XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS | 3 Months Ended
--- | ---
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS | MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS The following is a summary of marketable securities classified as trading and available-for-sale as of March 31, 2023 and December 31, 2022 (in millions):
| Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value
March 31, 2023: |  |  |  |  |  |  |
Current trading marketable securities: |  |  |  |  |  |  |
Equity securities | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |
Total trading marketable securities | 6 |  |  | — |  |  | — |  |  | 6 |
Current available-for-sale securities: |  |  |  |  |  |  |
U.S. government and agency debt securities | 761 |  |  | 2 |  |  | (4) |  |  | 759 |
Mortgage and asset-backed debt securities | 9 |  |  | — |  |  | — |  |  | 9 |
Corporate debt securities | 2,279 |  |  | 3 |  |  | (6) |  |  | 2,276 |
U.S. state and local municipal debt securities | 3 |  |  | — |  |  | — |  |  | 3 |
Non-U.S. government debt securities | 155 |  |  | — |  |  | — |  |  | 155 |
Total available-for-sale marketable securities | 3,207 |  |  | 5 |  |  | (10) |  |  | 3,202 |
Total current marketable securities | $ | 3,213 |  |  | $ | 5 |  |  | $ | (10) |  |  | $ | 3,208 |
| Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value
December 31, 2022: |  |  |  |  |  |  |
Current trading marketable securities: |  |  |  |  |  |  |
Equity securities | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Total trading marketable securities | 2 |  |  | — |  |  | — |  |  | 2 |
Current available-for-sale securities: |  |  |  |  |  |  |
U.S. government and agency debt securities | 355 |  |  | — |  |  | (8) |  |  | 347 |
Mortgage and asset-backed debt securities | 9 |  |  | — |  |  | — |  |  | 9 |
Corporate debt securities | 1,472 |  |  | — |  |  | (6) |  |  | 1,466 |
U.S. state and local municipal debt securities | 4 |  |  | — |  |  | — |  |  | 4 |
Non-U.S. government debt securities | 165 |  |  | — |  |  | — |  |  | 165 |
Total available-for-sale marketable securities | 2,005 |  |  | — |  |  | (14) |  |  | 1,991 |
Total current marketable securities | $ | 2,007 |  |  | $ | — |  |  | $ | (14) |  |  | $ | 1,993 |
Investment Impairments We have concluded that no material impairment losses existed as of March 31, 2023. In making this determination, we considered the financial condition and prospects of each issuer, the magnitude of the losses compared with the 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 as of March 31, 2023 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 with or without prepayment penalties.
| Cost |  | Estimated Fair Value
Due in one year or less | $ | 1,727 |  |  | $ | 1,726 |
Due after one year through three years | 1,478 |  |  | 1,474 |
Due after three years through five years | 2 |  |  | 2 |
Due after five years | — |  |  | — |
| 3,207 |  |  | 3,202 |
Equity securities | 6 |  |  | 6 |
| $ | 3,213 |  |  | $ | 3,208 |
Non-Current Investments We hold non-current investments that are reported within Other Non-Current Assets in our consolidated balance sheets. Cash paid for these investments is included in Other investing activities in our statements of consolidated cash flows. •Equity method investments: As of March 31, 2023 and December 31, 2022, equity securities accounted for under the equity method had a carrying value of $257 and $256 million, respectively. •Other equity securities: Certain equity securities that do not have readily determinable fair values are reported in accordance with the measurement alternative in ASC Topic 321 Investments - Equity Securities. As of March 31, 2023 and December 31, 2022, we held equity securities accounted for using the measurement alternative of $33 and $31 million, respectively. •Other investments: We hold an investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan. The investment had a fair market value of $19 and $18 million as of March 31, 2023 and December 31, 2022, respectively. Fair Value Measurements Marketable securities valued 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 valued 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. The following table presents information about our investments measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, 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) |  | Total
March 31, 2023: |  |  |  |  |  |  |
Marketable Securities: |  |  |  |  |  |  |
U.S. government and agency debt securities | $ | 759 |  |  | $ | — |  |  | $ | — |  |  | $ | 759 |
Mortgage and asset-backed debt securities | — |  |  | 9 |  |  | — |  |  | 9 |
Corporate debt securities | — |  |  | 2,276 |  |  | — |  |  | 2,276 |
U.S. state and local municipal debt securities | — |  |  | 3 |  |  | — |  |  | 3 |
Equity securities | — |  |  | 6 |  |  | — |  |  | 6 |
Non-U.S. government debt securities | — |  |  | 155 |  |  | — |  |  | 155 |
Total marketable securities | 759 |  |  | 2,449 |  |  | — |  |  | 3,208 |
Other non-current investments(1) | — |  |  | 19 |  |  | — |  |  | 19 |
Total | $ | 759 |  |  | $ | 2,468 |  |  | $ | — |  |  | $ | 3,227 |
(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.
December 31, 2022: | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Marketable Securities: |  |  |  |  |  |  |
U.S. government and agency debt securities | $ | 279 |  |  | $ | 68 |  |  | $ | — |  |  | $ | 347 |
Mortgage and asset-backed debt securities | — |  |  | 9 |  |  | — |  |  | 9 |
Corporate debt securities | — |  |  | 1,466 |  |  | — |  |  | 1,466 |
U.S. state and local municipal debt securities | — |  |  | 4 |  |  | — |  |  | 4 |
Equity securities | — |  |  | 2 |  |  | — |  |  | 2 |
Non-U.S. government debt securities | — |  |  | 165 |  |  | — |  |  | 165 |
Total marketable securities | 279 |  |  | 1,714 |  |  | — |  |  | 1,993 |
Other non-current investments(1) | — |  |  | 18 |  |  | — |  |  | 18 |
Total | $ | 279 |  |  | $ | 1,732 |  |  | $ | — |  |  | $ | 2,011 |
(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.
There were no transfers of investments into or out of Level 3 during the three months ended March 31, 2023 or 2022.

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration