Financial Statements

Years Ended September 30,

2010

2009

2008

Operating Revenue

$ 67,052

$ 68,090

$ 74,932

Operating Expenses

Compensation and Benefits

49,035

50,931

52,358

Retiree Health Benefits

7,747

3,390

7,407

Workers’ Compensation

3,566

2,223

1,227

Transportation

5,878

6,026

6,961

Other

9,200

9,260

9,785

Total Operating Expenses

75,426

71,830

77,738

Loss From Operations

(8,374)

(3,740)

(2,806)

Interest and Investment Income

25

26

36

Interest Expense

(156)

(80)

(36)

Net Loss

$ (8,505)

$ (3,794)

$ (2,806)

See accompanying notes to the financial statements

September 30,

2010

2009

Current Assets

Cash and Cash Equivalents

$ 1,161

$ 4,089

Receivables

Foreign Countries

714

526

U.S. Government

173

150

Other

224

177

Receivables before allowances

1,111

853

Less: Allowance for doubtful accounts

32

29

Total Receivables, Net

1,079

824

Supplies, Advances and Prepayments

114

138

Total Current Assets

2, 354

5,051

Property and Equipment, at Cost

Buildings

23,822

23,189

Equipment

20,646

20,970

Land

2,974

2,995

Leasehold Improvements

1,026

968

48,468

48,122

Less: Allowances for depreciation and amortization

28,333

26,889

20,135

21,233

Construction in Progress

1,460

1,447

Total Property and Equipment, Net

21,595

22,680

Other Assets — Principally Revenue Forgone Receivable

377

387

Total Assets

$ 24,326

$ 28,118

See accompanying notes to the financial statements

September 30,

2010

2009

Current Liabilities

Compensation and Benefits

$ 2,924

$ 2,766

Workers’ Compensation

1,115

1,069

Payables and Accrued Expenses:

Trade Payables and Accured Expenses

1,311

1,170

Foreign Countries

586

470

U.S. Government

136

175

Total Payables and Accrued Expenses

2,033

1,815

Deferred Revenue-Prepaid Postage

2,584

2,445

Customer Deposit Accounts

1,429

1,379

Outstanding Postal Money Orders

639

640

Prepaid Box Rent and Other Deferred Revenue

452

461

Debt

7,500

3,675

Total Current Liabilitiest

18,676

14,250

Noncurrent Liabilities

Workers’ Compensation Costs

11,474

9,064

Employees’ Accumulated Leave

2,088

2,096

Deferred Appropriation and Other Revenue

392

457

Long-term Portion Capital Lease Obligations

512

544

Deferred Gains on Sales of Property

309

305

Contingent Liabilities and Other

248

290

Debt

4,500

6,525

Total Noncurrent Liabilities

19,523

19,281

Total Liabilities

38,199

33,531

Net Deficiency

Capital Contributions of the U.S. Government

3,132

3,087

Deficit Since 1971 Reorganization

(17,005)

(8,500)

Total Net Deficiency

(13,873)

(5,413)

Total Liabilities and Net Deficiency

$ 24,326

$ 28,118

See accompanying notes to the financial statements

Capital Contributions
of U.S. Government

Retained Deficit
Since Reorganization

Total Net Deficiency

Balance, September 30, 2007

$ 3,034

$ (1,900)

$ 1,134

Net Loss

—

(2,806)

(2,806)

Balance, September 30, 2008

3,034

(4,706)

(1,672)

Additional Capital Contributions

53

—

53

Net Loss

—

(3,794)

(3,794)

Balance, September 30, 2009

3,087

(8,500)

(5,413)

Additional Capital Contributions

45

—

45

Net Loss

—

(8,505)

(8,505)

Balance, September 30, 2010

$ 3,132

$ (17,005)

$ (13,873)

See accompanying notes to the financial statements

Years Ended September 30,

2010

2009

2008

Cash Flows from Operating Activities:

Net Loss

$ (8,505)

$ (3,794)

$ (2,806)

Adjustments to Reconcile Net loss to Cash Provided by Operations:

Depreciation and Amortization

2,469

2,270

2,319

Loss (Gain) on Disposals of Property and Equipment and Impairments, Net

8

109

(16)

Decrease (Increase) in Other Assets — Primarily, Appropriations Receivable Revenue Forgone

10

52

(47)

Increase in Noncurrent Workers’ Compensation Liability

2,410

2,061

203

(Decrease) Increase in Employees’ Accumulated Leave

(8)

30

81

Decrease in Noncurrent Deferred Appropriations and Other Revenue

(2)

(4)

(5)

(Decrease) in Other Noncurrent Liabilities

(11)

(4)

(167)

Changes in Current Assets and Liabilities:

Receivables, Net

(255)

(95)

30

Supplies, Advances and Prepayments

24)

55

8

Compensation and Benefits

158)

71

(125)

Workers’ Compensation

46)

104

(6)

Payables and Accrued Expenses

182)

123

(261)

Customers Deposit Accounts

50)

(93)

(67)

Deferred Revenue-Prepaid Postage

139)

756

547

Outstanding Postal Money Orders

(1)

(58)

(149)

Prepaid Box Rent and Other Deferred Revenue

(6)

(10)

22

Net Cash (Used In) Provided by Operating Activities

(3,292)

1,573

(439)

Cash Flows from Investing Activities:

Purchase of Property and Equipment

(1,393)

(1,839)

(1,995))

Proceeds From Deferred Building Sale

19

6)

4

Proceeds From Sales of Property and Equipment

51

27)

53

Net Cash (Used In) Provided by Investing Activities

(1,323)

(1,806)

(1,938)

Cash Flows From Financing Activities:

Issuance of Notes Payable

4,100

7,000

4,500

Payments on Notes Payable

(2,500)

(4,500)

(1,000)

Net Change in Revolving Credit Line

200

500

(500)

Payments on Capital Lease Obligations, Net

(50)

(46)

(29)

U.S. Government Appropriations — Expensed

(63)

(64)

(61)

Net Cash Provided by Financing Activities

1,687

2,890

2,910

Net (Decrease) Increase in Cash and Cash Equivalents

(2,928)

2,657

533

Cash and Cash Equivalents at Beginning of Year

4,089

1,432

899

Cash and Cash Equivalents at End of Year

$ 1,161

$ 4,089

$ 1,432

Supplemental Cash Flow Disclosures:

Interest Paid

$ 161

$ 43

$ 37

See accompanying notes to the financial statements