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
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2000 Annual Report
- page 59 of 70
3 Post-Retirement Health Benefit Programs
Employees of the Postal Service who participate in the Federal Employees
Health Benefits Program (FEHBP) for at least the five years immediately
before their retirement may participate in the FEHBP during their
retirement. Under the FEHBP, we pay a portion of the health insurance
premiums of participating retirees and their survivors. This program
is administered by the Office of Personnel Management.
The Omnibus Budget Reconciliation Act of 1990 requires us to pay
the employer's share of health insurance premiums for all employees,
and their survivors, who participate in the FEHBP and who retire
on or after July 1, 1971. However, we do not include the costs attributable
to Federal civilian service before that date. Our FEHBP costs amounted
to $744 million in 2000, $593 million in 1999 and $581 million in
1998. We include these costs in our compensation and benefits expense.
4 Impaired Assets
In 1997, we began to record losses on long-lived assets when events
and circumstances indicate that the assets might be impaired. In
accordance with FASB Statement No. 121, "Accounting for the Impairment
of Long-lived Assets and for Long-lived Assets to Be Disposed Of,"
we have written down our impaired assets to the lower of cost or
fair value. No material impairments were recorded in 2000, 1999
and 1998.
5 Debt and Related Interest Costs
Under the Postal Reorganization Act, as amended by Public Law 101-227,
we can issue debt obligations. However, we are limited to net annual
increases of $2 billion in our debt for capital improvements and
to $1 billion for operating expenses. Our total debt cannot exceed
$15 billion.
Debt is due as follows (dollars in millions):
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2001 |
$6,814
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2002 |
—
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2003 |
200
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2004 |
—
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2005 |
—
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After
2005 |
2,302
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We paid in cash $263
million in interest in 2000, $202 million in interest in 1999 and
$236 million in 1998.
The current estimated market value of our debt is $9,316 million in
2000 and $6,877 million in 1999 (Note 2). All notes payable to the
Federal Financing Bank (FFB) may be repurchased at current value at
any time with five days notice of intent to do so.
The following page details our debt, which consists of Notes Payable
to the FFB and Mortgage Notes Payable.
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