Our achievements — despite challenging marketplace conditions and an inflexible business model — were the result of a relentless organization-wide focus on the implementation of our strategic business plan. Despite the limitations and inflexibility of the current Postal Service business model, the Postal Service substantially cut its loss from ongoing business activities from $2.5 billion in 2012, to $1.0 billion in 2013. In 2013 we increased revenue by almost $800 million, excluding the effect of the one-time, non-cash change in accounting estimate. This was about $1.1 billion better than planned. At the same time we achieved our expense plan, reducing expenses by approximately $900 million, despite higher-thanplanned mail and package volume. However, a $1.0 billion loss from ongoing business activities — and a $5.0 billion net loss — is still very bad news. This underscores our need for comprehensive legislation to repair our broken business model.