UPS · 10-Q · 2026Q3 · Full report

Goodwill Impairment Charge

UNITED PARCEL SERVICE INC · 2026-11-04 · Importance 28 · Surprise 42

UPS recorded a $182 million goodwill impairment charge in the third quarter of 2026 for its Healthcare Logistics and Distribution reporting unit within SCS. At the July 1, 2026 testing date, HLD represented approximately $1.6 billion of UPS's $5.8 billion consolidated goodwill balance. UPS attributed the unit's lower estimated fair value to higher discount rates associated with increased cost of capital and lower financial performance in European healthcare logistics.

Key facts

• At July 1, 2026, approximately $1.6 billion of UPS's $5.8 billion consolidated goodwill balance was represented by its HLD reporting unit. source
• UPS recorded a $182 million goodwill impairment charge in the third quarter of 2026 for its HLD reporting unit within SCS. source
• In 2026, UPS's non-GAAP adjusted operating expenses exclude a $182 million HLD goodwill impairment charge and $43 million in gains on sales of certain previously impaired aircraft parts. source