OTHER TRANSPORTATION

Other transportation expenses for 2010 were $248 million, which was $108 million, or 30.3%, lower than 2009 expenses of $356 million. The decrease was due chiefly to lower settlements for foreign surface transportation resulting from lower international mail volume in 2010 as compared to 2009. Lower rail transportation expense which decreased $48 million, or 55.0%, also contributed to this decrease, as we shifted business to other modes of transportation as part of the NDC project implementation.