Foreign currency risk exists related to settlements with foreign postal administrations for international mail. The majority of international accounts are denominated in special drawing rights (SDRs). The SDR exchange rate fluctuates daily based on a basket of currencies comprised of the euro, Japanese yen, British pound sterling and the U.S. dollar. Changes in the relative value of these currencies will increase or decrease the value of the settlement accounts and result in a gain or loss that is included in operating results. The impact of foreign currency translation on operating results was insignificant for 2010, 2009, and 2008.
