New Workhour Adjustment

®
Seattle
Western Area
State of the Business
Update
Feb. 2014
Dakotas
Portland
Northland
NevadaSierra
Salt
Lake
City
Hawkeye
Colorado/
Wyoming
Central
Plains
Mid-America
Alaska
Arizona
Drew Aliperto
Area Vice President
®
Seattle
Who We Are
Dakotas
Portland
Northland
NevadaSierra
Salt
Lake
City
Hawkeye
Colorado/
Wyoming
Central
Plains
Mid-America
Alaska
Arizona
Drew Aliperto
Area Vice President
Who We Are
Seattle
Dakotas
Portland
Northland
NevadaSierra
Salt
Lake
City
Hawkeye
Colorado/
Wyoming
Central
Plains
Mid-America
Alaska
Arizona
Western Area Revenue
Western Area FY 2014 Q1 revenue
(Dollars in millions)
Revenue:
First-Class Mail
Standard Mail
Shipping & packages
International
Periodicals
Other
Total Income
FY 2014 Q1
Variance
FY 2013 Q1
Variance
$593
$622
$171
$6
$45
$1,733
$574
$657
$145
$6
$45
$1,694
$19
$35
$26
$0
$0
$39
$3,170
$3,121
$49
Who We Are
For wherever you work, shop, or play, there’s a convenient
USPS service location near you in the Western Area:
• 101.884 employees
• 29K vehicles
• 8,421 facilities
• 417 facilities with Self-Service Kiosks
• 72 Village Post Offices
• 785 Contract Postal Units
• 329 Community Post Offices
• 102 Annexes
• 122 Branches
• 336 Stations
• 6,675 Post Offices (Administrative POs, Main POs, Part-Time
POs, Remotely Managed POs)
®
USPS Today
A Deep Financial Hole
September 2013
•
Liabilities exceed assets by approx. $40 billion
•
The USPS has only 35 cents of assets to cover
each dollar of its liabilities
ASSETS
LIABILITIES
Unrestricted Cash
$ 2.3B
Retiree Health Benefits
$16.8B
Buildings & Equipment,
net of depreciation
$ 17.5B
Workers’ Compensation
$17.2B
Debt
$15.0B
Accrued Compensation,
benefits and leave
$ 3.5B
Deferred Revenue*
$ 3.6B
Other
$ 5.4B
Total Liabilities
$61.5B
Other assets
Total Assets
$ 1.8B
$21.6B
* Newly available data on forever stamp usage resulted in a $1.3B reduction in
Deferred Revenue – Prepaid Postage
®
Seattle
Western Area
Today
Dakotas
Portland
Northland
NevadaSierra
Salt
Lake
City
Hawkeye
Colorado/
Wyoming
Central
Plains
Mid-America
Alaska
Arizona
Financial Results
Quarter 1 YTD - 3 months
(Billions)
Revenue
Expenses*
Separation Costs
Operating Income (Loss)*
Retiree Health Benefits Pre-Funding
Workers' Comp. Fair Value Adj.
Workers' Comp. Other Non-Cash Adj.
Net Income (Loss)
Liquidity Days (of oper. cash)
Volume (Pieces)
FY
2014
$18.0
17.3
0.7
FY
2013
$17.6
17.4
0.1
(1.4)
0.5
(0.2)
0.1
(1.4)
0.2
(0.2)
($0.4)
14
42.0
($1.3)
10
43.5
* Before RHB pre-funding and non-cash adjustments to workers’ compensation liabilities.
• Retail and Delivery days were equal to FY2013.
Total Revenue
FY2013 Q1 vs. FY2014 Q1
$ Millions
$17.67
+1.9%
$18.00
$0.87
$0.83
+6.1%
+4.2%
$0.92
$0.87
$3.40
+14.1%
$3.88
$0.43
-4.0%
$0.41
$4.64
-0.1%
$4.63
Volume: - 2.8%
7.50
-2.8%
7.29
Volume: - 4.6%
FY13 Q1
First-Class
Standard
Volume: + 10.2%
FY14 Q1
Periodicals
Ship Svcs & Pkgs
International
Other
Operating Expenses
Quarter 1 YTD - 3 months
(Billions)
Compensation
Benefits
Transportation
Depreciation
Supplies & Services
Rent, Utilities & Other
Operating Expenses *
Workhours (millions)
FY
FY
2014
2013
$ 9.3 $ 9.5
3.9
3.8
1.8
1.8
0.5
0.5
0.5
0.6
1.3
1.2
$ 17.3 $ 17.4
287
288
* Excludes RHB pre-funding, non-cash adjustments to workers’ compensation liabilities, and separation incentive costs.
• Delivery days were equal to FY2013.
Financial Results
Quarter 1 YTD - 3 months
(Billions)
Revenue
Expenses*
Separation Costs
Operating Income (Loss)*
Retiree Health Benefits Pre-Funding
Workers' Comp. Fair Value Adj.
Workers' Comp. Other Non-Cash Adj.
Net Income (Loss)
Liquidity Days (of oper. cash)
Volume (Pieces)
FY
2014
$18.0
17.3
0.7
FY
2013
$17.6
17.4
0.1
(1.4)
0.5
(0.2)
0.1
(1.4)
0.2
(0.2)
($0.4)
14
42.0
($1.3)
10
43.5
* Before RHB pre-funding and non-cash adjustments to workers’ compensation liabilities.
• Retail and Delivery days were equal to FY2013.
®
Seattle
Dakotas
Portland
Northland
Thank You!
NevadaSierra
Salt
Lake
City
Hawkeye
Colorado/
Wyoming
Central
Plains
Mid-America
Alaska
Arizona
Drew Aliperto
Area Vice President