US Postal Service 2008 Annual Report Download - page 68

68 | 2008 Annual Report United States Postal Service
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 ex-
penses by prorating them over a pe-
riod of time.
Appropriation. Public funds set aside
by Congress for a specific purpose.
Asset. An economic resource that is
expected to be of benefit in the future.
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.
Cautionary Statements. Statements
contained in Management’s Discus-
sion and Analysis that represent our
best estimate of the trends we know
about, the trends we anticipate, and
the trends we think are relevant to our
future operations.
Contingent Liability. A potential liabil-
ity that is contingent on a future event.
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 con-
tributes $500 million to the common
costs of all mail services.
Delivery Confirmation. A special ser-
vice 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 of-
ten employed by businesses to reach
targeted groups of potential custom-
ers by mail.
Enhanced Carrier Route. A subclass
of Standard Mail for mailpieces weigh-
ing 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 doc-
uments and packages weighing up to
70 pounds. Both domestic and inter-
national services are offered.
First-Class Mail. A class of mail in-
cluding letters, postcards, and all mat-
ter sealed or otherwise closed against
inspection. This service is required for
personal correspondence, handwrit-
ten or typewritten letters, and bills or
statements of account.
Fiscal Year. As used in the financial
section of this report, the Postal Ser-
vice 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 prop-
erty such as buildings, machinery
and equipment, furniture, and lease-
hold improvements.
Forever Stamp. A stamp that once
purchased is good for mailing one-
ounce First-Class letters anytime in the
future — regardless of price changes.
It was introduced in 2007.
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 opera-
tions of the Postal Service to ensure
the efficiency and integrity of the
postal system.
Intelligent Mail. Products and servic-
es or a strategy used to describe prod-
ucts and services that use machine-
readable codes, such as barcodes,
to uniquely identify mail. This enables
large mailers to follow the progress of
their mail through the many stages of
processing all the way to delivery.
Leasehold. An asset that gives the
Postal Service the right to use prop-
erty under a lease.