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|11 overview 11 description of business 12 message from the chief financial officer 13 management discussion & analysis: outlook 16 management discussion & analysis: operations 24 management discussion & analysis: capital 26 management discussion & analysis: finance 28 management discussion & analysis: other issues 30 auditor's report 31 statements of operations 32 balance sheets 34 statements of changes in net capital (deficiency) 35 statements of cash flows 36 notes to the financial statements 45 operating statistics 48 financial history summary 50 glossary|
|financial section overview|
Our total revenue increased $2.1 billion to $68.8
billion in 2003 while our total expenses decreased by
$2.5 billion to $64.9 billion. Our revenue grew
because of the postal rate increases we implemented
on June 30, 2002. Our expenses declined primarily
because of a $3.4 billion reduction in expense for the
Civil Service Retirement System, as well as a reduction
in compensation and benefits due to 24,000
fewer career employees.
of approximately $3 billion. This represents a 75%
reduction in debt from the peak of $11.3 billion at the
close of 2001.
description of business
The Postal Service (we) commenced operations on
July 1, 1971 in accordance with the provisions of the
Postal Reorganization Act. We provide mail service to
the public, offering a variety of classes of mail service.
Under the Postal Reorganization Act, we have a legal
mandate to offer a "fundamental service" to the
American people on a "fair and equitable basis." Our
primary lines of business are First-Class Mail, Standard
Mail, Priority Mail, Periodicals and Package Services. In
addition to the individual and commercial customers
whom we serve throughout the nation, the principal
markets for these services are the communications,
distribution and delivery, advertising and retail markets.
Our products are distributed through our more than
37,000 Post Offices and a large network of
consignees. Mail is delivered to 141 million city, rural,
post office box and highway contract delivery points.
We conduct our significant operations primarily in the
domestic market, with international operations representing
less than 3% of our total revenue.