US Postal Service 2014 Annual Report Download - page 51

2014 Report on Form 10-K United States Postal Service 47
variety of service enhancements that provide security, proof of delivery or loss recovery. These services include:
Certified Mail, Registered Mail, Signature Confirmation, Adult Signature and Insurance up to $5,000 and are available
online, at Post Offices or at automated postal centers.
Products and services are sold through approximately 32,000 post offices, stations and branches, plus a large network of
Contract Postal Units, Community Post Offices, Village Post Offices, commercial outlets which sell stamps on the Postal
Service’s behalf and on the Postal Service website http://www.usps.com. The Postal Service has a very diverse customer base
and is not dependent on a single customer or small group of customers. No single customer represents more than 3% of
operating revenue. Operations are conducted primarily in the domestic market, with international mail services representing
approximately 4.5% of revenue.
Approximately 89% of career employees are covered by collective bargaining agreements and are primarily represented by the
American Postal Workers Union (“APWU”), National Association of Letter Carriers (“NALC”), National Postal Mail Handlers
Union (“NPMHU”) and National Rural Letter Carriers’ Association (“NRLCA”). By law, the Postal Service also consults with
management organizations representing most of the employees not covered by collective bargaining agreements. These
consultations provide an opportunity for non-bargaining unit employees in the field to participate directly in the planning,
development and implementation of programs and policies affecting managerial employees.
The Postal Service is not a reporting company under the Securities Exchange Act of 1934, as amended, and is not subject to
regulation by the Securities and Exchange Commission (“SEC”). However, it is required under P.L.109-435 to file with the PRC
certain financial reports containing information prescribed by the SEC under Section 13 of the Securities Exchange Act of 1934.
These reports include the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Pursuant to Title 39 and PRC regulations, additional disclosures on the organization and finances, including Cost and Revenue
Analysis reports, Revenue, Pieces and Weight reports, financial and strategic plans, the Annual Report to Congress and the
Comprehensive Statement on Postal Operations are also filed with the PRC.
All references to years in this report, unless otherwise stated, refer to fiscal years beginning October 1 and ending September
30. All references to quarters, unless otherwise stated, refer to fiscal quarters.
Subsequent events have been evaluated through the date the Postal Service filed its Form 10-K for the year ended September
30, 2014, with the PRC.
Summary of Significant Accounting Policies
The preparation of financial statements in accordance with accounting principles generally accepted in the United States (“U.S.
GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue
and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates its
estimates which are based on historical experience and various other assumptions that management believes are reasonable
under the circumstances, the results of which form a basis for making judgments about the carrying value of assets and
liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different
assumptions or conditions; however, management believes that its estimates are reasonable and that the actual results will not
vary significantly from the estimated amounts.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash and short-term, highly liquid investments with maturities of 90 days or less.
Restricted Cash
Restricted cash includes funds received by the Postal Service which are restricted by agreement with the U.S. Department of
Justice. They are not available for immediate and general use. These amounts are comprised of consumer fraud and forfeiture
funds received and amounts recovered for the victims of a large mail and wire fraud case.