US Postal Service 2013 Annual Report Download - page 49

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2013 Report on Form 10-K United States Postal Service 47
CAPITAL INVESTMENTS
Given the current financial and liquidity challenges facing the Postal Service, management implemented a capital
commitment plan which was below average historical levels. Capital spending limitations, first initiated in 2009 to conserve
cash continued throughout the year. Priority was given to projects: 1) needed for safety and/or health or legal
requirements; 2) required to provide service to our customers; and 3) initiatives with a high return on investment and a
short payback period.
At the beginning of 2013, there were eleven major projects in progress (i.e., greater than $25 million approved capital),
representing $3.1 billion in approved capital funding. During the year, three new projects were approved, which totaled
$0.2 billion in additional capital funding. A total of three projects representing $0.8 billion in approved capital funding were
completed. The year ended with eleven open projects that amount to $2.5 billion in approved capital.
While the funding for a project is authorized in one year, the commitment or contract to purchase or build may take place
over several years. By year-end, approximately $2.0 billion had been committed to these eleven open projects. Actual
capital cash outlays will occur over several years. Through the end of 2013, approximately $1.8 billion has been paid for
these projects.
New capital commitments in 2013 (including the major projects mentioned above), consisting of building improvements,
equipment, and maintenance of infrastructure investments, totaled $0.8 billion.
At the beginning of 2012, there were eleven projects in progress, representing $3.1 billion in approved capital funding.
During the year, three new projects were approved, which totaled $0.3 billion in additional capital funding. A total of three
projects representing $0.4 billion in approved capital funding were completed. The year ended with eleven major projects
in progress representing $3.1 billion in approved capital.
CASH FLOW
Cash and cash equivalents totaled $2,326 million, $2,086 million, and $1,283 million at September 30, 2013, 2012, and
2011, respectively.
The following table provides a summary of our cash flows for the twelve month period ended September 30, 2013, 2012,
and 2011.
Cash Flow Statement
(Dollars in millions) 2013 2012 2011
Operating activities:
Net loss
$
(4,977)
$
(15,906)
$
(5,067)
Noncash depreciation and gains on sales
1,848
2,070
2,319
Changes in assets and liabilities
4,064
13,404
3,242
Cash provided by (used in) operating activities
935
(432)
494
Investing activities:
Change in restricted cash requirements
(79)
(28)
(10)
Capital expenditures, net of proceeds
(509)
(557)
(1,053)
Cash used in investing activities
(588)
(585)
(1,063)
Financing activities:
Net change in notes payable
-
1,200
1,200
Net change in revolving credit line
-
800
(200)
Other
(107)
(180)
(114)
Cash (used in) provided by financing activities
(107)
1,820
886
Net Increase in Cash and Cash Equivalents $ 240 $803 $ 317
As of September 30,