US Postal Service 2011 Annual Report Download - page 80

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2011 Report on Form 10-K United States Postal Service - 78 -
At September 30, 2011, scheduled repayments of debt
principal, exclusive of capital leases, is as follows:
NOTE 5 — LEASES AND OTHER
COMMITMENTS
LEASES
Future minimum lease payments for all noncancelable
leases as of September 30, 2011 are as follows:
Lease Obligations
(Dollars in millions)
2012 $ 739 $ 103
-
2013 696 96
-
2014 638 91
-
2015 579 89
-
2016 510 86
After 2016 4,139 287
Total Lease Obligations $ 7,301 $ 752
Less: Interest
234
Total Capital Lease Obligations 518
Less: Current Portion of Capital Lease Obligations 58
Noncurrent portion of capital lease obligations $ 460
Operating Capital
Leases generally have renewal options for periods
ranging from 3 to 20 years. Certain noncancelable real
estate leases have purchase options at prices specified in
the leases.
Capital leases included in buildings at September 30 were
$898 million in 2011 and $920 million in 2010. Total
accumulated amortization was $531 million and $510
million at September 30, 2011, and 2010, respectively.
Amortization expense for assets recorded as capital
leases is included in “Other” in the Statements of
Operations.
Rental expense for the years ended September 30 is
summarized as follows:
Rental Expense
(Dollars in millions)
Noncancelable real estate leases
$ 956 $ 964 $ 992
GSA facilities leases*
42
44
43
Equipment and other short-term rentals
161 153 155
Total Rental Expense $ 1,159 $ 1,161 $ 1,190
2011 2010 2009
*General Services Administration; leases su bject to 120-day cancellation notice.
CAPITAL COMMITMENTS
At September 30, 2011, financial commitments for
approved capital projects in progress are as follows:
Capital Commitments
(Dollars in millions)
2011
2010
Mail Processing Equipment
$
481
$
772
Building Improvements, Construction,
and Building Purchase
320 430
Postal Support Equipment
75
73
Retail Equipment
-
33
Vehicles
5
7
Total Capital Commitments $ 881 $ 1,315
NOTE 6 — CONTINGENT LIABILITIES
Contingent liabilities consist mainly of claims and lawsuits
resulting from labor, employment, environmental matters,
property damage claims, injuries on postal properties,
issues arising from postal contracts, personal claims, and
traffic accidents.
Each quarter, significant new claims and litigation are
evaluated for the probability of an adverse outcome. If the
claim is deemed probable of an unfavorable outcome and
the amount of potential resolution is reasonably
estimable, a liability for the loss is recorded. Each quarter,
any prior claims and litigation are reviewed and adjusted
for resolutions or revisions to prior estimates. This
reevaluation of cases resulted in an increase to the
liability of $448 million and $13 million for the year ended
September 30, 2011, and 2010, respectively. The table
summarizes contingent liabilities provided for in the
financial statements at September 30, 2011, and 2010.
Contingent Liabilities
(Dollars in millions)
Labor- Employment $ 662 $ 238
Environmental 48 40
Tort 39 35
Contractual 13 1
Total Contingent Liabilities $ 762 $ 314
2011 2010
Scheduled Debt Principal Repayments
(Dollars in millions)
2012
7,500
2013
-
2014
300
2015
-
2016
300
After 2016
4,900
Total Debt
$
13,000