3 versions of USPS 1st quarter results reported

Depending on the report you read, the USPS had a great, a pretty good, or a terrible first quarter. The net income according to generally accepted accounting principles (GAAP) was $1.4 billion. The “controllable” by postal management net income was $522 million, and the GAAP net income minus an adjustment to workers’ compensation (WC) expense came to a loss of $200 million.

The third version was a new one that USPS emphasized because the large WC positive impact on income as interest rates have started to rise. Of course, some of the GAAP losses from previous years included the opposite (negative) impact– increases in WC expense as interest rates dropped to record low levels.

We agree with many who say that controllable net income is the best indicator of true USPS performance. Controllable net income totaled $3.2 billion in FY 2014-2016, and $3.7 billion for the 39 months including the first quarter of FY 2017.