Financial Section Part I

Segments

We operate in one segment throughout the United States, its possessions, territories and internationally.

Services

The Postal Service is the centerpiece of the U.S. mailing industry. We provide a wide variety of services to meet almost any mailing need. Some of our major services are

First-Class Mail — Includes postcards, letters, or any other advertisement or merchandise up to 13 ounces. This service (or Express Mail or Priority Mail) is required for personal correspondence, handwritten or typewritten letters and bills or statements of account.

Priority Mail — This 1–3 day nonguaranteed delivery service is typically used to send documents, gifts and merchandise.

Express Mail — This overnight money-back guaranteed service includes tracking, proof of delivery, and insurance up to $100. Delivery is offered to most destinations and is available 365 days a year with no extra charge for weekend and holiday delivery.

Periodicals — Offered for newspaper, magazine, and newsletter distribution and requires prior authorization by the Postal Service.

Standard Mail — Is offered for any item, including advertisements and merchandise weighing less than 16 ounces, that is not required to be sent using First-Class Mail. Standard Mail is typically used for bulk advertising to multiple delivery addresses. Content restrictions apply for authorized nonprofit mailers.

Package Services — Are offered for any merchandise or printed matter weighing up to 70 pounds. These services include Parcel Post, Bound Printed Matter, Library Mail, and Media Mail.

Special Services — Offer a variety of enhancements that add value to mail services by providing added security, proof of delivery, or loss recovery. These services include: Certified Mail, Registered Mail, Delivery Confirmation, Signature Confirmation, and insurance up to $1,000.

Money Orders — Are offered as a safe, convenient, and economical alternative to sending cash through the mail. They can be purchased at any Post Office or from any rural route carrier. Postal money orders are available for any amount up to $1,000 and are restricted to a daily purchase limit of $10,000 per customer. Money orders can be cashed at any Post Office or can be deposited or negotiated at financial institutions. Money orders are replaced if damaged, lost, or stolen.

Details of our revenue by mail categories are found in the Operating Statistics Section on page 54 of this report.