US Postal Service 2012 Annual Report Download - page 53

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2012 Report on Form 10-K United States Postal Service- 52 -
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used by investing activities in 2012 was $557 million, compared to $1,053 million and $1,323 million in 2011,
and 2010, respectively. Purchases of property and equipment in 2012 of $705 million decreased $485 million from the
prior year after a $203 million decrease in 2011 from 2010. Proceeds from building sales and the sale of property and
equipment totaled $148 million in 2012, compared to $137 million and $70 million in 2011, and 2010, respectively.
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities was $1.8 billion, $0.9 billion, and $1.7 billion in 2012, 2011, and 2010,
respectively. Debt with the Federal Financing Bank (FFB) increased $2 billion, $1 billion, and $1.8 billion, in 2012, 2011,
and 2010, respectively.
The following table summarizes future cash requirements as of September 30, 2012.
Contractual Obligations
Less than
(Dollars in millions)
Debt (1) $ 15,000 $ 9,500 $ 300 $ 300 $ 4,900
Interest on debt (1) 2,073 184 339 327 1,223
PSHRBF 33,900 16,700 11,400 5,800 -
Capital lease obligations 659 121 181 197 160
Operating leases 6,879 890 1,245 1,847 2,897
Capital commitments (2) 644 391 194 40 19
Purchase obligations
(2) 1,514 1,503 10 1 -
Workers' compensation (3) 23,182 1,305 4,398 3,321 14,158
Employees' leave
(4) 2,162 307 287 229 1,339
$ 86,013 $ 30,901 $ 18,354 $ 12,062 $ 24,696
(1) For overnight and short-term debt, the table assumes the balance as of period end remains outstanding for all periods presented.
(2) Legally binding obligations to purchase goods or services. Capital commitments pertain to purchases of equipment, building
improvements and vehicles. Purchase obligations generally pertain to items that are expensed when received or amortized over a short
period of time. Capital commitments and purchase obligations are not reflected on the Balance Sheet.
(3) Assuming no new cases in future years. This amount represents the undiscounted expected workers' compensation payments. The
discounted amount of $17,567 million is reflected in our Balance Sheet at September 30, 2012.
(4) Employees' leave includes annual and holiday leave.
Payments Due by Year
5 Years
3-5 Years
1-3 Years
1 Year
Total
After
FINANCING ACTIVITIES
DEBT
As an “independent establishment of the executive branch of the Government of the United States,” the Postal Service
receives no tax dollars for ongoing operations, and has not received an appropriation for operational costs since 1982. We
fund operations chiefly through cash generated from operations and by borrowing from the FFB.
The amount borrowed is largely determined by three major factors; the difference between: (1) cash flow from operations;
(2) capital cash outlays, which include funds invested for new facilities, new automation equipment, and new services; and
(3) the annual increase in debt, which is limited by statute to $3 billion. An additional determinant is our statutory debt
ceiling of $15 billion. On September 30, 2012, there was $15 billion in debt outstanding, a $2 billion increase when
compared to debt outstanding of $13.0 billion on September 30, 2011.