When we determine that our available funds exceed our current needs, we invest those funds with the U.S. Treasury’s Bureau of Public Debt in overnight securities issued by the U.S. Treasury. In 2009, due to net losses sustained during the year, historically low interest rates and increased levels of debt, investment income was only $1 million.
In 2008 and 2007, with less debt to repay, and higher cash on hand in 2007, we earned investment income of $10 million and $169 million, respectively.
We also recognize imputed interest on the funds owed to us under the Revenue Forgone Reform Act of 1993. Under the Act, Congress agreed to reimburse the Postal Service $29 million annually through 2035 for services performed in prior years. See Note 14, Revenue Forgone, in the Notes to the Financial Statements, for additional information.
