OPERATING EXPENSES

Operating expenses are comprised of Compensation and Benefits, Retiree Health Benefits, Transportation and Other Expenses.

 

Operating Expenses (dollars in millions)

 

2009

2008

2007

Compensation and Benefits

$53,154

$53,585

$54,186

Retiree Health Benefits

3,390

7,407

10,084

Transportation

6,026

6,961

6,502

Other Expenses

9,260

9,785

9,333

Total Operating Expenses

$71,830

$77,738

$80,105

In 2009, total operating expenses of $71,830 million were $5,908 million, or 7.6%, less than 2008, mainly due to the enactment of P.L. 111-68, which decreased Retiree Health Benefits by $4 billion, and the reduction of 115 million workhours. Compensation and benefits, along with retiree health benefits, were $56,544 million, or 78.7%, of operating expenses. Transportation expenses decreased $935 million, or 13.4%, and other expense decreased $525 million, or 5.4%.

In 2008, total operating expenses of $77,738 million were $2,367 million, or 3.0%, less than 2007. Retiree health benefits decreased by $2,677 million in 2008 compared to an increase of $8,447 million in 2007. The decrease was primarily due to a 2007 one-time charge in addition to the annual amounts required by P.L. 109-435. Despite the decrease, compensation and benefits along with retiree health benefits were $60,992 million, or 78.5%, of operating expenses compared to $64,270 million, or 80.2%, in 2007. Transportation expenses increased by $459 million, or 7.1%, while other expenses increased $452 million, or 4.8%.