit obligation — (746 ) Compensation and benefits Income tax (expense) benefit 35 430 Income tax expense Impact on net income (52 ) (715 ) Net income Total amount reclassified for the period $ 22 $ (718 ) Net income |
Schedule of Deferred Compensation and Treasury Stock Activity | Activity in the deferred compensation program for the six months ended June 30, 2015 and 2014 is as follows (in millions): 2015 2014 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 59 $ 69 Reinvested dividends 2 1 Benefit payments (11 ) (12 ) Balance at end of period $ 50 $ 58 Treasury Stock: Balance at beginning of period (1 ) $ (59 ) (1 ) $ (69 ) Reinvested dividends — (2 ) — (1 ) Benefit payments — 11 — 12 Balance at end of period (1 ) $ (50 ) (1 ) $ (58 ) |
Activity Related to Noncontrolling Interests | for the six months ended June 30, 2015 and 2014 , respectively, mainly due to noncontrolling interests associated with acquisitions during the period. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | In evaluating financial performance, we focus on operating profit as a segment’s |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 (in millions, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Numerator: Net income attributable to common shareowners $ 1,230 $ 454 $ 2,256 $ 1,365 Denominator: Weighted average shares 899 916 901 918 Deferred compensation obligations 1 1 1 1 Vested portion of restricted units 1 1 1 1 Denominator for basic earnings per share 901 918 903 920 Effect of dilutive securities: Restricted units 6 8 7 8 Stock options 1 1 1 1 Denominator for diluted earnings per share 908 927 911 929 Basic earnings per share $ 1.37 $ 0.49 $ 2.50 $ 1.48 Diluted earnings per share $ 1.35 $ 0.49 $ 2.48 $ 1.47 |
DERIVATIVE INSTRUMENTS AND RI32
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2015 and December 31, 2014 , the notional amounts of our outstanding derivative positions were as follows (in millions): June 30, 2015 December 31, 2014 Currency hedges: British Pound Sterling GBP 1,282 GBP 1,149 Canadian Dollar CAD 320 CAD 293 Euro EUR 2,148 EUR 2,833 Indian Rupee INR 231 INR 85 Malaysian Ringgit MYR — MYR 150 Mexican Peso MXN 5,977 MXN 152 Interest rate hedges: Fixed to Floating Interest Rate Swaps $ 5,799 $ 5,799 Floating to Fixed Interest Rate Swaps $ 779 $ 779 Interest Rate Basis Swaps $ — $ 1,500 Investment market price hedges: Marketable Securities EUR 202 EUR — |
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 Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Asset Derivatives Balance Sheet Location June 30, December 31, June 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 337 $ 204 $ 337 $ 204 Foreign exchange contracts Derivative assets Level 2 161 229 161 229 Interest rate contracts Derivative assets Level 2 218 227 185 194 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 19 2 19 2 Investment market price contracts Other current assets Level 2 1 — — — Interest rate contracts Derivative assets Level 2 56 59 54 57 Total Asset Derivatives $ 792 $ 721 $ 756 $ 686 Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of Offset had been Applied Liability Derivatives Balance Sheet Location June 30, December 31, June 30, December 31, Derivatives designated as hedges: Foreign exchange contracts Other non-current liabilities Level 2 $ — $ 34 $ — $ 34 Interest rate contracts Other non-current liabilities Level 2 34 35 1 2 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 2 — 2 — Interest rate contracts Other current liabilities Level 2 — 1 — 1 Investment market price contracts Other current liabilities Level 2 10 — 9 — Interest rate contracts Other non-current liabilities Level 2 8 7 6 5 Total Liability Derivatives $ 54 $ 77 $ 18 $ 42 |
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 AOCI for the three and six months ended June 30, 2015 and 2014 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 AOCI on Derivative (Effective Portion) 2015 2014 Interest rate contracts $ 1 $ (1 ) Foreign exchange contracts (173 ) (31 ) Total $ (172 ) $ (32 ) Six Months Ended June 30: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) 2015 2014 Interest rate contracts $ — $ (3 ) Foreign exchange contracts 147 (68 ) Total $ 147 $ (71 ) |
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, foreign currency forward and investment market price forward contracts not designated as hedges for the three and six months ended June 30, 2015 and 2014 (in millions): Derivative Instruments Not Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income 2015 2014 Three Months Ended June 30: Interest rate contracts Interest Expense $ (2 ) $ (1 ) Foreign exchange contracts Other Operating Expenses (5 ) (2 ) Foreign exchange contracts Investment Income 33 2 Foreign exchange contracts Interest Expense 36 — Investment market price contracts Investment Income (7 ) — $ 55 $ (1 ) Six Months Ended June 30: Interest rate contracts Interest Expense $ (3 ) $ (3 ) Foreign exchange contracts Other Operating Expenses 16 (4 ) Foreign exchange contracts Investment Income 35 2 Foreign exchange contracts Interest Expense 36 — Investment market price contracts Investment Income (9 ) — $ 75 $ (5 ) 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, 2015 and 2014 (in millions): Derivative Instruments in Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Hedged Items in Fair Value Hedging Relationships Location of Gain (Loss) Recognized In Income Amount of Gain (Loss) Recognized in Income 2015 2014 2015 2014 Three Months Ended June 30: Interest rate contracts Interest Expense $ (64 ) $ 53 Fixed-Rate Debt and Capital Leases Interest Expense $ 64 $ (53 ) Six Months Ended June 30: Interest rate contracts Interest Expense $ (9 ) $ 83 Fixed-Rate Debt and Capital Leases Interest Expense $ 9 $ (83 ) |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Jun. 30, 2015USD ($)Tranches$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Mar. 30, 2015$ / shares | Mar. 26, 2015$ / shares | Feb. 05, 2015$ / shares | |
Stockholders Equity Note [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Cycle Period | |||||||
Compensation expense for share-based awards recognized in net income, pre-tax | $ | $ 134 | $ 142 | $ 328 | $ 306 | |||
Employee Stock Option [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Grant price of stock options and RPU | $ 18.07 | $ 20.48 | |||||
Nonqualified Stock Options [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Percentage of the award vesting at each anniversary date of the grant | 20.00% | ||||||
Stock options granted | shares | 0.2 | 0.1 | |||||
Grant price of stock options and RPU | $ 101.93 | $ 96.98 | |||||
Award vesting period | 5 years | ||||||
Period from grant date to expiration | 10 years | ||||||
Long-Term Incentive Performance Award [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Closing New York Stock Exchange price | $ 96.64 | ||||||
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 | Tranches | 3 | ||||||
Number of award tranches for each calendar year | Tranches | 1 | ||||||
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 | 65.86% | ||||||
Award vesting period | 3 years | ||||||
Management Incentive Award [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Percentage of the award vesting at each anniversary date of the grant | 20.00% | ||||||
Closing New York Stock Exchange price | $ 97.27 | $ 101.46 | |||||
Award vesting period | 5 years | ||||||
Minimum [Member] | Long-Term Incentive Performance Award [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Percentage of achievement used to determine RPUs earned of the target RPUs for each tranche | 0.00% | ||||||
Maximum [Member] | Long-Term Incentive Performance Award [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Percentage of achievement used to determine RPUs earned of the target RPUs for each tranche | 200.00% |
Fair Value of Employee Stock Op
Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Detail) - Nonqualified Stock Options [Member] | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders Equity Note [Line Items] | ||
Expected life (in years) | 7 years 6 months | 7 years 6 months |
Risk-free interest rate | 2.07% | 2.40% |
Expected volatility | 20.61% | 24.26% |
Expected dividend yield | 2.63% | 2.56% |
Summary of Marketable Securitie
Summary of Marketable Securities (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Marketable Securities [Line Items] | ||
Marketable Securities, Amortized Cost Basis | $ 2,782 | $ 992 |
Marketable Securities, Gross Unrealized Gain | 13 | 2 |
Marketable Securities, Gross Unrealized Loss | (3) | (2) |
Total Estimated Fair Value | 2,792 | 992 |
Other debt and equity securities | ||
Schedule of Marketable Securities [Line Items] | ||
Marketable Securities, Amortized Cost Basis | 546 | 48 |
Marketable Securities, Gross Unrealized Gain | 11 | 0 |
Marketable Securities, Gross Unrealized Loss | (2) | 0 |
Total Estimated Fair Value | 555 | 48 |
U.S. government and agency debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Marketable Securities, Amortized Cost Basis | 319 | 321 |
Marketable Securities, Gross Unrealized Gain | 1 | 1 |
Marketable Securities, Gross Unrealized Loss | 0 | (1) |
Total Estimated Fair Value | 320 | 321 |
Mortgage and asset-backed debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Marketable Securities, Amortized Cost Basis | 82 | 89 |
Marketable Securities, Gross Unrealized Gain | 0 | 1 |
Marketable Securities, Gross Unrealized Loss | 0 | (1) |
Total Estimated Fair Value | 82 | 89 |
Corporate debt securities | ||
Schedule of Marketable Securities [Line Items] | ||
Marketable Securities, Amortized Cost Basis | 1,835 | 534 |
Marketable Securities, Gross Unrealized Gain | 1 | 0 |
Marketable Securities, Gross Unrealized Loss | (1) | 0 |
Total Estimated Fair Value | $ 1,835 | $ 534 |
INVESTMENTS AND RESTRICTED CA36
INVESTMENTS AND RESTRICTED CASH - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Gain (Loss) on Investments [Line Items] | ||
Trading Securities | $ 2,007 | $ 430 |
Restricted Cash and Investments, Noncurrent | $ 469 | $ 489 |
Fair Value Inputs, Discount Rate | 8.29% | 7.81% |
cash held in escrow [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Restricted Cash and Cash Equivalents, Noncurrent | $ 8 | $ 28 |
Self-insurance requirements [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Restricted Cash and Investments, Noncurrent | 442 | 442 |
Variable life insurance policy | ||
Gain (Loss) on Investments [Line Items] | ||
Restricted Cash and Investments, Noncurrent | $ 19 | $ 19 |
Amortized Cost and Estimated Fa
Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Cost | ||
Due in one year or less | $ 2,039 | |
Due after one year through three years | 428 | |
Due after three years through five years | 14 | |
Due after five years | 73 | |
Marketable Securities, Debt Maturities, Amortized Cost, Total | 2,554 | |
Equity securities | 228 | |
Total Amortized Cost | 2,782 | $ 992 |
Estimated Fair Value | ||
Due in one year or less | 2,039 | |
Due after one year through three years | 428 | |
Due after three years through five years | 15 | |
Due after five years | 73 | |
Marketable Securities, Debt Maturities, Fair Value, Total | 2,555 | |
Equity securities | 237 | |
Total Estimated Fair Value | $ 2,792 | $ 992 |
Investments Measured at Fair Va
Investments Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 2,859 | $ 1,075 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,792 | 992 |
Marketable securities | U.S. government and agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 320 | 321 |
Marketable securities | Mortgage and asset-backed debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 82 | 89 |
Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,835 | 534 |
Marketable securities | Other debt and equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 555 | 48 |
Other Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 67 | 83 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 339 | 340 |
Fair Value, Inputs, Level 1 | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 320 | 321 |
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 | 320 | 321 |
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 | 2,472 | 671 |
Fair Value, Inputs, Level 2 | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,472 | 671 |
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 | 0 |
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 | 82 | 89 |
Fair Value, Inputs, Level 2 | Marketable securities | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,835 | 534 |
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 | 555 | 48 |
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 | 48 | 64 |
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 | $ 48 | $ 64 |
Changes in Level 3 Instruments
Changes in Level 3 Instruments Measured on a Recurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 56 | $ 99 | $ 64 | $ 110 |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Net realized and unrealized gains (losses): | ||||
Included in earnings (in investment income) | (8) | (4) | (16) | (15) |
Included in accumulated other comprehensive income (pre-tax) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Ending Balance | 48 | 95 | 48 | 95 |
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 | 56 | 99 | 64 | 110 |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Net realized and unrealized gains (losses): | ||||
Included in earnings (in investment income) | (8) | (4) | (16) | (15) |
Included in accumulated other comprehensive income (pre-tax) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Ending Balance | $ 48 | $ 95 | $ 48 | $ 95 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 40,945,000,000 | $ 40,945,000,000 | $ 40,620,000,000 | ||
Less: Accumulated depreciation and amortization | (22,975,000,000) | (22,975,000,000) | (22,339,000,000) | ||
Property, plant and equipment, net | 17,970,000,000 | 17,970,000,000 | 18,281,000,000 | ||
Impairment charges on property plant and equipment | 0 | $ 0 | 0 | $ 0 | |
Vehicles [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 7,667,000,000 | 7,667,000,000 | 7,542,000,000 | ||
Aircraft (including aircraft under capital leases) [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 15,808,000,000 | 15,808,000,000 | 15,801,000,000 | ||
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 1,190,000,000 | 1,190,000,000 | 1,145,000,000 | ||
Buildings [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 3,225,000,000 | 3,225,000,000 | 3,276,000,000 | ||
Building and leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 3,319,000,000 | 3,319,000,000 | 3,266,000,000 | ||
Plant Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 7,630,000,000 | 7,630,000,000 | 7,649,000,000 | ||
Technology equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 1,678,000,000 | 1,678,000,000 | 1,608,000,000 | ||
Equipment under operating leases [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 30,000,000 | 30,000,000 | 34,000,000 | ||
Construction-in-progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 398,000,000 | $ 398,000,000 | $ 299,000,000 |
Net Periodic Benefit Cost for P
Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
U.S. Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | $ 381 | $ 285 | $ 763 | $ 569 |
Interest cost | 424 | 401 | 847 | 802 |
Expected return on assets | (622) | (565) | (1,244) | (1,129) |
Amortization of: | ||||
Transition obligation | 0 | 0 | 0 | 0 |
Prior service cost | 42 | 43 | 84 | 85 |
Other net (gain) loss | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 225 | 164 | 450 | 327 |
U.S. Postretirement Medical Benefits | ||||
Net Periodic Cost: | ||||
Service cost | 8 | 18 | 17 | 39 |
Interest cost | 30 | 34 | 61 | 86 |
Expected return on assets | (4) | (6) | (8) | (12) |
Amortization of: | ||||
Transition obligation | 0 | 0 | 0 | 0 |
Prior service cost | 1 | (4) | 2 | (3) |
Other net (gain) loss | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 0 | 746 | 0 | 746 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 320 | 0 | 320 |
Net periodic benefit cost | 35 | 1,108 | 72 | 1,176 |
International Pension Benefits | ||||
Net Periodic Cost: | ||||
Service cost | 13 | 15 | 25 | 27 |
Interest cost | 11 | 14 | 22 | 26 |
Expected return on assets | (16) | (15) | (31) | (30) |
Amortization of: | ||||
Transition obligation | 0 | 0 | 0 | 0 |
Prior service cost | 1 | (3) | 1 | (3) |
Other net (gain) loss | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 9 | $ 11 | $ 17 | $ 20 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) Employee in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Employees | Jun. 30, 2014USD ($)Employee | Jun. 30, 2015USD ($)Employees | Dec. 31, 2014USD ($)Employees | Jun. 30, 2014USD ($)Employee | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of employees under a national master agreement and various supplemental agreements with local unions affiliated with Teamsters | Employees | 270,000 | ||||
Remittance of retroactive economic benefits | $ 278 | $ 179 | $ 241 | ||
Full-time employees affected by change in healthcare benefits | Employee | 36 | 36 | |||
part-time employees affected by changes in healthcare benefits | Employee | 73 | 73 | |||
Employees Covered by Other Collective Bargaining Agreements | Employee | 16 | 16 | |||
Majority of ground mechanics not employed under agreements | Employees | 3,100 | 3,100 | |||
Multiemployer Plans, Payment Term | 47 years | ||||
Number of pilots under a collective bargaining agreement with the Independent Pilots Association | Employees | 2,600 | 2,600 | |||
Health and Welfare Plan Changes, After Tax Charges | $ 665 | ||||
Increase (Decrease) in Postretirement Obligations | 2,271 | $ 2,271 | |||
Cash Tax Benefits Received | 375 | $ 479 | |||
Change In Post-Retirement Benefit and AOCI | 13 | 13 | |||
International Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Amount contributed to company- sponsored benefit plans | $ 45 | ||||
Estimated future employer contributions to defined benefit plan, current fiscal year | 1.075 | ||||
U.S. Postretirement Medical Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Amount contributed to company- sponsored benefit plans | $ 54 | ||||
Estimated future employer contributions to defined benefit plan, current fiscal year | 50 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 0 | (320) | $ 0 | $ (320) | |
Multiemployer Plans, Pension [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer Plans, Withdrawal Obligation, Present Value | 875 | 875 | 878 | ||
Multi-employer Plans, Withdrawal Obligation, Fair Value Disclosure | $ 834 | $ 834 | $ 913 | ||
National Master Agreement (NMA) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 1,066 | ||||
partial plan curtailment [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (112) | ||||
remeasurement of postretirement obligation [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (746) | ||||
defined benefit plan settlement losses [Member] | National Master Agreement (NMA) [Domain] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ (208) |
Allocation of Goodwill by Repor
Allocation of Goodwill by Reportable Segment (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,184 |
Acquired | 72 |
Currency / Other | (42) |
Ending balance | 2,214 |
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 | 449 |
Acquired | 0 |
Currency / Other | (16) |
Ending balance | 433 |
Supply Chain & Freight | |
Goodwill [Roll Forward] | |
Beginning balance | 1,735 |
Acquired | 72 |
Currency / Other | (26) |
Ending balance | $ 1,781 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,127 | $ 3,129 |
Accumulated Amortization | (2,249) | (2,282) |
Net Carrying Value | 878 | 847 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,613 | 2,641 |
Accumulated Amortization | (1,934) | (1,997) |
Net Carrying Value | 679 | 644 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 214 | 217 |
Accumulated Amortization | (152) | (133) |
Net Carrying Value | 62 | 84 |
Franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 121 | 117 |
Accumulated Amortization | (80) | (77) |
Net Carrying Value | 41 | 40 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 144 | 123 |
Accumulated Amortization | (71) | (66) |
Net Carrying Value | 73 | 57 |
Trademarks, patents, and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35 | 31 |
Accumulated Amortization | (12) | (9) |
Net Carrying Value | $ 23 | $ 22 |
Carrying Value of Outstanding D
Carrying Value of Outstanding Debt (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 12,967 | |
Total Debt | 13,152 | $ 10,787 |
Less current maturities | (3,252) | (923) |
Long-Term Debt | 9,900 | 9,864 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 3,210 | |
Maturity - Minimum Date | Dec. 31, 2015 | |
Maturity - Maximum Date | Dec. 31, 2015 | |
Total Debt | $ 3,209 | 772 |
Senior notes | 5.50% stated rate | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 750 | |
Maturity - Maximum Date | Jan. 15, 2018 | |
Debt instrument, stated interest rate | 5.50% | |
Total Debt | $ 798 | 802 |
Senior notes | 5.125% stated rate | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | |
Maturity - Maximum Date | Apr. 15, 2019 | |
Debt instrument, stated interest rate | 5.125% | |
Total Debt | $ 1,073 | 1,076 |
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 | Jan. 15, 2021 | |
Debt instrument, stated interest rate | 3.125% | |
Total Debt | $ 1,612 | 1,617 |
Senior notes | 6.20% stated rate | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,500 | |
Maturity - Maximum Date | Jan. 15, 2038 | |
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 | Nov. 15, 2040 | |
Debt instrument, stated interest rate | 4.875% | |
Total Debt | $ 489 | 489 |
Senior notes | A1125SeniorNotes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 375 | |
Maturity - Maximum Date | Oct. 1, 2017 | |
Debt instrument, stated interest rate | 1.125% | |
Total Debt | $ 372 | 370 |
Senior notes | 2.45% senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | |
Maturity - Maximum Date | Oct. 1, 2022 | |
Debt instrument, stated interest rate | 2.45% | |
Total Debt | $ 975 | 977 |
Senior notes | 3.625% senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 375 | |
Maturity - Maximum Date | Oct. 1, 2042 | |
Debt instrument, stated interest rate | 3.625% | |
Total Debt | $ 368 | 367 |
Senior notes | Debentures 8 Point 375 Percent Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 424 | |
Total Debt | 477 | 480 |
Senior notes | Floating rate senior notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 463 | |
Maturity - Minimum Date | Jan. 1, 2049 | |
Maturity - Maximum Date | Jan. 1, 2064 | |
Total Debt | $ 459 | 459 |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 434 | |
Maturity - Minimum Date | Dec. 31, 2015 | |
Maturity - Maximum Date | Jan. 1, 3005 | |
Total Debt | $ 434 | 505 |
Pound Sterling notes | ||
Debt Instrument [Line Items] | ||
Maturity - Minimum Date | Jan. 1, 2031 | |
Maturity - Maximum Date | Jan. 1, 2050 | |
Pound Sterling notes | Pound Sterling Notes 5 Point 5 Percent [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 105 | |
Total Debt | 101 | 99 |
Pound Sterling notes | Pound Sterling Notes 5 Point 13 Percent [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 717 | |
Total Debt | $ 683 | 673 |
Debentures | 8.375% debentures due 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity - Maximum Date | Jan. 1, 2030 | |
Debt instrument, stated interest rate | 8.375% | |
Debentures | 8.375% debentures due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity - Minimum Date | Jan. 1, 2020 | |
Debt instrument, stated interest rate | 8.375% | |
Facility notes and bonds | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 320 | |
Maturity - Minimum Date | Jan. 1, 2015 | |
Maturity - Maximum Date | Jan. 1, 2036 | |
Total Debt | $ 320 | 320 |
Other debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 18 | |
Maturity - Minimum Date | Jan. 1, 2015 | |
Maturity - Maximum Date | Jan. 1, 2022 | |
Total Debt | $ 18 | $ 17 |
DEBT AND FINANCING ARRANGEMEN46
DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) £ in Millions, $ in Millions, € in Billions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015GBP (£)Credit_Agreements | Jun. 30, 2015GBP (£)Credit_Agreements | Jun. 30, 2015EUR (€)Credit_Agreements | Jun. 30, 2015USD ($)Credit_Agreements | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||||
Face value of debt instrument | $ 12,967 | ||||
Number of credit agreements | Credit_Agreements | 2 | 2 | 2 | 2 | |
Covenants limit, amount of secured indebtedness and debt in sale-leaseback transactions, percentage of net tangible assets | 10.00% | 10.00% | 10.00% | 10.00% | |
Covenants that limit the amount of secured indebtedness and amount of attributable debt in sale-leaseback transactions, net tangible assets amount | $ 2,386 | ||||
Long-term debt fair value | 14,337 | $ 12,257 | |||
U.S. Commercial Paper Program | |||||
Debt Instrument [Line Items] | |||||
Commercial paper program, authorized to borrow | 10,000 | ||||
Total debt | $ 2,547 | ||||
Debt, weighted average interest rate | 0.10% | 0.10% | 0.10% | 0.10% | |
Foreign Commercial Paper Program | |||||
Debt Instrument [Line Items] | |||||
Commercial paper program, authorized to borrow | € | € 5 | ||||
Total debt | £ 420 | £ 420 | $ 662 | ||
Debt, weighted average interest rate | 0.49% | 0.49% | 0.49% | 0.49% | |
Revolving Credit Facility Expiring In 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facilities | $ 1,500 | ||||
Maturity | Mar. 26, 2016 | ||||
Applicable margin for base rate below LIBOR | 1.00% | 1.00% | 1.00% | 1.00% | |
Revolving Credit Facility Expiring In 2017 | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facilities | $ 3,000 | ||||
Maturity | Mar. 27, 2020 | ||||
Applicable margin for base rate below LIBOR | 1.00% | 1.00% | 1.00% | 1.00% | |
Revolving Credit Facility Expiring In 2017 | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for base rate below LIBOR | 0.00% | 0.00% | 0.00% | 0.00% | |
Senior notes | A1125SeniorNotes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face value of debt instrument | $ 375 | ||||
Debt instrument, stated interest rate | 1.125% | 1.125% | 1.125% | 1.125% | |
Senior notes | 2.45% senior notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face value of debt instrument | $ 1,000 | ||||
Debt instrument, stated interest rate | 2.45% | 2.45% | 2.45% | 2.45% | |
Senior notes | 3.625% senior notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face value of debt instrument | $ 375 | ||||
Debt instrument, stated interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |
LIBOR rate | Revolving Credit Facility Expiring In 2015 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.10% | ||||
LIBOR rate | Revolving Credit Facility Expiring In 2015 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.75% | ||||
LIBOR rate | Revolving Credit Facility Expiring In 2017 | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 1.00% | ||||
LIBOR rate | Revolving Credit Facility Expiring In 2017 | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.10% | ||||
LIBOR rate | Revolving Credit Facility Expiring In 2017 | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.75% | ||||
Citibank base rate | Revolving Credit Facility Expiring In 2015 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.00% | ||||
Citibank base rate | Revolving Credit Facility Expiring In 2015 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 1.00% | ||||
Federal Funds Rate [Member] | Revolving Credit Facility Expiring In 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.50% | ||||
Federal Funds Rate [Member] | Revolving Credit Facility Expiring In 2017 | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rates | 0.50% |
LEGAL PROCEEDINGS AND CONTING47
LEGAL PROCEEDINGS AND CONTINGENCIES LEGAL PROCEEDINGS AND CONTINGENCIES (Loss Contingencies) (Details) | 1 Months Ended | 24 Months Ended |
Aug. 31, 2010Freight_Forwarding_Companies | Dec. 31, 2007Cases | |
Loss Contingencies [Line Items] | ||
Number of Freight Forwarding Companies | Freight_Forwarding_Companies | 45 | |
Loss Contingency, New Claims Filed, Number | 4 |
LEGAL PROCEEDINGS AND CONTING48
LEGAL PROCEEDINGS AND CONTINGENCIES LEGAL PROCEEDINGS AND CONTINGENCIES (Details) | 1 Months Ended | 6 Months Ended | 24 Months Ended | |
Aug. 31, 2010Freight_Forwarding_Companies | Jul. 31, 2009Defendants | Jun. 30, 2015Cases | Dec. 31, 2007Cases | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of Freight Forwarding Companies | Freight_Forwarding_Companies | 45 | |||
Number of Defendants | Defendants | 60 | |||
Loss Contingency, New Claims Filed, Number | 4 | |||
Number of Outstanding Cases | 1 |
SHAREOWNERS' EQUITY - Additiona
SHAREOWNERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)VoteClasses_of_Common_Stock$ / sharesshares | Jun. 30, 2015USD ($)Vote$ / sharesshares | Jun. 30, 2014USD ($)shares | Feb. 14, 2013USD ($) | |
Stockholders Equity Note [Line Items] | ||||
Classes of Common Stock, Number | Classes_of_Common_Stock | 2 | |||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | ||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||
Preferred stock, issued | 0 | 0 | ||
Total of Class A and Class B common stock, repurchased, value | $ | $ 1,358 | $ 1,363 | ||
Common stock authorized for purchase, amount | $ | $ 10,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 2,794 | $ 2,794 | ||
Common stock purchases | 13,500,000 | 13,700,000 | ||
Noncontrolling Interest, Period Increase (Decrease) | $ | $ 1 | $ 3 | ||
Class A common stock | ||||
Stockholders Equity Note [Line Items] | ||||
Votes per common share | Vote | 10 | 10 | ||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 4,600,000,000 | 4,600,000,000 | ||
Total of Class A and Class B common stock, repurchased, value | $ | $ 0 | $ 0 | ||
Common stock purchases | 2,000,000 | 3,000,000 | ||
Class B common stock | ||||
Stockholders Equity Note [Line Items] | ||||
Votes per common share | Vote | 1 | 1 | ||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 5,600,000,000 | 5,600,000,000 | ||
Total of Class A and Class B common stock, repurchased, value | $ | $ 0 | $ 0 | ||
Common stock purchases | 12,000,000 | 11,000,000 | ||
Options Held [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Option premiums received (paid) | $ | $ (46) | $ (102) | ||
Option Indexed to Issuer's Equity, Shares | 2,300,000 | |||
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share | $ / shares | $ 89.91 | |||
accelerated share repurchase program [Domain] | ||||
Stockholders Equity Note [Line Items] | ||||
Total of Class A and Class B common stock, repurchased, value | $ | $ 400 | |||
Common stock purchases | 4,000,000 |
Roll-forward of Common Stock, A
Roll-forward of Common Stock, Additional Paid-in Capital, and Retained Earnings Accounts (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders Equity Note [Roll Forward] | ||||
Common stock purchases | (13.5) | (13.7) | ||
Balance at beginning of period | $ 2,141 | |||
Net income | $ 1,230 | $ 454 | 2,256 | $ 1,365 |
Common stock purchases | (1,358) | $ (1,363) | ||
Balance at end of period | $ 1,950 | $ 1,950 | ||
Class A common stock | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | 201 | 212 | ||
Common stock purchases | (2) | (3) | ||
Stock award plans | 4 | 4 | ||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 0 | $ 0 | ||
Common stock issuances | 1 | 1 | ||
Conversions of Class A to Class B common stock | (5) | (6) | ||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 0 | $ 0 | ||
Balance at end of period | 199 | 208 | 199 | 208 |
Balance at beginning of period | $ 2 | $ 2 | ||
Common stock issuances | 0 | 0 | ||
Common stock purchases | 0 | 0 | ||
Balance at end of period | $ 2 | $ 2 | $ 2 | $ 2 |
Class B common stock | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | 705 | 712 | ||
Common stock purchases | (12) | (11) | ||
Conversions of Class A to Class B common stock | (5) | (6) | ||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 0 | $ 0 | ||
Balance at end of period | 698 | 707 | 698 | 707 |
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 | 265 | 232 | ||
Common stock issuances | 173 | 147 | ||
Option premiums received (paid) | (46) | (102) | ||
Common stock purchases | (392) | (481) | ||
Balance at end of period | 0 | 0 | 0 | 0 |
Retained Earnings | ||||
Stockholders Equity Note [Roll Forward] | ||||
Balance at beginning of period | 5,726 | 6,925 | ||
Net income | 2,256 | 1,365 | ||
Dividends ($0.57 and $0.52 per share) | (1,348) | (1,253) | ||
Common stock purchases | (966) | (882) | ||
Balance at end of period | $ 5,668 | $ 6,155 | $ 5,668 | $ 6,155 |
Common stock, cash paid for dividends, per share | $ 1.46 | $ 1.34 | ||
Options Held [Member] | ||||
Stockholders Equity Note [Roll Forward] | ||||
Option premiums received (paid) | $ (46) | $ (102) |
Activity in Accumulated Other C
Activity in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ (3,594) | |||
Aggregate adjustment for the period (net of tax effect of $0 and $(9)) | $ 101 | $ 39 | (203) | $ 3 |
Current period changes in fair value (net of tax effect of $0, and $2) | (1) | 2 | 1 | 2 |
Current period changes in fair value (net of tax effect of $(25) and $(32)) | (159) | (21) | 17 | (41) |
Balance at end of period | (3,727) | (596) | (3,727) | (596) |
Foreign currency translation gain (loss): | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (457) | (126) | ||
Aggregate adjustment for the period (net of tax effect of $0 and $(9)) | (203) | 3 | ||
Balance at end of period | (660) | (123) | (660) | (123) |
Unrealized gain (loss) on marketable securities, net of tax: | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 0 | (1) | ||
Current period changes in fair value (net of tax effect of $0, and $2) | 1 | 2 | ||
Reclassification to earnings (net of tax effect of $(1) and $(4)) | 0 | 0 | ||
Balance at end of period | 1 | 1 | 1 | 1 |
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 61 | (219) | ||
Current period changes in fair value (net of tax effect of $(25) and $(32)) | 91 | (44) | ||
Reclassification to earnings (net of tax effect of $0 and $(6)) | (74) | 3 | ||
Balance at end of period | 78 | (260) | 78 | (260) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (3,198) | (114) | ||
Reclassification to earnings (net of tax effect of $16 and $28) | 52 | 715 | ||
Balance at end of period | $ (3,146) | $ (214) | (3,146) | (214) |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | $ 0 | $ (815) |
Activity in Accumulated Other52
Activity in Accumulated Other Comprehensive Income (Loss) (Phantoms) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (3,727) | $ (596) | $ (3,727) | $ (596) | $ (3,594) | |
Change in foreign currency translation adjustment, net of tax | 101 | 39 | (203) | 3 | ||
Foreign currency translation gain (loss): | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (660) | (123) | (660) | (123) | (457) | $ (126) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | ||||
Change in foreign currency translation adjustment, net of tax | (203) | 3 | ||||
Aggregate adjustment for the period, tax | 0 | 3 | ||||
Unrealized gain (loss) on marketable securities, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1 | 1 | 1 | 1 | 0 | (1) |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 0 | ||||
Current period changes in fair value, tax effect | 0 | 1 | ||||
Reclassification to earnings, tax effect | 0 | 0 | ||||
Unrealized gain (loss) on cash flow hedges, net of tax: | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 78 | (260) | 78 | (260) | 61 | (219) |
Current period changes in fair value, tax effect | 56 | (27) | ||||
Reclassification to earnings, tax effect | 45 | 1 | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (3,146) | $ (214) | (3,146) | (214) | $ (3,198) | $ (114) |
Reclassification to earnings, tax effect | 35 | 430 | ||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | $ 0 | $ (488) |
Activity in Deferred Compensati
Activity in Deferred Compensation Program (Detail) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | (1) | |
Balance at end of period | (1) | |
Balance at beginning of period | $ 2,141 | |
Balance at end of period | $ 1,950 | |
Treasury Stock [Member] | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | (1) | (1) |
Reinvested dividends | 0 | 0 |
Benefit payments | 0 | 0 |
Balance at end of period | (1) | (1) |
Balance at beginning of period | $ (59) | $ (69) |
Reinvested dividends | (2) | (1) |
Benefit payments | 11 | 12 |
Balance at end of period | (50) | (58) |
Deferred Compensation Obligations | ||
Stockholders Equity Note [Roll Forward] | ||
Balance at beginning of period | 59 | 69 |
Reinvested dividends | 2 | 1 |
Benefit payments | (11) | (12) |
Balance at end of period | $ 50 | $ 58 |
Activity Related to Noncontroll
Activity Related to Noncontrolling Interests (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at beginning of period | $ 17 |
Balance at end of period | $ 18 |
SHAREOWNERS' EQUITY Amounts Rec
SHAREOWNERS' EQUITY Amounts Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
AmountsReclassifiedFromAOCI [Line Items] | ||||
Change in foreign currency translation adjustment, net of tax | $ 101 | $ 39 | $ (203) | $ 3 |
Net Income [Member] [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
TotalOtherComprehensiveIncomeReclassification, Net of Tax | 25 | (687) | 22 | (718) |
Accumulated Translation Adjustment [Member] | ||||
AmountsReclassifiedFromAOCI [Line Items] | ||||
Change in foreign currency translation adjustment, net of tax | (203) | 3 | ||
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 | 45 | 1 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 74 | (3) | ||
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 | (31) | (2) | (45) | 1 |
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 | 51 | 1 | 74 | (3) |
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 | (6) | (5) | (12) | (11) |
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 | 11 | 20 | (25) | 28 |
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 | 77 | (12) | 156 | (21) |
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 | 52 | 715 | ||
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 | (44) | (36) | (87) | (79) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 0 | (320) | 0 | (320) |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | 0 | (746) | 0 | (746) |
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 | 18 | 414 | 35 | 430 |
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 | $ (26) | $ (688) | $ (52) | $ (715) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) - Jun. 30, 2015 | Countries_and_TerritoriesSegments |
Segment Reporting Information [Line Items] | |
Operating Segments, Number | Segments | 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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 14,095 | $ 14,268 | $ 28,072 | $ 28,047 |
Operating Income (Loss) | 1,960 | 747 | 3,633 | 2,260 |
U.S. Domestic Package | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,808 | 8,668 | 17,622 | 17,156 |
Operating Income (Loss) | 1,201 | 209 | 2,225 | 1,136 |
International Package | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,045 | 3,252 | 6,015 | 6,379 |
Operating Income (Loss) | 552 | 444 | 1,050 | 882 |
Supply Chain & Freight | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,242 | 2,348 | 4,435 | 4,512 |
Operating Income (Loss) | $ 207 | $ 94 | $ 358 | $ 242 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net income attributable to common shareowners | $ 1,230 | $ 454 | $ 2,256 | $ 1,365 |
Denominator: | ||||
Weighted average shares | 899 | 916 | 901 | 918 |
Deferred compensation obligations | 1 | 1 | 1 | 1 |
Vested portion of restricted shares | 1 | 1 | 1 | 1 |
Denominator for basic earnings per share | 901 | 918 | 903 | 920 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share | 908 | 927 | 911 | 929 |
Basic earnings per share | $ 1.37 | $ 0.49 | $ 2.50 | $ 1.48 |
Diluted earnings per share | $ 1.35 | $ 0.49 | $ 2.48 | $ 1.47 |
Restricted performance units | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 6 | 8 | 7 | 8 |
Stock option plans | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 1 | 1 | 1 | 1 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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 | 0.2 | 0 | 0.2 | 0 |
DERIVATIVE INSTRUMENTS AND RI60
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral received under contractual provisions | $ 753 | $ 548 |
Maximum term over hedging exposures to the variability of cash flow | 17 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 | $ 278 | |
Derivative, Collateral, Right to Reclaim Cash | $ 4 | $ 1 |
Notional Amounts of Outstanding
Notional Amounts of Outstanding Derivative Positions (Detail) € in Millions, ₨ in Millions, £ in Millions, MYR in Millions, MXN in Millions, CAD in Millions, $ in Millions | Jun. 30, 2015GBP (£) | Jun. 30, 2015EUR (€) | Jun. 30, 2015USD ($) | Jun. 30, 2015MXN | Jun. 30, 2015MYR | Jun. 30, 2015INR (₨) | Jun. 30, 2015CAD | Dec. 31, 2014GBP (£) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014MXN | Dec. 31, 2014MYR | Dec. 31, 2014INR (₨) | Dec. 31, 2014CAD |
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | £ 1,282 | € 2,148 | MXN 5,977 | MYR 0 | ₨ 231 | CAD 320 | £ 1,149 | € 2,833 | MXN 152 | MYR 150 | ₨ 85 | CAD 293 | ||
Fixed to Floating Interest Rate Swaps | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 5,799 | $ 5,799 | ||||||||||||
Floating to Fixed Interest Rate Swaps | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | 779 | 779 | ||||||||||||
Basis Interest Rate Swaps | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | 0 | 1,500 | ||||||||||||
Price Risk Derivative [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 202 | $ 0 |
Location on the Balance Sheet o
Location on the Balance Sheet of Derivative Assets and Liabilities (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Asset Derivatives | ||
Asset Derivatives | $ 792 | $ 721 |
Derivative Asset, Fair Value, Net | 756 | 686 |
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 54 | 77 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 18 | 42 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 337 | 204 |
Derivative Asset, Fair Value, Net | 337 | 204 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other noncurrent assets | ||
Asset Derivatives | ||
Asset Derivatives | 161 | 229 |
Derivative Asset, Fair Value, Net | 161 | 229 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 0 | 34 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 34 |
Designated as Hedging Instrument | Interest Rate Contracts | Other noncurrent assets | ||
Asset Derivatives | ||
Asset Derivatives | 218 | 227 |
Derivative Asset, Fair Value, Net | 185 | 194 |
Designated as Hedging Instrument | Interest Rate Contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 34 | 35 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 19 | 2 |
Derivative Asset, Fair Value, Net | 19 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 2 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 0 |
Not Designated as Hedging Instrument | Price Risk Derivative [Member] | Other current assets | ||
Asset Derivatives | ||
Asset Derivatives | 1 | 0 |
Derivative Asset, Fair Value, Net | 0 | 0 |
Not Designated as Hedging Instrument | Price Risk Derivative [Member] | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 10 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 9 | 0 |
Not Designated as Hedging Instrument | Interest Rate Contracts | Other noncurrent assets | ||
Asset Derivatives | ||
Asset Derivatives | 56 | 59 |
Derivative Asset, Fair Value, Net | 54 | 57 |
Not Designated as Hedging Instrument | Interest Rate Contracts | Other current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 0 | 1 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 1 |
Not Designated as Hedging Instrument | Interest Rate Contracts | Other non-current liabilities | ||
Derivative Liabilities [Abstract] | ||
Liability Derivatives | 8 | 7 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 6 | $ 5 |
Amount and Location in the Inco
Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (172) | $ (32) | $ 147 | $ (71) |
Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 1 | (1) | 0 | (3) |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (173) | $ (31) | $ 147 | $ (68) |
Amount and Location in the In64
Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges (Detail) - Fair Value Hedging - Interest Expense [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (64) | $ 53 | $ (9) | $ 83 |
Fixed-Rate Debt and Capital Leases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 64 | $ (53) | $ 9 | $ (83) |
Amount Recorded in Income State
Amount Recorded in Income Statements for Foreign Currency Forward Contracts Not Designated as Hedges (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 55 | $ (1) | $ 75 | $ (5) |
Foreign Exchange Contracts | Other Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (5) | (2) | 16 | (4) |
Foreign Exchange Contracts | Investment Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 33 | 2 | 35 | 2 |
Foreign Exchange Contracts | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 36 | 0 | 36 | 0 |
Price Risk Derivative [Member] | Investment Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (7) | 0 | (9) | 0 |
Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (2) | $ (1) | $ (3) | $ (3) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income Tax Data [Line Items] | ||||
Effective tax rate | 34.50% | 33.50% | 34.90% | 35.20% |
Net refund of tax and interest | $ 145 | $ 145 |
SUBSEQUENT EVENTS Subsequent Ev
SUBSEQUENT EVENTS Subsequent Events (Details) $ in Billions | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Scenario, Forecast [Member] | Coyote Logistics [Member] | |
Business Acquisition [Line Items] | |
Consideration to be paid for business acquisition | $ 1.8 |