For 2009, other operating expenses of $9,260 million, decreased $525 million, or 5.4%, compared to 2008. This reduction was driven by a decrease in Supplies and Services of $276 million, or 10.6%, as a result of stringent cost cutting initiatives. Vehicle Maintenance Service expenses fell by $166 million, or 17.9%, mainly as a result of lower fuel costs.
Other Operating Expenses (dollars in millions)
|
2009
|
2008
|
2007
|
Supplies and Services
|
$2,321
|
$2,597
|
$2,594
|
Depreciation and Amortization
|
2,270
|
2,319
|
2,152
|
Rent and Utilities
|
1,778
|
1,779
|
1,700
|
Vehicle Maintenance Service
|
760
|
926
|
760
|
Information Technology and Communications
|
722
|
658
|
630
|
Rural Carrier Equipment Maintenance Allowance
|
510
|
545
|
495
|
Other
|
899
|
961
|
1,002
|
Total Other Operating Expenses
|
$9,260
|
$9,785
|
$9,333
|
Depreciation and Amortization expenses were $49 million, or 2.1%, lower based on reductions in the purchase of mail processing, customer service and postal support equipment. Other expenses, which included travel, were $62 million, or 6.5%, less than last year. Travel expenses were reduced by 40% as a result of stringent cost cutting initiatives.
The only area of increase in this category was Information Technology and Communications at $64 million. The increased expense was mainly for upgrades of IT systems and voice communication services.
In 2008, other operating expenses of $9,785 million increased $452 million, or 4.8%, from the comparable 2007 amount. The increase was primarily driven by Depreciation and Vehicle Maintenance Services. Vehicle Maintenance Services, which includes the fuel used by our carrier fleet increased by $166 million. Depreciation and amortization expense increased $167 million, compared to 2007, as a number of equipment projects were completed during the last half of 2007 and the early part of 2008.
