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Introduction to the Financial Section > Management’s Discussion and Analysis of FinancialCondition and Results of Operations > Interest And Investment Income
When we determine that available funds exceed current needs, funds are invested with the U.S. Treasury’s Bureau of Public Debt in overnight securities issued by the U.S. Treasury. Due to net losses sustained during the years, historically low interest rates and increased levels of debt, investment income was only $1 million in 2010 and $2 million in 2009. In 2008, with less debt to repay and higher cash on hand, the Postal Service earned investment income of $11 million.
We also recognize imputed interest on the funds owed to us under the Revenue Forgone Reform Act of 1993. Under the Act, Congress agreed to reimburse the Postal Service $29 million annually through 2035 for services performed in prior years. See Note 11, Revenue Forgone, in the Notes to the Financial Statements for additional information.
The following table summarizes the cash requirements of contractual obligations as of September 30, 2010.
Contractual Obligations (dollars in millions)
contract obligations
|
Total
|
Payments Due by Year
|
Less Than 1 Year
|
1–3
Years
|
3–5
Years
|
After
5 Years
|
Debt (1)
|
$ 12,000
|
$ 7,500
|
$ —
|
$ 300
|
$ 4,200
|
Interest on Debt (1)
|
2,187
|
158
|
306
|
297
|
1,426
|
PSRHBF)
|
33,900
|
5,500
|
11,200
|
11,400
|
5,800
|
Capital Lease Obligations
|
845
|
101
|
198
|
179
|
367
|
Operating Leases
|
7,828
|
770
|
1,409
|
1,172
|
4,477
|
Capital Commitment (2)
|
1,315
|
763
|
382
|
110
|
60
|
Purchase Obligations (2)
|
4,226
|
1,455
|
2,764
|
7
|
—
|
Workers’ Compensation (3)
|
18,096
|
1,100
|
3,361
|
2,382
|
11,253
|
Employees’ Leave)
|
2,200
|
262
|
263
|
267
|
1,428
|
Total Contractual Obligations)
|
$ 82,617
|
$ 17,609
|
$ 19,883
|
$ 16,114
|
$ 29,011
|
(1) For overnight and short-term debt, the table assumes the balance as of period end remains outstanding for all periods presented.
(2) Legally binding obligations to purchase goods or services. Capital commitments pertain to purchases of equipment building improvements and vehicles. Purchase obligations generally pertain to items that are expensed when recieved or amortized over a short period of time. Capital commitments and purchase obligations are not reflected on the Balance Sheet.
(3) Assuming no new cases in future years. This amount represents the undiscounted expected workers’ compensation payments. The discounted amount of $12,589 million is reflected in our Balance Sheet at September 30, 2010.
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