USPS Net Income $59.7 Billion For 3Q Following Prefunding Repeal

WASHINGTON, DC — The U.S. Postal Service reported net income of $59.7 billion for the third quarter of its fiscal year 2022 (April 1, 2022 – June 30, 2022). The enactment of the Postal Service Reform Act (PSRA) on April 6, 2022, significantly impacted the financial condition of the Postal Service, as it repealed the requirement that the Postal Service annually prepay future retiree health benefits and canceled all past due prefunding obligations.

These impacts are reflected as a one-time, non-cash benefit of $59.6 billion to net income for the quarter.

The Postal Service had adjusted loss of $459 million for the quarter, compared to an adjusted loss of $41 million for the same quarter last year. Adjusted loss excludes the impact of the PSRA, retiree health benefits expense, non-cash workers’ compensation adjustments for the impacts of actuarial revaluation and discount rate changes, which are outside of management’s control, and amortization expenses for the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS) unfunded liabilities.

On a U.S. generally accepted accounting principles (GAAP) basis, the Postal Service had net income of $59.7 billion for the quarter, compared to net loss of $3.0 billion for the same quarter last year, due almost exclusively to the non-cash impact of the PSRA.

The Postal Service’s operating revenue was $18.7 billion for the quarter, an increase of $257 million, or 1.4 percent, despite a volume decline of 201 million pieces, or 0.7 percent, compared to the same quarter last year.

“The enactment of the PSRA is a key component of restoring the Postal Service to financial stability,” said Chief Financial Officer Joseph Corbett. “but the one-time, non-cash impact this quarter of the statute is not reflective of our true financial condition. Net income for the quarter reflects the accounting impact of this legislation, and while we saw revenue growth of $257 million during the quarter, rising costs associated with inflationary pressures present significant challenges. We continue to strategically manage our business and aggressively control our expenses and kept them below the level of inflation thus far in fiscal year 2022.”