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2013 Report on Form 10-K United States Postal Service 21
In response to these changes, the Postal Service has successfully taken measures to both generate new revenues and
substantially reduce costs, the results of which are summarized in the table of Operating Statistics below.
Operating Statistics
2013 2012 2011
Operating Revenue $ 67,318 $ 65,223 $ 65,711
$ 5,600 $ 11,100 $ -
Net Loss $ (4,977) $ (15,906) $ (5,067)
Total Mail Volume 158,384 159,835 168,297
523 528 555
(Dollars & pieces in millions)
PSRHBF Expense
Average Daily Volume
Significant efforts have been made by the Postal Service to improve revenues and reduce costs that are under
management’s control. However, we have not been able to completely offset the impacts of declining mail volumes, as
that is related mainly to changing customer behaviors. In addition, the accrual of the large PSRHBF prefunding
requirement and legally-mandated continuation of six-days-per-week delivery adversely affect our financial results. As
discussed in Item 1 – Business - Strategy section of this document, we have proposed legislation to decrease mail
delivery by one day, to five-days-per-week. This decrease would not affect our package delivery, which would remain six-
days-per-week. However, this legislation has not been enacted.
As discussed above, our current period results are also impacted by items that are not under our control or that are
unusual and are not reflective of our normal operations. These items include the annual legally-mandated PSRHBF
prefunding expense, fluctuations in workers’ compensation expense due to discount (interest) rates, and significant
changes in accounting estimates. Because these items are not typical, we believe that analyzing operating results without
the impact of certain of these charges provides a more meaningful insight into current operations.
The following tables illustrate the loss from ongoing business activities when these items are not considered, which better
reflects the aspects of our financial results that are controllable by management, and reconciles this amount back to our
U.S. GAAP net loss and operating expense.
(Dollars in millions) 2013 2012 2011
Net Loss $ (4,977) $ (15,906) $ (5,067)
Impact of:
Changes In Accounting Estimate (1,316)
(311) 2,341 2,367
PSRHBF expense 5,600 11,100 -
$ (1,004) $ (2,465) $ (2,700)
Loss before Impact of Change in Accounting Estimate, Expense Related to the Long-term
Portion of Workers' Compensation and PSRHBF Expense
Expense Related to the Long-term Portion of Workers'
Compensation
Loss before Impact of Change in Accounting Estimate, Expense
Related to Long-term Portion of Workers' Compensation and
PSRHBF Expense
Without the impact of these items, losses would have been $1,004 million in 2013, $2,465 million in 2012, and $2,700
million in 2011.
For the year ended September 30, 2013, operating revenues were $67,318 million, compared to $65,223 million in 2012,
an increase of 3.2%. As discussed above, the 2013 revenue increased by $1,316 million due to a change in estimate for
the Deferred revenue-prepaid postage liability. Without this change in accounting estimate, revenues would have
increased by $779 million or 1.2%, largely driven by growth in Shipping and Packages and Standard Mail.