US Postal Service 2004 Annual Report Download - page 61

2004 annual report united states postal service | 59
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.
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.
Delivery฀ Confirmation฀ ฀ ฀ A฀ special฀
service฀that฀provides฀the฀date฀of฀deliv-
ery฀ or฀ attempted฀ delivery฀ for฀ Priority฀
Mail฀and฀Standard฀Mail฀parcels,฀Bound฀
Printed฀Matter฀and฀Library฀Mail.
Depreciate฀฀฀To฀periodically฀reduce฀the฀
estimated฀value฀ of฀an฀asset฀ over฀the฀
course฀of฀its฀useful฀life.
Direct฀ Mail฀ ฀ ฀ A฀ form฀ of฀ advertis-
ing฀often฀ employed฀by฀ businesses฀to฀
reach฀ targeted฀ groups฀ of฀ potential฀
customers฀by฀mail.฀
Equity฀ ฀ ฀The฀ difference฀ between฀ the฀
value฀of฀all฀assets฀less฀all฀liabilities.
Express฀ Mail฀ ฀ ฀ The฀ Postal฀ Service’s฀
premium฀ delivery฀ service,฀ providing฀
guaranteed฀ overnight฀ delivery฀ for฀
documents฀ and฀ packages฀ weighing฀
up฀to฀70฀pounds.฀Both฀domestic฀and฀
international฀services฀are฀offered.
First-Class฀ Mail฀ ฀ ฀ A฀ class฀ of฀ mail฀
including฀letters,฀postcards฀and฀postal฀
cards,฀all฀matter฀wholly฀or฀partially฀in฀
writing฀ or฀ typewriting,฀ and฀ all฀ matter฀
sealed฀ or฀ otherwise฀ closed฀ against฀
inspection.
Fixed฀ Asset฀ ฀ ฀ Any฀ tangible฀ property฀
such฀ as฀ buildings,฀ machinery฀ and฀
equipment,฀ furniture,฀ and฀ leasehold฀
improvements.
Government฀ Accountability฀ Office฀
(GAO)฀ ฀ investigative฀ arm฀ of฀ legisla-
tive฀ branch฀ of฀ federal฀ government฀
(Congress).
Generally฀ Accepted฀ Accounting฀
Principles฀ (GAAP)฀ ฀ The฀ rules฀ and฀
procedures฀ of฀ accepted฀ accounting฀
practice฀ as฀ defined฀ by฀ the฀ Financial฀
Accounting฀Standards฀Board.
Gross฀Domestic฀ Product฀(GDP)฀ ฀฀The฀
total฀market฀value฀of฀all฀the฀goods฀and฀
services฀produced฀in฀ one฀year฀in฀the฀
United฀States.
Inspector฀ General฀ ฀ ฀ The฀ Inspector฀
General฀ is฀ appointed฀ by฀ and฀ reports฀
directly฀to฀the฀Governors฀of฀the฀Postal฀
Service฀ and฀ is฀independent฀ of฀ postal฀
management.฀The฀Office฀of฀Inspector฀
General฀ (OIG)฀ primarily฀ investigates฀
and฀ evaluates฀ programs฀ and฀ opera-
tions฀of฀ the฀ Postal฀Service฀to฀ensure฀
the฀ efficiency฀ and฀ integrity฀ of฀ the฀
postal฀system.฀฀
Leasehold฀ ฀ ฀An฀ asset฀ that฀ gives฀ the฀
Postal฀Service฀the฀right฀ to฀use฀ prop-
erty฀under฀a฀lease.
Liability฀ ฀ ฀Any฀ debt฀ or฀ obligation฀ the฀
Postal฀Service฀is฀bound฀to฀pay.
Operating฀Margin฀฀A฀financial฀indica-
tion฀calculated฀by฀dividing฀income฀from฀
operations฀by฀operating฀revenue.
Other฀ Postemployment฀ Benefits฀
(OPEBS)฀ ฀ OPEBS฀ include฀ retirement฀
benefits฀other฀than฀pensions,฀such฀as฀
retiree฀health฀benefits.
Periodicals฀฀฀A฀class฀of฀mail,฀formerly฀
called฀second-class฀mail,฀that฀consists฀
of฀magazines,฀newspapers฀and฀ other฀
publications.
Postal฀Inspection฀Service฀฀฀The฀inves-
tigative฀ arm฀ of฀ the฀ Postal฀ Service฀
responsible฀ for฀ investigating฀ criminal฀
acts฀involving฀the฀mails฀and฀misuse฀of฀
the฀postal฀system.
Postal฀ Rate฀ Commission฀ (PRC)฀ ฀ ฀ An฀
independent฀ federal฀ agency฀ that฀
makes฀ recommendations฀ concerning฀
Postal฀Service฀requests฀for฀changes฀in฀
postal฀rates฀and฀mail฀classifications.
Present฀Value฀฀฀The฀value฀today฀of฀a฀
future฀payment฀that฀is฀discounted฀at฀a฀
stated฀rate฀of฀compound฀interest.฀For฀
example,฀ the฀ present฀ value฀ of฀ $100฀
that฀will฀be฀paid฀to฀the฀Postal฀Service฀
10฀years฀from฀ now฀is฀about฀$38.55,฀
if฀ we฀ discount฀ that฀ $100฀ at฀ a฀ rate฀
equal฀ to฀ 10%฀ interest฀ compounded฀
annually.
Priority฀ Mail฀ ฀ ฀ Priority฀ Mail฀ provides฀
two-฀to฀three-day฀delivery฀service.
Processing฀ and฀ Distribution฀ Center฀
(P&DC)฀ ฀ ฀ A฀ large฀ mail-sorting฀ and฀
dispatching฀plant฀that฀serves฀as฀a฀hub฀
for฀mail฀originating฀from฀Post฀Offices,฀
collection฀ boxes฀ and฀ customer฀ mail-
boxes,฀and฀large-volume฀mailers฀in฀a฀
designated฀service฀area.
Receivable฀฀฀Money฀that฀is฀owed฀to฀the฀
Postal฀Service.
Recognize฀฀฀To฀record฀in฀Postal฀Service฀
accounts฀as฀income฀or฀expense.
Standard฀Mail฀฀฀Bulk฀advertising฀mail฀
formerly฀known฀as฀third-class฀mail.
U.S.฀ Mail฀ ฀ ฀Any฀ mailable฀ matter฀ that฀
is฀ accepted฀ for฀ mail฀ processing฀ and฀
delivery฀by฀the฀Postal฀Service.
Universal฀ Service฀ ฀ ฀ The฀ Postal฀
Service’s฀ mandate฀ and฀ commitment฀
to฀the฀nation฀to฀provide฀mail฀delivery฀
service฀ at฀ uniform฀ and฀ reasonable฀
rates฀to฀everyone,฀everywhere.
Year฀฀฀As฀used฀in฀the฀financial฀section฀
of฀this฀report,฀the฀Postal฀Service฀fiscal฀
year,฀ which฀ is฀ the฀ 12-month฀ period฀
during฀which฀the฀Postal฀Service฀keeps฀
accounts,฀beginning฀Oct.฀1฀and฀closing฀
Sept.฀30.
glossary