US Postal Service 2007 Annual Report Download - page 59

2007 Annual Report United States Postal Service | 59
Glossary
Direct Mail. A form of advertising often employed by businesses to reach
targeted groups of potential customers by mail.
Enhanced Carrier Route. A subclass of Standard Mail for mailpieces
weighing less than 16 ounces and prepared in carrier route sequence.
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 all matter
sealed or otherwise closed against inspection. This service is required for
personal correspondence, handwritten or typewritten letters and bills or
statements of account.
Fiscal 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.
Fixed Asset. Any tangible property such as land, buildings, machinery and
equipment, furniture, and leasehold improvements.
Generally Accepted Accounting Principles (GAAP). The rules and
procedures of accepted accounting practice as defined by the Financial
Accounting Standards Board.
Impaired Asset. When the market value of an economic resource has
been permanently lowered below the recorded value of the asset.
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 operations 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 property
under a lease.
Liability. Any debt or obligation which is owed by the Postal Service at
some future period of time.
Operating Expense. Expenses that are incurred in providing our primary
business services and products.
Operating Margin. A financial indication calculated by dividing income
from operations by operating revenue.
Operating Revenue. Revenues that are earned from our primary business
services and products.
Package Services. Mailing category offered for any merchandise or
printed matter weighing up to 70 pounds. These services include Parcel
Post, Bound Printed Matter, Library Mail and Media Mail.
Payable. Money that is owed by the Postal Service.
Periodicals. A class of mail formerly called second-class mail that consists
of magazines, newspapers and other publications.
Postal Inspection Service. The investigative arm of the Postal Service
responsible for investigating criminal acts involving the mails and misuse of
the postal system.
Postal Regulatory Commission (PRC) (formerly the Postal Rate
Commission). An independent federal establishment with oversight
responsibility for the Postal Service to review and approve rates, review
financial data, and hears and rule on rate and service complaints.
Prepaid. Payments made in advance of service being provided.
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 is a 1-3-day non-guaranteed delivery service.
Receivable. Money that is owed to the Postal Service.
Recognize. To record in Postal Service accounts as income or expense.
Special Services. A category of services that add value to mail by provid-
ing added security, proof of delivery or loss recovery. These services include:
Certified Mail, Registered Mail, Delivery Confirmation, Signature Confirma-
tion and insurance up to $1,000.
Standard Mail. Mailing service offered for any item, including advertise-
ments and merchandise weighing less than 16 ounces that is not required
to be sent using First-Class Mail. Standard Mail is typically used for bulk
advertising to multiple delivery addresses.
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.
Workshare. Tasks performed by mailers that otherwise would be done by
the Postal Service, such as, preparing, sorting, barcoding, and transporting
mail. Reduced postage rates are offered to these customers.
The following are among the many trademarks owned by the United States
Postal Service: United States Postal Service®, U.S. Postal Service®, USPS®,
First-Class Mail®, USPS.com®, Click-N-Ship®, Automated Postal Center®,
APC®, Express Mail®, Priority Mail®, Standard Mail®, Parcel Post®, Media
Mail®, Customized Market Mail®, United States Postal Service Office
of the Inspector General®, Post Office™, Postal Service™, Signature
Confirmation™, Certified Mail™, Delivery Confirmation™, Registered
Mail™, Post Office Box™, Zip Code™, Carrier Pickup™, Quick, Easy,
Convenient™ and Postmaster General™. The Sonic Eagle Logo, Round
Top Collection Box design, Letter Carrier Uniform design, and the Mail
Truck Design are also registered trademarks belonging to the United States
Postal Service.