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2012 Report on Form 10-K United States Postal Service- 51 -
CASH FLOW
Cash and cash equivalents totaled $2,319 million, $1,488 million and $1,161 million at September 30, 2012, 2011, 2010,
respectively.
The following table provides a summary of our cash flows for the twelve month period ended September 30, 2012, 2011,
and 2010.
Cash Flow Statement
(Dollars in millions) 2012 2011 2010
Operating activities:
Net loss
$
(15,906)
$
(5,067)
$
(8,505)
Noncash depreciation and gains on sales
2,070
2,319
2,477
Changes in assets and liabilities
13,404
3,242
2,736
Cash (used in) provided by operating activities
(432)
494
(3,292)
Investing activities:
Capital expenditures, net of proceeds
(557)
(1,053)
(1,323)
Cash used in investing activities
(557)
(1,053)
(1,323)
Financing activities:
Net change in notes payable
1,200
1,200
1,600
Net change in revolving credit line
800
(200)
200
Other
(180)
(114)
(113)
Cash provided by financing activities
1,820
886
1,687
Net Increase (Decrease) in Cash and Cash Equivalents $ 831 $ 327 $ (2,928)
As of September 30,
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities was $432 million in 2012, compared to $494 million provided by operations in 2011,
a year-to-year decrease in cash provided by operations of $926 million. A major factor incorporated in the net loss of
$15,906 million was the $11,100 million of PSRHBF expenses that were accrued during the year but not paid. Additional
significant non-cash expenses included: $2,075 million of depreciation, a $2,425 million increase in the workers’
compensation liability, and a $78 million increase in other noncurrent liabilities. A significant use of cash during the year
was the $911 million repayment in 2012 of the FERS employer contributions that were withheld from June 2011 through
November 2011. Partially offsetting the FERS payment impact on cash flows was an increase in cash received for
stamps that have not yet been used, otherwise known as deferred revenue –prepaid postage which increased by $517
million in 2012 . The remaining adjustments from net loss to cash used by operating activities net out to cash provided of
$190 million.
Net cash provided by operating activities was $494 million in 2011, compared to $3,292 million used in operations during
2010, a year-to-year increase in cash provided by operations of $3,786 million. The major difference in cash flows was
that for 2011, the $5,500 million payment for the PSRHBF contribution initially due in 2011 but changed to be due in 2012.
The 2011 loss of $5,067 included: non-cash expenses for depreciation of $2,313 million, a $2,553 increase in the
Workers’ Compensation liability, and a $520 million increase in other noncurrent liabilities. Impacting cash flow in 2011
was the fact that there were 27 pay dates during the fiscal year versus the normal 26 pay dates for an estimated cash
outflow impact of $1,490 million. The 27 pay date impact was partially offset by the $911 million of FERS employer
contributions that were expensed in 2011, but not disbursed until 2012. During 2011, $913 million of cash was received,
but classified as deferred revenue-prepaid postage. The remaining adjustments from net loss to cash provided by
operating activities net out to cash used of $159 million.
Net cash used in operating activities during 2010 was $3,292 million. The net loss of $8,505 million was heavily impacted
by the $5,500 million PSRHBF prefunding requirement. The net loss included non-cash adjustments of $2,469 million for
depreciation and $2,456 million for the increase in Workers’ Compensation liability. During 2010, $139 million of cash
was received, but classified as deferred revenue-prepaid postage. The remaining adjustments from net loss to cash used
by operating activities net out to cash provided of $149 million.