US Postal Service 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 US Postal Service annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

2014 Report on Form 10-K United States Postal Service
UNITED STATES
POSTAL REGULATORY COMMISSION
Washington, D.C. 20268-0001
FORM 10-K
(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended SEPTEMBER 30, 2014
or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission file number N/A
UNITED STATES POSTAL SERVICE
(Exact name of registrant as specified in its charter)
Washington, D.C.
41-0760000
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
475 L’Enfant Plaza, S.W.
Washington, DC 20260
(202) 268-2000
(Address and telephone number, including area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange on which registered
N/A
N/A
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
Yes No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes No  Not Applicable
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files). Yes No  Not Applicable
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. Yes No  Not Applicable
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  Accelerated filer  Non-accelerated filer  Smaller reporting company  Not Applicable
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The aggregate market value of shares of common stock held by non-affiliates as of September 30, 2014: N/A
The number of shares of common stock outstanding as of December 5, 2014: N/A
Documents Incorporated by Reference: None

Table of contents

  • Page 1
    ... OF 1934 For the fiscal year ended SEPTEMBER 30, 2014 or ï,¨ï€ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number N/A UNITED STATES POSTAL SERVICE (Exact name of registrant as specified in...

  • Page 2

  • Page 3
    ... Disclosures United States Postal Service ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk ITEM 9A. Controls and Procedures ITEM 9B. Other Information Part III. ITEM 10. Directors, Executive Officers and Corporate Governance ITEM 11. Executive Compensation ITEM 12. Security...

  • Page 4

  • Page 5
    ...of this bill, the Postal Service is required to maintain a six -day delivery schedule. As used herein, except as otherwise indicated by the context, the terms "Postal Service," "USPS," "we" and "us" are used to refer to the United States Postal Service. All references to years in this report, unless...

  • Page 6
    ... tracking, proof of delivery and basic insurance up to $100. Priority Mail Express delivery is offered to most U.S. destinations and is available 365 days a year. International Mail - Offered for mail service and the shipping market with individual customer contracts and agreements with other postal...

  • Page 7
    ... in Competitive services allows us to better offer services that meet customer needs, to increase business for the Postal Service and to allow us to price our products and services competitively within the markets in which we operate. In 2012, we reclassified certain lightweight commercial parcels...

  • Page 8
    ...retroactive payments, included general wage increases in 2014 through 2016, stipulated that the 2013 COLA be deferred until 2014 and reduced the employer contribution to the funding of health benefits. On July 3, 2012, a final award was rendered in the arbitration case between the Postal Service and...

  • Page 9
    ... address these factors, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Compensation and benefits. Government Regulation Strategy The Postal Service continues to implement the strategies articulated in its five -year business plan released in 2012...

  • Page 10
    ..., 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. These reports are available to the public on our website, http://about.usps.com, free of charge, as soon as reasonably...

  • Page 11
    ... sometimes in conflict. We operate as an independent establishment of the executive branch of the Federal Government of the United States and as a result are subject to a variety of regulations and other limitations applicable to federal agencies. If the Federal Government curtails its spending due...

  • Page 12
    ... on our labor costs. The agreements also contain provisions that limit our ability to reduce the size of the labor force. Reductions in the size and cost of our labor force are necessary to offset the effects of declining volume and revenue. 2014 Report on Form 10-K United States Postal Service 8

  • Page 13
    ... the delivery of certain product lines. Our ability to maintain current or improved terms in our contracts with our customers and suppliers is critical to our initiatives to return to profitability. Fuel expenses are a material part of our operating costs. A significant increase in fuel prices could...

  • Page 14
    ... us to fully fund, on an accelerated time frame, the health benefits of current retirees and current Postal Service employees who have not yet retired. Additionally, we are required to continue contributing to the FERS pension program at the Office of Personnel Management ("OPM") specified rates...

  • Page 15
    ... recent years, place our employees in harm's way and make it challenging to deliver mail under these unpredictable and dangerous conditions. Damage to Postal Service facilities could also have negative impact on business operations. Significant additional operating costs may be incurred in order to...

  • Page 16
    ... to the National Reassessment Process ("NRP") from May 5, 2006, through July 1, 2011. The Postal Service used the NRP to ensure that its records were correct and that employees receiving workers' compensation benefits were placed in jobs consistent with their abilities. The case alleges violations...

  • Page 17
    ... changed the due date of the $5.5 billion scheduled Postal Service Retiree Health Benefit Fund ("PSRHBF") prefunding payment originally due by September 30, 2011, into 2012, PSRHBF expenses were zero in 2011. PSRHBF expenses in 2012 totaled $11.1 billion which included the previous year's amount...

  • Page 18
    ... customer demand and the mix of postal services, contribution margins associated with those services, volume of mail and packages processed through our network and our ability to manage our cost structure in line with declining levels of mail volume. In the day -to-day operation of our business...

  • Page 19
    ... codes in mail pieces. Our successful marketing efforts have generated growth in our Shipping and Packages business by offering competitive pricing and innovative services; such as day certain delivery, improved scanning and tracking, text alerts and up to $100 free insurance on most Priority Mail...

  • Page 20
    ... for 2013. In 2012, these categories represented 70% of operating revenue. We anticipate that total mail volume will continue to decline in future years due to the continued decline of First -Class Mail volume. To compensate for the loss of one piece of First-Class Mail, Standard Mail must increase...

  • Page 21
    ... from 2013. In 2014, First-Class Mail represented 42% of operating revenue, as compared to 43% of revenue in 2013 before the change in accounting estimate, and 44% in 2012. The decline in volume of First-Class Mail in 2014, our most profitable service, was offset by the exigent price increase which...

  • Page 22
    ...year. In September 2014, the Postal Service changed Priority Mail prices, including a reduction in prices on average for businesses and other customers who use Commercial Plus and Commercial Base online shipping services for heavier weight packages. The 2014 Report on Form 10-K United States Postal...

  • Page 23
    ... year. For 2013, First -Class Packages revenue of $1.8 billion increased $248 million, or 16.3%, when compared to 2012. International Mail International Mail revenue, primarily for outbound services, were 4.5%, 4.6% and 4.3%, of total operating revenue for 2014, 2013 (before the change in accounting...

  • Page 24
    ... in compensation expense in 2014 and 2013 has been the change in our staffing composition, which utilized a greater number of non-career employees. Beginning in 2013, our labor contracts permitted greater numbers of non-career employees. This has allowed us to reduce career employee work hours and...

  • Page 25
    ... time period. These separation incentives encourage attrition and help us to reduce our career complement to better match workload and reduce costs. Since 2012, these incentives have targeted postmasters, clerks, mail handlers and administrative employees. 2014 Report on Form 10-K United States...

  • Page 26
    ... by the Federal Retirement Thrift Investment Board. All expenses of the retirement programs, except for retiree health benefits, are included in compensation and benefits expense. Retirement expenses for current employees consist of employer contributions to FERS, the TSP and Social Security...

  • Page 27
    ... reported this information based on OPM -provided actuarial valuations, the same valuations that are used by the Civil Service Retirement System Board of Actuaries to establish the normal cost and funding requirements for these retirement programs. The OPM actuarial valuations utilize the long -term...

  • Page 28
    ...'s estimation of the funded status of the CSRS and FERS programs for Postal Service participants projected as of September 30, 2014 and as of September 30, 2013 and 2012. As allowed by law, the amounts included in the following table have been estimated based upon assumptions from Federal Government...

  • Page 29
    ... assumed rates of return for 2013 and 2012 were 5.25% and 5.75%, respectively; while the actual rates of return were 3.82% for 2013 and 4.00% for 2012. The projected long term rate of return on the CSRS and FERS fund balances for 2014 was 5.25%. 2014 Report on Form 10-K United States Postal Service...

  • Page 30
    ... 2016 into the fund. Although P.L. 109 -435 specifies the funding requirements through 2016, the amounts to be funded and the timing of the funding can be changed at any time with enactment of a new law or upon amendment of an existing law. 2014 Report on Form 10-K United States Postal Service...

  • Page 31
    ... universal mail service to the nation. Refer to Item 7. Management's Discussion and Analysis, Liquidity and Capital Resources. The statutory requirement establishing the payment schedule in P.L. 109 -435 contains no provisions addressing a payment default. As of the filing date of this report, no...

  • Page 32
    .... Under FECA, many types of workers' compensation claims cannot be settled through lump-sum payments, rather, compensation must be paid over many years. The FECA benefit structure is often superior to benefits available under normal federal 2014 Report on Form 10-K United States Postal Service 28

  • Page 33
    ... discount rate changes Actuarial revaluation of existing cases Costs of new cases Administrative fee Total workers' compensation expense Less cash payments made on behalf of workers' compensation obligations Total non-cash workers' compensation expense For the year ended September 30, 2014, workers...

  • Page 34
    ...fuel costs for delivery routes. Total other operating expenses include all operating expenses other than compensation and benefits, retiree health benefits, workers' compensation and transportation. Other operating expenses increased $179 million, or 2.0% in 2014. The growth of our package business...

  • Page 35
    ... payment for retiree health benefits. The requirement of P.L. 109-435 to prefund retiree health benefit obligations, a requirement not imposed on other federal agencies or private sector businesses, the ongoing decline in First-Class Mail volume caused by changes in consumers' and businesses' uses...

  • Page 36
    ... leveling." With this change, delivery volume became more evenly balanced across the delivery days, which improved efficiency and reduced overtime pay and operating costs. On January 26, 2014, we implemented price increases on Market -Dominant and Competitive services. The Market-Dominant increases...

  • Page 37
    ... will be calculated by the OPM. We are obligated to fund the actuarially determined normal cost and the amortized portion of the unfunded liability. (3) Assumes no new cases in future years. This amount represents the undiscounted expected future workers' compensation payments plus $69 million...

  • Page 38
    ...to implementing price increases on our Market-Dominant and Competitive services which became effective in January 2014 as well as increased volume in our Shipping and Packages service offerings. We continue to focus on areas to improve operating cash flows by implementing cost reduction programs and...

  • Page 39
    .... Management discusses the development and selection of these accounting policies and estimates with the Audit and Finance Committee of the Board. However, even under optimal circumstances, estimates routinely require adjustment based on changing circumstances and new or better information. The...

  • Page 40
    ... payments due in 2015 and 2016 by one half. • Shift to paying an estimate of how much the Postal Service needs to set aside annually to fund retirement health care benefits for current employees, normal cost, beginning in 2014 rather than 2017 as in current law. The missed RHB payments in 2012...

  • Page 41
    ... if total mail volume during any four consecutive quarters drops below 140 billion pieces, but not before 2017. S. 1486 also allows for delivery point modernization, authorizes the Postal Service Governors to establish a system of classes and rates for Market Dominant products, work share discounts...

  • Page 42
    ... the Savings, Accountability, Value and Efficiency III Act of 2014 ("H.R. 5152"), a bill to save the Federal Government money by reducing duplication and increasing efficiency was introduced in the House. H.R. 5152 requires the Postal Service to reduce petroleum consumption by two percent every year...

  • Page 43
    ... FFB. We currently have market risk for changes in fuel and natural gas costs. As of September 30, 2014, we estimated that a 1% increase in fuel and natural gas would have resulted in a $27 million increase in expense. Commodity Prices Risk 2014 Report on Form 10-K United States Postal Service 39

  • Page 44
    ... standards of the Public Company Accounting Oversight Board (United States), the balance sheets of the United States Postal Service as of September 30, 2014 and 2013, and the related statements of operations, changes in net deficiency, and cash flows for each of the three years in the period ended...

  • Page 45
    ... Postal Service to implement strategies to improve efficiency, reduce costs and increase revenue. Due to these conditions, during fiscal year 2014, the Postal Service defaulted on a $5.7 billion prefunding payment required to be paid to the Postal Service Retiree Health Benefits Fund by Public Law...

  • Page 46
    ... ) $ $ 2012 65,079 144 65,223 47,689 13,729 3,729 6,630 9,187 80,964 (15,741 ) 25 (190 ) (15,906 ) Revenue Operating revenue Other revenue Total revenue Operating expenses Compensation and benefits Retiree health benefits Workers' compensation Transportation Other operating expenses Total operating...

  • Page 47
    ...: Compensation and benefits Retiree health benefits Workers' compensation costs Payables and accrued expenses Deferred revenue-prepaid postage Customer deposit accounts Other current liabilities Current portion of debt Total current liabilities Workers' compensation costs, noncurrent Employees...

  • Page 48
    ...,823 ) (5,508 ) (45,331 ) (in millions) Balance, September 30, 2011 Net loss Balance, September 30, 2012 Net loss Balance, September 30, 2013 Net loss Balance, September 30, 2014 See accompanying notes to the financial statements. $ $ $ 2014 Report on Form 10-K United States Postal Service 44

  • Page 49
    ...) in noncurrent workers' compensation (Decrease) increase in noncurrent deferred appropriations and other revenue (Decrease) increase in other noncurrent liabilities Changes in current assets and liabilities: Receivables, net Other assets Retiree health benefits Payables, accrued expenses and other...

  • Page 50
    ... Postal Service's retail and business customers for much of their shipping needs to over 180 countries. Global Express Guaranteed is the premier international shipping option that offers reliable, date-certain delivery in 1-3 business days to major markets, with a money-back guarantee. Periodicals...

  • Page 51
    ...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...

  • Page 52
    ... by category as of September 30, 2014 and 2013: (in millions) 2014 $ 2,272 72 392 279 49 $ 3,064 $ $ 2013 2,179 96 403 265 50 2,993 Forever stamps Non-forever stamps Meters Mail in-transit Other Total deferred revenue-prepaid postage 2014 Report on Form 10-K United States Postal Service 48

  • Page 53
    ... can fluctuate significantly from year to year, if changes in funding requirements are made. See Note 8- Retirement Benefit Plans and Note 9- Health Benefit Plans for additional information. Workers' Compensation Postal Service employees are covered by the Federal Employees' Compensation Act ("FECA...

  • Page 54
    ... Government agencies are included in "Operating expenses," in the Statements of Operations. Recent Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014 -09 "Revenue from Contracts with Customers" ("ASU 2014-09"). The new standard...

  • Page 55
    ...the foreseeable future. In addition to the requirement to prefund $5.7 billion of retiree health benefits for 2014, the Postal Service continues to pay its employer share of health insurance premiums for Postal Service's retirees, which was $3.0 billion in 2014. In the past eight fiscal years, since...

  • Page 56
    ...load leveling." With this change, delivery volume became more evenly balanced across the delivery days, which improved efficiency and reduced overtime pay and operating costs. On January 26, 2014, the Postal Service implemented price increases on Market -Dominant and Competitive services. The Market...

  • Page 57
    ... a network of post offices and retail establishments that sell postage stamps, shipping and other services, as well as on the Postal Service's website. The Postal Service's sales to its three largest domestic, non -related mail owners for the year ended September 30, 2014, 2013 and 2012 represented...

  • Page 58
    ...-callable at the option of the Postal Service. Debt, all of which is unsecured and not subject to sinking fund requirements, can be repaid at any time at a price determined by the Secretary of the Treasury, based on prevailing interest rates in the Treasury Security market at the time of repayment...

  • Page 59
    ...reset date and the interest rate resets on December 18, 2014 and March 18, 2015. Floating Rate Note - Repurchasable at par on each interest rate reset date and the interest rate resets on December 23, 2014, March 23, 2015, and June 23, 2015. 2014 Report on Form 10-K United States Postal Service 55

  • Page 60
    ...: (in millions) 2015 2016 2017 2018 2019 Thereafter Total debt maturities $ 9,800 300 - - 2,700 2,200 $ 15,000 Note 7- Commitments and Contingencies The Postal Service leases premises and equipment under operating and capital leases having terms from 3 to 20 years with options to renew. Certain...

  • Page 61
    ... to the National Reassessment Process ("NRP") from May 5, 2006 to July 1, 2011. The Postal Service used the NRP to ensure that its records were correct and that employees receiving workers' compensation benefits were placed in jobs consistent with their abilities. The case alleges violations...

  • Page 62
    ... significantly due to changes in federal law or regulation by the OPM. The Postal Service cannot direct the costs, benefits, or funding requirements of the plans. The risks of participating in these federal retirement plans are different from single -employer retirement plans in the following...

  • Page 63
    ...expenses included in "Compensation and benefits" expense in the Statements of Operations for the years ended September 30, 2014, 2013 and 2012: (in millions) 2014 $ 2,888 1,881 989 5,758 $ 2013 2,891 1,860 987 5,738 $ 2012 2,980 1,853 1,021 5,854 FERS Social security TSP Total retirement expense...

  • Page 64
    ...2012. Since that time, no law changes have altered the payment requirements for the 2014 to 2016 scheduled payments. Upon enactment of P.L. 109-435, the Postal Service became required to prefund $51.8 billion for retiree health benefits into the PSRHBF from 2007 through 2016. No other federal agency...

  • Page 65
    ...for estimated future workers' compensation payments is recorded at its present value. To record the liability and annual expense, an estimate is made of the amount of funding that would need to be invested at current interest rates in order to 2014 Report on Form 10-K United States Postal Service 61

  • Page 66
    ... 67 $ 3,729 Impact of discount rate changes Actuarial revaluation of existing cases Costs of new cases Administrative fee Total workers' compensation expense Note 11- Fair Value Measurement The Postal Service defines fair value based on the price that would be received upon sale of an asset or the...

  • Page 67
    ... received from the U.S. Government to compensate the Postal Service for the statutorily required free and reduced rate mailing provided to certain groups. A funding request for the estimated revenue forgone for the year is submitted to Congress at the beginning of each year. At the end of the year...

  • Page 68
    ... 3 $ 16,177 16,876 (699 ) (41 ) $ (740 ) Quarter 4 $ 17,133 18,199 (1,066 ) (41 ) $ (1,107 ) Total revenue Total operating expenses Loss from operations Interest income (expense), net Net loss $ 17,660 18,880 (1,220 ) (44 ) $ (1,264 ) 2014 Report on Form 10-K United States Postal Service 64

  • Page 69
    ... our financial statements included in this Annual Report on Form 10-K. Ernst & Young LLP's report on our internal control over financial reporting is included in this Annual Report on Form 10-K on page 40. Item 9B. Other Information None. 2014 Report on Form 10-K United States Postal Service 65

  • Page 70
    ... Governance Board of Governors The Postal Service is governed by an eleven member Board of Governors. The Board is composed of nine Governors appointed by the President of the United States with the advice and consent of the United States Senate, plus the Postmaster General and the Deputy Postmaster...

  • Page 71
    ...President since March 2013. Vice President, Pricing from June 2012 to March 2013. Postal Service MIT Sloan Fellow Representative from May 2011 to June 2012. Manager, Performance and Field Operations from September 2009 to May 2011. Prior to that, Manager, Network Development and Support from October...

  • Page 72
    ... for their review and approval. Federal law governing the Postal Service, set forth in Title 39 of the United States Code, provides that compensation and benefits for all officers in the Postal Service shall be comparable to the compensation and benefits paid for comparable levels of work in the...

  • Page 73
    ... Postal Service, including executive officers. These include participation in the Federal Employees Health Benefits plan, paid life insurance, a periodic physical examination and parking. Other than changes required by law, the Board must authorize any increases to benefits for officers. The Board...

  • Page 74
    ... COLA payments. For the past seven years, the officer compensation system has not worked as designed because the Postal Service has faced significant financial challenges caused in part by the ongoing decline of First-Class Mail, the economy, and problems with its business model. The Postal Service...

  • Page 75
    ... office, the current Postmaster General asked the Governors not to award him any additional compensation, beyond salary and the general types of benefits provided to Postal Service executives. The Governors agreed. Over the years, the Governors have authorized the Postmaster General to establish...

  • Page 76
    ... within its control to reduce costs, provide excellent service and secure revenue. Despite declining First -Class Mail volume, package volume increased during Fiscal Year 2014. Management improved total factor productivity by reducing the workforce, as well as through a number of other process...

  • Page 77
    ... a total employer contribution of up to 5 percent of basic pay. Employees who will be at least age 50 in the year of contribution may make a separate catch-up contribution up to the indexed IRS maximum ($5,500 in 2014). TSP investment options are a government securities fund; index funds that track...

  • Page 78
    ... cost of Option A premiums during retirement to retiring officers. Health Benefits The Postal Service participates in the Federal Employees Health Benefits Program ("FEHBP"), which allows all career employees to enroll in one of a number of self only or self and family health benefit plans offered...

  • Page 79
    ...ift Savings Plan employer matching contribution for FERS employees, non-cash awards, parking, physical examinations, life insurance premiums paid for by the Postal Service, airline clubs, and relocation costs. Security costs for FY14 are also included for the Postmaster General. 2014 Report on Form...

  • Page 80
    ...calculated at the Federal Long Term Rate; 4.7% in FY14. Interest is prorated from the relevant pay period of the deferral. Column (d) The amount shown for Postmaster General Donahoe reflects a deferred FY10 PFP amount plus interest through FY14. 2014 Report on Form 10-K United States Postal Service...

  • Page 81
    ... federal employer's standard contribution toward retiree health benefits, in the event they have qualifying service and participated in the Federal Employees Health Benefits Plan for the requisite period of time prior to retiring. Deferred Compensation All federal employees, including Postal Service...

  • Page 82
    ...of the Postal Service Board of Governors who are currently serving and have been appointed by the President of the United States, with the advice and consent of the Senate, are independent based on the New York Stock Exchange definition of independence. 2014 Report on Form 10-K United States Postal...

  • Page 83
    ... in 2014, 2013 and 2012, respectively, including fees for professional services associated with the annual audit, the reviews of the Postal Service's quarterly reports on Form 10-Q and testing of the company's internal control over financial reporting. 2014 Report on Form 10-K United States Postal...

  • Page 84
    ... of the United States Postal Service for each of the years ended and as of the periods noted are submitted in Part II. Item 8. Financial Statements and Supplementary Data of this report. Description Statements of Operations for the Years Ended September 30, 2014, 2013 and 2012 Balance Sheets...

  • Page 85
    ... the United States Postal Service has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. United States Postal Service /s/ Patrick R. Donahoe Patrick R. Donahoe Postmaster General and Chief Executive Officer Date: December 5, 2014 2014 Report on Form 10...

  • Page 86
    ... Member, Postmaster General and Chief Executive Officer Board Member and Deputy Postmaster General Chief Financial Officer and Executive Vice President, (Principal Financial Officer) Controller, Vice President, (Principal Accounting Officer) 2014 Report on Form 10-K United States Postal Service...

  • Page 87
    ... management or other employees who have a significant role in the Postal Service's internal control over financial reporting. b. Date: December 5, 2014 /s/ Patrick R. Donahoe Patrick R. Donahoe Postmaster General and Chief Executive Officer 2014 Report on Form 10-K United States Postal Service...

  • Page 88
    ... TO RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Joseph Corbett, certify that: 1. 2. I have reviewed this annual report on Form 10 -K of the United States Postal Service (Postal Service); Based...

  • Page 89
    ... the Report fairly presents, in all material respects, the financial condition and results of operations of the Postal Service. Dated: December 5, 2014 /s/ Patrick R. Donahoe Patrick R. Donahoe Postmaster General and Chief Executive Officer 2014 Report on Form 10-K United States Postal Service 85

  • Page 90
    ... Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Postal Service. Dated: December 5, 2014...