chapter 3
financial history
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shown in Table 3-3. Health benefits for employees and retirees, another significant expense driver, increased by $471 million in 2003, a 9.1 percent increase. Enactment of Public Law 108-18 in April 2003 resulted in a dramatic decrease in interest expense on the deferred Civil Service Retirement System (CSRS) liability, reducing this expense to $116 million which was a 92.8 percent reduction in these costs from the prior year. This change is discussed in detail in Chapter 3, Section C, Civil Service Retirement System Legislation.

 Chapter 1 Compliance with Statutory Policies Introduction

Chapter 2 Postal Operations

Chapter 3 Financial Highlights
  1. Financial Summary
  2. Total Factor Productivity
  3. Civil Service Retirement System Legislation
  4. Federal Government Appropriations
  5. Emergency Preparedness Funding
  6. Breast Cancer Research
Chapter 4 2003 Performance Report and Preliminary 2005 Annual Performance Plan
table 3-2 analysis of expenses
  2003
($ million)		 2002
($ million)		 Variance % Change
Personnel
Compensation $37,144  $36,877 $267 0.7     
Benefits 13,284  14,680 (1,396) (9.5)     
Subtotal 50,428  51,557 (1,129) (2.2)     
Nonpersonnel
Transportation 4,989  5,132 (143) (2.8)     
Supplies and Services 2,413  2,614 (201) (7.7)     
Building Occupancy 1,687  1,653 34 2.1     
Depreciation 2,295  2,296 (1) 0.0     
Interest Expense
Deferred Retirement 116  1,601 (1,485) (92.8)     
Borrowing 694* 340 354 104.1     
Other 2,274  2,171 103 4.7     
Subtotal
Deferred Retirement $64,896  $67,364 ($2,468) (3.7)     
* Includes $360 million in debt repurchase expense.