US Postal Service 2006 Annual Report Download - page 64

62 | 2006 Annual Report United States Postal Service
Glossary
Delivery Confirmation. A special service that provides the date of
delivery or attempted delivery for Priority Mail and Standard Mail parcels,
Bound Printed Matter and Library Mail.
Depreciate. To periodically reduce the estimated value of an asset over
the course of its useful life.
Direct Mail. A form of advertising often employed by businesses to reach
targeted groups of potential customers by mail.
Equity. The difference between the value of all assets less all liabilities.
Express Mail. The Postal Service’s premium delivery service, providing
guaranteed overnight delivery for documents and packages weighing up to
70 pounds. Both domestic and international services are offered.
First-Class Mail. A class of mail including letters, postcards and all mat-
ter sealed or otherwise closed against inspection. This service is required
for personal correspondence, handwritten or typewritten letters and bills
or statements of account.
Fiscal Year. As used in the financial section of this report, the Postal
Service fiscal year, which is the 12-month period during which the Postal
Service keeps accounts, beginning Oct. 1 and closing Sept. 30.
Fixed Asset. Any tangible property such as buildings, machinery and
equipment, furniture, and leasehold improvements.
Government Accountability Office (GAO). Investigative arm of legisla-
tive branch of federal government (Congress).
Generally Accepted Accounting Principles (GAAP). The rules and
procedures of accepted accounting practice as defined by the Financial
Accounting Standards Board.
Impaired Asset. When the market value of an economic resource has
been permanently lowered below the recorded value of the asset.
Inspector General. The Inspector General is appointed by and reports
directly to the Governors of the Postal Service and is independent of postal
management. The Office of Inspector General (OIG) primarily investigates
and evaluates programs and operations of the Postal Service to ensure the
efficiency and integrity of the postal system.
Leasehold. An asset that gives the Postal Service the right to use
property under a lease.
Liability. Any debt or obligation which is owed by the Postal Service at
some future period of time.
Operating Expense. Expenses that are incurred in providing our primary
business services and products.
Operating Margin. A financial indication calculated by dividing income
from operations by operating revenue.
Operating Revenue. Revenues that are earned from our primary busi-
ness services and products.
Package Services. Mailing category offered for any merchandise or
printed matter weighing up to 70 pounds. These services include Parcel
Post, Bound Printed Matter, Library Mail and Media Mail.
Payable. Money that is owed by the Postal Service.
Periodicals. A class of mail formerly called second-class mail that
consists of magazines, newspapers and other publications.
Postal Inspection Service. The investigative arm of the Postal Service
responsible for investigating criminal acts involving the mails and misuse
of the postal system.
Postal Rate Commission (PRC). An independent federal agency that
makes recommendations concerning Postal Service requests for changes
in postal rates and mail classifications.
Prepaid. Payments made in advance of service being provided.
Present Value. The value today of a future payment that is discounted
at a stated rate of compound interest. For example, the present value
of $100 that will be paid to the Postal Service 10 years from now is
about $38.55, if we discount that $100 at a rate equal to 10% interest
compounded annually.
Priority Mail. Priority mail is a 1-3-day non-guaranteed delivery service.
Receivable. Money that is owed to the Postal Service.
Recognize. To record in Postal Service accounts as income or expense.
Special Services. A category of services that add value to mail by
providing added security, proof of delivery or loss recovery. These services
include: Certified Mail, Registered Mail, Delivery Confirmation, Signature
Confirmation and insurance up to $1,000.
Standard Mail. Mailing service offered for any item, including adver-
tisements and merchandise weighing less than 16 ounces that are not
required to be sent using First-Class Mail. Standard Mail is typically used
for multiple delivery addresses and bulk advertising.
U.S. Mail. Any mailable matter that is accepted for mail processing and
delivery by the Postal Service.
Universal Service. The Postal Service’s mandate and commitment to
the nation to provide mail delivery service at uniform and reasonable rates
to everyone, everywhere.
The following are among the many trademarks owned by the United
States Postal Service: United States Postal Service®, U.S. Postal Service®,
USPS®, First-Class Mail®, USPS.com®, Click-N-Ship®, Automated Postal
Center®, APC®, Express Mail®, Priority Mail®, Standard Mail®, Parcel
Post®, Media Mail®, Customized Market Mail®, United States Postal
Service Office of the Inspector General®, Post Office™, Postal Service™,
Signature Confirmation™, Certified Mail™, Delivery Confirmation™,
Registered Mail™, Post Office Box™, Zip Code™, Carrier Pickup™,
Quick, Easy, Convenient™ and Postmaster General™. The Sonic Eagle
Logo, Round Top Collection Box design, Letter Carrier Uniform design,
and the Mail Truck Design are also registered trademarks belonging to the
United States Postal Service.