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2015 Report on Form 10-K United States Postal Service 47
accompanying Statements of Operations. Related-party interest expense, payable on debt issued to the FFB, was $182 million
for each of the years ended September 30, 2015, 2014 and 2013.
NOTE 4 - RECEIVABLES AND MAJOR CUSTOMERS
The Postal Service’s sales to its three largest commercial customers, excluding mail service providers, for the year ended
September 30, 2015, 2014 and 2013 represented approximately 5.1%, 4.1% and 4.2% of operating revenue, respectively.
The following table details Receivables, net from the accompanying Balance Sheets as of September 30, 2015, and 2014:
(in millions) 2015 2014
Foreign countries $ 585 $ 595
U.S. government 100 90
Other 302 302
Receivables before allowances 987 987
Less: Allowances 57 57
Receivables, net $ 930 $ 930
Receivables from foreign countries were 59.3% and 60.3% of the total receivables before allowances as of September 30,
2015, and 2014, respectively. The largest receivable was from China, which represented 34.0% and 28.0% of the total foreign
balance outstanding in 2015 and 2014, respectively. U.S. government receivables consist primarily of appropriations
receivables of $57 million and $50 million and military and official mail receivables of $41 million and $37 million as of
September 30, 2015, and 2014, respectively.
Total provisions for allowances charged to expense for the years ended September 30, 2015, 2014 and 2013 were $10 million,
$11 million and $21 million, respectively, and are included within Other operating expenses in the accompanying Statements
of Operations.
NOTE 5 - PROPERTY AND EQUIPMENT, NET
Property and equipment, net, are recorded at cost, which includes the interest on borrowings used to pay for the construction
of major capital additions, less allowances for depreciation and amortization. Interest capitalized during the years ended
September 30, 2015, and 2014, was not significant. Property and equipment, net, are depreciated over estimated useful lives
that range from 2 to 40 years using the straight-line method.
The following table provides details for Property and equipment, net from the accompanying Balance Sheets as of
September 30, 2015, and 2014:
(in millions, except years) Estimated Life in
Years 2015 2014
Buildings 3 - 40 $ 24,622 $ 24,593
Equipment 3 - 20 15,990 15,761
Vehicles 5 - 24 3,702 3,614
Land - 2,850 2,886
Leasehold improvements 3- 20 1,404 1,357
Property and equipment, at cost 48,568 48,211
Less: Accumulated depreciation and amortization 33,403 32,288
Construction in progress 521 415
Property and equipment, net $ 15,686 $ 16,338