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ACQUISITIONS & DISPOSITIONS | 12 Months Ended
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Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
ACQUISITIONS & DISPOSITIONS | NOTE 8. ACQUISITIONS & DISPOSITIONS During 2024, the aggregate purchase price for acquisitions was $71 million, net of cash acquired, which primarily related to the acquisition of franchise development areas for The UPS Store, which are recorded as intangible assets within Supply Chain Solutions. On September 16, 2024, we completed the divestiture of Coyote, for net proceeds of $1.002 billion. These proceeds are recognized within Proceeds from disposal of businesses, property, plant and equipment in the statements of consolidated cash flows. In connection with the completion of this divestiture, we recorded a pre-tax gain of $156 million ($152 million after tax) for the year ended December 31, 2024. The gain was recognized within Other expenses in the statements of consolidated income. We reported Coyote within our Forwarding businesses in Supply Chain Solutions. The following table summarizes the carrying values of the assets and liabilities divested (in millions):
| 2024
Assets: |
Cash and cash equivalents | $ | 20 |
Accounts receivable, net | 405 |
Other current assets | 34 |
Operating lease right-of-use assets | 69 |
Goodwill | 495 |
Intangible assets, net | 195 |
Other non-current assets | 18 |
Total assets divested | $ | 1,236 |
Liabilities: |
Accounts payable | $ | 216 |
Other current liabilities | 54 |
Non-current operating leases | 68 |
Other non-current liabilities | 38 |
Total liabilities divested | $ | 376 |
Net assets divested | $ | 860 |
In January 2025, we acquired Frigo-Trans and Biotech & Pharma Logistics, an industry-leading, complex healthcare logistics provider based in Germany, for approximately $440 million. The acquisition is expected to increase our complex cold-chain logistics capabilities internationally. In 2023, we acquired Happy Returns, a technology-focused company that provides innovative end-to-end returns services, and MNX Global Logistics, a global time-critical and temperature-sensitive logistics provider. These businesses are reported within Supply Chain Solutions. During 2023, we also acquired franchise development areas for The UPS Store, which are recorded as intangible assets within Supply Chain Solutions. Other acquisitions completed within International Package and Supply Chain Solutions during the period were immaterial. The aggregate purchase price for acquisitions in 2023 was approximately $1.3 billion, net of cash acquired. Acquisitions were funded using cash from operations. The following table summarizes the final purchase price allocations (in millions):
| 2023
Cash and cash equivalents | $ | 18 |
Accounts receivable | 60 |
Other current assets | 8 |
Property, Plant and Equipment | 10 |
Operating Lease Right-Of-Use Assets | 24 |
Goodwill | 739 |
Intangible Assets(1) | 554 |
Other Non-Current Assets | 52 |
Accounts Payable and other current liabilities | (56) |
Non-Current Operating Leases | (19) |
Deferred Income Tax Liabilities | (43) |
Total purchase price | $ | 1,347 |
(1) Includes $64 million for acquisitions of development areas for The UPS Store. Goodwill recognized of approximately $739 million is attributable to expected synergies from future growth. We assigned $735 million of goodwill to Supply Chain Solutions and $4 million to our International Package segment. A portion of the goodwill acquired is deductible for income tax purposes. Intangible assets acquired of approximately $554 million consist of $253 million of customer relationships (amortized over a weighted average of 15 years), $64 million of franchise rights (amortized over 20 years), $165 million of developed technology and software (amortized over a weighted average of 11 years), $45 million of trade names (amortized over a weighted average of 9 years) and $27 million of other intangible assets (amortized over a weighted average of 3 years). The carrying value of accounts receivable approximates fair value. Acquisition-related costs in 2023 were approximately $12 million. These were expensed and included in Other expenses within our statement of consolidated income. In 2022, we acquired Delivery Solutions, a digital platform that optimizes customer deliveries across multiple networks and provides real-time customer tracking and notifications. We also acquired Bomi Group to accelerate our growth in healthcare logistics by expanding our international presence and increasing our cold chain capabilities in major European and Latin American markets. Delivery Solutions and Bomi Group are both reported within Supply Chain Solutions. During 2022, we also acquired development areas for The UPS Store, which are recorded as intangible assets within Supply Chain Solutions. The aggregate purchase price for acquisitions in 2022 was approximately $755 million, net of cash acquired. Acquisitions were funded using cash from operations. The following table summarizes the final purchase price allocations (in millions):
| 2022
Cash and cash equivalents | $ | 29 |
Accounts receivable | 86 |
Other current assets | 17 |
Property, Plant and Equipment | 63 |
Operating Lease Right-Of-Use Assets | 111 |
Goodwill | 581 |
Intangible Assets(1) | 381 |
Accounts Payable and other current liabilities | (150) |
Non-Current Operating Leases | (85) |
Long-Term Debt and Finance Leases | (183) |
Deferred Income Tax Liabilities | (66) |
Total purchase price | $ | 784 |
(1) Includes $113 million for acquisitions of development areas for The UPS Store. Goodwill recognized of approximately $581 million, including immaterial measurement period adjustments, was attributable to expected synergies from future growth, including synergies in our International Package segment. We allocated $105 and $476 million of goodwill to reporting units within International Package and Supply Chain Solutions, respectively. Deductible goodwill for income tax purposes was not material. Intangible assets acquired of approximately $381 million consisted of $177 million of customer relationships (amortized over a weighted average of 15 years), $113 million of franchise rights (amortized over 20 years), $70 million of trade names (amortized over a weighted average of 5 years), $14 million of technology (amortized over a weighted average of 6 years) and $7 million in other intangibles (amortized over a weighted average of 5 years). The carrying value of accounts receivable approximated fair value. Acquisition-related costs in 2022 were approximately $25 million. These were expensed and included in Other expenses within the statement of consolidated income.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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