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Financial Highlights

blank Years Ended September 30, Percent Change From Preceeding Year
2006 2005 2004 2006 2005 2004
(Dollars in millions audited)

Operating revenues


$ 72,650


$ 69,907


$ 68,996


3.9%


1.3%


0.7%
Operating expenses $ 71,684 $ 68,283 $ 65,851 5.0% 3.7% 3.0%
Income from Operations $   966 $   1,624 $   3,145 blank blank blank
Operating margin 1.3% 2.3% 4.6% blank blank blank
Net income $  900 $  1,445 $   3,065 blank blank blank
Cash outlays for purchase of capital property
and equipment
$ 2,587 $  2,317 $   1,685 11.7% 37.5% 28.2%
Debt $ 2,100 - $   1,800      
Interest expense* $         2 $         2 $         10      
Capital contributions of U.S. government $ 3,034 $ 3,034 $   3,034 blank blank blank
Retained earnings since reorganization $ 3,242 $ 2,342 $      897 blank blank blank
Total Net Capital $ 6,276 $ 5,376 $   3,931 blank blank blank
(unaudited)

Number of career employees
696,138 704,716 707,485 (1.2%) (0.4%) (3.0%)
Mail volume (pieces in millions) 213,138 211,743 206,106 0.7% 2.7% 1.9%
New delivery points served 1,847,831 2,006,577 1,782,900 blank blank blank

* Excluding interest expense on deferred retirement obligations.