US Postal Service 2015 Annual Report Download - page 13

2015 Report on Form 10-K United States Postal Service 11
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 have been the target of biological terrorism in the past, and we are continually
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. 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, tornadoes, floods and severe winter storms place our employees in harm’s
way and make it challenging to deliver mail under these unpredictable and dangerous conditions. Damage to our facilities
could also have a negative impact on business operations. Significant additional operating costs may be incurred in order to
maintain continuity in fulfilling our 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 could significantly impact the demand for
our services. Additionally, such events could impact the availability of our workforce and our ability to continue normal
operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We own nearly 8,500 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 generally in good physical condition and
require only routine repairs and maintenance and periodic capital improvements. In addition, we monitor the productive
capacity of our properties which has culminated in the consolidation of some of our facilities.
ITEM 3. LEGAL PROCEEDINGS
As previously reported, on January 14, 2010, the Equal Employment Opportunity Commission’s Office of Federal Operations
certified the case McConnell v. Brennan (first instituted in 2006 as McConnell v. Potter) as a class action against the Postal
Service, with the class consisting of all permanent-rehabilitation and limited-duty Postal Service employees who were assessed
under the Postal Service’s National Reassessment Process (“NRP”) between the dates of May 5, 2006, and July 1, 2011. The
NRP was a program that we utilized to ensure that our records regarding employees injured on the job were correct and that
employees receiving workers’ compensation benefits were placed in jobs consistent with their abilities.
The case alleges violations of the Rehabilitation Act of 1973 resulting from the NRP’s failure to provide a reasonable
accommodation, the NRP’s wrongful disclosure of medical information, the creation by the NRP of a hostile work environment
and the NRP’s adverse impact on disabled employees. The class is seeking injunctive relief and damages of an uncertain
amount. If the plaintiffs were able to prove their allegations in this matter and to establish the damages they assert, an adverse
ruling could have a material impact on us. We continue to dispute the claims asserted in the case and are vigorously contesting
the matter.
We are subject to legal proceedings and claims that arise in the ordinary course of our business. For further discussion of the
legal proceedings affecting us, see Item 8. Financial Statements and Supplementary Data, Notes to Financial Statements,
Note 8 - Commitments and Contingencies.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.