Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
United Parcel Service Inc., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The statement of comprehensive income reveals significant fluctuations over the five-year period. Net income demonstrates a substantial decline from 2021 to 2023, followed by modest increases in 2024 and 2025, but remains below the 2021 level. The components of other comprehensive income exhibit considerable volatility, impacting the overall comprehensive income trend.
- Net Income Trend
- Net income decreased from US$12,890 million in 2021 to US$6,708 million in 2023, representing a nearly 48% reduction. A slight recovery is observed in 2024 (US$5,782 million) and 2025 (US$5,572 million), but these levels are still considerably lower than the 2021 peak. This suggests potential challenges in core operational profitability or increased costs during the 2022-2023 timeframe.
- Foreign Currency Translation Adjustment
- The foreign currency translation adjustment fluctuates significantly. Negative adjustments were recorded in 2021, 2022, and 2024, indicating that the translation of financial statements from foreign subsidiaries into the reporting currency resulted in a decrease in equity. However, positive adjustments occurred in 2023 and 2025, partially offsetting prior negative impacts. The magnitude of these adjustments suggests substantial international operations and exposure to currency exchange rate risks.
- Unrealized Gains/Losses
- Changes in unrealized gains or losses on marketable securities and cash flow hedges are relatively small in comparison to other comprehensive income components. Marketable securities show minimal gains or losses throughout the period. Cash flow hedge adjustments are more variable, moving from positive values in 2021 and 2022 to a significant loss in 2023, followed by a gain in 2024 and a loss in 2025. This suggests active hedging activities and potential changes in hedging strategies or market conditions.
- Pension and Postretirement Benefit Costs
- The change in unrecognized pension and postretirement benefit costs exhibits the most dramatic swings. A large positive adjustment in 2021 and 2022 is followed by a substantial negative adjustment in 2023 and 2024, and a smaller negative adjustment in 2025. These fluctuations likely stem from changes in actuarial assumptions, such as discount rates or expected rates of return on plan assets, or from amendments to the pension plans. The volatility indicates a significant impact from these benefit obligations on comprehensive income.
- Other Comprehensive Income
- Other comprehensive income mirrors the volatility of its underlying components, peaking in 2021 at US$3,835 million and reaching a low of negative US$2,209 million in 2023. The 2025 value of US$101 million is a modest positive figure, but significantly lower than the 2021 level. This demonstrates that changes outside of net income have a substantial effect on overall comprehensive income.
- Comprehensive Income Trend
- Comprehensive income follows a similar pattern to net income, declining from US$16,725 million in 2021 to US$4,499 million in 2023, before increasing to US$5,231 million in 2024 and US$5,673 million in 2025. The influence of other comprehensive income is evident, as its fluctuations moderate the overall trend compared to net income alone. Despite the recent increases, comprehensive income remains well below the 2021 high.
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