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2000 Annual Report
- page 69 of 70
Accruals: Revenue and expenses that are
recorded as they occur, even though they may not have actually been
paid.
Amortize: To reduce the value of an asset
through regular charges to income over time; or to write off expenditures
by prorating them over a period of time.
Appropriation: Public funds set aside by
Congress for a specific purpose.
Bar code: A series of vertical full bars
and half bars representing the ZIP Code information printed on a mailpiece
to facilitate automated processing by barcode reader equipment.
Callable: Debt that the Postal Service as
the borrower has the right to repurchase.
Capitalize: To treat an expenditure as an
asset; or to compute the present value of a future payment that will
be paid over a period of time.
Contribution: The difference between the
revenue from a class of mail and that class's volume-variable costs.
For example, if a class of mail has revenues of $1.5 billion and volume-variable
costs of $1 billion, its contribution is $500 million, which means
that this class of mail covers its costs and contributes $500 million
to the common costs of all mail services.
CustomerPerfect!: A quality process management
system that builds customer satisfaction and excellence into every
process and procedure of the Postal Service.
Delivery Confirmation: Delivery Confirmation
is a special service designed to provide the date of delivery or attempted
delivery for Priority Mail and Standard Mail (B)—parcels, bound printed
matter and library mail.
Depreciate: To periodically reduce the estimated
value of an asset over the course of its useful life.
Deputy Postmaster General (DPMG): A member
of the Board of Governors, jointly appointed by the Postmaster General
and Governors.
Economic Value Added (EVA): A measure of
financial performance calculated by taking net operating income and
subtracting a charge for the capital used to produce that income (EVA
= net operating income - capital charge).
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.
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First-Class Mail: A class of mail including
letters, postcards, and postal cards, all matter wholly or partially
in writing or typewriting, and all matter sealed or otherwise closed
against inspection.
Fixed Asset: Any tangible property such
as buildings, machinery and equipment, furniture, and leasehold improvements.
Generally Accepted Accounting Principles (GAAP):
The rules and procedures of accepted accounting practice as defined
by the Financial Accounting Standards Board.
Global Package Link (GPL): International
package delivery service and state-of-the-art information system for
volume mailers sending merchandise to participating overseas markets.
Global Priority Mail (GPM): A category of
international mail that provides fast service at attractive rates
to 27 countries.
Gross Domestic Product (GDP): The total
market value of all the goods and services produced in one year in
the United States.
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 the Postal
Service is bound to pay.
Negative Equity: The amount of money that
the Postal Service does not have to settle all of its obligations
if they were to come due immediately.
Parcel Select: A product offering workshare
discounts for volume shippers.
PC Postage: Products approved by the Postal
Service for development and distribution by commercial vendors. Postage
is purchased and printed using personal computers and the Internet.
Periodicals: A class of mail, formerly called
second-class mail, that consists of magazines, newspapers, and other
publications.
Point-of-Service ONE (POS ONE): An electronic
retail sales device that assists employees with retail transactions
and provides product inventory and sales information.
Postal Inspection Service: The investigative
arm of the Postal Service responsible for investigating criminal acts
involving the mails and misuse of the postal system.
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Postal Rate Commission (PRC): An independent
federal agency that makes recommendations concerning Postal Service
requests for changes in postal rates and mail classifications.
Postmaster General (PMG): The chief executive
officer of the Postal Service, appointed by and serving at the pleasure
of the Governors.
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 percent interest compounded annually.
Priority Mail: Priority Mail provides two-to
three-day delivery service.
Priority Mail Global Guaranteed: An alliance
with DHL Worldwide Express, Inc. providing day-certain delivery guaranteed
service to 65 countries around the world.
Processing and Distribution Center (P&DC):
A large mail-sorting and dispatching plant that serves as a hub for
mail originating from post offices, collection boxes and customer
mailboxes, and large-volume mailers in a designated service area.
Receivable: Money that is owed to the Postal
Service.
Recognize: To record in Postal Service accounts
as income or expense.
Returns@ease: A set of merchandise return
options that makes returning items bought online, through catalogs,
and by phone easier for buyers and participating retailers.
Standard Mail: New name for the merger of
third-class mail and fourth-class mail as one class under Classification
Reform implementation of July 1, 1996.
U.S. Mail: Any mailable matter that is accepted
for mail processing and delivery by the Postal Service.
United States Postal Service (USPS): The
successor to the Post Office Department, the USPS was established
by the Postal Reorganization Act of July 1, 1971, as an independent,
self-supporting federal agency within the executive branch.
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, six days
a week.
Year: As used in the financial section of
this report, it means 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.
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