US Postal Service 2014 Annual Report Download - page 22

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2014 Report on Form 10-K United States Postal Service 18
The following table presents detailed operating revenue and volume for Shipping and Packages for the years ended
September 30, 2014, 2013 and 2012 by each service:
(in millions)
2014
2013
2012
Shipping and Packages Revenue:
Priority Mail1
$
7,376
$
7,020
$
6,662
Parcel Select, Parcel Return, Standard Parcels
2,736
2,202
1,759
Package Services
818
810
846
First-Class Packages2
2,053
1,771
1,523
Priority Mail Express
760
794
802
Total Shipping and Packages revenue
$
13,743
$
12,597
$
11,592
Shipping and Packages Volume:
Priority Mail1
956
924
892
Parcel Select, Parcel Return, Standard Parcels
1,606
1,418
1,290
Package Services
549
542
575
First-Class Packages2
868
792
704
Priority Mail Express
36
39
40
Total Shipping and Packages volume
4,015
3,715
3,501
*Note: The totals for certain mail categories for the prior year have been reclassified to conform with classifications used in the current year. These
reclassifications did not impact total Shipping and Packages revenue for the prior year.
1Includes Standard Post which is a retail-only product classified as Market-Dominant. Standard Post is priced identically to Priority Mail for Zones
1-4 and is functionally equivalent to Priority for those Zones.
2Includes First-Class Mail Parcels and First-Class Package Services.
In 2014, Shipping and Packages, which includes premium services, such as Priority Mail and Priority Mail Express and
business-oriented services, such as Parcel Select and Parcel Return Services, represented 2.6% of volume and generated
approximately 20.3% of operating revenue, as compared to 2.3% of volume and 19.1% of operating revenue before the change
in accounting estimate in 2013. Similarly, in 2012, Shipping and Packages represented 2.2% of volume but generated
approximately 17.8% of operating revenue.
Shipping and Packages operating revenue of $13.7 billion increased $1.1 billion, or 9.1%, in 2014 on a volume increase of 300
million pieces, or 8.1% when compared to the prior year. In January 2014, Postal Service customers experienced an overall
average price increase of 2.4% in Shipping and Package services.
In 2013, Shipping and Packages operating revenue of $12.6 billion increased $1.0 billion, or 8.7% on a volume increase of 214
million pieces, or 6.1% compared to 2012.
In 2012, Shipping and Packages operating revenue of $11.6 billion increased $0.9 billion, or 8.6% on a volume increase of
7.5% from the prior year.
Priority Mail
Priority Mail, including Standard Post, is the Postal Service’s flagship Shipping Services product accounting for 53.7% of total
Shipping and Packages revenue in 2014 and 55.7% in 2013. This service is a convenient and fast way to send documents and
packages requiring expedited transportation and handling.
Priority Mail revenue of $7.4 billion increased 5.1% in 2014 when compared to the prior year. In 2013, Priority Mail revenue
of $7.0 billion increased 5.4% when compared to the prior year.
In September 2014, the Postal Service changed Priority Mail prices, including a reduction in prices on average for businesses
and other customers who use Commercial Plus and Commercial Base online shipping services for heavier weight packages. The