US Postal Service 2012 Annual Report Download - page 32

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2012 Report on Form 10-K United States Postal Service- 31 -
generated revenue of $1,284 million for 2011. This was an increase of $114 million or 9.7%, from the prior year. The
volume increased 39 million pieces, or 6.5%, in 2011 compared to 2010. First-Class Mail Parcels performed well as the
demand grew because of increased online shipping.
INTERNATIONAL MAIL
International Mail revenues were $2,816 million, or 4.3%, of total revenues for 2012. This is a $231 million, or 8.9%,
increase over 2011. Our online technology helps generate revenue and volume growth by simplifying the complex
international mailing process and requirements for our customers. Additionally, a newly designed price information tool for
Express and Priority Mail International now gives customers on-the-spot price comparisons.
International Mail revenues were $2,585 million and $2,388 million for 2011, and 2010, respectively. This was an
increase in 2011 of $197 million, or 8.3%, over 2010. In 2011, International Mail revenues were 3.9% of total revenues.
PERIODICALS
Periodicals revenue decreased $90 million, or 4.9%, from $1,821 million in 2011, to $1,731 million in 2012. Periodicals
volume decreased 336 million pieces, or 4.7%, to 6,741 million pieces in 2012. Trends in hard-copy reading behavior and
shifts of advertising away from print have been depressing this segment for years. Periodicals are not expected to
rebound as e-readers and electronic content continue to grow in popularity with the public.
In 2011, Periodicals revenue of $1,821 million decreased $58 million, or 3.1%, from $1,879 million in 2010. Periodicals
volume decreased 192 million pieces, or 2.6%, to 7,077 million pieces.
OTHER
Other revenue includes Market-Dominant and Competitive ancillary services such as Certified Mail, P.O. Box services,
return receipts, delivery confirmation, and shipping services. In addition, other revenue generated from miscellaneous
items such as the sales of money orders, passport services, and the gain from the sale of real estate are also included in
this category.
OPERATING EXPENSES
Due to the passage of P.L. 112-33 which changed the due date of the scheduled PSRHBF prefunding payment of $5.5
billion originally due by September 30, 2011 into 2012 plus the previously scheduled prefunding payment of $5.6 billion
due by September 30, 2012, total operating expenses in 2012 increased by $10,330 million, or 14.6% to $80,964 million
from $70,634 million in 2011. Due to the impact of this same law, total operating expenses in 2011 decreased by $4,792
million, or 6.4%, to $70,634 million compared to 2010 expenses of $75,426 million.
Operating Expenses
(Dollars in millions) 2012 2011 2010
Compensation and Benefits $ 47,689 $ 48,310 $ 48,909
Retiree Health Benefit Premiums 2,629 2,441 2,247
PSRHBF Prefunding 11,100 - 5,500
Workers' Compensation 3,729 3,672 3,566
Transportation 6,630 6,389 5,878
Other Expenses
9,187
9,822
9,326
Total Operating Expenses $ 80,964 $ 70,634 $ 75,426