United Parcel Service (UPS) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
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	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A common stock
Entity Common Stock, Shares Outstanding		178,992,788
Class B common stock
Entity Common Stock, Shares Outstanding		688,770,332

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 2,687	$ 3,476
Marketable securities	1,031	1,091
Accounts receivable, net	6,475	7,695
Other current assets	1,301	1,587
Total Current Assets	11,494	13,849
Property, Plant and Equipment, Net	19,225	18,800
Goodwill	3,777	3,757
Intangible Assets, Net	1,780	1,758
Non-Current Investments and Restricted Cash	490	476
Deferred Income Tax Assets	526	591
Other Non-Current Assets	1,088	1,146
Total Assets	38,380	40,377
Current Liabilities:
Current maturities of long-term debt and commercial paper	4,302	3,681
Accounts payable	2,404	3,042
Accrued wages and withholdings	2,270	2,317
Hedge margin liabilities	332	575
Self-insurance reserves	664	670
Accrued group welfare and retirement plan contributions	600	598
Other current liabilities	834	847
Total Current Liabilities	11,406	11,730
Long-Term Debt	12,938	12,394
Pension and Postretirement Benefit Obligations	10,393	12,694
Deferred Income Tax Liabilities	107	112
Self-Insurance Reserves	1,741	1,794
Other Non-Current Liabilities	1,235	1,224
Shareowners' Equity:
Additional paid-in capital	0	0
Retained earnings	4,988	4,879
Accumulated other comprehensive loss	(4,462)	(4,483)
Deferred compensation obligations	36	45
Less: Treasury stock	(36)	(45)
Total Equity for Controlling Interests	535	405
Total Equity for Non-Controlling Interests	25	24
Total Shareowners' Equity	560	429
Total Liabilities and Shareowners' Equity	38,380	40,377
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	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Treasury stock, shares	1	1
Class A common stock
Common stock, shares issued	180	180	194	194
Class B common stock
Common stock, shares issued	689	689	691	693

STATEMENTS OF CONSOLIDATED INCO

STATEMENTS OF CONSOLIDATED INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue	$ 15,315	$ 14,418
Operating Expenses:
Compensation and benefits	8,131	7,853
Repairs and maintenance	390	381
Depreciation and amortization	554	552
Purchased transportation	2,366	2,024
Fuel	621	434
Other occupancy	299	269
Other expenses	1,170	1,082
Total Operating Expenses	13,531	12,595
Operating Profit	1,784	1,823
Other Income and (Expense):
Investment income and other	15	17
Interest expense	(102)	(93)
Total Other Income and (Expense)	(87)	(76)
Income Before Income Taxes	1,697	1,747
Income Tax Expense	539	616
Net Income	$ 1,158	$ 1,131
Basic Earnings Per Share (usd per share)	$ 1.32	$ 1.27
Diluted Earnings Per Share (usd per share)	$ 1.32	$ 1.27

STATEMENTS OF CONSOLIDATED COMP

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,158	$ 1,131
Change in foreign currency translation adjustment, net of tax	30	26
Change in unrealized gain (loss) on marketable securities, net of tax	0	3
Change in unrealized gain (loss) on cash flow hedges, net of tax	(41)	(162)
Change in unrecognized pension and postretirement benefit costs, net of tax	32	26
Comprehensive income	$ 1,179	$ 1,024

STATEMENTS OF CONSOLIDATED CASH

STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows From Operating Activities:
Net income	$ 1,158	$ 1,131
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	554	552
Pension and postretirement benefit expense	232	267
Pension and postretirement benefit contributions	(2,489)	(43)
Self-insurance provision	(60)	(48)
Deferred tax (benefit) expense	94	5
Stock compensation expense	212	215
Other (gains) losses	9	(91)
Changes in assets and liabilities, net of effects of business acquisitions:
Accounts receivable	1,134	1,082
Other current assets	397	135
Accounts payable	(675)	(571)
Accrued wages and withholdings	(35)	(108)
Other current liabilities	(272)	136
Other current liabilities	(20)	8
Net cash from operating activities	239	2,670
Cash Flows From Investing Activities:
Capital expenditures	(938)	(427)
Proceeds from disposals of property, plant and equipment	11	3
Purchases of marketable securities	(519)	(1,599)
Sales and maturities of marketable securities	556	974
Net (increase) decrease in finance receivables	(11)	(20)
Cash paid for business acquisitions, net of cash and cash equivalents acquired	(25)	(6)
Other investing activities	6	(33)
Net cash used in investing activities	(920)	(1,108)
Cash Flows From Financing Activities:
Net change in short-term debt	562	(759)
Proceeds from borrowings	1,072	1,801
Repayments of borrowings	(503)	(223)
Purchases of common stock	(438)	(640)
Issuances of common stock	74	83
Dividends	(695)	(666)
Other financing activities	(196)	(36)
Net cash used in financing activities	(124)	(440)
Effect Of Exchange Rate Changes On Cash And Cash Equivalents	16	35
Net Increase (Decrease) In Cash And Cash Equivalents	(789)	1,157
Cash And Cash Equivalents:
Beginning of period	3,476	2,730
End of period	$ 2,687	$ 3,887

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 , our results of operations for the three months ended March 31, 2017 and 2016 , and cash flows for the three months ended March 31, 2017 and 2016 . The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for any other period or 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, 2016 . For interim consolidated financial statement purposes, we provide for accruals under our various employee benefit plans and self-insurance reserves for each three month period based on one quarter of the estimated annual expense. Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of March 31, 2017 . The fair values of our investment securities are disclosed in note 4 , recognized multiemployer pension withdrawal liabilities 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	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In March 2016, the FASB issued an accounting standards update that simplified the income tax accounting and cash flow presentation related to share-based compensation by requiring the recognition of all excess tax benefits and deficiencies directly on the income statement and classification as cash flows from operating activities on the statements of consolidated cash flows. This update also made several changes to the accounting for forfeitures and employee tax withholding on share-based compensation. This new guidance became effective for us in the first quarter of 2017 and we adopted the statements of consolidated cash flows presentation on a prospective basis. Upon adoption we determined the impact to income tax expense in the statements of consolidated income, for the first quarter of 2017, to be a benefit of $55 million . Additionally, we have elected to continue estimating forfeitures expected to occur to determine the amount of compensation cost to be recognized each period. Other accounting pronouncements adopted during the periods covered by the consolidated financial statements did not have a material impact on our consolidated financial position, results of operations or cash flows. Accounting Standards Issued But Not Yet Effective In March 2017, the FASB issued an accounting standards update to require the premium on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount would not be impacted by the proposed update. Under current GAAP, premiums on callable debt securities are generally amortized over the contractual life of the security. Only in cases when an entity has a large number of similar securities is it allowed to consider estimates of principal prepayments. Amortization of the premium over the contractual life of the instrument can result in losses being recorded for the unamortized premium if the issuer exercises the call feature prior to maturity. The standard will be effective for us in the first quarter of 2019, but early adoption is permitted. We are currently evaluating this update to determine the full impact of its adoption but do not expect this accounting standards update to have a material impact on our consolidated financial position, results of operations or cash flows. In March 2017, the FASB issued an accounting standards update to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The update requires employers to report the current service cost component in the same line item as other compensation costs arising from services rendered by employees during the period. The other components of net benefit cost are required to be presented separately from service cost and outside of income from operations. In accordance with the update, only the service cost component will be eligible for capitalization. The guidance in this update should be applied retrospectively for the presentation of service cost and other components of net benefit cost, and prospectively for the capitalization of the service cost component in assets, and becomes effective for us in the first quarter of 2018. As a result of this update, the net amount of interest cost, prior service cost and expected return on plan assets will be presented as other income. As of March 31, 2017 and 2016, non-service cost components amounted to a $180 and $104 million benefit, respectively, which was recognized in "compensation and benefits". After adoption, the non-service cost components will be recognized in "other income and expense". In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment. The update removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard will be effective for us in the first quarter of 2020, but early adoption is permitted. We are currently evaluating this update to determine the full impact of its adoption but do not expect this accounting standards update to have a material impact on our consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued an accounting standards update that is intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows. The update should be applied retrospectively and becomes effective for us in the first quarter of 2018, but early adoption is permitted. As a result of this update, restricted cash will be included within cash and cash equivalents on our statements of consolidated cash flows. As of March 31, 2017 and December 31, 2016, we classified $255 and $310 million in restricted cash on our consolidated balance sheets in "non-current investments and restricted cash", respectively. In August 2016, the FASB issued an accounting standards update that addresses the classification and presentation of specific cash flow issues that currently result in diverse practices. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance will generally be applied retrospectively and becomes effective for us in the first quarter of 2018, but early adoption is permitted. We are currently evaluating the impact of this standard on our statements of consolidated cash flows, but do not expect this standard to have a material impact. In February 2016, the FASB issued an accounting standards update that requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases with terms beyond twelve months. Although the distinction between operating and finance leases will continue to exist under the new standard, the recognition and measurement of expenses and cash flows will not change significantly from the current treatment. This new guidance requires modified retrospective application and becomes effective for us in the first quarter of 2019, but early adoption is permitted. We are currently evaluating this update to determine the full impact of its adoption on our consolidated financial position, results of operations, cash flows and related disclosures, as well as the impact of adoption on policies, practices and systems. As of December 31, 2016, we had $ 1.470 billion of future minimum operating lease commitments that are not currently recognized on our consolidated balance sheets. Therefore, we expect material changes to our consolidated balance sheets. In January 2016, the FASB issued an accounting standards update which addresses certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The amendment will be effective for us beginning the first quarter of 2018. At this time, we do not expect this accounting standards update to have a material impact on our consolidated financial position, results of operations or cash flows. 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. The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner depicting the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB has also issued a number of updates to this standard. We are planning to adopt the standard on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this standard. We are currently evaluating this standard and the related updates, including which transition approach to use as well as the impact of adoption on policies, practices and systems. At this stage in the evaluation, we expect that revenue recognition will be accelerated for the transportation businesses as the standard requires revenue to be recognized as control is transferred to the customer over time rather than upon delivery. We are currently quantifying the impact of this change to the statements of consolidated income. The standard also requires us to evaluate whether our businesses promise to transfer services to the customer itself (as a principal) or to arrange for services to be provided by another party (as an agent). To make that determination, the standard uses a control model rather than the risks-and-rewards model in current GAAP. Based on our evaluation of the control model, we determined that certain Supply Chain & Freight businesses act as the principal rather than the agent within their revenue arrangements. This change will require the affected businesses to report transportation revenue gross of associated purchase transportation costs rather than net of such amounts within the statements of consolidated income. We are currently quantifying the amount of revenue impacted by this change. Additionally, contract reviews are ongoing, and more businesses could be impacted by the adoption of the standard. Other accounting pronouncements issued, but not effective until after March 31, 2017 , are not expected to have a material impact on our consolidated financial position, results of operations or cash flows.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
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 non-qualified 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, 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 2017 , we granted Restricted Units under MIP to certain eligible management employees. Restricted Units granted under MIP 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 (less estimated forfeitures) ratably 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 7, 2017 (for U.S.-based employees), March 1, 2017 (for management committee employees) and March 27, 2017 (for international-based employees); therefore, the Restricted Units awarded were valued for stock compensation expense purposes using the closing New York Stock Exchange price of $105.69 , $106.87 and $104.78 on those dates, respectively. Long-Term Incentive Performance Award Program ("LTIP") We award Restricted Units under LTIP to certain eligible management employees. The performance targets are equally-weighted among consolidated operating return on invested capital, growth in currency-constant consolidated revenue and total shareowner return relative ("RTSR") 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 established on the grant date. For the two-thirds of the award related to consolidated operating return on invested capital and growth in currency-constant 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. Based on the date that the eligible management population and performance targets were approved for the 2017 LTIP Award, we determined the award measurement date to be March 24, 2017; therefore, the target Restricted Units awarded for this portion of the award were valued for stock compensation expense using the closing New York Stock Exchange price of $105.05 on that date. The remaining one-third of the award related to RTSR is valued using a Monte Carlo model. This portion of the award was valued with a grant date fair value of $119.29 per unit and is recognized as compensation expense (less estimated forfeitures) ratably over the vesting period. The weighted-average assumptions used and the calculated weighted-average fair values of the RTSR portion of the grants, for the three months ended March 31, 2017 and 2016, are as follows: 2017 2016 Risk-free interest rate 1.46 % 1.01 % Expected volatility 16.59 % 16.45 % Weighted-average fair value of units granted $ 119.29 $ 135.57 Share payout 113.55 % 128.59 % There is no expected dividend yield as units earn dividend equivalents. Non-qualified Stock Options During the first quarter of 2017 , we granted non-qualified 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 2017 and 2016 , we granted 0.3 and 0.2 million stock options, respectively, at a grant price of $106.87 and $ 98.77 , respectively. The grant price was based on the closing New York Stock Exchange price of March 1, 2017 and March 2, 2016, respectively. The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the calculated weighted-average fair values of options, for the three months ended March 31, 2017 and 2016, are as follows: 2017 2016 Expected dividend yield 2.89 % 2.94 % Risk-free interest rate 2.15 % 1.66 % Expected life (in years) 7.5 7.5 Expected volatility 17.81 % 23.60 % Weighted-average fair value of options granted $ 14.70 $ 17.32 Compensation expense for share-based awards recognized in "Compensation and benefits" on the statements of consolidated income for the three months ended March 31, 2017 and 2016 was $212 and $215 million pre-tax, respectively.

INVESTMENTS AND RESTRICTED CASH

INVESTMENTS AND RESTRICTED CASH	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value March 31, 2017: Current trading marketable securities: Corporate debt securities $ 301 $ — $ — $ 301 Carbon credit investments (1) 81 — (16 ) 65 Total trading marketable securities $ 382 $ — $ (16 ) $ 366 Current available-for-sale securities: U.S. government and agency debt securities $ 298 $ — $ (2 ) $ 296 Mortgage and asset-backed debt securities 90 — — 90 Corporate debt securities 186 1 (1 ) 186 U.S. state and local municipal debt securities 87 — — 87 Equity securities 2 — — 2 Non-U.S. government debt securities 4 — — 4 Total available-for-sale marketable securities $ 667 $ 1 $ (3 ) $ 665 Total current marketable securities $ 1,049 $ 1 $ (19 ) $ 1,031 Cost Unrealized Gains Unrealized Losses Estimated Fair Value December 31, 2016: Current trading marketable securities: Corporate debt securities $ 427 $ — $ — $ 427 Carbon credit investments (1) 80 10 — 90 Total trading marketable securities $ 507 $ 10 $ — $ 517 Current available-for-sale securities: U.S. government and agency debt securities $ 314 $ — $ (2 ) $ 312 Mortgage and asset-backed debt securities 90 1 — 91 Corporate debt securities 167 — (1 ) 166 Equity securities 2 — — 2 Non-U.S. government debt securities 3 — — 3 Total available-for-sale marketable securities $ 576 $ 1 $ (3 ) $ 574 Total current marketable securities $ 1,083 $ 11 $ (3 ) $ 1,091 (1) These investments are hedged with forward contracts that are not designated in hedging relationships. See Note 13 for offsetting statement of consolidated income impact. Investment Other-Than-Temporary Impairments We have concluded that no material other-than-temporary impairment losses existed as of March 31, 2017 . In making this determination, we considered the financial condition and prospects of the issuer, the magnitude of the losses compared with the investments’ cost, the probability that we will be unable to collect all amounts due according to the contractual terms of the security, the credit rating of the security 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 March 31, 2017 , 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 $ 355 $ 355 Due after one year through three years 427 425 Due after three years through five years 22 22 Due after five years 162 162 966 964 Equity and carbon credit investments 83 67 $ 1,049 $ 1,031 Non-Current Investments and Restricted Cash Non-current investments and restricted cash is primarily associated with our self-insurance requirements. We entered into an escrow agreement with an insurance carrier to guarantee our self-insurance obligations. This agreement requires us to provide collateral to the insurance carrier, which is invested in various marketable securities. Collateral provided is reflected in "other investing activities" in the statements of consolidated cash flows. At March 31, 2017 and December 31, 2016, we had $ 455 and $ 445 million in self-insurance investments and restricted cash, respectively. We held a $19 and $18 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan at March 31, 2017 and December 31, 2016, respectively. The quarterly change in investment fair value is recognized in "investment income and other" on the statements of consolidated income. Additionally, we held escrowed cash related to the acquisition and disposition of certain assets, primarily real estate, of $16 and $13 million as of March 31, 2017 and December 31, 2016 , respectively. The amounts described above are classified as “Non-current investments and restricted cash” in the consolidated balance sheets. 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) a 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 8.02% and 8.06% as of March 31, 2017 and December 31, 2016 , 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 March 31, 2017 and December 31, 2016 , 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 March 31, 2017: Marketable Securities: U.S. government and agency debt securities $ 296 $ — $ — $ 296 Mortgage and asset-backed debt securities — 90 — 90 Corporate debt securities — 487 — 487 U.S. state and local municipal debt securities — 87 — 87 Equity securities — 2 — 2 Non-U.S. government debt securities — 4 — 4 Carbon credit investments 65 — — 65 Total marketable securities 361 670 — 1,031 Other non-current investments 19 — 11 30 Total $ 380 $ 670 $ 11 $ 1,061 December 31, 2016: Marketable Securities: U.S. government and agency debt securities $ 312 $ — $ — $ 312 Mortgage and asset-backed debt securities — 91 — 91 Corporate debt securities — 593 — 593 Equity securities — 2 — 2 Non-U.S. government debt securities — 3 — 3 Carbon credit investments 90 — — 90 Total marketable securities 402 689 — 1,091 Other non-current investments 18 — 13 31 Total $ 420 $ 689 $ 13 $ 1,122 The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended March 31, 2017 and 2016 (in millions): Marketable Securities Other Non-Current Investments Total Balance on January 1, 2017 $ — $ 13 $ 13 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income and other) — (2 ) (2 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on March 31, 2017 $ — $ 11 $ 11 Marketable Securities Other Non-Current Investments Total Balance on January 1, 2016 $ — $ 32 $ 32 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income and other) — (5 ) (5 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on March 31, 2016 $ — $ 27 $ 27 There were no transfers of investments between Level 1 and Level 2 during the three months ended March 31, 2017 and 2016 .

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of March 31, 2017 and December 31, 2016 consist of the following (in millions): 2017 2016 Vehicles $ 8,729 $ 8,638 Aircraft 15,666 15,653 Land 1,480 1,397 Buildings 3,498 3,439 Building and leasehold improvements 3,649 3,612 Plant equipment 8,569 8,430 Technology equipment 1,774 1,741 Equipment under operating leases 29 29 Construction-in-progress 1,115 735 44,509 43,674 Less: Accumulated depreciation and amortization (25,284 ) (24,874 ) $ 19,225 $ 18,800 We continually monitor our aircraft fleet utilization in light of current and projected volume levels, aircraft fuel prices and other factors. Additionally, we monitor our other property, plant and equipment categories for any indicators that the carrying value of the assets may not be recoverable. No impairment charges on property, plant and equipment were recorded during the three months ended March 31, 2017 and 2016 .

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2017 2016 2017 2016 2017 2016 Three Months Ended March 31: Service cost $ 390 $ 352 $ 7 $ 7 $ 15 $ 12 Interest cost 462 457 28 30 10 10 Expected return on assets (712 ) (629 ) (2 ) (1 ) (16 ) (14 ) Amortization of prior service cost 48 42 2 1 — — Net periodic benefit cost $ 188 $ 222 $ 35 $ 37 $ 9 $ 8 During the first three months of 2017 , we contributed $ 2.312 billion and $177 million to our company-sponsored pension and U.S. postretirement medical benefit plans, respectively. We also expect to contribute $65 and $64 million over the remainder of the year to the pension and U.S. postretirement medical benefit plans, respectively. The UPS Retirement Plan was closed to new non-union participants effective July 1, 2016. The Company amended the UPS 401(k) Savings Plan so that employees who previously would have been eligible for participation in the UPS Retirement Plan will, in addition to current benefits under the UPS 401(k) Savings Plan, begin receiving a UPS Retirement Contribution. For employees eligible to receive the Retirement Contribution, UPS will contribute 3% to 8% of eligible pay to the UPS 401(k) Savings Plan based on years of vesting service and business unit. Contributions will be made annually in cash to the accounts of participants who are employed on December 31st of each calendar year. 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 March 31, 2017 and December 31, 2016 we had $ 864 and $866 million , respectively, recorded in "other non-current liabilities," as well as $ 6 million as of March 31, 2017 and December 31, 2016 recorded in "other 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 46 years. Based on the borrowing rates currently available to us for long-term financing of a similar maturity, the fair value of this withdrawal liability at both March 31, 2017 and December 31, 2016 was $ 861 million . We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. UPS was a contributing employer to the Central States Pension Fund (“CSPF”) until 2007 when we withdrew from the plan and fully funded our allocable share of unfunded vested benefits by paying a $6.1 billion withdrawal liability. Under a collective bargaining agreement with the International Brotherhood of Teamsters (“IBT”), UPS agreed to provide coordinating benefits in the UPS/IBT Full Time Employee Pension Plan (“UPS/IBT Plan”) for UPS participants whose last employer was UPS and who had not retired as of January 1, 2008 (“the UPS Transfer Group”) in the event that benefits are lawfully reduced by the CSPF in the future consistent with the terms of our withdrawal agreement with the CSPF. In December 2014, Congress passed the Multiemployer Pension Reform Act (“MPRA”), which for the first time ever allowed multiemployer pension plans to reduce benefit payments to retirees, subject to specific guidelines in the statute and government approval. In September 2015, the CSPF submitted a proposed pension benefit reduction plan to the U.S. Department of the Treasury under the MPRA. The CSPF plan proposed to reduce retirement benefits to the CSPF participants, including the UPS Transfer Group. We vigorously challenged the proposed benefit reduction plan because we believed that it did not comply with the law and that the CSPF failed to comply with its contractual obligation to obtain our consent to reduce benefits to the UPS Transfer Group under the terms of the withdrawal agreement with the CSPF. On May 6, 2016, the U.S. Department of the Treasury rejected the proposed plan submitted by the CSPF, stating that it failed to satisfy a number of requirements set forth in the MPRA. The CSPF has asserted that it will become insolvent in 2025 which could lead to the reduction of retirement benefits. Although there are numerous factors that could affect the CSPF’s funding status, if the CSPF were to become insolvent as they have projected, UPS may be required to provide coordinating benefits, thereby increasing the current projected benefit obligation for the UPS/IBT Plan by approximately $4 billion . The CSPF has said that it believes a legislative solution to its funding status is necessary, and we expect that the CSPF will continue to explore options to avoid insolvency. The potential obligation to pay coordinating benefits from the UPS/IBT Plan is subject to a number of significant uncertainties, including actions that may be taken by the CSPF, the federal government or others. These actions include whether the CSPF will submit a revised pension benefit reduction plan or otherwise seek federal government assistance, the extent to which benefits are paid by the Pension Benefit Guaranty Corporation and our ability to successfully defend our legal positions, as well as the effect of discount rates and various other actuarial assumptions. We account for this potential obligation under Accounting Standards Codification Topic 715- Compensation- Retirement Benefits (“ASC 715”). Under ASC 715 we are required to provide a best estimate of various actuarial assumptions, including the eventual outcome of this matter, in measuring our pension benefit obligation at the December 31st measurement date. While we currently believe the most likely solution to this matter and the broader systemic problems facing multi-employer pension plans is intervention by the federal government, ASC 715 does not permit anticipation of changes in law in making a best estimate of pension liabilities. Our best estimate as of the measurement date of December 31, 2016 does not incorporate this solution. Rather, our best estimate of the next most likely outcome to resolve the CSPF’s solvency concerns is that the CSPF will make another MPRA filing to forestall insolvency without reducing benefits to the UPS Transfer Group. If the CSPF attempts to reduce benefits for the UPS Transfer Group under a MPRA filing we would be in a strong legal position to prevent that from occurring given that these benefits cannot be reduced without our consent and such a reduction, without first exhausting reductions to other groups in the CSPF, would be contrary to the statute. Accordingly, our best estimate as of the measurement date of December 31, 2016 is that there is no liability to be recognized for additional coordinating benefits of the UPS/IBT Plan. However, the projected benefit obligation could materially increase as these uncertainties are resolved. We will continue to assess the impact of these uncertainties on the projected benefit obligation of the UPS/IBT Plan in accordance with ASC 715. Collective Bargaining Agreements As of December 31, 2016, we had approximately 268,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the Teamsters. During 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. We have approximately 2,600 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association ("IPA"). During 2016, the IPA members voted to ratify a new five-year labor contract. Terms of the agreement became effective September 1, 2016 and run through September 1, 2021. The economic provisions in the agreement included pay increases, a signing bonus and enhanced pension benefits. Our airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727, which became amendable November 1, 2013. We are currently in negotiations with Teamsters Local 2727. In addition, approximately 3,000 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.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated December 31, 2016: $ 715 $ 407 $ 2,635 $ 3,757 Acquired — — 21 21 Currency / Other — 3 (4 ) (1 ) March 31, 2017: $ 715 $ 410 $ 2,652 $ 3,777 The change in goodwill for the Supply Chain & Freight segment was related to our January 2017 acquisition of Freightex Ltd. ("Freightex"), a U.K.-based asset-light provider of truckload, less-than truckload and specialized over-the-road services. The acquisition of Freightex was paid for with cash from operations. The acquisition of Freightex was not material to our consolidated financial position or results of operations. In December 2016, we acquired Maze 1 Limited ("Marken"), a global provider of supply chain solutions to the life sciences industry and leader in clinical trials material storage and distribution, for approximately $570 million. As of March 31, 2017, we had no material changes to our estimated fair values of assets acquired and liabilities assumed. The financial results of Marken are included in the Supply Chain & Freight segment from the date of acquisition and were not material to our results of operations. The estimates of the fair value of assets acquired and liabilities assumed are subject to change based on the completion of purchase accounting. The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. 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 March 31, 2017 and December 31, 2016 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value March 31, 2017: Capitalized software $ 3,016 $ (2,196 ) $ 820 Licenses 109 (55 ) 54 Franchise rights 128 (91 ) 37 Customer relationships 731 (103 ) 628 Trade name 200 — 200 Trademarks, patents and other 68 (27 ) 41 Total Intangible Assets, Net $ 4,252 $ (2,472 ) $ 1,780 December 31, 2016: Capitalized software $ 2,933 $ (2,157 ) $ 776 Licenses 131 (70 ) 61 Franchise rights 128 (90 ) 38 Customer relationships 724 (85 ) 639 Trade name 200 — 200 Trademarks, patents and other 67 (23 ) 44 Total Intangible Assets, Net $ 4,183 $ (2,425 ) $ 1,758 As of March 31, 2017 , we had a trade name with a carrying value of $ 200 million and licenses with a carrying value of $ 4 million, which are deemed to be indefinite-lived intangible assets and are included in the table above.

DEBT AND FINANCING ARRANGEMENTS

DEBT AND FINANCING ARRANGEMENTS	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
DEBT AND FINANCING ARRANGEMENTS	DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt as of March 31, 2017 and December 31, 2016 consists of the following (in millions): Principal Amount Carrying Value Maturity 2017 2016 Commercial paper $ 4,242 2017 $ 4,242 $ 3,250 Fixed-rate senior notes: 1.125% senior notes 375 2017 374 374 5.50% senior notes 750 2018 764 769 5.125% senior notes 1,000 2019 1,036 1,043 3.125% senior notes 1,500 2021 1,575 1,584 2.40 % senior notes 500 2026 497 497 2.45% senior notes 1,000 2022 983 986 6.20% senior notes 1,500 2038 1,482 1,481 4.875% senior notes 500 2040 489 489 3.625% senior notes 375 2042 367 367 3.40% senior notes 500 2046 491 491 8.375% Debentures: 8.375% debentures 424 2020 458 461 8.375% debentures 276 2030 282 282 Pound Sterling notes: 5.50% notes 83 2031 78 76 5.125% notes 566 2050 543 535 Euro senior notes: 1.625% notes 748 2025 742 732 1.000% notes 534 2028 530 523 Floating rate senior notes 534 2020 532 525 Floating rate senior notes 979 2049-2067 969 824 Capital lease obligations 466 2017-3005 466 447 Facility notes and bonds 320 2029-2045 319 319 Other debt 21 2017-2022 21 20 Total debt $ 17,193 17,240 16,075 Less: Current maturities (4,302 ) (3,681 ) Long-term debt $ 12,938 $ 12,394 Debt Classification We have classified our 1.125% senior notes due October 2017 and our 5.50% senior notes due January 2018 with a principal balance of $375 and $ 750 million , respectively, as a long-term liability, based on our intent and ability to refinance the debt as of March 31, 2017 . We have also classified certain floating rate senior notes that are putable by the note holders as a long-term liability, due to our intent and ability to refinance the debt if the put option is exercised by the note holders. Debt Issuances During the first quarter we issued floating rate senior notes with a principal balance of $147 million, which obligated us to the note holders as of March 31, 2017 . As the proceeds for these notes were not received from the depository trust until April 2017, we recorded a receivable in "Other current assets" in our consolidated balance sheet as of March 31, 2017 . These notes bear interest at three-month LIBOR less 30 basis points and mature in 2067 . These notes are callable at various times after 30 years at a stated percentage of par value, and putable by the note holders at various times after one year at a stated percentage of par value. Commercial Paper We are authorized to borrow up to $ 10.0 billion under a U.S. commercial paper program and € 5.0 billion (in a variety of currencies) under a European commercial paper program. We had the following amounts outstanding under these programs as of March 31, 2017 : $ 3.405 billion with an average interest rate of 0.77% and € 784 million ($ 837 million) with an average interest rate of -0.38% . As of March 31, 2017 , we have classified the entire commercial paper balance as a current liability on our consolidated balance sheet. Sources of Credit 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 23, 2018 . 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 March 31, 2017 . The second agreement provides revolving credit facilities of $ 3.0 billion, and expires on March 24, 2022 . 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 March 31, 2017 . Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of March 31, 2017 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 March 31, 2017 , 10% of net tangible assets was equivalent to $2.142 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 $ 18.193 and $ 17.134 billion as of March 31, 2017 and December 31, 2016 , 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	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [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. We have filed a motion to decertify the class, which is currently scheduled to be heard in May 2017. Trial is scheduled for August 2017. 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. The Court granted summary judgment motions filed by UPS and FedEx, entered judgment in favor of UPS and FedEx, and dismissed the case. Plaintiff appealed to the Court of Appeals for the Ninth Circuit, briefing is complete and oral argument was heard in March 2017. The Antitrust Division of the U.S. Department of Justice (“DOJ”) opened a 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) the appeal remains pending. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from these matters or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. We are a defendant in Ryan Wright and Julia Zislin v. United Parcel Service Canada Ltd., an action brought on behalf of a certified class of customers in the Superior Court of Justice in Ontario, Canada. Plaintiffs filed suit in February 2007, alleging 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. Partial summary judgment was granted to us and the plaintiffs by the Ontario motions court in August 2011, when it dismissed plaintiffs' complaint under the Criminal Code and granted plaintiffs' complaint of inadequate disclosure. We appealed the Court's decision pertaining to inadequate disclosure in September 2011 and continue to vigorously defend all other allegations. 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. 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 untaxed 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 tobacco shipments. On March 24, 2017, the District Court issued an opinion and order finding UPS liable on each of the plaintiffs’ causes of action, and stating that the facts before the court indicate that significant penalties are appropriate. Pursuant to the opinion and order, the parties submitted additional information to the District Court on April 7, 2017 so that the court may issue an amended or supplemental order as to damages and penalties. We are evaluating the court’s liability opinion and potential grounds for appeal. Accordingly, at this time, we are not able to estimate a possible loss or range of loss that may result from this matter, which depend on the methodology applied by the court, among other things, or to determine whether such loss, if any, would have a material adverse effect on our financial condition, results of operations or liquidity. In May 2016, a purported shareowner derivative suit was filed in the Delaware Court of Chancery naming certain of UPS’s current and former officers and directors as defendants, alleging that they breached their fiduciary duties by failing to monitor UPS’s compliance with the Assurance of Discontinuance and other federal and state laws relating to cigarette deliveries. The Company’s and individual defendants’ motion to dismiss was heard in October 2016. In January 2017, the Court of Chancery dismissed the plaintiffs' suit in its entirety. No appeal was filed and the deadline for doing so has lapsed. 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	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 , 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 March 31, 2017 , 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 three months ended March 31, 2017 and 2016 (in millions, except per share amounts): 2017 2016 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 180 $ 2 194 $ 2 Common stock purchases (1 ) — (2 ) — Stock award plans 3 — 4 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (3 ) — (3 ) — Class A shares issued at end of period 180 $ 2 194 $ 2 Class B Common Stock Balance at beginning of period 689 $ 7 693 $ 7 Common stock purchases (3 ) — (5 ) — Conversions of class A to class B common stock 3 — 3 — Class B shares issued at end of period 689 $ 7 691 $ 7 Additional Paid-In Capital Balance at beginning of period $ — $ — Stock award plans 15 137 Common stock purchases (174 ) (336 ) Common stock issuances 132 96 Option premiums received (paid) 27 103 Balance at end of period $ — $ — Retained Earnings Balance at beginning of period $ 4,879 $ 6,001 Net income attributable to common shareowners 1,158 1,131 Dividends ($0.83 and $0.78 per share) (774 ) (718 ) Common stock purchases (275 ) (319 ) Balance at end of period $ 4,988 $ 6,095 We repurchased 4.2 million shares of class A and class B common stock for $449 million during the three months ended March 31, 2017 , and 6.6 million shares for $655 million during the three months ended March 31, 2016 . In May 2016, the Board of Directors approved a share repurchase authorization of $8.0 billion, which has no expiration date. As of March 31, 2017 , we had $5.705 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 first quarter of 2017, we did not enter into any accelerated share repurchase transactions. 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 net premiums of $27 and $103 million during the first three months of 2017 and 2016 , respectively, related to entering into and settling capped call options for the purchase of class B shares. As of March 31, 2017 , we had outstanding options for the purchase of 0.8 million shares with a weighted average strike price of $95.75 per share that will settle in the second and third quarters of 2017. Accumulated Other Comprehensive Income (Loss) We recognize activity in Accumulated other comprehensive income (loss) ("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 three months ended March 31, 2017 and 2016 is as follows (in millions): 2017 2016 Foreign currency translation gain (loss): Balance at beginning of period $ (1,016 ) $ (897 ) Translation adjustment (net tax effect of $(14) and no tax impact) 30 26 Balance at end of period (986 ) (871 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (1 ) (1 ) Current period changes in fair value (net of tax effect of $0 and $2) — 3 Balance at end of period (1 ) 2 Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period (45 ) 67 Current period changes in fair value (net of tax effect of $(17) and $(60)) (30 ) (100 ) Reclassification to earnings (net of tax effect of $(7) and $(38)) (11 ) (62 ) Balance at end of period (86 ) (95 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,421 ) (2,709 ) Reclassification to earnings (net of tax effect of $18 and $17) 32 26 Balance at end of period (3,389 ) (2,683 ) Accumulated other comprehensive income (loss) at end of period $ (4,462 ) $ (3,647 ) Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three months ended March 31, 2017 and 2016 is as follows (in millions): Three Months Ended March 31: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2017 2016 Unrealized gain (loss) on cash flow hedges: Interest rate contracts $ (7 ) $ (6 ) Interest expense Foreign exchange contracts 25 106 Revenue Income tax (expense) benefit (7 ) (38 ) Income tax expense Impact on net income 11 62 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (50 ) (43 ) Compensation and benefits Income tax (expense) benefit 18 17 Income tax expense Impact on net income (32 ) (26 ) Net income Total amount reclassified for the period $ (21 ) $ 36 Net income Deferred Compensation Obligations and Treasury Stock Activity in the deferred compensation program for the three months ended March 31, 2017 and 2016 is as follows (in millions): 2017 2016 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 45 $ 51 Reinvested dividends 1 1 Benefit payments (10 ) (9 ) Balance at end of period $ 36 $ 43 Treasury Stock: Balance at beginning of period (1 ) $ (45 ) (1 ) $ (51 ) Reinvested dividends — (1 ) — (1 ) Benefit payments — 10 — 9 Balance at end of period (1 ) $ (36 ) (1 ) $ (43 ) Noncontrolling Interests: We have noncontrolling interests in certain consolidated subsidiaries in our International Package and Supply Chain & Freight segments. Noncontrolling interests increased $1 and $2 million for the three months ended March 31, 2017 and 2016 , respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2017
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 products 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 shipments with either origin or destination outside the United States. 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 our Forwarding, Logistics, Coyote, Marken, UPS Mail Innovations, UPS Freight and other aggregated business units. Our Forwarding, Logistics and Coyote units provide services in more than 195 countries and territories worldwide and include international air and ocean freight forwarding, customs brokerage, truckload freight brokerage, distribution and post-sales services, 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 and other, 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, 2016 , with certain expenses allocated between the segments using activity-based costing methods. Unallocated assets are comprised primarily of cash, marketable securities and certain investment partnerships. Segment information for the three months ended March 31, 2017 and 2016 is as follows (in millions): Three Months Ended 2017 2016 Revenue: U.S. Domestic Package $ 9,535 $ 9,084 International Package 3,058 2,914 Supply Chain & Freight 2,722 2,420 Consolidated $ 15,315 $ 14,418 Operating Profit: U.S. Domestic Package $ 1,076 $ 1,102 International Package 529 574 Supply Chain & Freight 179 147 Consolidated $ 1,784 $ 1,823

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 (in millions, except per share amounts): Three Months Ended 2017 2016 Numerator: Net income attributable to common shareowners $ 1,158 $ 1,131 Denominator: Weighted average shares 869 885 Deferred compensation obligations 1 1 Vested portion of restricted units 4 3 Denominator for basic earnings per share 874 889 Effect of dilutive securities: Restricted units 4 4 Stock options 1 1 Denominator for diluted earnings per share 879 894 Basic earnings per share $ 1.32 $ 1.27 Diluted earnings per share $ 1.32 $ 1.27 Diluted earnings per share for the three months ended March 31, 2017 and 2016 excluded the effect of 0.3 and 0.5 million shares of common stock, 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	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 , we held cash collateral of $ 332 and $ 575 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 agreements described above, we could also be required to provide additional collateral or terminate transactions with certain counterparties in the event of a downgrade of our credit rating. The amount of collateral required would be determined by the net fair value of the associated derivatives with each counterparty. At March 31, 2017 and December 31, 2016 , no additional collateral was required to be posted with any of our counterparties. However, the aggregate fair value of instruments not covered by the zero threshold bilateral collateral provisions were in a net asset position of $16 million and a net liability position of $10 million at March 31, 2017 and December 31, 2016 , respectively. 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 foreign currency 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 normally designate 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 and forward contracts. We normally designate 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 and interest payments on certain debt subject to foreign currency remeasurement using foreign currency forward contracts. We normally designate 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 investment income and other when the underlying transactions are subject to currency remeasurement. We hedge our net investment in certain foreign operations with foreign currency denominated debt instruments. The use of foreign denominated debt as the hedging instrument allows the debt to be remeasured to foreign currency translation adjustment within AOCI to offset the translation risk from those investments. Any ineffective portion of net investment hedging is recognized as a component of investment income and other. Balances in the cumulative translation adjustment accounts remain until the sale or complete liquidation of the foreign entity. 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 March 31, 2017 and December 31, 2016 , The notional amounts of our outstanding derivative positions were as follows (in millions): March 31, 2017 December 31, 2016 Currency hedges: Euro EUR 3,629 EUR 3,702 British Pound Sterling GBP 1,358 GBP 1,380 Canadian Dollar CAD 1,062 CAD 1,053 Indian Rupee INR 253 INR 76 Japanese Yen JPY 3,456 JPY 3,972 Singapore Dollar SGD 18 SGD 32 Interest rate hedges: Fixed to Floating Interest Rate Swaps $ 5,799 $ 5,799 Floating to Fixed Interest Rate Swaps $ 778 $ 778 Investment market price hedges: Marketable Securities EUR 76 EUR 76 As of March 31, 2017, we had no outstanding commodity hedge positions. 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 March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 134 $ 176 $ 134 $ 176 Interest rate contracts Other current assets Level 2 11 — 10 — Foreign exchange contracts Other non-current assets Level 2 93 131 85 126 Interest rate contracts Other non-current assets Level 2 104 137 85 119 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 4 1 4 1 Investment market price contracts Other current assets Level 2 16 — 16 — Interest rate contracts Other non-current assets Level 2 38 42 36 40 Total Asset Derivatives $ 400 $ 487 $ 370 $ 462 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 March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current liabilities Level 2 $ 1 $ — $ 1 $ — Interest rate contracts Other current liabilities Level 2 1 1 — 1 Foreign exchange contracts Other non-current liabilities Level 2 11 6 3 1 Interest rate contracts Other non-current liabilities Level 2 23 21 4 3 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 — — — — Investment market price contracts Other current liabilities Level 2 — 10 — 10 Interest rate contracts Other non-current liabilities Level 2 5 7 3 5 Total Liability Derivatives $ 41 $ 45 $ 11 $ 20 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 months ended March 31, 2017 and 2016 for those derivatives designated as cash flow hedges (in millions): Three Months Ended March 31: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) 2017 2016 Interest rate contracts $ — $ (2 ) Foreign exchange contracts (47 ) (158 ) Total $ (47 ) $ (160 ) As of March 31, 2017 , $ 57 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 March 31, 2018 . 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 15 years. The amount of ineffectiveness recognized in income on derivative instruments designated in cash flow hedging relationships was immaterial for the three months ended March 31, 2017 and 2016 . The following table indicates the amount of gains and losses that have been recognized in AOCI within foreign currency translation adjustment for the three months ended March 31, 2017 and 2016 for those instruments designated as net investment hedges (in millions): Three Months Ended March 31: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt (Effective Portion) 2017 2016 Foreign denominated debt $ (37 ) $ (85 ) Total $ (37 ) $ (85 ) The amount of ineffectiveness recognized in income on non-derivative instruments designated in net investment hedging relationships was immaterial for the three months ended March 31, 2017 and 2016 . 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 months ended March 31, 2017 and 2016 (in millions): Derivative Instruments in Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income Derivative Amount of Gain (Loss) Recognized in Income Hedged Items in Fair Value Hedging Relationships Location of Gain (Loss) Recognized In Income Hedged Items Amount of Gain (Loss) Recognized in Income 2017 2016 2017 2016 Three Months Ended March 31: Interest rate contracts Interest Expense $ (24 ) $ 95 Fixed-Rate Debt Interest Expense $ 24 $ (95 ) Additionally, we maintain some interest rate swaps, foreign currency forwards 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 eliminates 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 months ended March 31, 2017 and 2016 (in millions): Derivative Instruments Not Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income 2017 2016 Three Months Ended March 31: Interest rate contracts Interest expense $ (2 ) $ (2 ) Foreign exchange contracts Investment income and other 6 (41 ) Investment market price contracts Investment income and other 26 155 $ 30 $ 112

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective tax rate for the three months ended March 31, 2017 was approximately 31.8% compared with 35.3% in the same period of 2016 . In the first quarter of 2017, we adopted a new accounting standard that requires the recognition of excess tax benefits related to share-based compensation in income tax expense, which resulted in discrete tax benefits for the three months ended March 31, 2017 of $55 million and reduced our effective tax rate by 3.2% (see note 2 ). Other factors that impacted our effective tax rate in the first quarter of 2017 compared with the same period of 2016 include favorable changes in the proportion of our taxable income in certain U.S. and non-U.S. jurisdictions, partially offset by a decrease in U.S. Federal and state tax credits. As discussed in our Annual Report on Form 10-K for the year ended December 31, 2016 , 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. However, an estimate of the range of reasonably possible outcomes cannot be made. 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.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 , our results of operations for the three months ended March 31, 2017 and 2016 , and cash flows for the three months ended March 31, 2017 and 2016 . The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for any other period or 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, 2016 . For interim consolidated financial statement purposes, we provide for accruals under our various employee benefit plans and self-insurance reserves for each three month period based on one quarter of the estimated annual expense.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, finance receivables and accounts payable approximate fair value as of March 31, 2017 . The fair values of our investment securities are disclosed in note 4 , recognized multiemployer pension withdrawal liabilities 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.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In March 2016, the FASB issued an accounting standards update that simplified the income tax accounting and cash flow presentation related to share-based compensation by requiring the recognition of all excess tax benefits and deficiencies directly on the income statement and classification as cash flows from operating activities on the statements of consolidated cash flows. This update also made several changes to the accounting for forfeitures and employee tax withholding on share-based compensation. This new guidance became effective for us in the first quarter of 2017 and we adopted the statements of consolidated cash flows presentation on a prospective basis. Upon adoption we determined the impact to income tax expense in the statements of consolidated income, for the first quarter of 2017, to be a benefit of $55 million . Additionally, we have elected to continue estimating forfeitures expected to occur to determine the amount of compensation cost to be recognized each period. Other accounting pronouncements adopted during the periods covered by the consolidated financial statements did not have a material impact on our consolidated financial position, results of operations or cash flows.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
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 assumptions used and the calculated weighted-average fair values of the RTSR portion of the grants, for the three months ended March 31, 2017 and 2016, are as follows: 2017 2016 Risk-free interest rate 1.46 % 1.01 % Expected volatility 16.59 % 16.45 % Weighted-average fair value of units granted $ 119.29 $ 135.57 Share payout 113.55 % 128.59 % 2017 2016 Expected dividend yield 2.89 % 2.94 % Risk-free interest rate 2.15 % 1.66 % Expected life (in years) 7.5 7.5 Expected volatility 17.81 % 23.60 % Weighted-average fair value of options granted $ 14.70 $ 17.32

INVESTMENTS AND RESTRICTED CA23

INVESTMENTS AND RESTRICTED CASH (Tables)	3 Months Ended
	Mar. 31, 2017
Marketable Securities [Abstract]
Available-for-sale Securities	The following is a summary of marketable securities classified as trading and available-for-sale as of March 31, 2017 and December 31, 2016 (in millions): Cost Unrealized Gains Unrealized Losses Estimated Fair Value March 31, 2017: Current trading marketable securities: Corporate debt securities $ 301 $ — $ — $ 301 Carbon credit investments (1) 81 — (16 ) 65 Total trading marketable securities $ 382 $ — $ (16 ) $ 366 Current available-for-sale securities: U.S. government and agency debt securities $ 298 $ — $ (2 ) $ 296 Mortgage and asset-backed debt securities 90 — — 90 Corporate debt securities 186 1 (1 ) 186 U.S. state and local municipal debt securities 87 — — 87 Equity securities 2 — — 2 Non-U.S. government debt securities 4 — — 4 Total available-for-sale marketable securities $ 667 $ 1 $ (3 ) $ 665 Total current marketable securities $ 1,049 $ 1 $ (19 ) $ 1,031 Cost Unrealized Gains Unrealized Losses Estimated Fair Value December 31, 2016: Current trading marketable securities: Corporate debt securities $ 427 $ — $ — $ 427 Carbon credit investments (1) 80 10 — 90 Total trading marketable securities $ 507 $ 10 $ — $ 517 Current available-for-sale securities: U.S. government and agency debt securities $ 314 $ — $ (2 ) $ 312 Mortgage and asset-backed debt securities 90 1 — 91 Corporate debt securities 167 — (1 ) 166 Equity securities 2 — — 2 Non-U.S. government debt securities 3 — — 3 Total available-for-sale marketable securities $ 576 $ 1 $ (3 ) $ 574 Total current marketable securities $ 1,083 $ 11 $ (3 ) $ 1,091 (1) These investments are hedged with forward contracts that are not designated in hedging relationships. See Note 13 for offsetting statement of consolidated income impact.
Investments Classified by Contractual Maturity Date	The amortized cost and estimated fair value of marketable securities at March 31, 2017 , 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 $ 355 $ 355 Due after one year through three years 427 425 Due after three years through five years 22 22 Due after five years 162 162 966 964 Equity and carbon credit investments 83 67 $ 1,049 $ 1,031
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 March 31, 2017 and December 31, 2016 , 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 March 31, 2017: Marketable Securities: U.S. government and agency debt securities $ 296 $ — $ — $ 296 Mortgage and asset-backed debt securities — 90 — 90 Corporate debt securities — 487 — 487 U.S. state and local municipal debt securities — 87 — 87 Equity securities — 2 — 2 Non-U.S. government debt securities — 4 — 4 Carbon credit investments 65 — — 65 Total marketable securities 361 670 — 1,031 Other non-current investments 19 — 11 30 Total $ 380 $ 670 $ 11 $ 1,061 December 31, 2016: Marketable Securities: U.S. government and agency debt securities $ 312 $ — $ — $ 312 Mortgage and asset-backed debt securities — 91 — 91 Corporate debt securities — 593 — 593 Equity securities — 2 — 2 Non-U.S. government debt securities — 3 — 3 Carbon credit investments 90 — — 90 Total marketable securities 402 689 — 1,091 Other non-current investments 18 — 13 31 Total $ 420 $ 689 $ 13 $ 1,122
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended March 31, 2017 and 2016 (in millions): Marketable Securities Other Non-Current Investments Total Balance on January 1, 2017 $ — $ 13 $ 13 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income and other) — (2 ) (2 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on March 31, 2017 $ — $ 11 $ 11 Marketable Securities Other Non-Current Investments Total Balance on January 1, 2016 $ — $ 32 $ 32 Transfers into (out of) Level 3 — — — Net realized and unrealized gains (losses): Included in earnings (in investment income and other) — (5 ) (5 ) Included in accumulated other comprehensive income (pre-tax) — — — Purchases — — — Sales — — — Balance on March 31, 2016 $ — $ 27 $ 27

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment as of March 31, 2017 and December 31, 2016 consist of the following (in millions): 2017 2016 Vehicles $ 8,729 $ 8,638 Aircraft 15,666 15,653 Land 1,480 1,397 Buildings 3,498 3,439 Building and leasehold improvements 3,649 3,612 Plant equipment 8,569 8,430 Technology equipment 1,774 1,741 Equipment under operating leases 29 29 Construction-in-progress 1,115 735 44,509 43,674 Less: Accumulated depreciation and amortization (25,284 ) (24,874 ) $ 19,225 $ 18,800

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 (in millions): U.S. Pension Benefits U.S. Postretirement Medical Benefits International Pension Benefits 2017 2016 2017 2016 2017 2016 Three Months Ended March 31: Service cost $ 390 $ 352 $ 7 $ 7 $ 15 $ 12 Interest cost 462 457 28 30 10 10 Expected return on assets (712 ) (629 ) (2 ) (1 ) (16 ) (14 ) Amortization of prior service cost 48 42 2 1 — — Net periodic benefit cost $ 188 $ 222 $ 35 $ 37 $ 9 $ 8

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table indicates the allocation of goodwill by reportable segment as of March 31, 2017 and December 31, 2016 (in millions): U.S. Domestic Package International Package Supply Chain & Freight Consolidated December 31, 2016: $ 715 $ 407 $ 2,635 $ 3,757 Acquired — — 21 21 Currency / Other — 3 (4 ) (1 ) March 31, 2017: $ 715 $ 410 $ 2,652 $ 3,777
Schedule of Intangible Assets (Excluding Goodwill)	The following is a summary of intangible assets as of March 31, 2017 and December 31, 2016 (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Value March 31, 2017: Capitalized software $ 3,016 $ (2,196 ) $ 820 Licenses 109 (55 ) 54 Franchise rights 128 (91 ) 37 Customer relationships 731 (103 ) 628 Trade name 200 — 200 Trademarks, patents and other 68 (27 ) 41 Total Intangible Assets, Net $ 4,252 $ (2,472 ) $ 1,780 December 31, 2016: Capitalized software $ 2,933 $ (2,157 ) $ 776 Licenses 131 (70 ) 61 Franchise rights 128 (90 ) 38 Customer relationships 724 (85 ) 639 Trade name 200 — 200 Trademarks, patents and other 67 (23 ) 44 Total Intangible Assets, Net $ 4,183 $ (2,425 ) $ 1,758

DEBT AND FINANCING ARRANGEMEN27

DEBT AND FINANCING ARRANGEMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The carrying value of our outstanding debt as of March 31, 2017 and December 31, 2016 consists of the following (in millions): Principal Amount Carrying Value Maturity 2017 2016 Commercial paper $ 4,242 2017 $ 4,242 $ 3,250 Fixed-rate senior notes: 1.125% senior notes 375 2017 374 374 5.50% senior notes 750 2018 764 769 5.125% senior notes 1,000 2019 1,036 1,043 3.125% senior notes 1,500 2021 1,575 1,584 2.40 % senior notes 500 2026 497 497 2.45% senior notes 1,000 2022 983 986 6.20% senior notes 1,500 2038 1,482 1,481 4.875% senior notes 500 2040 489 489 3.625% senior notes 375 2042 367 367 3.40% senior notes 500 2046 491 491 8.375% Debentures: 8.375% debentures 424 2020 458 461 8.375% debentures 276 2030 282 282 Pound Sterling notes: 5.50% notes 83 2031 78 76 5.125% notes 566 2050 543 535 Euro senior notes: 1.625% notes 748 2025 742 732 1.000% notes 534 2028 530 523 Floating rate senior notes 534 2020 532 525 Floating rate senior notes 979 2049-2067 969 824 Capital lease obligations 466 2017-3005 466 447 Facility notes and bonds 320 2029-2045 319 319 Other debt 21 2017-2022 21 20 Total debt $ 17,193 17,240 16,075 Less: Current maturities (4,302 ) (3,681 ) Long-term debt $ 12,938 $ 12,394

SHAREOWNERS' EQUITY (Tables)

SHAREOWNERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
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 three months ended March 31, 2017 and 2016 (in millions, except per share amounts): 2017 2016 Shares Dollars Shares Dollars Class A Common Stock Balance at beginning of period 180 $ 2 194 $ 2 Common stock purchases (1 ) — (2 ) — Stock award plans 3 — 4 — Common stock issuances 1 — 1 — Conversions of class A to class B common stock (3 ) — (3 ) — Class A shares issued at end of period 180 $ 2 194 $ 2 Class B Common Stock Balance at beginning of period 689 $ 7 693 $ 7 Common stock purchases (3 ) — (5 ) — Conversions of class A to class B common stock 3 — 3 — Class B shares issued at end of period 689 $ 7 691 $ 7 Additional Paid-In Capital Balance at beginning of period $ — $ — Stock award plans 15 137 Common stock purchases (174 ) (336 ) Common stock issuances 132 96 Option premiums received (paid) 27 103 Balance at end of period $ — $ — Retained Earnings Balance at beginning of period $ 4,879 $ 6,001 Net income attributable to common shareowners 1,158 1,131 Dividends ($0.83 and $0.78 per share) (774 ) (718 ) Common stock purchases (275 ) (319 ) Balance at end of period $ 4,988 $ 6,095
Schedule of Accumulated Other Comprehensive Income (Loss)	The activity in AOCI for the three months ended March 31, 2017 and 2016 is as follows (in millions): 2017 2016 Foreign currency translation gain (loss): Balance at beginning of period $ (1,016 ) $ (897 ) Translation adjustment (net tax effect of $(14) and no tax impact) 30 26 Balance at end of period (986 ) (871 ) Unrealized gain (loss) on marketable securities, net of tax: Balance at beginning of period (1 ) (1 ) Current period changes in fair value (net of tax effect of $0 and $2) — 3 Balance at end of period (1 ) 2 Unrealized gain (loss) on cash flow hedges, net of tax: Balance at beginning of period (45 ) 67 Current period changes in fair value (net of tax effect of $(17) and $(60)) (30 ) (100 ) Reclassification to earnings (net of tax effect of $(7) and $(38)) (11 ) (62 ) Balance at end of period (86 ) (95 ) Unrecognized pension and postretirement benefit costs, net of tax: Balance at beginning of period (3,421 ) (2,709 ) Reclassification to earnings (net of tax effect of $18 and $17) 32 26 Balance at end of period (3,389 ) (2,683 ) Accumulated other comprehensive income (loss) at end of period $ (4,462 ) $ (3,647 )
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 months ended March 31, 2017 and 2016 is as follows (in millions): Three Months Ended March 31: Amount Reclassified from AOCI Affected Line Item in the Income Statement 2017 2016 Unrealized gain (loss) on cash flow hedges: Interest rate contracts $ (7 ) $ (6 ) Interest expense Foreign exchange contracts 25 106 Revenue Income tax (expense) benefit (7 ) (38 ) Income tax expense Impact on net income 11 62 Net income Unrecognized pension and postretirement benefit costs: Prior service costs (50 ) (43 ) Compensation and benefits Income tax (expense) benefit 18 17 Income tax expense Impact on net income (32 ) (26 ) Net income Total amount reclassified for the period $ (21 ) $ 36 Net income
Schedule of Deferred Compensation and Treasury Stock Activity	Activity in the deferred compensation program for the three months ended March 31, 2017 and 2016 is as follows (in millions): 2017 2016 Shares Dollars Shares Dollars Deferred Compensation Obligations: Balance at beginning of period $ 45 $ 51 Reinvested dividends 1 1 Benefit payments (10 ) (9 ) Balance at end of period $ 36 $ 43 Treasury Stock: Balance at beginning of period (1 ) $ (45 ) (1 ) $ (51 ) Reinvested dividends — (1 ) — (1 ) Benefit payments — 10 — 9 Balance at end of period (1 ) $ (36 ) (1 ) $ (43 )

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment information for the three months ended March 31, 2017 and 2016 is as follows (in millions): Three Months Ended 2017 2016 Revenue: U.S. Domestic Package $ 9,535 $ 9,084 International Package 3,058 2,914 Supply Chain & Freight 2,722 2,420 Consolidated $ 15,315 $ 14,418 Operating Profit: U.S. Domestic Package $ 1,076 $ 1,102 International Package 529 574 Supply Chain & Freight 179 147 Consolidated $ 1,784 $ 1,823

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 (in millions, except per share amounts): Three Months Ended 2017 2016 Numerator: Net income attributable to common shareowners $ 1,158 $ 1,131 Denominator: Weighted average shares 869 885 Deferred compensation obligations 1 1 Vested portion of restricted units 4 3 Denominator for basic earnings per share 874 889 Effect of dilutive securities: Restricted units 4 4 Stock options 1 1 Denominator for diluted earnings per share 879 894 Basic earnings per share $ 1.32 $ 1.27 Diluted earnings per share $ 1.32 $ 1.27

DERIVATIVE INSTRUMENTS AND RI31

DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Outstanding Derivative Positions	s of March 31, 2017 and December 31, 2016 , The notional amounts of our outstanding derivative positions were as follows (in millions): March 31, 2017 December 31, 2016 Currency hedges: Euro EUR 3,629 EUR 3,702 British Pound Sterling GBP 1,358 GBP 1,380 Canadian Dollar CAD 1,062 CAD 1,053 Indian Rupee INR 253 INR 76 Japanese Yen JPY 3,456 JPY 3,972 Singapore Dollar SGD 18 SGD 32 Interest rate hedges: Fixed to Floating Interest Rate Swaps $ 5,799 $ 5,799 Floating to Fixed Interest Rate Swaps $ 778 $ 778 Investment market price hedges: Marketable Securities EUR 76 EUR 76
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	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 March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current assets Level 2 $ 134 $ 176 $ 134 $ 176 Interest rate contracts Other current assets Level 2 11 — 10 — Foreign exchange contracts Other non-current assets Level 2 93 131 85 126 Interest rate contracts Other non-current assets Level 2 104 137 85 119 Derivatives not designated as hedges: Foreign exchange contracts Other current assets Level 2 4 1 4 1 Investment market price contracts Other current assets Level 2 16 — 16 — Interest rate contracts Other non-current assets Level 2 38 42 36 40 Total Asset Derivatives $ 400 $ 487 $ 370 $ 462 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 March 31, December 31, March 31, December 31, Derivatives designated as hedges: Foreign exchange contracts Other current liabilities Level 2 $ 1 $ — $ 1 $ — Interest rate contracts Other current liabilities Level 2 1 1 — 1 Foreign exchange contracts Other non-current liabilities Level 2 11 6 3 1 Interest rate contracts Other non-current liabilities Level 2 23 21 4 3 Derivatives not designated as hedges: Foreign exchange contracts Other current liabilities Level 2 — — — — Investment market price contracts Other current liabilities Level 2 — 10 — 10 Interest rate contracts Other non-current liabilities Level 2 5 7 3 5 Total Liability Derivatives $ 41 $ 45 $ 11 $ 20
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 months ended March 31, 2017 and 2016 for those derivatives designated as cash flow hedges (in millions): Three Months Ended March 31: Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) 2017 2016 Interest rate contracts $ — $ (2 ) Foreign exchange contracts (47 ) (158 ) Total $ (47 ) $ (160 ) The following table indicates the amount of gains and losses that have been recognized in AOCI within foreign currency translation adjustment for the three months ended March 31, 2017 and 2016 for those instruments designated as net investment hedges (in millions): Three Months Ended March 31: Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt (Effective Portion) 2017 2016 Foreign denominated debt $ (37 ) $ (85 ) Total $ (37 ) $ (85 )
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 months ended March 31, 2017 and 2016 (in millions): Derivative Instruments Not Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income 2017 2016 Three Months Ended March 31: Interest rate contracts Interest expense $ (2 ) $ (2 ) Foreign exchange contracts Investment income and other 6 (41 ) Investment market price contracts Investment income and other 26 155 $ 30 $ 112 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 months ended March 31, 2017 and 2016 (in millions): Derivative Instruments in Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income Derivative Amount of Gain (Loss) Recognized in Income Hedged Items in Fair Value Hedging Relationships Location of Gain (Loss) Recognized In Income Hedged Items Amount of Gain (Loss) Recognized in Income 2017 2016 2017 2016 Three Months Ended March 31: Interest rate contracts Interest Expense $ (24 ) $ 95 Fixed-Rate Debt Interest Expense $ 24 $ (95 )

RECENT ACCOUNTING PRONOUNCEME32

RECENT ACCOUNTING PRONOUNCEMENTS - Narratives (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Tax Expense (Benefit)
Income tax benefit	$ (539)	$ (616)
Investment income	180	$ 104
Non-Current Investments and Restricted Cash	490		$ 476
Operating Leases, Future Minimum Payments Due			1,470
Self Insurance Program
Income Tax Expense (Benefit)
Non-Current Investments and Restricted Cash	255		$ 310
Restatement
Income Tax Expense (Benefit)
Income tax benefit	$ 55

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 27, 2017	Mar. 24, 2017	Mar. 01, 2017	Feb. 07, 2017
Stockholders Equity Note [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Cycle Period	3 years
Stock compensation expense	$ 212	$ 215
Nonqualified Stock Options [Member]
Stockholders Equity Note [Line Items]
Percentage of the award vesting at each anniversary date of the grant	20.00%
Expiration period (in years)	10 years
Stock options granted	0.3	0.2
Weighted-average fair value of options granted (usd per share)	$ 106.87	$ 98.77
Award vesting period	5 years
Period from grant date to expiration	10 years
Long-Term Incentive Performance Award
Stockholders Equity Note [Line Items]
Closing New York Stock Exchange price				$ 105.05
Weighted-average fair value of options granted (usd per share)	$ 119.29	$ 135.57
Award vesting period	3 years
Grant date fair value	$ 119.29
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			$ 104.78		$ 106.87	$ 105.69
Award vesting period	5 years

Fair Value of Employee Stock Op

Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Nonqualified Stock Options [Member]
Stockholders Equity Note [Line Items]
Risk-free interest rate	2.15%	1.66%
Expected volatility	17.81%	23.60%
Weighted-average fair value of options granted (usd per share)	$ 14.70	$ 17.32
Expected dividend yield	2.89%	2.94%
Expected life (in years)	7 years 6 months	7 years 6 months
Long-Term Incentive Performance Award
Stockholders Equity Note [Line Items]
Risk-free interest rate	1.46%	1.01%
Expected volatility	16.59%	16.45%
Weighted-average fair value of options granted (usd per share)	$ 119.29	$ 135.57
Expected dividend yield	113.55%	128.59%

Summary of Marketable Securitie

Summary of Marketable Securities (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Schedule of Marketable Securities [Line Items]
Trading Securities, Short-term Investments, Amortized Cost	$ 382	$ 507
Trading Securities, Gross Unrealized Gain	0	10
Trading Securities, Gross Unrealized Loss	(16)	0
Trading Securities	366	517
Available-for-sale Securities, Amortized Cost Basis	667	576
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1	1
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	(3)	(3)
Available-for-sale Securities, Current	665	574
Total Amortized Cost	1,049	1,083
Marketable Securities, Gross Unrealized Gain	1	11
Marketable Securities, Gross Unrealized Loss	(19)	(3)
Total Estimated Fair Value	1,031	1,091
U.S. government and agency debt securities
Schedule of Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	298	314
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	(2)	(2)
Available-for-sale Securities, Current	296	312
Mortgage and asset-backed debt securities
Schedule of Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	90	90
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	1
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Available-for-sale Securities, Current	90	91
Corporate debt securities
Schedule of Marketable Securities [Line Items]
Trading Securities, Short-term Investments, Amortized Cost	301	427
Trading Securities, Gross Unrealized Gain	0	0
Trading Securities, Gross Unrealized Loss	0	0
Trading Securities	301	427
Available-for-sale Securities, Amortized Cost Basis	186	167
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1	0
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	(1)	(1)
Available-for-sale Securities, Current	186	166
U.S. state and local municipal debt securities
Schedule of Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	87
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	0
Available-for-sale Securities, Current	87
Equity Securities [Member]
Schedule of Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	2	2
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Available-for-sale Securities, Current	2	2
Foreign Government Debt Securities [Member]
Schedule of Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	4	3
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Available-for-sale Securities, Current	4	3
Carbon Credit Investments [Member]
Schedule of Marketable Securities [Line Items]
Trading Securities, Short-term Investments, Amortized Cost	81	80
Trading Securities, Gross Unrealized Gain	0	10
Trading Securities, Gross Unrealized Loss	(16)	0
Trading Securities	$ 65	$ 90

INVESTMENTS AND RESTRICTED CA36

INVESTMENTS AND RESTRICTED CASH - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Gain (Loss) on Investments [Line Items]
Non-Current Investments and Restricted Cash	$ 490	$ 476
Fair Value Inputs, Discount Rate	8.02%	8.06%
cash held in escrow [Member]
Gain (Loss) on Investments [Line Items]
Restricted Cash and Cash Equivalents, Noncurrent	$ 16	$ 13
Self-insurance requirements [Member]
Gain (Loss) on Investments [Line Items]
Non-Current Investments and Restricted Cash	455	445
Variable life insurance policy
Gain (Loss) on Investments [Line Items]
Non-Current Investments and Restricted Cash	$ 19	$ 18

Amortized Cost and Estimated Fa

Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Cost
Due in one year or less	$ 355
Due after one year through three years	427
Due after three years through five years	22
Due after five years	162
Marketable Securities, Debt Maturities, Amortized Cost, Total	966
Equity securities	83
Total Amortized Cost	1,049	$ 1,083
Estimated Fair Value
Due in one year or less	355
Due after one year through three years	425
Due after three years through five years	22
Due after five years	162
Marketable Securities, Debt Maturities, Fair Value, Total	964
Equity securities	67
Total Estimated Fair Value	$ 1,031	$ 1,091

Investments Measured at Fair Va

Investments Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 1,061	$ 1,122
Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,031	1,091
Marketable securities | U.S. government and agency debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	296	312
Marketable securities | Mortgage and asset-backed debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	90	91
Marketable securities | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	487	593
Marketable securities | U.S. state and local municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	87
Marketable securities | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	2	2
Marketable securities | Foreign Government Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	4	3
Marketable securities | Carbon Credit Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	65	90
Other Long-term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	30	31
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	380	420
Fair Value, Inputs, Level 1 | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	361	402
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	296	312
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 | U.S. state and local municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
Fair Value, Inputs, Level 1 | Marketable securities | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Fair Value, Inputs, Level 1 | Marketable securities | Foreign Government Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Fair Value, Inputs, Level 1 | Marketable securities | Carbon Credit Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	65	90
Fair Value, Inputs, Level 1 | Other Long-term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	19	18
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	670	689
Fair Value, Inputs, Level 2 | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	670	689
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	90	91
Fair Value, Inputs, Level 2 | Marketable securities | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	487	593
Fair Value, Inputs, Level 2 | Marketable securities | U.S. state and local municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	87
Fair Value, Inputs, Level 2 | Marketable securities | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	2	2
Fair Value, Inputs, Level 2 | Marketable securities | Foreign Government Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	4	3
Fair Value, Inputs, Level 2 | Marketable securities | Carbon Credit Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
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	11	13
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 | U.S. state and local municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
Fair Value, Inputs, Level 3 | Marketable securities | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Fair Value, Inputs, Level 3 | Marketable securities | Foreign Government Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Fair Value, Inputs, Level 3 | Marketable securities | Carbon Credit Investments [Member]
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	$ 11	$ 13

Changes in Level 3 Instruments

Changes in Level 3 Instruments Measured on a Recurring Basis (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 13	$ 32
Transfers into (out of) Level 3	0	0
Net realized and unrealized gains (losses):
Included in earnings (in investment income)	(2)	(5)
Included in accumulated other comprehensive income (pre-tax)	0	0
Purchases	0	0
Sales	0	0
Ending Balance	11	27
Marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0	0
Transfers into (out of) Level 3	0	0
Net realized and unrealized gains (losses):
Included in earnings (in investment income)	0	0
Included in accumulated other comprehensive income (pre-tax)	0	0
Purchases	0	0
Sales	0	0
Ending Balance	0	0
Other Long-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	13	32
Transfers into (out of) Level 3	0	0
Net realized and unrealized gains (losses):
Included in earnings (in investment income)	(2)	(5)
Included in accumulated other comprehensive income (pre-tax)	0	0
Purchases	0	0
Sales	0	0
Ending Balance	$ 11	$ 27

Property Plant and Equipment (D

Property Plant and Equipment (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 44,509	$ 43,674
Less: Accumulated depreciation and amortization	(25,284)	(24,874)
Property, plant and equipment, net	19,225	18,800
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	8,729	8,638
Aircraft (including aircraft under capital leases) [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	15,666	15,653
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,480	1,397
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,498	3,439
Building and leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,649	3,612
Plant Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	8,569	8,430
Technology equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,774	1,741
Equipment under operating leases [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	29	29
Construction-in-progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 1,115	$ 735

Property Plant and Equipment -

Property Plant and Equipment - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Impairment charges on property plant and equipment	$ 0	$ 0

Net Periodic Benefit Cost for P

Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
U.S. Pension Benefits
Net Periodic Cost:
Service cost	$ 390	$ 352
Interest cost	462	457
Expected return on assets	(712)	(629)
Amortization of:
Prior service cost	48	42
Net periodic benefit cost	188	222
U.S. Postretirement Medical Benefits
Net Periodic Cost:
Service cost	7	7
Interest cost	28	30
Expected return on assets	(2)	(1)
Amortization of:
Prior service cost	2	1
Net periodic benefit cost	35	37
International Pension Benefits
Net Periodic Cost:
Service cost	15	12
Interest cost	10	10
Expected return on assets	(16)	(14)
Amortization of:
Prior service cost	0	0
Net periodic benefit cost	$ 9	$ 8

EMPLOYEE BENEFIT PLANS - Additi

EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)Employees	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)Employees	Dec. 31, 2007USD ($)
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			268,000
Remittance of retroactive economic benefits	$ 35	$ 108
Majority of ground mechanics not employed under agreements | Employees	3,000
Multiemployer Plans, Payment Term	46 years
Number of pilots under a collective bargaining agreement with the Independent Pilots Association | Employees	2,600
International Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Amount contributed to company- sponsored benefit plans	$ 2,312
Estimated future employer contributions to defined benefit plan, current fiscal year	65
U.S. Postretirement Medical Benefits
Defined Benefit Plan Disclosure [Line Items]
Amount contributed to company- sponsored benefit plans	$ 177
Estimated future employer contributions to defined benefit plan, current fiscal year	64
Multiemployer Plans, Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Multi-employer Plans, Withdrawal Obligation, Fair Value Disclosure	$ 861
Central States Pension Fund
Defined Benefit Plan Disclosure [Line Items]
Withdrawal liability				$ 6,100
Pension liability	$ 4,000
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contribution percentage	3.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contribution percentage	8.00%
Other noncurrent liabilities | Multiemployer Plans, Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plans, Withdrawal Obligation, Present Value	$ 864		$ 866
Other current liabilities | Multiemployer Plans, Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plans, Withdrawal Obligation, Present Value	$ 6		$ 6

Allocation of Goodwill by Repor

Allocation of Goodwill by Reportable Segment (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 3,757
Acquired	21
Currency / Other	(1)
Ending balance	3,777
U.S. Domestic Package
Goodwill [Roll Forward]
Beginning balance	715
Acquired	0
Currency / Other	0
Ending balance	715
International Package
Goodwill [Roll Forward]
Beginning balance	407
Acquired	0
Currency / Other	3
Ending balance	410
Supply Chain & Freight
Goodwill [Roll Forward]
Beginning balance	2,635
Acquired	21
Currency / Other	(4)
Ending balance	$ 2,652

Summary of Intangible Assets (D

Summary of Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,252	$ 4,183
Accumulated Amortization	(2,472)	(2,425)
Net Carrying Value	1,780	1,758
Capitalized software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,016	2,933
Accumulated Amortization	(2,196)	(2,157)
Net Carrying Value	820	776
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	109	131
Accumulated Amortization	(55)	(70)
Net Carrying Value	54	61
Franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	128	128
Accumulated Amortization	(91)	(90)
Net Carrying Value	37	38
Customer lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	731	724
Accumulated Amortization	(103)	(85)
Net Carrying Value	628	639
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	200	200
Accumulated Amortization	0	0
Net Carrying Value	200	200
Trademarks, patents, and other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	68	67
Accumulated Amortization	(27)	(23)
Net Carrying Value	41	$ 44
Licenses
Finite-Lived Intangible Assets [Line Items]
Carrying value	4
Trade name
Finite-Lived Intangible Assets [Line Items]
Carrying value	$ 200

GOODWILL AND INTANGIBLE ASSET46

GOODWILL AND INTANGIBLE ASSETS Narratives (Details) $ in Millions	1 Months Ended
	Dec. 31, 2016USD ($)
Marken
Business Acquisition [Line Items]
Total consideration	$ 570

Carrying Value of Outstanding D

Carrying Value of Outstanding Debt (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 17,193
Total debt	17,240	$ 16,075
Less current maturities	(4,302)	(3,681)
Long-Term Debt	12,938	12,394
Commercial Paper
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 4,242
Maturity - Minimum Date	Mar. 31, 2017
Maturity - Maximum Date	Dec. 31, 2017
Total debt	$ 4,242	3,250
Senior notes | 1.125% senior notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 375
Maturity - Maximum Date	Oct. 1, 2017
Debt instrument, stated interest rate	1.125%
Total debt	$ 374	374
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	$ 764	769
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	$ 1,036	1,043
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	$ 1,575	1,584
Senior notes | 2.40 % senior notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	500
Total debt	497	497
Senior notes | 2.45% senior notes
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	$ 983	986
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	$ 1,482	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 | 3.625% senior notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 375
Maturity - Maximum Date	Oct. 1, 2042
Debt instrument, stated interest rate	3.625%
Total debt	$ 367	367
Senior notes | 3.40% senior notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	500
Total debt	491	491
Senior notes | 8.375% debentures
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 424
Maturity - Minimum Date	Jan. 1, 2020
Debt instrument, stated interest rate	8.375%
Total debt	$ 458	461
Senior notes | 8.375% debentures
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 276
Maturity - Maximum Date	Jan. 1, 2030
Debt instrument, stated interest rate	8.375%
Total debt	$ 282	282
Senior notes | Floating rate senior notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 979
Maturity - Minimum Date	Jan. 1, 2049
Maturity - Maximum Date	Mar. 15, 2067
Total debt	$ 969	824
Capital Lease Obligations
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 466
Maturity - Minimum Date	Mar. 31, 2017
Maturity - Maximum Date	Jan. 1, 3005
Total debt	$ 466	447
Pound Sterling notes | 5.50% notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 83
Maturity - Maximum Date	Jan. 1, 2031
Debt instrument, stated interest rate	5.50%
Total debt	$ 78	76
Pound Sterling notes | 5.125% notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	566
Total debt	543	535
Euro Senior Notes | 1.625% Euro Senior Notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	748
Long-term Debt	$ 742	732
Maturity - Maximum Date	Nov. 15, 2025
Debt instrument, stated interest rate	0.00%
Euro Senior Notes | 1.000% notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 534
Long-term Debt	530	523
Euro Senior Notes | Floating rate senior notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	534
Long-term Debt	$ 532	525
Maturity - Maximum Date	Jul. 15, 2020
Facility notes and bonds
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 320
Maturity - Minimum Date	Jan. 1, 2029
Maturity - Maximum Date	Jan. 1, 2045
Total debt	$ 319	319
Other debt
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 21
Maturity - Minimum Date	Mar. 31, 2017
Maturity - Maximum Date	Jan. 1, 2022
Total debt	$ 21	$ 20

DEBT AND FINANCING ARRANGEMEN48

DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) € in Millions	3 Months Ended
	Mar. 31, 2017EUR (€)Credit_Agreements	Mar. 31, 2017USD ($)Credit_Agreements	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Face value of debt instrument		$ 17,193,000,000
Number of credit agreements | Credit_Agreements	2	2
Covenants limit, amount of secured indebtedness and debt in sale-leaseback transactions, percentage of net tangible assets	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		$ 2,142,000,000
Sale-lease back outstanding		0
Secured debt outstanding		0
Long-term debt fair value		18,193,000,000	$ 17,134,000,000
U.S. Commercial Paper Program
Debt Instrument [Line Items]
Commercial paper program, authorized to borrow		10,000,000,000
Total debt		$ 3,405,000,000
Debt, weighted average interest rate	0.77%	0.77%
Foreign Commercial Paper Program
Debt Instrument [Line Items]
Commercial paper program, authorized to borrow | €	€ 5,000
Debt, weighted average interest rate	(0.38%)	(0.38%)
Revolving Credit Facility Expiring In 2015 [Member]
Debt Instrument [Line Items]
Revolving credit facilities		$ 1,500,000,000
Maturity	Mar. 23, 2018
Applicable margin for base rate below LIBOR	1.00%	1.00%
Revolving Credit Facility Expiring In 2017
Debt Instrument [Line Items]
Revolving credit facilities		$ 3,000,000,000
Maturity	Mar. 24, 2022
Applicable margin for base rate below LIBOR	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%
Senior notes | 1.125% senior notes
Debt Instrument [Line Items]
Face value of debt instrument		$ 375,000,000
Debt instrument, stated interest rate	1.125%	1.125%
Senior notes | Floating Rate Senior Notes Due 2067
Debt Instrument [Line Items]
Face value of debt instrument		$ 147,000,000
Call period (in years)	30 years
Put period (in years)	1 year
Maturity	Dec. 31, 2067
Senior notes | 5.50% stated rate
Debt Instrument [Line Items]
Face value of debt instrument		$ 750,000,000
Debt instrument, stated interest rate	5.50%	5.50%
Commercial Paper, Euro Denominated [Member] | U.S. Commercial Paper Program
Debt Instrument [Line Items]
Total debt	€ 784	$ 837,000,000
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 | Revolving Credit Facility Expiring In 2015 [Member]
Debt Instrument [Line Items]
Applicable margin rates	0.50%
Federal Funds Rate | Revolving Credit Facility Expiring In 2017
Debt Instrument [Line Items]
Applicable margin rates	0.50%
LIBOR | Senior notes | Floating Rate Senior Notes Due 2067
Debt Instrument [Line Items]
Applicable margin rates	0.30%

SHAREOWNERS' EQUITY - Additiona

SHAREOWNERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)optionVoteClasses_of_Common_Stock$ / sharesshares	Mar. 31, 2016USD ($)shares	May 01, 2016USD ($)
Stockholders Equity Note [Line Items]
Classes of Common Stock, Number | Classes_of_Common_Stock	2
Preferred stock, shares authorized | shares	200,000,000
Preferred stock, par value | $ / shares	$ 0.01
Preferred stock, issued | shares	0
Common stock authorized for purchase, amount | $			$ 8,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $	$ 5,705
Noncontrolling Interest, Period Increase (Decrease) | $	$ 1	$ 2
Class A common stock
Stockholders Equity Note [Line Items]
Votes per common share | Vote	10
Common stock, par value | $ / shares	$ 0.01
Common stock, shares authorized | shares	4,600,000,000
Total of Class A and Class B common stock, repurchased, value | $	$ 0	$ 0
Common stock purchases | shares	1,000,000	2,000,000
Class B common stock
Stockholders Equity Note [Line Items]
Votes per common share | Vote	1
Common stock, par value | $ / shares	$ 0.01
Common stock, shares authorized | shares	5,600,000,000
Total of Class A and Class B common stock, repurchased, value | $	$ 0	$ 0
Common stock purchases | shares	3,000,000	5,000,000
Class A and B Common Stock
Stockholders Equity Note [Line Items]
Total of Class A and Class B common stock, repurchased, value | $	$ 449	$ 655
Common stock purchases | shares	4,200,000	6,600,000
Options Held [Member]
Stockholders Equity Note [Line Items]
Option premiums received (paid) | $	$ (27)	$ (103)
Number of options open | option	800,000
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share | $ / shares	$ 95.75

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
	Mar. 31, 2017	Mar. 31, 2016
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	$ 405
Net income	1,158	$ 1,131
Balance at end of period	$ 535
Class A common stock
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	180	194
Common stock purchases	(1)	(2)
Stock award plans	3	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	(3)	(3)
Stock Issued During Period, Value, Conversion of Convertible Securities	$ 0	$ 0
Balance at end of period	180	194
Balance at beginning of period	$ 2	$ 2
Common stock issuances	0	0
Common stock purchases	0	0
Balance at end of period	$ 2	$ 2
Class B common stock
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	689	693
Common stock purchases	(3)	(5)
Conversions of Class A to Class B common stock	(3)	(3)
Stock Issued During Period, Value, Conversion of Convertible Securities	$ 0	$ 0
Balance at end of period	689	691
Balance at beginning of period	$ 7	$ 7
Common stock purchases	0	0
Balance at end of period	7	7
Additional Paid-in Capital
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	0	0
Stock award plans	15	137
Common stock issuances	132	96
Option premiums received (paid)	27	103
Common stock purchases	(174)	(336)
Balance at end of period	0	0
Retained Earnings
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	4,879	6,001
Net income	1,158	1,131
Dividends ($0.57 and $0.52 per share)	(774)	(718)
Common stock purchases	(275)	(319)
Balance at end of period	$ 4,988	$ 6,095
Common stock, cash paid for dividends, per share	$ 0.83	$ 0.78
Options Held [Member]
Stockholders Equity Note [Roll Forward]
Option premiums received (paid)	$ 27	$ 103

Activity in Accumulated Other C

Activity in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ (4,483)
Aggregate adjustment for the period (net of tax effect of $0 and $(9))	30	$ 26
Current period changes in fair value (net of tax effect of $0, and $2)	0	3
Current period changes in fair value (net of tax effect of $(25) and $(32))	(41)	(162)
Balance at end of period	(4,462)	(3,647)
Foreign currency translation gain (loss):
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(1,016)	(897)
Aggregate adjustment for the period (net of tax effect of $0 and $(9))	30	26
Balance at end of period	(986)	(871)
Unrealized gain (loss) on marketable securities, net of tax:
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(1)	(1)
Current period changes in fair value (net of tax effect of $0, and $2)	0	3
Balance at end of period	(1)	2
Unrealized gain (loss) on cash flow hedges, net of tax:
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(45)	67
Current period changes in fair value (net of tax effect of $(25) and $(32))	(30)	(100)
Reclassification to earnings (net of tax effect of $0 and $(6))	(11)	(62)
Balance at end of period	(86)	(95)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(3,421)	(2,709)
Reclassification to earnings (net of tax effect of $16 and $28)	32	26
Balance at end of period	$ (3,389)	$ (2,683)

Activity in Accumulated Other52

Activity in Accumulated Other Comprehensive Income (Loss) (Phantoms) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (4,462)	$ (3,647)	$ (4,483)
Change in foreign currency translation adjustment, net of tax	30	26
Foreign currency translation gain (loss):
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(986)	(871)	(1,016)	$ (897)
Change in foreign currency translation adjustment, net of tax	30	26
Aggregate adjustment for the period, tax	(14)	0
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)	2	(1)	(1)
Current period changes in fair value, tax effect	0	2
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	(86)	(95)	(45)	67
Current period changes in fair value, tax effect	(17)	(60)
Reclassification to earnings, tax effect	(7)	(38)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(3,389)	(2,683)	$ (3,421)	$ (2,709)
Reclassification to earnings, tax effect	18	17
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax	$ 0	$ 0

Activity in Deferred Compensati

Activity in Deferred Compensation Program (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	(1)
Balance at end of period	(1)
Balance at beginning of period	$ 405
Balance at end of period	$ 535
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	$ (45)	$ (51)
Reinvested dividends	(1)	(1)
Benefit payments	10	9
Balance at end of period	(36)	(43)
Deferred Compensation Obligations
Stockholders Equity Note [Roll Forward]
Balance at beginning of period	45	51
Reinvested dividends	(1)	(1)
Benefit payments	10	9
Balance at end of period	$ 36	$ 43

SHAREOWNERS' EQUITY Amounts Rec

SHAREOWNERS' EQUITY Amounts Reclassified from AOCI (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Income [Member] [Member]
AmountsReclassifiedFromAOCI [Line Items]
TotalOtherComprehensiveIncomeReclassification, Net of Tax	$ (21)	$ 36
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	(7)	(38)
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax	11	62
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	(7)	(38)
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	11	62
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	(7)	(6)
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	25	106
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	32	26
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	(50)	(43)
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	17
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	$ (32)	$ (26)

SEGMENT INFORMATION - Additiona

SEGMENT INFORMATION - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017Countries_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
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 15,315	$ 14,418
Operating Income (Loss)	1,784	1,823
U.S. Domestic Package
Segment Reporting Information [Line Items]
Revenue	9,535	9,084
Operating Income (Loss)	1,076	1,102
International Package
Segment Reporting Information [Line Items]
Revenue	3,058	2,914
Operating Income (Loss)	529	574
Supply Chain & Freight
Segment Reporting Information [Line Items]
Revenue	2,722	2,420
Operating Income (Loss)	$ 179	$ 147

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
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income attributable to common shareowners	$ 1,158	$ 1,131
Denominator:
Weighted average shares	869	885
Deferred compensation obligations	1	1
Vested portion of restricted shares	4	3
Denominator for basic earnings per share	874	889
Effect of dilutive securities:
Denominator for diluted earnings per share	879	894
Basic earnings per share (usd per share)	$ 1.32	$ 1.27
Diluted earnings per share (usd per share)	$ 1.32	$ 1.27
Restricted performance units
Effect of dilutive securities:
Incremental common shares attributable to share-based payment arrangements	4	4
Stock option plans
Effect of dilutive securities:
Incremental common shares attributable to share-based payment arrangements	1	1

EARNINGS PER SHARE - Additional

EARNINGS PER SHARE - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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	0.3	0.5

DERIVATIVE INSTRUMENTS AND RI59

DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Collateral received under contractual provisions	$ 332	$ 575
Derivative net asset position	16
Derivative net liability position		$ 10
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	$ 57
Maximum term over hedging exposures to the variability of cash flow	15 years

Notional Amounts of Outstanding

Notional Amounts of Outstanding Derivative Positions (Detail) € in Millions, ₨ in Millions, ¥ in Millions, £ in Millions, SGD in Millions, CAD in Millions, $ in Millions

Mar. 31, 2017EUR (€)

Mar. 31, 2017USD ($)

Mar. 31, 2017GBP (£)

Mar. 31, 2017SGD

Mar. 31, 2017JPY (¥)

Mar. 31, 2017INR (₨)

Mar. 31, 2017CAD

Dec. 31, 2016EUR (€)

Dec. 31, 2016USD ($)

Dec. 31, 2016GBP (£)

Dec. 31, 2016SGD

Dec. 31, 2016JPY (¥)

Dec. 31, 2016INR (₨)

Dec. 31, 2016CAD

Derivative [Line Items]

Derivative, Notional Amount

€ 3,629

£ 1,358

SGD 18

¥ 3,456

₨ 253

CAD 1,062

€ 3,702

£ 1,380

SGD 32

¥ 3,972

₨ 76

CAD 1,053

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

$ 778

$ 778

Price Risk Derivative [Member]

Derivative [Line Items]

Derivative, Notional Amount | €

€ 76

€ 76

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	Mar. 31, 2017	Dec. 31, 2016
Asset Derivatives
Asset Derivatives	$ 400	$ 487
Derivative Asset, Fair Value, Net	370	462
Derivative Liabilities [Abstract]
Liability Derivatives	41	45
Derivative Liability, Fair Value, Amount Offset Against Collateral	11	20
Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets
Asset Derivatives
Asset Derivatives	134	176
Derivative Asset, Fair Value, Net	134	176
Designated as Hedging Instrument | Foreign Exchange Contracts | Other noncurrent assets
Asset Derivatives
Asset Derivatives	93	131
Derivative Asset, Fair Value, Net	85	126
Designated as Hedging Instrument | Foreign Exchange Contracts | Other current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	1	0
Derivative Liability, Fair Value, Amount Offset Against Collateral	1	0
Designated as Hedging Instrument | Foreign Exchange Contracts | Other non-current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	11	6
Derivative Liability, Fair Value, Amount Offset Against Collateral	3	1
Designated as Hedging Instrument | Interest Rate Contracts | Other current assets
Asset Derivatives
Asset Derivatives	11	0
Derivative Asset, Fair Value, Net	10	0
Designated as Hedging Instrument | Interest Rate Contracts | Other noncurrent assets
Asset Derivatives
Asset Derivatives	104	137
Derivative Asset, Fair Value, Net	85	119
Designated as Hedging Instrument | Interest Rate Contracts | Other current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	(1)	(1)
Derivative Liability, Fair Value, Amount Offset Against Collateral	0	1
Designated as Hedging Instrument | Interest Rate Contracts | Other non-current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	23	21
Derivative Liability, Fair Value, Amount Offset Against Collateral	4	3
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets
Asset Derivatives
Asset Derivatives	4	1
Derivative Asset, Fair Value, Net	4	1
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	0	0
Derivative Liability, Fair Value, Amount Offset Against Collateral	0	0
Not Designated as Hedging Instrument | Price Risk Derivative [Member] | Other current assets
Asset Derivatives
Asset Derivatives	16	0
Derivative Asset, Fair Value, Net	16	0
Not Designated as Hedging Instrument | Price Risk Derivative [Member] | Other current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	0	10
Derivative Liability, Fair Value, Amount Offset Against Collateral	0	10
Not Designated as Hedging Instrument | Interest Rate Contracts | Other noncurrent assets
Asset Derivatives
Asset Derivatives	38	42
Derivative Asset, Fair Value, Net	36	40
Not Designated as Hedging Instrument | Interest Rate Contracts | Other non-current liabilities
Derivative Liabilities [Abstract]
Liability Derivatives	5	7
Derivative Liability, Fair Value, Amount Offset Against Collateral	$ 3	$ 5

Amount and Location in the Inco

Amount and Location in the Income Statement for Derivatives Designed as Cash Flow Hedges (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	$ (47)	$ (160)
Cash Flow Hedging [Member] | Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	0	(2)
Cash Flow Hedging [Member] | Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	(47)	(158)
Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	(37)	(85)
Net Investment Hedging [Member] | Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	$ (37)	$ (85)

Amount and Location in the In63

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
	Mar. 31, 2017	Mar. 31, 2016
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ (24)	$ 95
Fixed-Rate Debt and Capital Leases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 24	$ (95)

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
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 30	$ 112
Interest Rate Contract [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	(2)	(2)
Foreign Exchange Contracts | Investment Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	6	(41)
Price Risk Derivative [Member] | Investment Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 26	$ 155

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	31.80%	35.30%
Adjustment to income tax expense	$ 55
Change in effective income tax rate	3.20%