US Postal Service 2014 Annual Report Download - page 15

2014 Report on Form 10-K United States Postal Service 11
A failure to protect the privacy of information we obtain from customers could damage our reputation and result in a loss of
business.
We have invested in and employ a variety of technology security initiatives aimed at protecting organizational information, as
well as customer information. As one of the government agencies most trusted by the American public, protecting the
confidentiality of data that we obtain is paramount to us. However, should our information technology security initiatives not
fully insulate us from a security breach or data loss, our reputation could be damaged resulting in an adverse effect on our
operations and financial results. Moreover, unlike other non-governmental entities in our industry, the Postal Service must abide
by the Privacy Act of 1974, which restricts how we can collect, use, maintain and disseminate personally identifiable
information and prescribes civil and criminal penalties for non-compliance.
International conflicts or terrorist activities and the effects of these events may have adverse impacts on business operations
or our financial results. In addition, we are subject to the risk of biohazards and other threats placed in the mail.
We are exposed to the impacts of international conflicts and terrorist activities on the United States, global economies in general
and the transportation industry in particular. In addition, we are subject to the risk of biohazards and other threats placed in the
mail. Although we have implemented extensive emergency preparedness measures to keep the mail, employees and customers
safe from harm due to biohazards or other threats that could be introduced into the mail, this risk cannot be completely
mitigated. If new threats were to arise and measures were not sufficient to contain or mitigate the threat, services could be
disrupted. This could adversely affect mail volume and revenue and require substantial expenditures to address new threats, thus
adversely affecting our operations and financial results.
Natural disasters and adverse weather conditions that can damage property and disrupt business operations could have an
adverse impact on our business operations and our financial results.
Natural disasters, such as hurricanes, earthquakes and tsunamis, which have been experienced in recent years, place our
employees in harm’s way and make it challenging to deliver mail under these unpredictable and dangerous conditions. Damage
to Postal Service facilities could also have negative impact on business operations. Significant additional operating costs may be
incurred in order to maintain continuity in fulfilling the Postal Service’s mission.
Widespread outbreak of an illness or communicable disease, or any other public health crisis could reduce the demand for
our products and services, which may adversely affect our revenue.
The spread of contagious diseases among our customers and the global population, in general, could significantly impact the
demand for our products and services. Additionally, this could impact the availability of our workforce and our ability to
continue normal operations.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
We own nearly 8,600 and lease over 23,000 Postal Service facilities ranging in size from 60 square feet to 32 acres. Facilities
support retail, delivery, mail processing, maintenance, administrative and support activities and are located in numerous
communities throughout the U.S. and its territories. We believe our properties are in generally good physical condition with the
need for only routine repairs and maintenance and periodic capital improvements. Periodically, we monitor the productive
capacity of our properties which have culminated in the consolidation of some of our facilities.
During 2014, 2013 and 2012 we closed 2, 97 and 44 mail processing facilities, respectively, in conjunction with our efforts to
adjust our mail processing network to reflect lower volume of mail by consolidating mail processing operations. Not all mail
processing consolidations lead to the closure of a facility. In July, 2014 we announced plans to proceed with a second phase of
consolidations. It is expected that up to 82 facilities will be impacted by the consolidations which will occur during the course
of 2015, leading to approximately 76 mail processing facility closures.