US Postal Service 2007 Annual Report Download - page 31

2007 Annual Report United States Postal Service | 31
Financial Section Part II
$7.3
$1.8 $2.1
$0
$2
$4
$6
$8
$10
$12
2006200520042003
(Dollars in billions)
Debt At Year-End
$0.0
$4.2
2007
INTEREST EXPENSE
Our debt since 2004 has consisted of short-term debt obligations, which
provided us with the flexibility to repay debt with available cash on a daily
basis. A major benefit of the short-term obligations was the reduction in
interest expense payable to the Federal Financing Bank. As a result, our
interest expense on borrowings has been at the lowest levels since the
early 1970’s.
$334
$10 $4
$0
$50
$100
$150
$200
$250
$300
$350
$400
20062003 2004 2005
$5
2007
$10
Other interest expense excludes interest on deferred retirement obligations and the 2003 debt
repurchase expense.
(Dollars in millions)
Other Interest Expense
INTEREST AND INVESTMENT INCOME
When we determine that our available funds exceed our current needs,
we invest those funds with the U.S. Treasury’s Bureau of Public Debt
in overnight securities issued by the U.S. Treasury. With marginal debt
to repay, and increased cash on hand during recent years, we earned
investment income of $169 million in 2007, $140 million in 2006, and $60
million in 2005.
We also recognize imputed interest on the funds owed to us under
the Revenue Forgone Act of 1993. Under the Act, Congress agreed to
reimburse us $29 million annually through 2035. See Note 12, Revenue
forgone, in the Notes to the Financial Statements for additional information.
Interest and Investment Income 2007 2006 2005
(Dollars in millions)
Investment Income $ 169 $ 140 $ 60
Imputed interest on accounts
receivable from the U.S. government 25 25 25
Other Interest 1 2 1
Total $ 195 $ 167 $ 86
Legislative Update
APPROPRIATIONS
Although we are self-funded and do not receive an appropriation for our
operations, we have received appropriations to reimburse us for certain
statutorily-mandated services.
In September 2007, the President signed P.L.110-92 making continuing
appropriations for 2008. The measure provides funding for the federal
government through November 16, 2007 at essentially the same levels as
that provided in 2007. For the Postal Service, this includes $29 million for
revenue forgone and $80 million for free mail for the blind.
These amounts are subject to change because the 2008 appropriations
process has not yet been finalized. See Note 12, Revenue Forgone, in the
Notes to Financial Statements for additional information.
DO NOT MAIL LEGISLATION
In 2007, Do Not Mail legislative bills were introduced in 15 state legislatures
nationwide. These bills, modeled after the Do Not Call registry, are
designed to limit or stop advertising mail from being mailed to households.
We oppose legislation that would limit mailing or interfere with the
availability of an affordable, universal postal system. Our response to Do
Not Mail legislation is to provide information to stakeholders, including the
American public, on the value of mail, including the impact the mailing
industry has on the U.S. economy, and the fact that mail supports the free
exchange of ideas, a cornerstone of our democracy.
We are working on educating the American public on ways that they can
manage their mail. Consumers currently have options that allow them to
limit the catalogs they receive, temporarily halt advertising mail through