US Postal Service 2013 Annual Report Download - page 50

2013 Report on Form 10-K United States Postal Service 48
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities was $935 million in 2013, compared to $432 million used by operations in 2012,
a year-to-year increase in cash provided by operations of $1,367 million. Cash provided by operations was driven by
increased revenues from standard mail, shipping and packages, and stamp sales. Additional significant non-cash
expenses included $1,901 million of depreciation and $5,600 million in PSRHBF expenses which were offset by $1.7
billion in fair value adjustments to workers compensation and a $1.3 billion change in accounting estimate related to
deferred revenue – prepaid postage.
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.
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used by investing activities in 2013 was $588 million, compared to $585 million and $1,063 million in 2012 and
2011, respectively. Purchases of property and equipment in 2013 of $667 million decreased $38 million from the prior
year after a $485 million decrease in 2012 from 2011. Proceeds from building sales and the sale of property and
equipment totaled $158 million in 2013, compared to $148 million and $137 million in 2012 and 2011, respectively.
Changes in restricted cash requirements in 2013 of $79 million increased $51 million from the prior year, after a $18
million increase in 2012 from 2011.
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in financing activities was $107 million in 2013. Net cash provided by financing activities was $1.8 billion
and $0.9 billion in 2012 and 2011, respectively.