Analysis of Statements of Operations To facilitate a detailed financial analysis of the Postal Service’s Statements of Operations, the Commission separately identifies certain non-cash elements of the reported operating revenues and operating expenses. The Commission adjusts operating expenses to exclude the payment to the Postal Service Retiree Health Benefits Fund (RHBF), the supplemental contribution to the Federal Employees Retirement System (FERS) annuity, and the adjustments to the workers’ compensation liability. These adjustments are properly recognized as accrual entries in the Postal Service’s financial statements and have been disaggregated by the Commission to provide an in-depth analysis of the financial results for FY 2015. Table II-1 illustrates the Commission’s disaggregation of the Postal Service’s Statements of Operations. Table II-1 Postal Service Statements of Operations Disaggregated to Facilitate Analysis FY 2015 and FY 2014 ($ in Millions) The Postal Service recorded total net operating income of almost $1.2 billion in FY 2015. This figure is $0.2 billion lower than the $1.4 billion net operating income reported in FY 2014. In FY 2015, total revenues increased by $1.1 billion while operating expenses increased by $0.6 billion. The increase in revenues was primarily due to the continuance of the exigent surcharge on Market Dominant products, price increases for both Market Dominant and Competitive products implemented in May 2015, and increased volume of Competitive products. The increase in operating expenses was primarily the result of higher compensation outlays. After accounting for the non-cash adjustment to the workers’ compensation liability and the RHBF payment, the Postal Service had a total net loss of $5.1 billion in FY 2015. This amount is $0.4 billion less than the total net loss in FY 2014. The improved net loss figure is primarily the result of a lower non-cash adjustment to the workers’ compensation liability. Current Revenues Compared to Prior Fiscal Year This section presents an overview of revenues for Market Dominant and Competitive products. A more detailed discussion of the revenues generated by Market Dominant and Competitive products appears in Chapter 3. CURRENT MARKET DOMINANT REVENUES COMPARED TO PRIOR FISCAL YEAR Table II-2 disaggregates FY 2015 and FY 2014 Market Dominant revenues by class. Table II-2
Analysis of Statements of Operations To facilitate a detailed financial analysis of the Postal Service’s Statements of Operations, the Commission separately identifies certain non-cash elements of the reported operating revenues and operating expenses. The Commission adjusts operating expenses to exclude the payment to the Postal Service Retiree Health Benefits Fund (RHBF), the supplemental contribution to the Federal Employees Retirement System (FERS) annuity, and the adjustments to the workers’ compensation liability. These adjustments are properly recognized as accrual entries in the Postal Service’s financial statements and have been disaggregated by the Commission to provide an in-depth analysis of the financial results for FY 2015. Table II-1 illustrates the Commission’s disaggregation of the Postal Service’s Statements of Operations. Table II-1 Postal Service Statements of Operations Disaggregated to Facilitate Analysis FY 2015 and FY 2014 ($ in Millions) The Postal Service recorded total net operating income of almost $1.2 billion in FY 2015. This figure is $0.2 billion lower than the $1.4 billion net operating income reported in FY 2014. In FY 2015, total revenues increased by $1.1 billion while operating expenses increased by $0.6 billion. The increase in revenues was primarily due to the continuance of the exigent surcharge on Market Dominant products, price increases for both Market Dominant and Competitive products implemented in May 2015, and increased volume of Competitive products. The increase in operating expenses was primarily the result of higher compensation outlays. After accounting for the non-cash adjustment to the workers’ compensation liability and the RHBF payment, the Postal Service had a total net loss of $5.1 billion in FY 2015. This amount is $0.4 billion less than the total net loss in FY 2014. The improved net loss figure is primarily the result of a lower non-cash adjustment to the workers’ compensation liability. Current Revenues Compared to Prior Fiscal Year This section presents an overview of revenues for Market Dominant and Competitive products. A more detailed discussion of the revenues generated by Market Dominant and Competitive products appears in Chapter 3. CURRENT MARKET DOMINANT REVENUES COMPARED TO PRIOR FISCAL YEAR Table II-2 disaggregates FY 2015 and FY 2014 Market Dominant revenues by class. Table II-2
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