Introduction to the Financial Section

Introduction to the Financial Section

Business

Overview

Strategy

Segments

Services

Mailing Services

Shipping Services

Pricing and Classification Activity

Intellectual Property

Seasonal Operations

Customers

Government Contracts

Competition

Research and Development

Environmental Matters

Employees

Available Information

Risk Factors

Properties

Real Estate

Usage of Facilities

Vehicles

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statements

Critical Accounting Estimates

Results of Operations

Revenue and Volume

Mailing Services

Shipping Services

Operating Expenses

Compensation and Benefits

WORK HOURS

Retirement Expense

FUNDING STATUS

Net Periodic Costs

COST METHODS AND ASSUMPTIONS

COMPONENTS OF NET CHANGE IN PLAN ASSETS

Health Benefits

Retiree Health Benefits

PSRHBF

Workers’ Compensation

Transportation Expenses

HIGHWAY TRANSPORTATION

AIR TRANSPORTATION

OTHER TRANSPORTATION

Other Operating Expenses

Productivity

Service and Performance

Liquidity and Capital Resources

Liquidity

LIQUIDITY CHALLENGES

Capital Investments

Cash Flow

Cash Flows From Operating Activities

Cash Flows From Investing Activities

Cash Flows From Financing Activities

Financing Activities

Debt

Interest Expense

Interest And Investment Income

Fair Value Measurements

Legislative Update

Appropriations

Postal Operations Sustainment and Transformation (POST) Act of 2010

CSRS Overpayment

Delivery

Facilities and Operations

Outlook

Revenue Outlook

Expense Outlook

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Changes in Internal Control Over Financial Reporting

Management’s Report on Internal Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm