How to Read
Our Annual Report
2000 Highlights
Letter from
the Postmaster General/CEO
2000 Year
in Review
Delivering
the Future
The Governors
of the Postal Service
Audit Committee
Financial
Section
How to Read
Our Financial Statements
Quick
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2000 Annual Report
- page 37 of 70
In this section we discuss
the capital investments we made in 2000 and plan to make over the
next five years in order to increase productivity, improve customer
service and satisfaction and provide the groundwork for the development
of new products in the future.
As part of our presentation on financial concepts, here is another
part of the puzzle. It shows how we spend cash for improvements
to our equipment, facilities and vehicles. On pages
46*
and 47**
we complete the puzzle and your understanding of our financial condition.
2000 Capital Investments
During 2000, the capital plan was adjusted from $4 billion to $3.5
billion. This was the fifth consecutive year that we have had capital
commitments of over $3 billion. This year our capital cash investments
of $3.2 billion were spread across the following categories: $1.5
billion for construction and building purchases and improvements,
almost $800 million for mail processing equipment, almost $500 million
for vehicles and retail equipment and $400 million for postal support
equipment.
During the year, we completed nine Board-approved projects. These
projects, begun in prior years, represent a commitment totaling
more than $486 million over the life of these projects. Of these
nine projects, six were equipment projects, one was a facility project,
the Metro Hub in Minneapolis, MN, and a project at our Mail Transport
Equipment Service Centers.
The Board also approved a total of $1.6 billion for 20 new major
capital investment projects. The largest of these projects to be
completed in the future invests nearly $600 million into our flats
automation program and over $100 million each for improvements to
our delivery operations information system, our handwriting recognition
efforts, our mixed delivery and collection vehicles and our bulk
mailing centers. The approvals also included over $200 million in
new or expanded facilities in California, Minnesota, New York, Nevada
and Arizona.
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Cash outflows are made for assets to improve future operations.
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* page 42 in the printed version
** page 43 in the printed version
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