v3.25.2
LEASES
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
LEASES LEASES
We have finance and operating leases for real estate (primarily package centers, airport facilities and warehouses), aircraft and engines, information technology equipment, vehicles and various other equipment used in operating our business. Certain leases for real estate and aircraft contain options to purchase, extend or terminate the lease.
We recognize a right-of-use asset and lease obligation for all leases greater than twelve months, inclusive of renewal or purchase options that are reasonably certain to be exercised. In the first half of 2025, we entered into a sale-leaseback transaction involving a new lease asset class, data centers, and elected to account for the lease and non-lease components separately. For all other lease arrangements, we account for lease and non-lease components as a single lease component.
Aircraft
In addition to the aircraft that we own, we charter aircraft to handle package and cargo volume on certain international trade lanes and domestic routes. Due to the nature of these agreements, primarily being that either party can cancel the agreement with short notice, we have classified these as short-term leases. A majority of our long-term aircraft operating leases are operated by a third party to handle package and cargo volume in geographic regions where, due to government regulations, we are restricted from operating an airline.
We also have long-term finance leases for aircraft that we operate. In the second quarter 2025, we entered into fourteen new aircraft leases, two of which commenced upon delivery during the second quarter of 2025 and are accounted for as finance leases. We expect the remaining leases to also be accounted for as finance leases. These transactions represent $117 million of noncash investing and financing activities.
Transportation equipment and other equipment
We enter into both long-term and short-term leases for transportation equipment to supplement our capacity or meet contractual demands. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. We also enter into equipment leases to increase capacity during periods of high demand. These leases are treated as short-term as the cumulative right of use is less than 12 months over the term of the contract.
Some of our transportation and technology equipment leases require us to make additional lease payments based on the underlying usage of the assets. Due to the variable nature of these costs, these are expensed as incurred and are not included in the right-of-use lease asset and associated lease obligation.
The components of lease expense for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):
Three Months Ended
 June 30,		Six Months Ended
 June 30,
2025202420252024
Operating lease costs$232 $231 $463 $462 
Finance lease costs:
Amortization of assets27 31 62 66 
Interest on lease obligations5 5 12 10 
Total finance lease costs32 36 74 76 
Variable lease costs118 78 190 154 
Short-term lease costs207 192 419 391 
Total lease costs(1)
$589 $537 $1,146 $1,083 
(1)    This table excludes sublease income as it was not material for the three and six months ended June 30, 2025 and 2024.
In addition to the lease costs in the table above, we monitor all lease categories for any indicators that the carrying value of the assets may not be recoverable. We recognized certain immaterial impairments, primarily within our Supply Chain Solutions businesses, during the three and six months ended June 30, 2025. There were no impairments recognized during the three or six months ended June 30, 2024.
Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions):
June 30,
2025		December 31,
2024
Operating Leases:
Operating lease right-of-use assets$3,979 $4,149 
Current maturities of operating leases$724 $733 
Non-current operating leases3,445 3,635 
Total operating lease obligations$4,169 $4,368 
Finance Leases:
Property, plant and equipment, net$826 $657 
Current maturities of long-term debt, commercial paper and finance leases$98 $104 
Long-term debt and finance leases418 351 
Total finance lease obligations$516 $455 
Supplemental cash flow information related to leases is as follows (in millions):
Six Months Ended
 June 30,
20252024
Cash paid for amounts included in measurement of obligations:
Operating cash flows from operating leases$472 $448 
Operating cash flows from finance leases7 10 
Financing cash flows from finance leases58 58 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$107 $232 
Finance leases236 23 
Maturities of lease obligations as of June 30, 2025 were as follows (in millions):
Finance LeasesOperating Leases
2025$61 $419 
2026102 834 
202769 717 
202862 548 
202952 424 
Thereafter315 2,037 
Total lease payments661 4,979 
Less: Imputed interest(145)(810)
Total lease obligations516 4,169 
Less: Current obligations(98)(724)
Long-term lease obligations$418 $3,445 
As of June 30, 2025, we had $1.5 billion of additional leases which had not commenced and are expected to commence later in 2025 through 2027. These leases primarily related to aircraft that will commence when delivered. Other leases will commence when we are granted access to the property, such as when leasehold improvements are completed or a certificate of occupancy is obtained.
LEASES LEASES
We have finance and operating leases for real estate (primarily package centers, airport facilities and warehouses), aircraft and engines, information technology equipment, vehicles and various other equipment used in operating our business. Certain leases for real estate and aircraft contain options to purchase, extend or terminate the lease.
We recognize a right-of-use asset and lease obligation for all leases greater than twelve months, inclusive of renewal or purchase options that are reasonably certain to be exercised. In the first half of 2025, we entered into a sale-leaseback transaction involving a new lease asset class, data centers, and elected to account for the lease and non-lease components separately. For all other lease arrangements, we account for lease and non-lease components as a single lease component.
Aircraft
In addition to the aircraft that we own, we charter aircraft to handle package and cargo volume on certain international trade lanes and domestic routes. Due to the nature of these agreements, primarily being that either party can cancel the agreement with short notice, we have classified these as short-term leases. A majority of our long-term aircraft operating leases are operated by a third party to handle package and cargo volume in geographic regions where, due to government regulations, we are restricted from operating an airline.
We also have long-term finance leases for aircraft that we operate. In the second quarter 2025, we entered into fourteen new aircraft leases, two of which commenced upon delivery during the second quarter of 2025 and are accounted for as finance leases. We expect the remaining leases to also be accounted for as finance leases. These transactions represent $117 million of noncash investing and financing activities.
Transportation equipment and other equipment
We enter into both long-term and short-term leases for transportation equipment to supplement our capacity or meet contractual demands. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. We also enter into equipment leases to increase capacity during periods of high demand. These leases are treated as short-term as the cumulative right of use is less than 12 months over the term of the contract.
Some of our transportation and technology equipment leases require us to make additional lease payments based on the underlying usage of the assets. Due to the variable nature of these costs, these are expensed as incurred and are not included in the right-of-use lease asset and associated lease obligation.
The components of lease expense for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):
Three Months Ended
 June 30,		Six Months Ended
 June 30,
2025202420252024
Operating lease costs$232 $231 $463 $462 
Finance lease costs:
Amortization of assets27 31 62 66 
Interest on lease obligations5 5 12 10 
Total finance lease costs32 36 74 76 
Variable lease costs118 78 190 154 
Short-term lease costs207 192 419 391 
Total lease costs(1)
$589 $537 $1,146 $1,083 
(1)    This table excludes sublease income as it was not material for the three and six months ended June 30, 2025 and 2024.
In addition to the lease costs in the table above, we monitor all lease categories for any indicators that the carrying value of the assets may not be recoverable. We recognized certain immaterial impairments, primarily within our Supply Chain Solutions businesses, during the three and six months ended June 30, 2025. There were no impairments recognized during the three or six months ended June 30, 2024.
Supplemental information related to leases and location within our consolidated balance sheets is as follows (in millions):
June 30,
2025		December 31,
2024
Operating Leases:
Operating lease right-of-use assets$3,979 $4,149 
Current maturities of operating leases$724 $733 
Non-current operating leases3,445 3,635 
Total operating lease obligations$4,169 $4,368 
Finance Leases:
Property, plant and equipment, net$826 $657 
Current maturities of long-term debt, commercial paper and finance leases$98 $104 
Long-term debt and finance leases418 351 
Total finance lease obligations$516 $455 
Supplemental cash flow information related to leases is as follows (in millions):
Six Months Ended
 June 30,
20252024
Cash paid for amounts included in measurement of obligations:
Operating cash flows from operating leases$472 $448 
Operating cash flows from finance leases7 10 
Financing cash flows from finance leases58 58 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$107 $232 
Finance leases236 23 
Maturities of lease obligations as of June 30, 2025 were as follows (in millions):
Finance LeasesOperating Leases
2025$61 $419 
2026102 834 
202769 717 
202862 548 
202952 424 
Thereafter315 2,037 
Total lease payments661 4,979 
Less: Imputed interest(145)(810)
Total lease obligations516 4,169 
Less: Current obligations(98)(724)
Long-term lease obligations$418 $3,445 
As of June 30, 2025, we had $1.5 billion of additional leases which had not commenced and are expected to commence later in 2025 through 2027. These leases primarily related to aircraft that will commence when delivered. Other leases will commence when we are granted access to the property, such as when leasehold improvements are completed or a certificate of occupancy is obtained.