UNITED PARCEL SERVICE INC

Our primary (uses) sources of cash from financing activities were as follows (in millions, except per share data):

(1)For additional information on our share repurchase activities, see note 11 to the unaudited, consolidated financial statements.

(2)Includes issuances of common stock.

We did not repurchase any shares under our stock repurchase program during the six months ended June 30, 2026.

The declaration of dividends is subject to the discretion of the Board and depends on various factors, including our net income, financial condition, cash requirements, future prospects and other relevant factors. We paid a quarterly cash dividend of $1.64 per share in each of the first and second quarters of both 2026 and 2025.

There were no issuances of debt during the six months ended June 30, 2026. Repayments of debt during the six months ended June 30, 2026 consisted of $85 million of senior notes and finance lease obligations. Issuances of debt during the six months ended June 30, 2025 consisted of fixed-rate and floating-rate senior notes of varying maturities totaling $4.2 billion. Repayments of debt during the six months ended June 30, 2025 consisted of $1.1 billion of senior notes and finance lease obligations.

The amount of commercial paper outstanding fluctuates based on daily liquidity needs. As of June 30, 2026, we had no outstanding balances under our U.S. or European commercial paper programs. The average balance outstanding of commercial paper during the six months ended June 30, 2026 and 2025 was $54 and $95 million, respectively, and the average interest rates were 3.48% and 4.01%, respectively. The amount of commercial paper outstanding under these programs in the remainder of 2026 is expected to fluctuate. As of June 30, 2026, we had $500 million of fixed-rate senior notes currently outstanding that mature in 2026. We intend to repay or refinance these amounts when due. We consider the overall fixed and floating interest rate mix of our portfolio and the related overall cost of borrowing when planning for future issuances and non-scheduled repayments of debt.

Cash flows from other financing activities included cash proceeds of $50 million related to collections from customers on accounts receivable that had been factored in 2026. This reflected $109 million of obligations related to factored receivables that were not remitted to third-party purchasers as of June 30, 2026, partially offset by $59 million repaid from prior-period balances. This program was not in place in the 2025 periods.

At June 30, 2026, we had parent company guarantees of approximately $1.8 billion related to aircraft leases. For additional information on guarantees, see note 9 to the unaudited, consolidated financial statements.

Except as disclosed above and in our Annual Report on Form 10-K for the year ended December 31, 2025, we do not have off-balance sheet financing arrangements, including variable interest entities, which we believe could have a material impact on our financial condition or liquidity.