US Postal Service 2008 Annual Report Download - page 19

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2008 Annual Report United States Postal Service | 19
Overview
The United States Postal Service (we) commenced opera-
tions on July 1, 1971, as an “independent establishment
of the executive branch of the Government of the United
States.” We are governed by an 11-member Board of Gov-
ernors. The Board is composed of nine Governors appoint-
ed by the President of the United States with the advice and
consent of the Senate, plus the Postmaster General and the
Deputy Postmaster General. Under the Postal Reorganiza-
tion Act, and its successor, the Postal Accountability and
Enhancement Act, Public Law 109-435 (P.L.109-435), we
have a legal mandate to offer a “fundamental service” to the
American people, “at fair and reasonable rates.” We fulfill
this legal mandate to provide universal service at a fair price
by offering a variety of classes of mail services without un-
due discrimination among our many customers. This means
that within each class of mail, our price does not unreason-
ably vary by customer for the levels of service provided.
We serve individual and commercial customers throughout
the nation, competing for business in the communications,
distribution, delivery, advertising, and retail markets.
Our Mailing and Shipping Services are sold through almost
37,000 Post Offices, stations, branches, contract postal
units, our website www.usps.com, and a large network of
consignees. We deliver mail to more than 149 million city,
rural, Post Office box, and highway delivery points. We con-
duct our operations primarily in the domestic market, with
international operations representing approximately 3% of
total revenue.
All references to years, unless otherwise stated, refer to fis-
cal years beginning October 1 and ending September 30.
All references to quarters, unless otherwise stated, refer to
fiscal quarters within 2008.
We are not a reporting company under the Securities Ex-
change Act of 1934, as amended, and are not subject to
regulation by the Securities and Exchange Commission
(SEC). However, effective for reporting periods ending after
September 30, 2007, we are required under P.L.109-435 to
file with the Postal Regulatory Commission (PRC) certain fi-
nancial reports containing information prescribed by the SEC
under section 13 of the Securities Exchange Act of 1934.
These reports are further described on the following page.
Business