Selected Quarterly Financial Data

2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4
(Dollars in millions, unaudited)
  Operating revenue $ 18,498 $ 18,615 $ 17,835 $ 17,702
  Operating expense 17,730 17,741 17,778 18,432
  Income (loss) from operations 768 874 57 (730)
  Other revenue (expense) (40) (28) 24 (25)
  Net Income (loss) $ 728 $ 846 $ 81 $ (755)

2005 Quarter 1 Quarter 2 Quarter 3 Quarter 4
(Dollars in millions, unaudited)
  Operating revenue $18,786 $17,296 $16,847 $16,978
  Operating expense 17,059 16,986 17,022 17,216
  Income (loss) from operations 1,727 310 (175) (238)
  Other revenue (expense) (45) (35) (65) (34)
  Net Income (loss) $1,682 $275 $(240) $(272)

2004 Quarter 1 Quarter 2 Quarter 3 Quarter 4
(Dollars in millions, unaudited)
  Operating revenue $18,209 $17,292 $16,591 $16,904
  Operating expense 16,391 16,556 16,288 16,616
  Income (loss) from operations 1,818 736 303 288
  Other revenue (expense) (1) 5 (44) (40)
  Net Income $1,817 $741 $259 $248

Glossary

Accruals. Revenue and expenses that are recorded as they occur, even though they may not have actually been paid.

Amortize. To reduce the value of an asset through regular charges to income over time; or to write off expenses by prorating them over a period of time.

Appropriation. Public funds set aside by Congress for a specific purpose.

Asset. An economic resource that is expected to be of benefit in the future.

Cautionary Statements. Statements contained in Management’s Discussion and Analysis that represent our best estimate of the trends we know about, the trends we anticipate and the trends we think are relevant to our future operations.

Capitalize. To treat an expenditure as an asset; or to compute the present value of a future payment that will be paid over a period of time.

Contribution. The difference between the revenue from a class of mail and that class’s volume-variable costs. For example, if a class of mail has revenue of $1.5 billion and volume-variable costs of $1 billion, its contribution is $500 million, which means that this class of mail covers its costs and contributes $500 million to the common costs of all mail services.

Contingent Liability. A potential liability that is contingent on a future event.