Statements of Cash Flows

Years Ended September 30,

(Dollars in millions)

Cash flows from operating activities:

Net (Loss) Income

$ (2,806)

$ (5,142)

$ 900

Adjustments to reconcile net (loss) income to net cash (used in) provided by
operating activities:

Depreciation and amortization

2,319

2,152

2,149

(Gain) loss on disposals of property and equipment, net

(16)

23

(40)

(Increase) decrease in appropriations receivable revenue forgone

(47)

2

(18)

Increase (decrease) in noncurrent workers' compensation liability

203

(69)

342

Increase in employees' accumulated leave

79

13

100

(Decrease) increase  in noncurrent deferred appropriations and other revenue

(5)

(7)

21

(Decrease) increase in other noncurrent liabilities

(167)

281

(67)

Changes in current assets and liabilities:

Receivables, net

30

80

169

Supplies, advances and prepayments

8

4

(5)

Compensation and benefits

(105)

347

204

Payables and accrued expenses

(324)

(93)

64

Customer deposit accounts

(50)

(148)

(73)

Deferred revenue-prepaid postage

547

(45)

(13)

Outstanding postal money orders

(127)

(38)

55

Net cash (used in) provided by operating activities

(439)

(2,603)

3,768

Cash flows from investing activities:

Decrease (increase) in restricted cash

—

2,958

(2,958)

Purchase of property and equipment

(1,995)

(2,715)

(2,630)

Proceeds from deferred building sale

4

218

—

Net cash (used in) provided by investing activities

(1,938)

500

(5,474)

Cash flows from financing activities:

Issuance of notes payable

4,500

1,000

—

Payments on notes payable

(1,000)

 —  

—

Net change in revolving credit line

(500)

1,100

2,100

Payments on capital lease obligations, net

(29)

(19)

(37)

Net cash provided by financing activities

2,910

2,005

1,978

Net increase (decrease) in cash and cash equivalents

533

(98)

272

See accompanying notes to the financial statements.