SHAREOWNERS' EQUITY

12 Months Ended

Dec. 31, 2025

NOTE 12. SHAREOWNERS' EQUITY

Capital Stock, Additional Paid-In Capital, Retained Earnings and Noncontrolling Interests

We are authorized to issue two classes of common stock, which are distinguished from each other primarily by their respective voting rights. Class A shares of UPS are entitled to 10 votes per share, whereas class B shares are entitled to one vote per share. Class A shares are primarily held by UPS employees and retirees, as well as trusts and descendants of the Company's founders, and these shares are fully convertible into class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange ("NYSE") under the symbol "UPS". Class A and B shares both have a $0.01 par value, and as of December 31, 2025, there were 4.6 billion class A shares and 5.6 billion class B shares authorized to be issued. Additionally, there are 200 million preferred shares authorized to be issued, with a par value of $0.01 per share. As of December 31, 2025, no preferred shares had been issued.

The following is a rollforward of our shares of class A and class B common stock for 2025, 2024 and 2023 (in millions):


	2025	2024	2023
Class A Common Stock:
Balance at beginning of year	121	127	134
Stock award plans	—	2	5
Common stock issuances	3	3	2
Conversions of class A to class B common stock	(18)	(11)	(14)
Class A shares issued at end of year	106	121	127
Class B Common Stock:
Balance at beginning of year	733	726	725
Common stock purchases	(8)	(4)	(13)
Conversions of class A to class B common stock	18	11	14
Class B shares issued at end of year	743	733	726

We repurchased 8.6, 3.9 and 12.8 million shares of class B common stock for $1.0 billion, $500 million and $2.3 billion during 2025, 2024 and 2023, respectively. These repurchases were completed as follows:

•In August 2021, the Board of Directors authorized the Company to repurchase up to $5.0 billion of class A and class B common stock (the "2021 Authorization"). For 2023, we repurchased 0.5 million shares of class B common stock for $82 million under this authorization.

•In January 2023, the Board of Directors terminated the 2021 Authorization and approved a new share repurchase authorization for $5.0 billion of class A and class B common stock (the "2023 Authorization"). The share repurchases for 2025 and 2024 were completed under the 2023 Authorization. For 2023, we repurchased 12.3 million shares for $2.2 billion under the 2023 Authorization. As of December 31, 2025, we had $1.3 billion available under this repurchase authorization.

Future share repurchases may be in the form of accelerated share repurchase programs, open market purchases or other methods we deem appropriate. The timing of share repurchases will depend upon market conditions. Unless terminated earlier by the Board of Directors, this program will expire when we have purchased all shares authorized for repurchase under the program.

Movements in additional paid-in capital in respect of stock award plans comprise accruals for unvested awards, offset by adjustments for awards that vest during the period.

The following is a rollforward of our common stock, additional paid-in capital, retained earnings and noncontrolling interests accounts for 2025, 2024 and 2023 (in millions, except per share amounts):


	2025		2024		2023
Class A Common Stock:
Balance at beginning of year	$	2	$	2	$	2
Stock award plans	—		—		—
Common stock issuances	—		—		—
Conversions of class A to class B common stock	(1)		—		—
Class A shares issued at end of year	$	1	$	2	$	2
Class B Common Stock:
Balance at beginning of year	$	7	$	7	$	7
Common stock purchases	—		—		—
Conversions of class A to class B common stock	1		—		—
Class B shares issued at end of year	$	8	$	7	$	7
Additional Paid-In Capital:
Balance at beginning of year	$	136	$	—	$	—
Stock award plans	89		(77)		425
Common stock purchases	(262)		(212)		(882)
Common stock issuances	321		425		467
Other	(9)		—		(10)
Balance at end of year	$	275	$	136	$	—
Retained Earnings:
Balance at beginning of year	$	20,882	$	21,055	$	21,326
Net income attributable to controlling interests	5,572		5,782		6,708
Dividends ($6.56, $6.52 and $6.48 per share) (1)	(5,565)		(5,594)		(5,611)
Common stock purchases	(738)		(288)		(1,368)
Other (2)	—		(73)		—
Balance at end of year	$	20,151	$	20,882	$	21,055
Non-Controlling Interests:
Balance at beginning of year	$	25	$	8	$	17
Change in non-controlling interests	3		17		(9)
Balance at end of year	$	28	$	25	$	8

(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $167, $195 and $239 million for 2025, 2024 and 2023, respectively, that were settled in shares of class A common stock.

(2) Includes adjustments related to certain stock-based awards.

Accumulated Other Comprehensive Loss

The activity in accumulated other comprehensive loss for 2025, 2024 and 2023 is as follows (in millions):


	2025		2024		2023
Foreign Currency Translation Loss, Net of Tax:
Balance at beginning of year	$	(1,586)	$	(1,248)	$	(1,446)
Translation adjustment (net of tax effect of $9, $(7) and $(15))	528		(338)		190
Reclassification to earnings (net of tax effect of $0, $0 and $0)	—		—		8
Balance at end of year	$	(1,058)	$	(1,586)	$	(1,248)
Unrealized Loss on Marketable Securities, Net of Tax:
Balance at beginning of year	$	(1)	$	(2)	$	(11)
Current period changes in fair value (net of tax effect of $0, $0 and $2)	1		1		7
Reclassification to earnings (net of tax effect of $0, $0 and $1)	—		—		2
Balance at end of year	$	—	$	(1)	$	(2)
Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax:
Balance at beginning of year	$	91	$	(76)	$	167
Current period changes in fair value (net of tax effect of $(104), $93 and $(28))	(330)		296		(89)
Reclassification to earnings (net of tax effect of $(5), $(41) and $(48))	(14)		(129)		(154)
Balance at end of year	$	(253)	$	91	$	(76)
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of year	$	(2,813)	$	(2,432)	$	(259)
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(65), $(315) and $(793))	(204)		(1,005)		(2,530)
Reclassification to earnings (net of tax effect of $38, $195 and $111)	120		624		357
Balance at end of year	$	(2,897)	$	(2,813)	$	(2,432)
Accumulated other comprehensive loss at end of year	$	(4,208)	$	(4,309)	$	(3,758)

Detail of the gains (losses) reclassified from accumulated other comprehensive loss to the statements of consolidated income for 2025, 2024 and 2023 is as follows (in millions):


	Amount Reclassified from AOCI						Affected Line Item in the Income Statement
	2025		2024		2023
Unrealized Loss on Foreign Currency Translation:
Realized loss on business wind-down	$	—	$	—	$	(8)	Other expenses
Income tax expense	—		—		—		Income tax expense
Impact on net income	$	—	$	—	$	(8)	Net income
Unrealized Loss on Marketable Securities:
Realized loss on sale of securities	$	—	$	—	$	(3)	Investment income (expense) and other
Income tax benefit	—		—		1		Income tax expense
Impact on net income	$	—	$	—	$	(2)	Net income
Unrealized Gain on Cash Flow Hedges:
Interest rate contracts	$	(6)	$	(5)	$	(10)	Interest expense
Foreign currency exchange contracts	26		176		213		Revenue
Foreign currency exchange contracts	(1)		(1)		(1)		Investment income (expense) and other
Income tax expense	(5)		(41)		(48)		Income tax expense
Impact on net income	$	14	$	129	$	154	Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs	$	(158)	$	(154)	$	(109)	Investment income (expense) and other


Remeasurement of benefit obligation	—		(665)		(351)		Investment income (expense) and other
Curtailments and settlements of benefit obligations	—		—		(8)		Investment income (expense) and other
Income tax benefit	38		195		111		Income tax expense
Impact on net income	$	(120)	$	(624)	$	(357)	Net income
Total amount reclassified for the year	$	(106)	$	(495)	$	(213)	Net income

- Definition

The entire disclosure for equity.

+ References

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+ Details

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