UNITED PARCEL SERVICE INC

For the period ended Jun 30, 2025. Filed Aug 6, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Aug 6, 2025

UPS$111.05+0.1%Stored close · as of Nov 10, 2026

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Income Tax Expense

The following table sets forth our income tax expense and effective tax rate for the three and six months ended June 30, 2025 and 2024 (in millions):

Three Months Ended June 30, · Change · Six Months Ended June 30, · Change
2025 · 2024 · $ · % · 2025 · 2024 · $ · %
Income Tax Expense	$379		$460	$(81)		(17.6)%		$715	$883	$(168)	(19.0)%
Income Tax Impact of:
Transformation Strategy Costs:
Business Portfolio Review	(5)		(2)	(3)		150.0%		(5)	(1)	(4)	400.0%
Financial Systems	4		3	1		33.3%		8	7	1	14.3%
Transformation 2.0 Total	(1)		1	(2)		N/A		3	6	(3)	(50.0)%
Fit to Serve	2		5	(3)		(60.0)%		6	11	(5)	(45.5)%
Network Reconfiguration and Efficiency Reimagined	16		—	16		N/A		22	—	22	N/A
Total Transformation Strategy Costs	17		6	11		183.3%		31	17	14	82.4%
Gain on Divestiture	(5)		—	(5)		N/A		(5)	—	(5)	N/A
Goodwill and Asset Impairment Charges	—		—	—		N/A		9	13	(4)	(30.8)%
Reversal of income tax valuation allowance	13		—	13		N/A		23	—	23	N/A
Non-GAAP Adjusted Income Tax Expense	$404		$466	$(62)		(13.3)%		$773	$913	$(140)	(15.3)%
Effective Tax Rate	22.8%	24.6%			22.4%		25.9%
Non-GAAP Adjusted Effective Tax Rate	23.5%	23.4%			23.0%		24.9%

For additional information on our income tax expense and effective tax rate, see note 16 to the unaudited, consolidated financial statements.

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.