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60 | 2005 Annual Report United States Postal Service
Selected quarterly financial data
(Dollars in millions)
(unaudited)
2005 Quarter I Quarter II Quarter III Quarter IV
Operating revenue $ 18,786 $ 17,296 $ 16,847 $ 16,978
Total operating expenses 17,059 16,986 17,022 17,216
Income (loss) from operations 1,727 310 (175) (238)
Other revenue (expense) (45) (35) (65) (34)
Net Income (loss) 1,682 275 (240) (272)
2004 Quarter I Quarter II Quarter III Quarter IV
Operating revenue $ 18,209 $ 17,292 $ 16,591 $ 16,904
Total operating expenses 16,391 16,556 16,288 16,616
Income from operations 1,818 736 303 288
Other revenue (expense) (1) 5 (44) (40)
Net Income 1,817 741 259 248
Glossary
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 delivery 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 advertising often employed by
businesses to reach targeted groups of potential custom-
ers 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.