2010 ANNUAL REPORT 

Connecting America through Coins
VISION: TO be recOgNIzed 

aS The fINeST mINT 

OrgaNIzaTION IN The wOrld 

ThrOugh excelleNce 

IN Our peOple, prOducTS, 

cuSTOmer SerVIce 

aNd wOrkplace. 

mISSION: TO maNufacTure 

aNd dISTrIbuTe cIrculaTINg 

cOINS, precIOuS meTalS 

aNd cOllecTIble cOINS, 

aNd NaTIONal medalS 

TO meeT The NeedS 

Of The uNITed STaTeS. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of ConTenTs
 

The United States Mint at a Glance 2
 

Director’s Letter 5
 

Organizational Profile 10
	

Our Goals

 Effectively Met All Circulating Demand 13

 Effectively Managed Bullion and Numismatic Programs 17
	

A Safe, Engaged, Productive and Valued Workforce 20

 Leadership and Organizational Excellence 22
 

Management’s Discussion and Analysis
 

Message from the Chief Financial Officer 24
	

Operating Results by Segment
 

Circulating Coinage 26

 Bullion Products 31

 Numismatic Products 35
	

Transfer to the Treasury General Fund 39
	

Performance Goals, Objectives and Results 41
	

Analysis of Systems, Controls and Legal Compliance 44
	

Limitations of the Financial Statements 46
	

Independent Auditors’ Report 47
	

Financial Statements 48
	

Notes to the Financial Statements 52
 

Required Supplementary Information 68
	

Independent Auditors’ Report on Internal Controls 69
	

Independent Auditors’ Report on Compliance and Other Matters 70
	

Appendix I: FY 2010 Coin and Medal Products 71
	

1
 
THE uniTEd sTaTEs MinT aT a GLanCE 

uniTEd sTaTEs MinT 

The United States Mint is the world’s largest 

coin manufacturer. Our men and women serve 

the Nation by manufacturing and distributing 

circulating coins, precious metals and collectibl

coins and national medals to meet the needs 

of the United States. Our vision is to be 

recognized as the finest mint organization in the

world through excellence in our people, product

customer service and workplace. 

Revenue
 (dollars
in
millions)
 

2,912.4
 

2,800.5 2,635.4
 

2,323.4

2006
 2007
 2008
 2009
 2010
 

3,886.7
 

e 

s, 

Revenue by Line of Business 

(percent of total)

Numismatic Bullion 10.6% 73.5%

Circulating 

15.9%

CiRCuLaTinG CoinaGE 

The United States Mint is the Nation’s sole 

manufacturer of legal tender coinage. The 

efficient and effective minting and issuing of 

circulation coinage for the Nation to conduct 

trade and commerce is the United States Mint’s 

highest priority. 

Revenue
 (dollars
in
millions)
 

1,727.8
 

1,294.5
 1,271.9
 

777.6
 

618.2
 

2006
 2007
 2008
 2009
 2010
 

Revenue by Denomination 

(dollars in millions)

$1 coin One-Cent

413.5 34.9 

Five-Cent

17.9

Dime

88.7

Quarter-Dollar 

63.2

BuLLion Coins 

The United States Mint is the world’s largest 

producer of gold and silver bullion coins. The 

bullion program provides consumers a simple and 

tangible means to acquire precious metal coins. 

Investors purchase bullion coins for their intrinsic 

metal value and the United States Government’s 

guarantee of each coin’s metal weight, content 

and purity.
 

Revenue
 (dollars
in
millions)
 

2006
 2007
 2008
 2009
 2010
 

2,855.4
 

1,694.8
 

948.8
 

536.6
 

356.1
 

Revenue by Program 

(dollars in millions)

American American Eagle Eagle Gold Silver 1,710.8 659.9 

American 

Buffalo 

Gold

484.7 

nuMisMaTiC PRoduCTs 

The United States Mint prepares and distributes 

numismatic products for collectors and those who 

desire high-quality versions of the Nation’s 

coinage. Making numismatic products accessible, 

available, and affordable to Americans who 

choose to purchase them is the priority of 

numismatic operations. 

Revenue
 (dollars
in
millions)
 

557.2 551.5
 

514.9
 

440.0
 

413.1
 

2006
 2007
 2008
 2009
 2010
 

Revenue
by
Program
 

(dollars
in
millions)

Commemorative

20.1

Numismatic Recurring
 Sale
of
Circulating
Coins 191.9 17.7

American
Eagle
 

32.7

Ultra
High
Relief

35.1
 

American
Buffalo
 

115.6
 

sEiGnioRaGE and nET inCoME 

Seigniorage, the net return from circulating 

operations, is the difference between the face 

value and cost of producing coinage. The United 

States Mint transfers seigniorage to the Treasury 

General Fund to help finance national debt. Net 

income from bullion and numismatic operations 

can also fund Federal Government programs. 

Seigniorage
 and
Net
Income
 

(dollars
in
millions,
before
protection
cost)
 

1,085.6
 

767.9
 806.4
 

501.6
 

405.8
 

2006
 2007
 2008
 2009
 2010

 

2
 

Seigniorage and Net Income by Line of Business 

(dollars in millions, before protection cost) 

Numismatic 

49.8 

Circulating 

300.8 

Bullion 

55.2 
Gross Cost (dollars in millions) 

3,480.9 

1,549.8 

1,555.5 1,994.1 

2,410.8 

2006 2007 2008 2009 2010 

2010 PERFORMANCE 

The economic environment during fiscal year (FY) 2010 significantly affected the United 

States Mint’s financial results. Economic uncertainty tends to intensify demand for 

bullion products while reducing demand for circulating coinage and numismatic products. 

Record bullion sales drove revenue growth as both circulating and numismatic revenue 

declined. Total revenue neared $3.9 billion, up 33.5 percent. Because the bullion program 

is managed to a nominal net margin, revenue growth did not generate higher net returns. 

Gross cost increased 44.4 percent to nearly $3.5 billion and seigniorage and net income 

fell 19.1 percent to $405.8 million. Lower net returns resulted in reduced funds of $388 

million available for transfer to the Treasury General Fund. 

Shipments 

(millions of coins) 

five-cent 

359 

one-cent 

3,487 

$1 coin 

dime 


887
 

quarter-dollar 

252 

414 

Circulating coin shipments increased 3.7 percent to 5,399 million coins in FY 2010. 

While the total volume grew, the composition of shipments shifted toward lower 

denomination coins, reducing their total value. Circulating revenue fell 20.5 percent 

to $618.2 million. The penny, nickel and dime made up 87.7 percent of total shipments, 

compared to 72.7 percent in FY 2009. Lower demand for higher denominations and 

higher metal prices reduced seigniorage 29.7 percent to $300.8 million. 

Sales
 

(thousands
of
ounces)
 

American
 American
 

Eagle
 

Gold

 

33,983

 409
 

Buffalo

 

Silver

 

American
 

Eagle
 

Gold
 

1,430
 

Bullion coin demand reached historic highs in FY 2010. The United States Mint sold 35.8 

million ounces of gold and silver bullion coins in FY 2010, up 8.2 million ounces 

(29.7 percent). The bureau sold record volume at higher prices, reflecting increased 

market value for gold and silver. Total bullion revenue reached a record high of $2,855.4 

million in FY 2010, up $1,160.6 million (68.5 percent). Bullion net income increased 

68.8 percent to $55.2 million. 

Sales
 

(thousands
of
units
sold)
 

Recurring
 

4,986
 Ultra
High
Relief
24
 

American
Eagle
18
 

American
Buffalo
81
 

Commemorative
 

667
 

Numismatic
Sales

 

of
Circulating
Coins

 

690

 

FY 2010 was a challenging year for numismatic operations. The United States Mint was 

unable to offer key gold and silver products because blanks were dedicated to the bullion 

program to meet unprecedented demand. This negatively affected numismatic sales and 

customer acquisition and retention. Despite weakened demand, the numismatic sales 

shifted toward high price and high margin products. While numismatic sales revenue fell 

6.1 percent to $413.1 million, numismatic net income and seigniorage increased 21.2 

percent to $49.8 million. 

Transfer to the Treasury General Fund 

(dollars in millions) 

825.0 

750.0 750.0 

475.0 388.0 

2006 2007 2008 2009 2010 

2011 OutlOOk 

In FY 2011, we will remain focused on meeting demand for our products while making 

progress toward our vision. Economic uncertainty will continue to shape demand for 

product-lines. The United States Mint expects circulating volumes in FY 2011 to improve 

slightly upon those of FY 2010. Bullion coin demand is expected to remain strong until 

economic conditions stabilize and investors are drawn toward alternative investments. 

For numismatic products, we will focus on improving our customers’ experience and 

increasing product availability. 

3

	


	


	


	


 

United States Mint at Philadelphia medallic artist Phebe Hemphill touches up the plaster model 

of the Presidential $1 Coin design for John Tyler. Elected and appointed officials, artists and members of the public 

provide input for coin designs and participate on coin design committees. After a design is approved,
	

a sculptor-engraver creates a model using traditional methods or newer digital methods. With traditional tools,
	

the drawing is sculpted in clay and refined using plaster. The resulting three-dimensional bas-relief
	

sculpt is then digitally scanned. Using digital methods, the relief is directly modeled using software tools.
	

Either method produces a digital database that meets design and manufacturing guidelines. 

4
 
edmund c. moy 

United States Mint Director 

to the american PeoPle, memBers oF the united states 

congress, the united states dePartment oF the treasurY, 

our customers and our emPloYees: 

This year we delivered on our new promise: “Connecting America through Coins.” Our commemorative coins 

honored the Boy Scouts of America and American Veterans Disabled for Life. We finished the Lincoln Bicentennial 

One-Cent Coin Series with a coin recognizing the culmination of Abraham Lincoln’s brilliant career, his presidency 

in Washington, D.C. We also began producing the new Union Shield penny. 

The United States Mint launched the 12-year America the Beautiful Quarters® Program in Fiscal Year (FY) 2010 

with four beautiful quarters honoring Hot Springs, Yellowstone, Yosemite and Grand Canyon National Parks. We 

continued the Native American $1 Coin series with “Government—the Great Tree of Peace,” brought out four new 

Presidential $1 Coins and honored three First Spouses in the First Spouse Gold Coin Program. 

We also are proud to have designed and struck two Congressional Gold Medals, one awarded to Women Air Service 

Pilots, better known as the WASPs, and one to former U.S. Senator Edward Brooke III. 

While a coin’s primary purpose is to facilitate commerce, coins also reinforce America’s core values. From the 

great promise of our “e pluribus unum” credo beneath the banner of Liberty, each coin is a piece of our ongoing 

American experience, connecting us in an unbroken line to our country’s—and the United States Mint’s—origins 

in the Constitution. 

Fiscal Year 2010 results 

The state of the American economy affects each of our business lines – circulating coins, bullion and numismatics. 

In FY 2010, the United States Mint performed in one of the most difficult operating environments in our 218-year 

history. We experienced low first and second quarter demand for circulating coins and record high demand for 

bullion. The high volume of gold and silver blanks required to keep up with demand for bullion stymied numismatic 

production for most of the fiscal year. Metal costs continued to rise. 

circulating Circulating coin production was at a 46-year low in early FY 2010. But by the third quarter, the 

Federal Reserve Bank (FRB) orders began to increase. Shipments, composed mostly of pennies and dimes, tripled 

from the first to the third quarters. 

Bullion After record demand in FY 2009, demand went higher still in FY 2010, both in ounces sold and revenues 

generated. Investors bought 409,000 ounces of American Buffalo gold bullion coins, 382,000 more ounces than 

in FY 2009. 

5
 
They bought 1.43 million ounces of American Eagle gold bullion coins in FY 2010 versus 1.39 million ounces in FY 

2009, and bought nearly 34 million ounces of American Eagle silver in FY 2010, 7.8 million more than in FY 2009. 

Together, these increases brought bullion revenue to a record $2.86 billion. Throughout the year, the United States 

Mint worked to expand gold and silver blank supplies to meet demand. By September 2010, after increasing our 

precious metal blank acquisition from 42 million ounces to 51 million ounces, our supply exceeded demand. 

Numismatics Because high demand for bullion required we direct our supply of blanks to produce gold and 

silver bullion coins, the United States Mint was unable to produce American Eagle Silver Proof coins and other 

numismatic products, depressing sales, customer retention and customer satisfaction. As FY 2010 ended, we had 

expanded our supply of precious metal blanks and launched 2010 American Eagle Gold Proof products. American 

Eagle Silver Proof products went on sale at the end of 2010. 

The bottom line in FY 2010 was record total revenue of $3.89 billion but a smaller operating surplus. After reserving 

working capital for the first quarter of FY 2011, the transfer to the Treasury General Fund was $388 million. 

other highlights of fY 2010 

We made significant improvements in our performance in several key non-financial areas. 

safetY Continuing the emphasis on improving the safety of our employees, the United States Mint experienced a 

15-year low in illness and injuries, another record year for safety. We already had an admirable total recordable case 

rate of 4.10 in FY 2008 and 2.50 in FY 2009, but achieved a best in class 2.29 in FY 2010. 

greeN iNitiatives We reduced our greenhouse gas emissions by 27 percent and began purchasing 100 percent 

of energy from solar and wind sources at the United States Mint at Denver. We embraced the goal of Energy Star 

certification for all our facilities and earned the Bronze Award in the 2010 Federal Electronics Challenge. 

labor relatioNs After lengthy negotiations, management and labor agreed to a new five-year labor contract. 

The Seventh National Agreement with the American Federation of Government Employees (AFGE) United States 

Mint Council represents management and labor working together for the best possible result. 

2006 -2011 

Because my term expires August of 2011, this is my last annual report as Director of the United States Mint. Serving 

a full five-year term has given me a rare opportunity to address challenges requiring long-term commitment to 

resolve. I hope that I have been a good steward of that opportunity. I will let time and others judge my tenure, but I 

want to share the accomplishments that have given me the most satisfaction and briefly list additional initiatives well 

on their way that will come to fruition after my term is done. 

PeoPle Our most important asset is people. When our employees consistently rate the United States Mint one of 

the worst places in government to work, as they have since 2003, little can be accomplished until morale improves. 

After meeting with every United States Mint employee on every shift at every location, I led my management team 

and labor representatives through a process to develop a plan to change the culture of our organization: 

• Developed clear vision and mission statements, strategic goals and organizational values to be communicated and 

modeled to all employees; 

• Aligned performance plans, metrics, budget and incentives to the vision, mission, strategic goals and values; 

• Recruited new senior leaders to lead change, trained and coached employees to meet performance targets, 

increased accountability for performance, offered greater transparency to our stakeholders and consistently 

communicated organizational performance to all employees. 

6
 
united states Mint director Edmund c. Moy is pictured with senior leaders at the united states treasury building. they 

are pictured under the statue of Alexander Hamilton, who served as the first Secretary of the Treasury from 1789 to 1795. 

Front row, left to right: david M. croft, denver Plant Manager; dennis o’connor, chief of Protection; Goutam Kundu, 

Chief Information Officer; Richard Peterson, Associate Director of Manufacturing; Ellen McCullom, West Point Plant 

Manager; Patrick M. McAfee, Director of $1 Coin Programs; Daniel P. Shaver, Chief Counsel; Michael Stojsavljevich, 

Chief Strategy Officer; Andrew D. Brunhart, Deputy Director; Cliff Northup, Director of Legislative Affairs 

Second row, left to right: Eric Anderson, Executive Secretariat; Marc Landry, Philadelphia Plant Manager; Thomas 

Jurkowsky, Director of Public Affairs; B. B. Craig, Associate Director of Sales and Marketing; Patricia M. Greiner, Chief 

Financial Officer; Daniel Riordan, Associate Director of Workforce Solutions 

Not pictured: Larry Eckerman, San Francisco Plant Manager 

This initiative to change the culture is a 10-year journey, and the first five will be the most difficult. I am pleased 

that our own internal surveys, which mirror the government-wide annual survey, have recently begun to indicate 

improvement, including more positive responses to 27 out of 33 recurring questions. We look forward to continued 

improvements resulting from our culture change efforts and for those gains to be reflected in the 2011 Federal 

Employee Viewpoint Survey results. I am confident our employees will affirm that the United States Mint is one 

of the better places to work in the federal government. 

Products As a collector myself, I knew when I accepted the job of Director that the United States Mint was 

offering a confusing proliferation of numismatic products. I observed that there was no pipeline of interesting 

numismatic products on the horizon, that there had been a decline in quality of our circulating coins and that a 

higher standard for artistic excellence and design was needed. 

• Portfolio – At my direction, the United States Mint eliminated more than 300 unpopular products from our 

portfolio of 550. This opened up production capacity to make our core products, such as annual sets, available for 

purchase all year round, thus appealing to non-traditional customers like special occasion gift givers. 

• capacity – Additional production capacity allowed us to pioneer new coins, such as the 2009 Ultra High Relief 

Double Eagle Gold Coin instead of relying on new ways to package and combine existing coins to boost sales. 

7
 
• Artistic Excellence – I have articulated a vision for artistic excellence in coin and medal design. The next phase 

is working with all our design stakeholders to develop a comprehensive artistic excellence roadmap and begin 

implementation. 

• Relief – Believing that the flattening of the obverses of the penny and quarter extended die life at the expense 

of beauty, we digitally re-mastered them for a more faithful execution of the original designs. 

• Quality – We have made major investments in visual inspection systems, digital design, packaging and quality 

control that have significantly improved the quality of our coins. We now measure coin quality with a 

comprehensive suite of metrics. 

CustomER sERviCE And CultuRE ChAngE During most of the past decade, declining customer service 

satisfaction has been the norm, and we at the United States Mint lacked the tools and passion to turn the situation 

around. A culture change plan has given us both. With it, we have: 

• Cut order fulfillment time in half. 

• Reduced call center complaints from our customers by raising performance standards for our fulfillment center. 

• Launched a Facebook site and used Twitter to broaden our interaction and attract new customers. 

• Sent returned products to the facility where they originated for quality analysis and corrective action. 

• Increased transparency to our customers on the pricing of our products, especially precious metal. 

• Solved the biggest factor negatively affecting our customer service rating by more than tripling the acquisition 

of precious metal planchets (especially silver), so that we could stop diverting planchets to bullion production 

and make popular products, like the American Eagle Silver. 

• Refreshed our brand, giving the United States Mint a more customer-friendly and identifiable look on our website, 

packaging, advertising and annual report. 

Coming AttRACtions Projects already begun that will be completed after my term: 

• Modernization of the visitor tour at the United States Mint at Philadelphia. 

• Redesign of our two retail locations in Washington, D.C.: one at Headquarters and one at Union Station. 

• Inauguration of a United States Mint and Smithsonian Institution’s National Museum of American History 

traveling exhibition of coins. 

• Total customer-friendly redesign of our retail website to debut in FY 2012. 

• Streamlined, easier, faster customer service satisfaction survey. 

WoRkplACE It was my aim to improve the historically significant United States Mint by connecting the good 

intentions of government with a business-like ability to deliver. To that end, we have: 

• Developed essential management tools, like monthly profit and loss statements, balance sheets and statements of 

cash flow, as well as annual operational and financial performance metrics. These tools help the management team 

understand and track our performance, a key to accomplishing our vision to become recognized as the finest mint 

organization in the world. 

• Established monthly management meetings to review progress toward our operational and financial performance 

metrics, resulting in greater accountability and improved performance. 

• Improved the United States Mint workplace safety record from 4.10 incidents per 100 full-time workers 

in FY 2008 to 2.29 in FY 2010, creating a safer workplace for our employees. 

8
 
• Improved our financial audits from qualified with material weaknesses to qualified without material weaknesses, 

creating greater confidence in our stakeholders. 

• Replaced an antiquated cost allocation model with one that spreads overhead costs on the basis of the effort to 

make each coin. 

• Implemented a disciplined budgeting system that holds us accountable for adhering to deadlines, resulting in 

greater financial accountability. 

• Developed a more accurate circulating coin demand forecasting model that enables us to plan production more 

effectively, saving the taxpayers money. 

• Negotiated a five-year labor agreement with the AFGE that is good for both management and labor, resulting in 

better labor-management relations. 

The bottom line is the United States Mint delivers more value to the taxpayer. We are a much more nimble organization. Throughout the tumult of FY 2010, we were able to effectively manage huge swings in our circulating and 

bullion coin volumes. Additionally, we were able to squeeze all of 2010’s numismatic production into nine months 

so that we could produce sufficient 2011 core products inventory to put them on sale beginning in January 2011. 

THANK YOU As a young son of Chinese immigrants working in my parent’s restaurant, I was fascinated with the 

coins in our cash register that had different designs, even though they were the same denomination. I never imagined 

as I began my Lincoln penny collection at the age of ten that 40 years later, I would have the privilege of being the 

38th Director of the United States Mint. It is a story that is not unique in America but makes America unique in 

the world. To rise from young coin collector to Director and become the steward of the American institution that 

produces our coins – a historically important extension of our national identity – has been more meaningful to me 

than words can express. 

I want to thank President George W. Bush for nominating me; the United States Senate for confirming me; President 

Barack Obama for allowing me to fulfill the balance of my term; Treasury Secretaries John Snow, Hank Paulson, 

and Timothy Geithner for their confidence in me; the employees of the United States Mint for their efforts, patience 

and support; and the United States Mint’s customers for their loyalty. 

Most of all, I am grateful and feel blessed to have been born an American, to have benefited from the opportunities 

derived from our Nation’s greatness, and given the chance through public service to give back to the American 

people who make it all possible. 

Sincerely, 

Edmund C. Moy 

Director 

United States Mint 

9
 
orGanizational Profile 

Established in 1792, the United States Mint is the world’s largest coin manufacturer. Our vision is to be recognized 

as the finest mint organization in the world through excellence in our people, products, customer service and workplace. The men and women of the United States Mint serve the Nation by manufacturing and distributing circulating 

coins, precious metals and collectible coins, and National medals to meet the needs of the United States. 

The United States Mint is committed to achieving efficient operations and providing value to the American people. 

Since Fiscal Year (FY) 1996, the United States Mint has operated under the United States Mint’s Public Enterprise 

Fund (PEF). As authorized by Public Law 104-52 (codified at 31 U.S.C. § 5136), the PEF enables the United States 

Mint to operate without an appropriation. We generate revenue through the sale of circulating coins to the Federal 

Reserve Banks (FRB), numismatic products to the public and bullion coins to authorized purchasers. Money in 

excess of anticipated needs of the PEF is transferred to the United States Treasury General Fund. 

The United States Mint operates six facilities and employs approximately 1,800 employees across the United States. 

Each facility performs unique functions critical to our overall operations. Manufacturing facilities in Philadelphia, 

Pennsylvania, and Denver, Colorado, produce coins of all denominations for circulation. Both facilities also produce 

dies for striking coins. All sculpting and engraving of circulating and numismatic coin and medal designs is 

performed in Philadelphia. Production of numismatic and bullion products is primarily performed at facilities in 

San Francisco, California, and West Point, New York. All four production facilities produce commemorative coins 

as authorized by Federal laws. The United States Bullion Depository at Fort Knox, stores and safeguards United 

States gold and silver bullion reserves. Administrative and oversight functions are performed at our Headquarters 

in Washington, D.C. 

Primary resPonsibilities 

The United States Mint’s primary responsibilities include the following: 

CirCUlatinG The United States Mint is responsible for enabling commerce by minting and issuing circulating 

coins in amounts that the Secretary of the Treasury determines are necessary to meet the needs of the United States. 

We mint and issue circulating coins to the FRB for distribution to the Nation’s financial institutions. Commercial 

banks and other financial institutions then place coins into circulation to meet the demand of retailers and the public. 

Financial institutions can return coins to the FRB when they have more than necessary to meet demand. The United 

States Mint issues circulating coins to the FRB at face value. The net return, known as seigniorage, is the difference between the face value and the cost of producing circulating coinage. Seigniorage is transferred to the Treasury 

General Fund to help finance the national debt. 

bUllion The United States Mint manufactures and issues gold, silver and platinum bullion coins through a network of authorized purchasers, which include precious metal and coin dealers, brokerage companies and participating 

banks. Bullion coins provide investors a simple and tangible means to own coins whose weight, content and purity are 

guaranteed by the United States Government. Coins are available to the general public through authorized purchasers. 

Any net proceeds from the sales of bullion products are transferred to the Treasury General Fund to help reduce the 

deficit or fund current Federal Government programs or operations. 

10
 
NUMISMATIC The United States Mint prepares and distributes numismatic items, including proof and uncirculated 

coins, coin sets, commemorative coins and medal products. These products are manufactured and specially packaged 

for collectors and other members of the public who desire high-quality versions of the Nation’s coinage as gifts or 

mementos. Through commemorative coin programs passed by Congress and approved by the President, the United 

States officially honors people, places, and events. By law, the price of the commemorative coin includes a surcharge 

that is authorized to be paid to recipient organizations. Customers can purchase numismatic coin and medal products 

through the United States Mint website, by phone order or by mail order. Public points of sale are also available 

at the United States Mint facilities at Philadelphia, Denver and Washington, D.C. and a United States Mint kiosk 

in Union Station in Washington, D.C. The objective of the United States Mint numismatic program is to make 

numismatic products accessible, available and affordable to the American public. We make every effort to control 

costs and keep the prices of numismatic items as low as practicable. Any net proceeds from the sales of numismatic 

products are transferred to the Treasury General Fund to help reduce the deficit or fund current Federal Government 

programs or operations. 

MEDALS As part of the numismatic program, the United States Mint prepares and strikes National and other medals. 

Congressional Gold Medals are prestigious awards authorized by Congress and approved by the President to honor 

specific individuals in recognition of their achievements and contributions. The Congressional Gold Medal is widely 

considered the highest honor the Nation can bestow. The United States Mint also strikes, and makes available for 

sale to the public, bronze duplicates of these medals, as well as “list” medals, which are often a part of continuing 

medal series, such as the Presidents of the United States and Historic Buildings of the United States. 

PROTECTION The United States Mint is responsible for protecting over $320 billion in United States assets stored 

in our facilities. The Protection Department safeguards non-United States Mint assets in our custody, including gold 

and silver bullion reserves held at the United States Bullion Depository at Fort Knox, as well as United States Mint 

assets, such as our products, employees, facilities and equipment. 

11
 

 

United States Mint at Philadelphia employee Gregory Hawes, who works in the Quality Control Division, 

checks the specifications of the dies used to mint coins. Each die must conform to all official specifications, 

including weight and size, placement of design and text. After the die is approved, it is sent 

to one of the United States Mint facilities, which will use it to mint coins. 

12
 
gOal 1: EffEctivEly MEt all circulating DEManD 

As the Nation’s sole manufacturer of legal tender coinage, the efficient and effective production and distribution of 

circulation coinage used to conduct trade and commerce is the United States Mint’s highest priority. This involves 

administering several circulating commemorative coin programs, which are mandated by law. 

EffEctivEly MEEting DEManD in thE currEnt OpErating EnvirOnMEnt 

Our circulating coin production fell to a historic 46-year low during the first six months of Fiscal Year (FY) 2010. 

Starting in 2009, commercial banks and other financial institutions curtailed orders and returned excess coins to the 

Federal Reserve Banks (FRB). In response, the FRB decreased orders for newly minted coins and used accumulated 

coin inventory to meet demand during the first half of FY 2010. By the third quarter, the FRB had reduced its inventory and increased orders for newly minted coins. Shipments to the FRB in the second half of FY 2010 were more 

than triple total shipments in the first half of the fiscal year. 

At the start of FY 2010, the prospect of continued low 

coin demand prompted the United States Mint to extend 

cost-saving measures begun in 2009. We opted not to 

renew appointments for temporary personnel and instituted an organization-wide hiring freeze. We suspended 

all non-essential capital investments in circulating 

operations to cut cash outflow during a time of reduced 

cash inflow. 

Even with these measures, the costs of coin production 

continued to increase because of escalating metal market prices. In FY 2010, market prices for copper, nickel 1970 1980 1990 2000 2010 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

and zinc climbed from five-year lows of FY 2009 to 

levels almost as high as those experienced in FY 2007. This increased expenses for fabricated blanks and strip 

for circulating coin production and raised unit costs for all denominations. 

To address rising metal costs, the United States Mint continued to work with the Department of the Treasury and 

Congress to examine legislative options for changing the composition of circulating coinage to less expensive 

materials. This could reduce our production expenses and ultimately generate significant taxpayer savings without 

compromising the utility of coins. 

planning fOr thE futurE 

Facing this challenging year of volatile production activity, the United States Mint began reevaluating future coin 

demand, capacity requirements and long-term efficiency. 

In the spring of 2010, we conducted a comprehensive economic analysis of future coin demand and assessed the 

implications for equipment and labor requirements. Economic 

models indicated the United States Mint should have the caTotal Circulating Coin Production (coins in millions)

pacity to produce nine to ten billion circulating coins annually 

through 2015. Accordingly, the United States Mint developed 

preliminary plans to resize circulating equipment capacity. We 

identified 32 presses we will retire and not replace starting in 

FY 2013. This will generate savings of approximately $32 

million, spread over three years. 

Shipments
to
the
FRB
 (coins
in
millions)

13
 

900
 

800
 

700
 

600
 

500
 

400

300
 

200
 

100 

0
 

Oct
09
Nov
09
Dec
09Jan
10Feb
10Mar
10Apr
10May
10Jun
10Jul
10Aug
10Sep
10
 
In the second half of this year, we rapidly adapted to the increase in demand by implementing short-term solutions, 

such as controlling overtime usage and utilizing temporary employees. We recognize that a long-term strategy is 

necessary to more effectively deal with future fluctuations in demand. 

CirCulating Commemorative Coin Programs 

For the past few years, effectively meeting circulating demand has involved administering multiple circulating 

commemorative coin programs. 

ameriCa the Beautiful Quarters® Program Beginning in 2010 through at least 2021, the United 

States Mint will mint and issue commemorative quarter-dollar coins honoring national parks and other national sites, 

in accordance with the America’s Beautiful National Parks Quarter Dollar Coin Act of 2008 (Public Law 110-456). 

This program honors national parks and sites in the order in which they were first established. Similar to the 

issuance of coins under the 50 State Quarters Program, quarter-dollar coins featuring five different coin designs 

will be issued each calendar year of this program. 

In FY 2010, we issued the first four quarters in the America the Beautiful Quarters Program, honoring Hot Springs 

National Park (Arkansas), Yellowstone National Park (Wyoming), Yosemite National Park (California) and Grand 

Canyon National Park (Arizona). The United States Mint issued 172.9 million America the Beautiful quarters for 

circulation in FY 2010, which generated $43.5 million in revenue and $21.4 million in seigniorage. 

$1 Coin Programs The United States Mint continued America’s tribute to the Nation’s Presidents in FY 2010, 

issuing four Presidential $1 Coins featuring Presidents Zachary Taylor, Millard Fillmore, Franklin Pierce and James 

Buchanan. We also issued the 2010 Native American $1 Coin with a reverse design commemorating the Haudenosaunee (People of the Longhouse) Confederation, also known as the Iroquois Confederacy. This confederacy, 

created before the Revolutionary War, was one of the most famous and powerful Native American leagues. 

The Presidential $1 Coin Act of 2005 mandates the United States Mint identify, analyze and overcome barriers to 

the robust circulation of $1 coins. Likewise, the Native American $1 Coin Act of 2007 requires the United States 

Mint to carry out an aggressive, cost-effective, continuous campaign to encourage commercial enterprises to accept 

and dispense Native American $1 Coins. Promoting circulation of $1 coins offers potential savings for the American 

taxpayer but continues to be a challenge for the United States Mint. This year, we successfully partnered with Walt 

Disney World Resorts on a pilot program in Florida, Whole Foods Markets in North Carolina and the Army and Air 

Force Exchange Service (AAFES) stores at four military bases, to promote usage of the coin. 

Direct Ship We continued the Circulating $1 Coin Direct Ship Program throughout FY 2010. Initiated in June 

2008, the Direct Ship Program provides $1 coins for sale directly to banks, small retailers, and the public in smaller 

volumes than available through traditional FRB distribution. In FY 2010, we distributed 90.7 million $1 coins (56.9 

million Native American $1 coins and 33.8 million Presidential $1 Coins) through the Direct Ship Program, up 

6.5 percent from 85.2 million $1 coins distributed in FY 2009. 

Bulk Ship The United States Mint initiated a Bulk Ship Program in August 2009 to offer another way for interested 

customers to order $1 coins in larger quantities. This program provides banks and larger retailers the opportunity to 

purchase a minimum of $140,000 in $1 coins directly from the United States Mint. In FY 2010, the first full fiscal 

year of the program, we shipped 3.4 million $1 coins (1.6 million Native American $1 Coins and 1.8 million 

Presidential $1 Coins) through the Bulk Ship Program. 

14
 
2009 District of columbia anD u.s. territories Quarters Program In December 2009, 

the United States Mint concluded the 2009 District of Columbia and U.S. Territories Quarters Program, a one-year 

initiative honoring the District of Columbia and the five U.S. territories. In FY 2009, we minted and issued the first 

five coins to honor the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa and the 

United States Virgin Islands. We issued the final coin honoring the Commonwealth of the Northern Mariana Islands 

in FY 2010. 

Through the 2009 District of Columbia and U.S. Territories Quarters Program, the United States Mint issued 511.6 

million quarters for circulation (432.5 million in FY 2009 and 79.1 million in FY 2010). This generated a total of 

$127.9 million in revenue and $57.2 million in seigniorage. 

2009 lincoln bicentennial one-cent coin Program In November 2009, we issued the final 

of four one-cent coins honoring the bicentennial of President Lincoln’s birth and the 100th anniversary of the first 

issuance of the Lincoln penny. Each reverse design represents a major aspect of President Lincoln’s life. The final 

coin honored Lincoln’s Presidency in Washington, D.C. The United States Mint issued a total of 2.2 billion Lincoln 

Bicentennial One-Cent Coins for circulation (1.9 billion in FY 2009 and 0.3 billion in FY 2010), generating $22.5 

million in revenue. 

Upon conclusion of the 2009 program, the United States Mint began production of a new penny, released in 

February 2010. This new one-cent coin will circulate from this year forward, replacing the penny with the Lincoln 

Memorial on the reverse. As specified by the Presidential $1 Coin Act of 2005, the reverse design of the 2010 

one-cent coin bears an image emblematic of President Lincoln’s preservation of the United States as a single and 

united country. The reverse features a union shield, a National symbol that dates back to the 1780s. The United 

States Mint issued 3.0 billion one-cent coins bearing the new design in FY 2010, generating $30.3 million in revenue. 

(coins in millions) (percentage of total issued) 

America the Beautiful Quarter Shipments by Design 

Yellowstone 

Yosemite 	 Grand Canyon 

41.7 	 39.6 

Hot Springs 

46.4 45.2 

$1 Coins Issued to Circulation by Channel 

Shipped to 

the FRB 

Coin 


Machines 


0.2% 


77.1% Bulk Ship 

0.8% 

Direct Ship

21.9% 

District
of
Columbia
and
U.S.
Territories
 

Quarter
Shipments
by
Design
 

(coins
in
millions)
 

Commonwealth
 

of
Puerto
Rico
 

Northern

 

Mariana

 

94.1
	 

District
of
Columbia
 

142.0
 

American
Samoa
 

69.7
 

Islands
 

63.3
 U.S.Virgin
Islands
 Guam
 71.9 

70.6
 

Lincoln Bicentennial One-Cent Coin Shipments by Design

(coins in billions) 

Formative Years 

Childhood in Kentucky 	 in Illinois 

in Washington, DC 

Presidency in Indiana 

0.7 0.6 

Birth and Early 	 Professional Life 

0.6 0.3 

15
 

	


	


	


	


 

United States Mint at Denver employee Vince Varela is attaching a coin coil on an uncoiler, which feeds metal 

strip into a blanking press. Most U.S. coin production starts with the arrival of coils (rolled-up strips 

of flat metal). Coils are about a foot wide, 1,500 feet long, and about as thick as the final coin thickness.
	

Each coil weighs close to 6,000 pounds. A coil is hoisted onto a wheel that feeds into a blanking press,
	

which punches out round, plain-surfaced disks. Each blank is cut larger than the final coin size
	

to allow for the formation of the rim, but the blank’s weight is the same as the final coin weight.
	

16
 
6,500
 

6,000
 

5,500

5,000

4,500
 

4,000
 

3,500

3,000

2,500
 

2,000
 

1,500

1,000
 

500
 

Oct
07
Jan
08
Apr
08
Jul
08
Oct
08
Jan
09
Apr
09
Jul
09
Oct
09Jan
10Apr
10Jul
10
 

Quantity
of
Blanks
Received
from
Fabricators
 

12
Month
Moving
Average
 

GOAL 2: EffEctivELy mAnAGEd buLLiOn 

And numismAtic prOGrAms 

The United States Mint provides bullion coins, collectible coins and National medals through our bullion and 

numismatic programs. Most of our coin and medal programs are authorized by specific laws. Each program serves 

a different overall purpose as designated by its authorizing legislation. We continually strive for efficient coin 

manufacturing and sales operations. Greater efficiency benefits the American public as a whole, as well as our 

specific customers. 

To effectively manage bullion and numismatic programs, the United States Mint must efficiently utilize our people, 

equipment and other assets to manufacture and provide coin products in the quality and quantity the American 

public demands. This often requires allocating available resources between and within bullion and numismatic 

programs. Supply chains for programs and products often overlap. This can hinder our ability to effectively meet 

demand for all bullion and numismatic products in desired quantities. We prioritize resource allocation based on 

statutory requirements. 

EffEctivELy mAnAGinG thE buLLiOn prOGrAm 

The United States Mint’s bullion program provides consumers a simple and tangible means to acquire precious 

metal coins from authorized dealers as part of an investment portfolio. Investors purchase bullion coins for their 

intrinsic metal value and the United States Government’s guarantee of each coin’s metal weight, content and purity. 

Bullion demand reached historic highs in terms of ounces sold and revenues generated in FY 2010. The United 

States Mint procures precious metal blanks from suppliers to be stamped into bullion coins at the United States Mint 

at West Point. Unprecedented volumes began stressing our suppliers and bullion production capacity in FY 2009. 

We diverted all precious metal planchets to legislatively mandated bullion coin production. However, we were forced 

to set standard allocation and ordering limits so that these products were equitably distributed among authorized 

purchasers. Throughout FY 2010, the United States Mint undertook significant efforts to expand raw materials 

supply and enhance productivity to meet escalating demand. 

ExpAndinG buLLiOn rAw mAtEriALs suppLy The United States Mint worked extensively with our 

fabricators to increase the quantity of precious metal blanks they supplied us in FY 2010. We revised delivery 

schedules to provide raw material gold and silver to 

fabricators at the quantity and frequency that best fit their 

production schedules. Level loading material allowed 

fabricators to more efficiently use resources and increase 

productivity. We identified a new silver blank fabricator 

that began delivering blanks in late FY 2010 and 

continued to pursue additional suppliers. As a result 

of these efforts, vendors increased the average monthly 

supply of all gold and silver blanks by 1.5 million ounces 

(56 percent) from 2.6 million ounces in FY 2009 to 4.1 

million ounces in FY 2010. 

Gold
and
Silver
Blank
Supply
 

(blanks
in
millions)
 

17
EnhancEd Bullion Productivity The United States Mint West Point realized higher output without 

incurring significant costs in FY 2010 through several productivity and efficiency enhancements. We automated coin 

encapsulation and packaging processes, which increased throughput and reduced labor requirements. Through the 

United States Mint’s on-the-job training program, the workforce at the United States Mint at West Point improved 

skills to handle more areas of responsibility. This enabled the facility to readily move employees where they were 

needed. The United States Mint also coordinated with fabricators to increase and level load blank deliveries. This 

allowed our West Point facility to maintain continuous assaying, inspection and coin production. These efforts 

significantly improved productivity. Output increased 23 percent from 175 ounces per labor hour in FY 2009 to 215 

ounces per labor hour in FY 2010. 

MEEting Bullion dEMand Through expanded supply and enhanced productivity, the United States Mint 

achieved record bullion production volumes necessary to fulfill demand for gold bullion coins. As demand remained 

strong, we removed order limits and fully satisfied demand for all 2010 American Eagle gold bullion products 

through the close of FY 2010. 

The United States Mint maintained standard allocation and ordering limits on American Eagle silver one-ounce 

bullion coins through most of FY 2010. By August 2010, we had sufficiently expanded supply to remove order 

limits and fully satisfy demand for silver bullion coins. 

EffEctivEly Managing thE nuMisMatic PrograM 

Our numismatic program provides collectors and other members of the public high-quality versions of the Nation’s 

coinage. Numismatic consumers select products for their aesthetic, historic, nationalist, educational, resale or other 

collectable value as well as their intrinsic metal value. 

FY 2010 was a challenging year for our numismatic operations. The popularity of bullion products stretched our 

resources as we tried to keep up with demand. Because the United States Mint must first meet demand for bullion 

coins, the supply of numismatic products that require the same blanks suffered. The United States Mint was unable 

to offer some key products, such as the American Eagle Silver Proof Coin, in FY 2010 because blanks were diverted 

to bullion coin production. This negatively affected numismatic sales as well as customer retention and satisfaction. 

The slow pace of the economic recovery also likely curtailed sales as some customers refrained from purchasing 

collectibles and other non-essential goods. 

nuMisMatic Product availaBility Survey 

results indicate that customer satisfaction declined largely 

because numismatic versions of American Eagle products 

were unavailable. We addressed product availability by 

expanding precious metal blank supply. By the close of 

FY 2010, expanded supply was sufficient to meet bullion 

demand and redirect a portion of both gold and silver 

blanks for numismatic product production. We launched 

2010 American Eagle Gold Proof Coin products in 

October 2010 and the 2010 American Eagle Silver Proof 

Coin in November 2010. Releasing these popular 

products should boost sales and improve customer 

satisfaction in FY 2011. 

Top Selling Numismatic Products 

(units sold in thousands) 

2009 Uncirculated Coin Set 

2010 Proof Set 

2010 Presidential $1 Coin Proof 

2010 Uncirculated Coin Set 

2009 Proof Set 

2010 Silver Proof Set 

Lincoln Presidency in Washington DC 

One Cent Roll 

2010 Boy Scouts of America 

Centennial Proof Silver Dollar 

2009 Silver Proof Set 

2009 Lincoln One Cent Proof Set 

785 

594 

451 

402 

385 

324 

267 

245 

212 

204 

18
 
 

 

At the close of FY 2010, our manufacturing facilities began gearing up to provide our most popular numismatic 

products earlier in the 2011 calendar year. We will release the 2011 United States Mint annual sets in January 2011. 

This is the first time these core products will be available for sale so early in the calendar year. Our customers 

often purchase products because of the significance of the year minted on each coin or medal. Making products 

available in January ensures customers can obtain them throughout the calendar year to commemorate anniversaries, 

birthdays, reunions and other important occassions. We expect this initiative to improve sales and customer 

satisfaction in FY 2011. 

The NumismaTic cusTomer experieNce To improve our current customers’ experience, we cut the 

amount of time it takes to fill an order in half. We also raised our call center performance standards and redesigned 

both catalog and public information web pages to make them easier to use. We will continue to modernize our 

processes so ordering products and tracking delivery are easy, efficient and seamless, making us consistent with 

prominent consumer-oriented retailers. 

As the America the Beautiful quarters debuted in the spring of 2010, we launched a specialized Website dedicated 

to the program. The America the Beautiful Quarters Program Website enhances customer online experience by 

providing more extensive information about the individual coins and products and the national parks and historic 

sites they commemorate. 

The United States Mint is also modernizing customer relations by communicating to people in diverse ways.
	

We launched Facebook and Twitter sites in July 2010 to broaden customer interaction. We are using new media
	

principally to disseminate product and organizational information to current and potential numismatic customers, 

as well as to obtain direct customer feedback. By the close of FY 2010, we recorded 5,010 “likes” on Facebook and 

had 893 followers on Twitter. 

As we look toward the future, we anticipate modernizing our customer interaction to improve their experience and 

our efficiency. The United States Mint, first and foremost, exists to meet circulating coin demand, but numismatic 

programs are an important part of how we accomplish our promise of Connecting America through Coins. As we 

improve our numismatic program, we expect to better meet customer expectations and demand. 

19
 
GOAL 3: A sAfe, enGAGed, prOductive 

And vALued wOrkfOrce 

The United States Mint endeavors to sustain a well-trained and committed workforce, making it the employer of 

choice for current and future employees. 

A sAfe wOrkfOrce 

The United States Mint experienced another record 

safety year in FY 2010, reducing the incidents of 

injuries and illness below last year’s 14-year low. 

Our total recordable case rate fell to 2.29 recordable 

injuries and illness per 100 full-time workers, the 

lowest rate since we began reporting the figure in 

FY 1996. We also significantly reduced the number 

of work-related injuries or illnesses resulting in lost 

workdays. Lost time accidents fell to 11 in FY 2010 

from 13 in FY 2009. 

For the past two years, ensuring employee safety 

has been a priority at the United States Mint. We 

developed several programs and policies to protect workers and make the workplace environment, as well as 

common work practices, safer. In FY 2010, our executives continued meeting monthly to discuss injury and illness 

rates, any incidents and corrective actions. These efforts included discussing initiatives to reduce risk and prevent 

future incidents. 

Many of our facilities are housed in historic, aging structures. In FY 2010, we conducted safety audits at each 

facility to identify potential issues. In response to findings, we made physical improvements at all of our production 

facilities. These improvements included renovations and restorations, fire suppression, life-safety upgrades 

and ergonomic changes. 

The United States Mint Police protect both our physical assets, such as coinage and equipment, as well as our 

employees. The force receives regular training and participates in national-level exercises when appropriate. This 

year, the United States Mint Police and Information Technology teams coordinated the bureau’s participation in a 

national-level Continuity of Operations (COOP) exercise. Additionally, we are implementing a modern security 

management system that will link all United States Mint facilities and enable us to monitor access control and 

alarms from one central location. 

An enGAGed And prOductive wOrkfOrce 

The United States Mint is taking a proactive stance to cultivate an engaged and productive workforce now and into 

the future. We created the Manufacturer Certification and Apprenticeship Program (MCAP), a structured training 

program to maintain the high level of skill and competency required to manufacture coins and dies. MCAP improves 

workforce flexibility by providing training and development for employees who want to acquire the experience, 

knowledge and skills necessary to perform each step of the coin and die manufacturing process. Developing a 

cross-trained workforce that understands multiple manufacturing functions provides the United States Mint flexibility 

necessary to accommodate changing production demands. It ensures that we maintain a workforce equipped to 

perform mission-critical manufacturing occupations. MCAP also provides upward mobility opportunities for our 

Rate of Injury and Illness Cases per 100 Full-Time Workers 

20
 

15 

12 

9 

6 

3 

0 

 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 
employees and is a registered apprenticeship program with the Department of Labor. Offering MCAP along with 

other opportunities helped the United States Mint to jump from 203 of 216 in 2009 to 159 of 223 in 2010 in the 

Work Training and Development category of the Best Places to Work in the Federal Government rankings. 

To foster excellence in all our employees, the United States Mint is developing an organization-wide Employee 

Development Program (EDP). EDP aims to strengthen core organizational skills and competencies that support job 

performance. The program is expected to be available for employees in 2011. It will provide multiple levels 

of training in key organizational subjects. We are designing EDP courses to address our employees’ requests for 

cross-functional training and self-development opportunities. Establishing and promoting programs that engage 

employees and improve skills is vital to ensuring we meet our mission through excellence in our people. 

A VAlued Workforce 

Employee satisfaction is critical for us to perform our mission and achieve our vision. Recent external and internal 

surveys indicate our employees perceive significant deficiencies in the United States Mint’s work environment 

and leadership. 

The United States Office of Personnel Management (OPM) administers an annual Federal Employee Viewpoint 

Survey (EVS) to randomly selected, full-time, permanent employees of the Federal Government. The survey 

measures employees’ perceptions regarding how effectively their agency manages its workforce. EVS results are 

used to develop the Best Places to Work in the Federal Government rankings. In the 2010 EVS, United States Mint 

employee positive response rates improved in 42 out of 58 recurring questions. Responses indicated that we are on 

the right track in many key areas, such as work life balance and training and development. Much remains to be done 

in other areas. Employee survey responses indicate that employees feel they are not meaningfully recognized for 

their work performance and their leaders do not generate high levels of motivation and commitment. To better 

understand these recent results, in FY 2010, we asked employees to specify the top issues that concern them. Across 

the organization, our employees identified two issues as critical: communication and recognition. We see these 

issues and overall declines in employee satisfaction as symptomatic of the culture that has evolved throughout the 

United States Mint in recent years. Accordingly, the best way to improve employee satisfaction is to change the 

overall culture through our leadership and organizational excellence efforts. 

21
 
GOAL 4: LeAdership And OrGAnizAtiOnAL exceLLence 

The United States Mint strives to maintain public trust and confidence through exemplary leadership, a highperforming culture and best-in-class practices. Developing unified, committed leaders with the requisite skills and 

experience to guide and engage our workforce is a top priority for the United States Mint. To us, organizational 

excellence does not just mean creating coinage; it requires we engage modern technologies and become more 

environmentally sustainable so that we benefit the American public with a well-managed operation. 

impLementinG cuLturAL chAnGe 

In FY 2010, we continued to concentrate on changing the culture at the United States Mint. It had become increasingly 

apparent that our common practices, habits and mindset were inhibiting, rather than supporting, effective operations. 

Survey results and feedback indicated that employees were increasingly dissatisfied with the quality of leadership, 

their involvement in decisions that affect their work and the recognition they received for that work. Unsatisfied and 

disengaged employees have little interest, willingness or ability to contribute to organizational success. 

We determined the best way to counter this is to create a performance, results-based, learning culture. We began implementing cultural change in FY 2009 by developing initiatives to close gaps between our current and desired states. 

We trained all supervisors to develop specific and measureable goals and better communicate to employees what was 

needed to achieve these goals. In FY 2010, supervisors and employees tracked progress towards these goals to improve 

organizational performance. This lay the foundation for further improvements in communication and leadership that 

we implemented throughout FY 2010. 

Effective, two-way communication is critical to our desired culture. Communication has often posed a problem at 

the United States Mint with employees dispersed in six facilities throughout the United States. We initiated a multipronged approach to improve internal communications and provide employees first-hand information on all aspects 

of our business. We enhanced traditional top-down communications, such as the “InfoMint,” a monthly internal 

newsletter. Our Public Affairs Office expanded the newsletter to include content from all six sites and information 

about the United States Mint history. Our Deputy Director initiated a monthly communication to all employees 

highlighting the key events and successes of each department. 

We also focused on ensuring employees had opportunities to share their opinions and operational questions with 

leadership. The Director and Deputy Director attend town halls, quarterly organization-wide meetings which are 

video-conferenced to all locations, and visit all United States Mint locations to give workers a chance to talk to them 

in person. The Director also has brown bag lunches with randomly selected employees when he visits each site to 

discuss issues and offer candid feedback. Another source of information is “Talkin’ Change,” a forum that shares 

answers to virtually all questions submitted anonymously by employees on any topic of concern or interest. Internal 

employee surveys indicate that our efforts are starting to have an effect. The portion of employees who felt senior 

management effectively communicates what the organization is trying to accomplish jumped from 46 percent 

in FY 2009 to 58 percent in FY 2010. 

Another important element of our desired culture is for employees to understand their individual role in the United 

States Mint’s success. Our employees want to understand how their job fits into the organization’s vision, mission 

and goals and how they can help the bureau succeed. Our executives have developed a clear vision of the United 

States Mint’s future and communicated it to all employees. Specific and measurable performance commitments that 

tie to the overall goals will cascade through the organization. Regular performance/development sessions between 

supervisors and employees at all levels of the United States Mint facilitate the critical conversations necessary for 

progress and development. In FY 2010, 62 percent of employees felt discussions with their immediate supervisor 

about their performance were worthwhile, up from 56 percent last year. 

Leadership will reinforce the desired culture through ensuring consistent policies, communicating expectations, and 

leading by example. To improve leadership, the United States Mint created the Leadership Development Program (LDP), 

22
 
a competency-based training and development program for supervisors, managers and executives. LDP is designed 

to provide our leaders with the knowledge, skills and abilities they need to effectively guide and motivate employees. We are seeing gradual improvement in relationships between employees and immediate supervisors. In FY 2010, 

62 percent of employees had trust and confidence in their immediate supervisor, up from 60 percent in FY 2009. 

ExcEllEncE in information tEchnology 

In February 2010, the Department of the Treasury launched “One Treasury” Information Technology (IT) Services, 

a multi-year initiative to implement uniform best-in-class IT services and facilitate information sharing across 

the Department. 

The United States Mint’s overall multi-year IT strategy tightly aligns with “One Treasury” IT Services. In early 2010, 

we conducted a comprehensive assessment of current and future business and IT needs. To bridge the gaps between 

what we currently have and what we need for achieving our new vision, we developed a five-year IT Roadmap to 

transition our environment from disparate technologies and silo applications to a single Enterprise Resource Planning 

(ERP) system. The ERP solution will simplify the IT environment, eliminate redundant applications and integrate 

all necessary business modules into one system. The assessment also identified many immediate improvements that, 

once implemented, made the IT infrastructure more efficient and more stable throughout the rest of the year. 

ExcEllEncE in SuStainability 

When President Barack Obama signed an Executive Order on Federal Leadership in Environmental, Energy and 

Economic Performance in October 2009, he committed the Federal Government to lead by example and help build 

a clean energy economy through our operations. Across the Federal Government, agencies are looking for ways to 

reduce their carbon footprint and advance sustainability much the same way individual Americans and businesses are. 

Producing circulating, investment and collector coins and medals is an energy-intensive process. This year we 

conducted comprehensive energy audits of all facilities, undertook energy reduction projects and used more 

renewable energy when possible. We sought Leadership in Energy and Environmental Design (LEED) and Energy 

Star certification for properties where feasible. Both LEED and Energy Star are internationally recognized 

certification systems that provide third-party verification that a building is maximizing operational efficiency while 

minimizing environmental impacts. 

We were awarded the Bronze Award in the 2010 Federal Electronics Challenge, a partnership program that 

encourages Federal facilities to purchase greener electronic products, reduce the impact of electronic products during 

use and manage obsolete electronics in an environmentally safe way. The United States Mint was awarded for 

implementing IT procurement practices that ensure our purchases meet “green” standards and ensure we do not 

waste or duplicate equipment. 

In the United States Mint Headquarters building in Washington, D.C., our goal is to obtain Energy Star Certification 

through various changes. We replaced light switches with motion sensors, installed automatic towel dispensers which 

halved paper towel usage and began using recycled paper products and environmentally friendly cleaning products. 

A small percentage of our energy at the Headquarters building comes from renewable resources. However, by adding 

weather stripping, insulation and energy efficient light bulbs, we have saved money and reduced our carbon footprint. 

In the Denver and Philadelphia facilities, we plan to convert from purchased steam for heating to capturing and 

recycling steam generated on-site. Our West Point facility is in the process of becoming LEED certified, and our 

Denver facility now purchases 100 percent of its energy from sustainable solar or wind, rather than fossil fuel, 

sources. Through these changes, we have reduced our total greenhouse gas emissions by approximately 27 percent. 

While cost savings are not guaranteed in the short-term, these “Green” initiatives are long-term solutions for 

minimizing the United States Mint’s carbon footprint. We have made good progress and will improve and expand 

on sustainable initiatives as appropriate in the future. 

23
 
Patricia M. Greiner 

United States Mint Chief Financial Officer 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

Message from the Chief Financial Officer: 

I am pleased to present the United States Mint’s financial statements as an integral part of the Fiscal Year (FY) 2010 

Annual Report. As an organization, our priority is to report accurate financial data while objectively and consistently 

executing our fiscal responsibilities. For FY 2010, our independent auditors rendered an unqualified opinion. The 

United States Mint remains committed to accountability and integrity in our financial and management responsibilities. 

The United States Mint again faced a challenging environment in FY 2010. As a result of the economic environment, 

the cash generated from the operation of the United States Mint Public Enterprise Fund remained near FY 2009 

levels but down from prior years. We transferred $388 million to the Treasury General Fund this year, about 18 

percent less than our FY 2009 transfer. 

Shipments of circulating coin to the Federal Reserve Banks (FRB) increased slightly from last year. However, the 

composition of total shipments shifted to lower denominations, generating less revenue and seigniorage from 

circulating operations. Sales of bullion coins soared beyond last year’s record high. We continued efforts to enlarge 

precious metal blanks supply to meet escalating bullion coin demand. The United States Mint expanded bullion 

sales from last year’s record of 27.6 million ounces to 35.8 million ounces in FY 2010. We fully satisfied investor 

demand for American Eagle gold bullion coins and sufficiently expanded silver blank supply to remove order limits 

on American Eagle silver bullion coins in August 2010. By the close of FY 2010, we had redirected a portion of 

gold and silver blanks to resume production of the numismatic versions of these coins for release in late 2010. 

As Chief Financial Officer, I have taken a lead in reinforcing fiscal discipline at the United States Mint. In 2009, 

President Obama charged the Federal Government with saving $40 billion annually by FY 2011 by terminating 

unnecessary contracts and strengthening acquisition management. The Office of Management and Budget, in turn, 

tasked departments and agencies with achieving a 3.5 percent reduction in acquisition expenses in FY 2010 from 

a FY 2008 baseline. We responded with an acquisition improvement plan that consolidated or renegotiated existing 

contracts, expanded competition for new contracts and achieved over $47 million in procurement savings, a 22 

percent reduction from our baseline. 

In recent years, we have also implemented zero-based budgeting, prioritized capital project spending and instituted 

formal processes to scrutinize discretionary budget items. These initiatives ensure we make efficient use of resources 

and enabled us to generate more revenue and output in FY 2010 while holding non-metal operating expenditures 

relatively constant from last fiscal year. 

24
 
In FY 2010, the United States Mint developed a new method for allocating sales, general and administrative (SG&A) 

costs to our products. The new accounting methodology will go into effect in FY 2011 and is in line with industry 

best practices. It allocates costs so that every product we make carries the appropriate amount of SG&A relative to 

the effort to manufacture, market and distribute it. Having accurate information that captures cost data more fully 

and accurately is essential for properly reporting financial statements, as well as monitoring the costs of producing 

circulating coins and numismatic and bullion products. 

Strong financial management and internal controls are the foundation of an efficient and effective organization. In 

FY 2010, the United States Mint conducted a comprehensive assessment of the effectiveness of internal controls over 

financial reporting. Based on the results, we can provide unqualified assurance that internal controls over financial 

reporting are operating effectively. For the second year in a row, the United States Mint did not identify any 

material weaknesses. 

We periodically review internal controls throughout the United States Mint to ensure we are making continuous 

improvements wherever possible. In FY 2010, we enhanced the process for sealing the vaults where we hold gold and 

silver assets. We instituted improved tamperproof seals to further strengthen internal controls over our custodial gold 

and silver holdings. 

The United States Mint prepared its financial statements in compliance with accounting standards issued by the 

Federal Accounting Standards Advisory Board (FASAB). The FASAB is designated by the American Institute of 

Certified Public Accountants as the standard-setting body for the financial statements of Federal government entities, 

with respect to establishment of the United States Generally Accepted Accounting Principles. 

We close FY 2010 continuing to provide the American people high-quality products and good financial results given 

our current operating environment. We are committed to presenting our results in a complete and understandable 

manner to our stakeholders, the American public. We hope you find our annual report useful and transparent. We look 

forward to maintaining our 218 year-old tradition of service to the American public and our collectors in FY 2011. 

Sincerely, 

Patricia M. Greiner 

Chief Financial Officer 

25
 
CiRCULaTing CoinagE 

Circulating coins are shipped to the Federal Reserve Banks (FRB) as needed to replenish inventory and fulfill 

commercial demand. Revenue from the sale of circulating coins is recognized at face value when coins are shipped. 

Earned revenue equals the gross costs incurred to make and distribute coins. Seigniorage is the difference between 

the face value and the gross costs of coins shipped. Seigniorage adds to the Federal Government’s cash balance, 

but unlike the payment of taxes or other receipts, seigniorage does not involve a transfer of financial assets from 

the public. Instead, it arises from the exercise of the Federal Government’s sovereign power to create money and 

the public’s desire to hold financial assets in the form of coins. The President’s Budget excludes seigniorage from 

receipts and treats it as a means of financing the national debt. 

FY 2010 RESULTS 

Total circulating coins shipped to the FRB increased 3.7 percent to 5,399 million pieces in Fiscal Year (FY) 2010 

from 5,207 million pieces in FY 2009. While the total volume grew, the composition of shipments shifted toward 

lower denomination coins, reducing the total value. The total dollar value of circulating shipments to the FRB fell 

20.5 percent to $618.2 million from $777.6 million last year. Weak economic conditions that reduced shipments 

and revenue in FY 2009 continued through the first half of FY 2010. This reversed midway through the fiscal year 

as retail activity recovered and FRB coin inventory fell. Shipments to the FRB in the second half of FY 2010 were 

three times those in the first half of the fiscal year. 

Demand for newly minted coins strengthened for the lowest denominations but lagged for the higher denominations. 

FRB orders for lower denominations jumped in the second half of FY 2010 as accumulated inventory was no longer 

sufficient to enable commerce. Shipments of one-cent and five-cent coins increased 8.4 percent and 73.4 percent, 

respectively, in FY 2010 from FY 2009. Dime shipments more than doubled, increasing 147.8 percent over the same 

time period. 

While declining from FY 2009 levels, FRB inventory of quarter-dollar coins remained more than sufficient to enable 

cash transactions. Accordingly, shipments of newly minted quarters served primarily to fulfill collector demand for 

the America the Beautiful Quarters® Coins. Shipments of quarters fell 73.9 percent to 252 million in FY 2010 from 

965 million in FY 2009. Quarter shipments are expected to remain low until FRB inventory of the coins is depleted 

to levels that better reflect its requirements. 

Shipments of $1 coins declined 9.8 percent to 414 million in FY 2010 from 459 million last year. Shipments were 

augmented by the Circulating $1 Coin Direct Ship Program, which contributed 21.9 percent of total $1 coin 

shipments, compared to 18.6 percent in FY 2009. The $1 coin alone made up 66.9 percent of the total value of coins 

shipped to the FRB, compared to 58.9 percent last year. 

CIRCULATING (dollars in millions except seigniorage per $1 issued) % Change 

2010 2009 2008 2007 2006 2009 to 2010 

Value of Shipments $ 618.2 $ 777.6 $ 1,294.5 $ 1,727.8 $ 1,271.9 (20.5%) 

Gross Cost $ 317.4 $ 349.8 $ 588.3 $ 722.6 $ 603.4 (9.3%)

 Cost of Goods Sold $ 239.2 $ 251.7 $ 491.3 $ 629.1 $ 508.8 (5.0%)

 Sales, General & Administrative $ 78.2 $ 98.1 $ 97.0 $ 93.5 $ 94.6 (20.3%) 

Seigniorage $ 300.8 $ 427.8 $ 706.2 $ 1,005.2 $ 668.5 (29.7%) 

Seigniorage per $1 Issued $ 0.49 $ 0.55 $ 0.55 $ 0.58 $ 0.53 

26
 
The shift in demand toward lower denominations in FY 2010 reduced both the gross cost 

and seigniorage from circulating operations. 

Circulating gross costs fell to $317.4 million

in FY 2010 from $349.8 million in FY 2009. 

Circulating cost of goods sold (COGS) fell 

5.0 percent to $239.2 million in FY 2010 from 

$251.7 million in FY 2009. However, COGS 

made up a larger portion of the total value of 

shipments because of increased metal expenses. 

Market prices of copper, nickel and zinc 

recovered from FY 2009 lows and climbed 

back to prior fiscal year levels. The average 

daily spot price for copper and zinc increased 56.9 percent and 52.4 percent, respectively, from FY 2009 to FY 2010. 

The average daily spot price for nickel rose 55.8 percent over the same time period. Selling, general and administrative expenses (SG&A) declined from $98.1 million in FY 2009 to $78.2 million in FY 2010, reflecting reduced 

expenses to promote $1 coin circulation. While falling $19.9 million from FY 2009, SG&A expenses made up the 

same portion of total value of shipments in FY 2010 because both declined at a similar rate (about 20 percent)

from FY 2009. 

Seigniorage declined 29.7 percent to $300.8 million in FY 2010 from $427.8 million last year. Strong relative

demand for the penny and nickel coins reduced the return from circulating operations because these denominations 

are made at a loss. The $1 coin generated the majority, approximately 94.0 percent, of total seigniorage in FY 2010.

The increased COGS relative to the total value of shipments pulled seigniorage per dollar issued down to $0.49 in 

FY 2010 from $0.55 in FY 2009. 

Value of Shipments by Denomination (dollars in millions)

$ 800 


2008 2009 2010

$ 700 


$ 600 

$ 500 

$ 400 

$ 300

$ 200

$ 100

$ 0 


One-Cent Five-Cent Dime Quarter Dollar 

CIRCULATING UNIT COSTS 

Per-unit metal costs increased in FY 2010, driving up the total unit cost of all denominations from last year. The nickel 

per-unit metal and fabrication cost rose 2.3 cents from FY 2009, increasing the nickel total unit cost 52.9 percent to 

9.2 cents in FY 2010. Higher per-unit metal and fabrication costs also drove up total unit costs for the quarter and $1 

coin. Slight increases in per-unit SG&A costs contributed to higher total unit costs for the dime, quarter and $1 coin. 

Base Metal Daily Official Spot Price (prices per metric tonne in dollars) 

Copper

Price per metric tonne 

10,000

8,000

6,000

4,000

2,000 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 

Zinc

5,000

4,000

Price per metric tonne 

3,000

2,000

1,000

0 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10

60,000

50,000

Price per metric tonne 

40,000

30,000

20,000

10,000

0 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10

Nickel

27
The unit cost for both penny and nickel denominations remained above face value for the fifth consecutive fiscal 

year. Higher unit cost and demand for the five-cent coin increased the overall loss the United States Mint incurred 

from producing these denominations in FY 2010. Penny and nickel coins were produced at a loss of $42.6 million, 

nearly double the FY 2009 loss of $22.0 million. 

Base metal expenses continue to make up the largest portion of circulating production cost, eroding seigniorage 

derived from circulating operations. Toward the end of FY 2009, market prices for copper, nickel and zinc all 

started to increase to FY 2007 levels. Changing the composition of coins to less expensive alternative materials 

could generate significant cost savings and mitigate further reductions in seigniorage should metal market prices 

escalate. The Secretary of the Treasury currently has authority to select the composition of the $1 coin, as well as 

alter the percentage of copper and zinc in the one-cent coin. The compositions of five-cent, dime, quarter-dollar 

and half-dollar coins are codified by statute. Any authority to change the composition of these denominations 

requires a statutory amendment. 

SHIPMENTS TO FEDERAL RESERVE BANKS, COSTS AND SEIGNIORAGE BY DENOMINATION 

(coins and dollars in millions except seigniorage per $1 issued) 

2010 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 Mutilated Total 

 & Other 

Coins Shipped to the FRB 3,487 359 887 252 – 414 – 5,399 

Value of Shipments $ 34.9 $ 17.9 $ 88.7 $ 63.2 $ – $ 413.5 $ – $ 618.2

Gross Cost $ 62.3 $ 33.1 $ 50.6 $ 32.2 $ 0.1 $ 130.7 $ 8.4 $ 317.4

 Cost of Goods Sold $ 62.3 $ 33.1 $ 40.8 $ 24.6 $ 0.1 $ 69.9 $ 8.4 $ 239.2

Sales, General & Administrative $ – $ – $ 9.8 $ 7.6 $ – $ 60.8 $ – $ 78.2

Seigniorage $ (27.4) $ (15.2) $ 38.1 $ 31.0 $ (0.1) $ 282.8 $ (8.4) $ 300.8

Seigniorage per $1 Issued $ (0.79) $ (0.85) $ 0.43 $ 0.49 $ – $ 0.68 $ – $ 0.49

2009 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 Mutilated Total 

 & Other 

Coins Shipped to the FRB 3,218 207 358 965 – 459 – 5,207 

Value of Shipments $ 32.2 $ 10.3 $ 35.7 $ 241.3 $ – $ 458.1 $ – $ 777.6 

Gross Cost $ 52.0 $ 12.5 $ 20.2 $ 109.1 $ (0.1) $ 139.4 $ 16.7 $ 349.8 

 Cost of Goods Sold $ 52.0 $ 12.2 $ 16.6 $ 80.3 $ (0.2) $ 74.1 $ 16.7 $ 251.7 

Sales, General & Administrative $ – $ 0.3 $ 3.6 $ 28.8 $ 0.1 $ 65.3 $ – $ 98.1

Seigniorage $ (19.8) $ (2.2) $ 15.5 $ 132.2 $ 0.1 $ 318.7 $ (16.7) $ 427.8 

Seigniorage per $1 Issued $ (0.61) $ (0.21) $ 0.43 $ 0.55 $ – $ 0.70 $ – $ 0.55

2008 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 Mutilated Total 

 & Other 

Coins Shipped to the FRB 5,272 647 1,070 2,510 – 475 – 9,974 

Value of Shipments $ 52.7 $ 32.3 $ 107.1 $ 627.6 $ – $ 474.8 $ – $ 1,294.5 

Gross Cost $ 74.9 $ 57.1 $ 46.6 $ 273.5 $ – $ 125.4 $ 10.8 $ 588.3 

 Cost of Goods Sold $ 74.7 $ 57.1 $ 40.3 $ 235.2 $ – $ 73.2 $ 10.8 $ 491.3 

 Sales, General & Administrative $ 0.2 $ – $ 6.3 $ 38.3 $ – $ 52.2 $ – $ 97.0 

Seigniorage $ (22.2) $ (24.8) $ 60.5 $ 354.1 $ – $ 349.4 $ (10.8) $ 706.2 

Seigniorage per $1 Issued $ (0.42) $ (0.77) $ 0.56 $ 0.56 $ – $ 0.74 $ – $ 0.55 

28
 
2008 $1.00 2009 2010 

$0.80 

$0.60 

$0.40 

$0.20 

$0.00 

($0.20) 

($0.40) 

($0.60) 

($0.80) 

($1.00) 

One-Cent Five-Cent Dime Quarter Dollar 

Seigniorage per Dollar Issued by Denomination 

UNIT COST OF PRODUCING AND DISTRIBUTING COINS BY DENOMINATION 

2010 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0176 $ 0.0916 $ 0.0454 $ 0.0956 $ – $ 0.1659 

Sales, General & Administrative $ – $ – $ 0.0110 $ 0.0302 $ – $ 0.1469 

Distribution to FRB $ 0.0003 $ 0.0006 $ 0.0005 $ 0.0020 $ – $ 0.0029 

Total Unit Cost $ 0.0179 $ 0.0922 $ 0.0569 $ 0.1278 $ – $ 0.3157 

2009 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0159 $ 0.0579 $ 0.0456 $ 0.0816 $ – $ 0.1601 

Sales, General & Administrative $ – $ 0.0014 $ 0.0101 $ 0.0298 $ – $ 0.1424 

Distribution to FRB $ 0.0003 $ 0.0010 $ 0.0008 $ 0.0017 $ – $ 0.0017 

Total Unit Cost $ 0.0162 $ 0.0603 $ 0.0565 $ 0.1131 $ – $ 0.3042 

2008 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0139 $ 0.0877 $ 0.0371 $ 0.0925 $ – $ 0.1517 

Sales, General & Administrative $ – $ – $ 0.0059 $ 0.0153 $ – $ 0.1098 

Distribution to FRB $ 0.0003 $ 0.0006 $ 0.0006 $ 0.0012 $ – $ 0.0026 

Total Unit Cost $ 0.0142 $ 0.0883 $ 0.0436 $ 0.1090 $ – $ 0.2641 

Note: FY 2009 $1 Cost of Goods Sold unit cost revised to $0.1601 from $0.1599 in FY 2009 Annual Report to correct a rounding error. 

29
 

 

United States Mint at Denver employee Gail Frazier inspects the edge lettering 

sides of the blank and reduces it to a size that fits into the coining press collar. 

on a Presidential $1 Dollar Coin. Edge lettering is applied after the coin is minted. Once the blanks 

are dried, they move to the upsetting mill. This machine raises rims around the edge on both 

30
 
31
 

BULLION PRODUCTS
 

The United States Mint mints and issues gold, silver and platinum bullion coins to Authorized Purchasers through 

American Eagle and American Buffalo Bullion Coin Programs. The bureau purchases precious metal on the open 

market at the time of an order. Coins are sold to Authorized Purchasers at the same market price paid for the metal to 

produce the coins plus a premium to cover bullion program operating costs. Authorized Purchasers agree to maintain 

an open, two-way market for these coins, assuring their liquidity. This allows the public to purchase and sell coins at 

the prevailing market price, adjusting for any premium the authorized purchaser applies. The purpose of the bullion 

program is to make precious metal coins available at minimal cost to investors. Consequently, the United States 

Mint manages the bullion program to a nominal net margin. 

FY 2010 RESULTS 

Demand for bullion coins reached a new high in FY 2010, surpassing the unprecedented demand of FY 2009. 

Uncertainty surrounding traditional investments and concerns about future inflation continued to drive investor 

demand into FY 2010. Demand appeared to be easing, along with precious metal market prices, in the second 

quarter of the fiscal year. However, global fears over European sovereign debt caused demand to rebound as the spot 

prices of gold and silver soared back to record nominal highs in the third quarter. Spot prices began declining again 

at the beginning of the fourth quarter but bounced back to new record nominal highs. Bullion coin sales remained 

strong as perceptions on the global economic outlook worsened through the close of FY 2010. 

The United States Mint sold 35.8 million ounces of gold and silver bullion coins in FY 2010, up 8.2 million ounces 

(29.7 percent) from the previous record total sales of 27.6 million in FY 2009. The bureau sold this record volume 

to Authorized Purchasers at higher prices, reflecting the increased market value for gold and silver. The average spot 

price of gold and silver increased 29.2 percent and 40.1 percent, respectively, in FY 2010 from FY 2009. Accordingly, 

total bullion revenue reached a record high of $2,855.4 million in FY 2010, up $1,160.6 million (68.5 percent) from 

$1,694.8 million in FY 2009. 

The volume of precious metal planchets the United States Mint’s suppliers can provide in a timely manner limits the 

number of bullion products the bureau can produce. In FY 2010, the United States Mint worked extensively with 

existing and new vendors to increase the quantity of gold and silver planchets they supply the bureau. As in FY 2009, 

the United States Mint diverted planchets from discretionary numismatic and bullion programs to American Eagle 

gold and silver bullion coin programs for which the bureau is required to mint and issue coins in quantities sufficient 

to meet public demand. While demand remained strong, the United States Mint fully satisfied demand for 2010 

American Eagle gold bullion coins throughout FY 2010. 

The United States Mint maintained standard allocation and ordering limits on American Eagle silver bullion coins 

through most of FY 2010. These measures ensure that scarce products are equitably distributed among Authorized 

Purchasers. In August 2010, expanded supply was sufficient to remove ordering limits and satisfy all demand for 

silver bullion coins. 

BULLION (dollars in millions) % Change 

2010 2009 2008 2007 2006 2009 to 2010 

Sales Revenue $ 2,855.4 $ 1,694.8 $ 948.8 $ 356.1 $ 536.6 (68.5%) 

Gross Cost $ 2,800.2 $ 1,662.1 $ 931.0 $ 351.6 $ 524.4 (68.5%)

 Cost of Goods Sold $ 2,778.4 $ 1,650.0 $ 922.6 $ 350.0 $ 523.0 (68.4%)

 Sales, General & Administrative $ 21.8 $ 12.1 $ 8.4 $ 1.6 $ 1.4 (80.2%) 

Net Income $ 55.2 $ 32.7 $ 17.8 $ 4.5 $ 12.2 (68.8%) 

Bullion Net Margin 1.9% 1.9% 1.9% 1.3% 2.3% 
High sales volumes and market prices drove gross cost up to 

$2,800.2 million in FY 2010 from $1,662.1 million in FY 2009. 

Cost of goods sold (COGS) increased to $2,778.4 million in FY 

2010 from $1,650.0 million last year but made up the same portion 

of total sales revenue. Bullion sales generated the largest portion

of the United States Mint’s total revenue. Consequently, a greater 

portion of sales, general and administrative (SG&A) expense was 

allocated to the bullion program in FY 2010. Bullion SG&A increased

to $21.8 million in FY 2010 from $12.1 million last year. Bullion 

net income increased 68.8 percent to $55.2 million in FY 2010 from 

$32.7 million in FY 2009. The bullion program was successfully 

managed to just below the standard net margin of two percent. 

AMERICAN EAGLE PROGRAM 

Revenue from the sales of American Eagle 22-karat gold and silver 

bullion coins experienced record growth. 

American Eagle gold bullion sales revenue increased 33.8 percent to $1,710.8 million in FY 2010 from $1,278.2 

million in FY 2009. Revenue from the sale of these 22-karat gold coins made up 59.9 percent of total bullion 

revenue in FY 2010. American Eagle gold coin revenue was boosted by sales of 2009 and 2010 year-dated fractional 

weights (one-half, one-fourth or one-tenth ounces), which were both initially released for sale during the fiscal year. 

The United States Mint sold 174,000 ounces of American Eagle gold fractional weight coins in FY 2010, six times 

the ounces sold in FY 2009. 

American Eagle silver bullion sales revenue increased 77.4 percent to $659.9 million in FY 2010 from $372.0 million

in FY 2009. American Eagle silver one-ounce bullion coins made up the vast majority (94.9 percent) of total ounces 

sold in FY 2010. The United States Mint sold approximately 34.0 million ounces of silver bullion coins, up 30.0 

percent from last year. 

Net income from American Eagle gold coins increased from $25.5 million in FY 2009 to $35.3 million in FY 2010. 

American Eagle silver coin net income more than doubled, increasing to $13.5 million from $6.1 million last year. 

Starting in calendar year 2009, the United States Mint suspended production of American Eagle platinum coins to 

divert production capacity to mandatory bullion programs. There is no statutory requirement for the United States 

Mint to produce or supply platinum bullion coins. All American Eagle platinum bullion coin revenue recorded 

in FY 2009 resulted from the sale of calendar year 2008 coin inventory in the first quarter. No American Eagle

platinum bullion coin sales revenue was recorded in FY 2010. 

Revenue by Bullion Program (dollars in millions)

$1,800 

2008 2009 2010 

$1,600 

$1,400 

$1,200 

$1,000 

$800

$600 

$400 


$200 

$0 American American American Eagle American

Eagle Gold Eagle Silver Platinum Buffalo Gold 

Precious Metal Daily Spot Price (prices per troy ounce in dollars)


Gold Silver

1,400

1,200

1,000

800

600

400 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10

25

20

15

10

5 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10

Platinum

32

2,500

2,000

1,500

1,000

500 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10
AMERICAN BUFFALO PROGRAM 

The American Buffalo program achieved record ounces sold and revenue in FY 2010 because both 2009 and 2010 

24-karat gold coins were released for sale during the fiscal year. The United States Mint delayed release of the 2009 

American Buffalo bullion coins to divert planchet supply and production capacity to American Eagle 22-karat gold 

one-ounce coin production. While Federal law requires the United States Mint to meet public demand for American 

Eagle coins, the American Buffalo program’s authorizing legislation only provides that 24-karat gold bullion coins 

be minted and issued in quantities the Secretary of the Treasury prescribes. After fully satisfying demand for 

American Eagle gold coins, the United States began acquiring planchets for the American Buffalo program in the 

fourth quarter of FY 2009. The bureau began offering 2009 American Buffalo 24-karat gold one ounce coin sales 

in October 2009. The United State Mint launched the 2010 coins for sale in May 2010. 

Both 2009 and 2010 coins sold out during the fiscal year. Revenue from American Buffalo coins totaled $484.7 

million in FY 2010, significantly above FY 2009 revenue of $20.9 million. FY 2009 American Buffalo revenue 

resulted from the sale of a small quantity of 2008 coins during the first quarter. FY 2010 revenue was nearly three 

times FY 2008 revenue, during which American Buffalo sales were more typical of prior fiscal years. American 

Buffalo gold net income grew to $6.4 million in FY 2010 from $0.1 million in FY 2009. 

BULLION REVENUE, COST AND NET INCOME BY PROGRAM 

(dollars in millions) 

2010 American American American American Total 

Eagle Gold Eagle Silver Eagle Platinum Buffalo Gold 

Sales Revenue $ 1,710.8 $ 659.9 $ – $ 484.7 $ 2,855.4 

Gross Cost $ 1,675.5 $ 646.4 $ – $ 478.3 $ 2,800.2 

Cost of Goods Sold $ 1,663.5 $ 641.7 $ – $ 473.2 $ 2,778.4 

 Sales, General & Administrative $ 12.0 $ 4.7 $ – $ 5.1 $ 21.8

Net Income $ 35.3 $ 13.5 $ – $ 6.4 $ 55.2

Bullion Net Margin 2.1% 2.0% – 1.3% 1.9% 

2009 American American American American Total 

Eagle Gold Eagle Silver Eagle Platinum Buffalo Gold 

Sales Revenue $ 1,278.2 $ 372.0 $ 23.7 $ 20.9 $ 1,694.8 

Gross Cost $ 1,252.7 $ 365.9 $ 22.7 $ 20.8 $ 1,662.1 

Cost of Goods Sold $ 1,245.0 $ 361.9 $ 22.4 $ 20.7 $ 1,650.0 

 Sales, General & Administrative $ 7.7 $ 4.0 $ 0.3 $ 0.1 $ 12.1

Net Income $ 25.5 $ 6.1 $ 1.0 $ 0.1 $ 32.7

Bullion Net Margin 2.0% 1.6% 4.2% 0.5% 1.9% 

2008 American American American American Total 

Eagle Gold Eagle Silver Eagle Platinum Buffalo Gold 

Sales Revenue $ 449.6 $ 306.4 $ 22.4 $ 170.4 $ 948.8 

Gross Cost 

Cost of Goods Sold 

 Sales, General & Administrative 

Net Income 

Bullion Net Margin 

$ 439.4 

$ 435.3 

$ 4.1 

$ 10.2 

2.3% 

$ 301.4 

$ 299.3 

$ 2.1 

$ 5.0 

1.6% 

$ 21.5 

$ 21.2 

$ 0.3 

$ 0.9 

4.0% 

$ 168.7 

$ 166.8 

$ 1.9 

$ 1.7 

1.0% 

$ 931.0 

$ 922.6 

$ 8.4 

$ 17.8 

1.9% 

33
 
United States Mint at San Francisco employee Ofelia Reyes is monitoring coin blanks for proof sets. They are

being burnished to remove oxidation layers. After blanks are cut, they are placed in a furnace at temperatures over 

700 degrees centigrade to soften the metal (a process called annealing). From the furnace, the blanks drop into

a quench tank to reduce the temperature. Next, the blanks travel through a huge cylindrical tube called the

whirlaway. Suspended high above the ground, these tubes tilt at a 45-degree angle toward the washing and drying 

station. As the blanks travel up the whirlaway toward the washer, excess liquid is drained. The high temperature

of the annealing process creates a grayish discoloration on the surface of the metal. To make it bright and shiny, 

the metal needs to be cleaned to remove oxides, tarnish, discoloration or contamination that remains after annealing. 

34
numismatic PRODucts
 

The United States Mint prepares and distributes a variety of numismatic products directly to the public. The value 

of sales of numismatic products is considered earned revenue in the financial statements. The net return from numismatic operations is calculated by subtracting the program’s gross costs from sales revenue. The pricing for this 

program is managed to at or below a 15 percent net margin overall to ensure sale prices are as low as practicable 

and returns are sufficient to fund numismatic operating costs. 

FY 2010 REsuLts 

Retail sales of numismatic versions of the United States Mint’s circulating and commemorative coins and medals 

weakened in FY 2010 compared to prior fiscal years. The United States Mint offered fewer precious metal 

numismatic products in FY 2010 because gold and silver blanks were diverted to the bullion program. Additionally, 

poor economic conditions may have suppressed consumer spending on collectibles as sales of available recurring 

products declined from prior years. The introduction of the new America the Beautiful Quarters Program numismatic 

products did not offset this decline. 

Because numismatic sales shifted toward higher priced products, revenue declined slightly from last year’s total 

despite lower sales volumes. Numismatic total units sold fell to approximately 6.5 million from 8.0 million last year. 

Numismatic sales revenue fell only 6.1 percent to $413.1 million in FY 2010 from $440.0 million last year. 

Lower sales volumes reduced numismatic gross costs by 8.9 percent to $363.3 million in FY 2010 from $398.9 

million in FY 2009. Cost of goods sold (COGS) decreased to $298.6 million and made up a slightly smaller portion 

of numismatic sales revenue. Sales, general and administrative (SG&A) expenses declined 6.5 percent to $64.7 

million but remained fairly consistent relative to revenue. Less SG&A expense was allocated to the numismatic 

program in FY 2010 because numismatic sales generated a smaller portion of the United States Mint’s total revenue. 

Despite reduced demand, numismatic program net income and seigniorage increased to $49.8 million in FY 2010 

from $41.1 million in FY 2009. Earnings growth reflected a shift in sales toward high margin products. Gross cost 

made up a smaller portion of numismatic sales revenue, boosting the net margin to 12.1 percent in FY 2010 from 9.3 

percent in FY 2009. 

REcuRRinG PROGRams 

Recurring programs include high quality versions of the Nation’s circulating coinage that are specially packaged. 

These products include annual sets, America the Beautiful Quarters sets, and Presidential $1 Coin sets. Revenue 

from recurring programs decreased 4.0 percent to $191.9 million in FY 2010 from $199.8 million in FY 2009. 

Despite lower sales revenue and volumes, net income more than doubled, increasing from $9.9 million in FY 2009 to 

$21.2 million in FY 2010. Earnings grew because recurring program COGS fell 13.7 percent and made up a smaller 

NUMISMATIC (dollars in millions) 

% Change 

2010 2009 2008 2007 2006 2009 to 2010 

Sales Revenue $ 413.1 $ 440.0 $ 557.2 $ 551.5 $ 514.9 (6.1%) 

Gross Cost $ 363.3 $ 398.9 $ 474.8 $ 475.6 $ 427.7 (8.9%)

 Cost of Goods Sold $ 298.6 $ 329.7 $ 388.1 $ 396.7 $ 346.2 (9.4%)

 Sales, General & Administrative $ 64.7 $ 69.2 $ 86.7 $ 78.9 $ 81.5 (6.5%) 

Net Income & Seigniorage $ 49.8 $ 41.1 $ 82.4 $ 75.9 $ 87.2 21.2% 

Numismatic Net Margin 12.1% 9.3% 14.8% 13.8% 16.9% 

Seigniorage Portion $ 12.0 $ 19.3 $ 22.5 $ 27.1 $ 13.9 (37.8%) 

35
 
portion of revenue. The raw materials and production costs for 2010 annual sets fell from the 2009 counterparts 

because the current year sets included fewer individual coins. This reduction in COGS also resulted in a higher 

net margin. 

2009 ULTRA HIGH RELIEF DOUBLE EAGLE GOLD COIN 

Sales of the 2009 Ultra High Relief Double Eagle Gold Coin began on January 22, 2009, and generated $112.4 million 

in revenue in FY 2009. The 2009 Ultra High Relief Double Eagle Gold Coin was the highest revenue generating 

numismatic product, contributing 25.5 percent of total sales revenue in FY 2009. The United States Mint continued 

to offer the coins for sale through the close of the 2009 calendar year. Sales of the 2009 Ultra High Relief Double 

Eagle Gold Coin generated $35.1 million in revenue in FY 2010. 

The United States Mint recorded some expenses charged to the entire program upon conclusion in FY 2010. This 

drove up COGS and resulted in negative net income for the fiscal year. However, the entire 2009 Ultra High Relief 

Double Eagle Gold Coin generated positive net income of $4.1 million over all three fiscal years containing financial 

results for the program. 

AMERICAN EAGLE PROGRAM 

American Eagle gold, silver and platinum coins are offered in proof and uncirculated quality as part of the 

numismatic program. In FY 2009, the United States Mint suspended production of gold and silver American Eagle 

numismatic products to divert precious metal planchet supply to bullion coin production. Consequently, sales of 

American Eagle platinum numismatic products made up the vast majority of American Eagle revenue in FY 2010. 

During the fiscal year, the bureau released for sale the first two of a series of six annual one-ounce American 

Eagle Platinum numismatic Proof Coins with reverse designs honoring principles in the preamble to the United 

States Constitution. 

Revenue from the sale of American Eagle products fell 40.7 percent to $32.7 million in FY 2010 from $55.1 million 

in FY 2009. All revenue recorded in FY 2009 resulted from the sale of 2008 American Eagle numismatic products 

in the first half of FY 2009. American Eagle program net income fell from $5.2 million in FY 2009 to $4.3 million 

in FY 2010. The net margin increased to 13.1 percent because American Eagle platinum products made up the vast 

majority of sales. American Eagle platinum products were sold at a higher margin because the raw material was 

purchased when platinum market prices were low relative to FY 2010 market prices. The price of one-ounce 

American Eagle Platinum Proof Coin varies with platinum market prices at the point of sale to ensure that consumers 

are unaffected by deviations between the product and market price. 

AMERICAN BUFFALO PROGRAM 

Revenue from the sale of American Buffalo numismatic products increased significantly in FY 2010 because both 

2009 and 2010 versions of the 24-karat gold proof one-ounce coin were released for sale during the fiscal year. As 

with the American Buffalo bullion program, the United States Mint delayed release of the 2009 American Buffalo 

gold numismatic products to divert planchet supply and production capacity to American Eagle bullion coin production. The bureau offered the 2009 American Buffalo gold proof one-ounce coin for sale in October 2009. The 2010 

coin was released for sale in June 2010. Revenue from American Buffalo products sales grew to $115.6 million in 

FY 2010 from $25.7 million in FY 2009. All revenue recorded in FY 2009 resulted from the sale of 2008 American 

Buffalo numismatic products in the initial quarters of FY 2009. 

36
 
Revenue by Numismatic Program (dollars in millions) 

$250 2008 2009 2010 

$200 

$150 

$100 

$ 50 

$ 0 Ultra High American American Commem- Sale of Recurring Relief Eagle Buffalo orative Circulating 

American Buffalo program net income increased to $12.6 million in FY 2010 from $1.5 million last year. The net 

margin increased to 10.9 percent because FY 2010 sales consisted of only American Buffalo gold proof one-ounce 

coins. FY 2009 sales included American Buffalo gold uncirculated one-ounce coins and the 2008 Celebration Coin, 

which were both sold at a lower margin. The margin on the proof coin was consistent from fiscal year to fiscal year. 

COMMEMORATIVE COIN PROGRAMS 

Revenue from the sale of commemorative coins, less surcharges paid to recipient organizations, declined slightly 

to $20.1 million in FY 2010 from $21.6 million in FY 2009. Two commemorative programs were launched in FY 

2010. The American Veterans Disabled for Life Silver Dollar Program generated $9.0 million in revenue and $2.3 

million in eligible surcharges for the recipient organization as of September 30, 2010. The Boy Scouts of America 

Centennial Silver Dollar Program generated $13.5 million in revenue and $3.5 million in eligible surcharges for the 

recipient organization as of September 30, 2010. 

Commemorative coin programs are managed on a calendar year basis. Truncating program results to fiscal year can 

result in negative net income. The United States Mint manages commemorative programs to a nominal net income 

after eligible surcharge so that costs are recovered. 

NUMISMATIC SALES OF CIRCULATING COINAGE 

The United States Mint sells certain circulating coins through numismatic channels. Revenue from these sales is 

recognized as the face value of circulating coin sold in the same way as circulating shipments to the FRB. The total 

face value from the sale of circulating coinage fell 30.3 percent to $17.7 million in FY 2010 from $25.4 million in 

FY 2009. Seigniorage from the numismatic sale of circulating coins is not available to the United States Mint as 

spending authority, but is transferred to the Treasury General Fund as off-budget receipts. Seigniorage decreased to 

$12.0 million in FY 2010 from $19.3 million last fiscal year. 

37
 
NUMISMATIC REVENUE, COST AND NET INCOME OR SEIGNIORAGE BY PROGRAM 

(dollars in millions) 

2010 Recurring Ultra High American American Commemorative Numismatic Sale Total 

Relief Eagle Buffalo of Circulating 

Sales Revenue $ 191.9 $ 35.1 $ 32.7 $ 115.6 $ 20.1 $ 17.7 $ 413.1 

Gross Cost $ 170.7 $ 37.1 $ 28.4 $ 103.0 $ 18.4 $ 5.7 $ 363.3 

Cost of Goods Sold $ 131.9 $ 36.2 $ 21.9 $ 90.3 $ 14.9 $ 3.4 $ 298.6 

 Sales, General & Administrative $ 38.8 $ 0.9 $ 6.5 $ 12.7 $ 3.5 $ 2.3 $ 64.7 

Net Income & Seigniorage $ 21.2 $ (2.0) $ 4.3 $ 12.6 $ 1.7 $ 12.0 $ 49.8 

Numismatic Net Margin 11.0% (5.7%) 13.1% 10.9% 8.5% 67.8% 12.1% 

2009 Recurring Ultra High American American Commemorative Numismatic Sale Total 

Relief Eagle Buffalo of Circulating 

Sales Revenue $ 199.8 $ 112.4 $ 55.1 $ 25.7 $ 21.6 $ 25.4 $ 440.0 

Gross Cost $ 189.9 $ 106.0 $ 49.9 $ 24.2 $ 22.8 $ 6.1 $ 398.9 

Cost of Goods Sold $ 152.9 $ 88.9 $ 43.6 $ 21.9 $ 19.1 $ 3.3 $ 329.7 

 Sales, General & Administrative $ 37.0 $ 17.1 $ 6.3 $ 2.3 $ 3.7 $ 2.8 $ 69.2 

Net Income & Seigniorage $ 9.9 $ 6.4 $ 5.2 $ 1.5 $ (1.2) $ 19.3 $ 41.1 

Numismatic Net Margin 5.0% 5.7% 9.4% 5.8% (5.6%) 76.0% 9.3% 

2008 Recurring Ultra High American American Commemorative Numismatic Sale Total 

Relief Eagle Buffalo of Circulating 

Sales Revenue $ 245.5 $ 0.0 $ 166.0 $ 78.8 $ 37.3 $ 29.6 $ 557.2 

Gross Cost $ 226.1 $ 0.3 $ 137.4 $ 71.0 $ 32.9 $ 7.1 $ 474.8 

Cost of Goods Sold $ 174.8 $ 0.1 $ 117.1 $ 64.7 $ 27.6 $ 3.8 $ 388.1

 Sales, General & Administrative $ 51.3 $ 0.2 $ 20.3 $ 6.3 $ 5.3 $ 3.3 $ 86.7 

Net Income & Seigniorage $ 19.4 $ (0.3) $ 28.6 $ 7.8 $ 4.4 $ 22.5 $ 82.4 

Numismatic Net Margin 7.9% – 17.2% 9.9% 11.8% 76.0% 14.8% 

38
 
39

TRANSFER TO THE TREASURY GENERAL FUND

As required by U.S.C. § 5136, the United States Mint deposits all receipts from operations and programs into the 

United States Mint Public Enterprise Fund (PEF). Periodically throughout the year, the bureau transfers amounts in 

the PEF determined to be in excess of amounts required to support on-going United States Mint operations

and programs.

The United States Mint’s operations yielded lower returns in FY 2010 compared to prior fiscal years. Circulating 

receipts historically generate the vast majority of the PEF’s transfer to the Treasury General Fund. Higher base metal 

expenses and a shift in demand toward lower denominations in FY 2010 generated reduced seigniorage amounts for 

the PEF. Consequently, the United States Mint PEF generated a $388.0 million return to the Treasury General Fund, 

an 18.3 percent decrease from the $475.0 million return in FY 2009.

OFF-BUDGET TRANSFER 

The off-budget transfer is seigniorage, the financing source resulting from the sale of circulating coins. Seigniorage 

arises from the Federal Government exercising its sovereign power to create money. The President’s Budget excludes 

the off-budget transfer from receipts and treats it as a means of financing the national debt. The comparatively

low level of seigniorage generated in FY 2010 reduced the off-budget transfer 14.8 percent to $375.0 million from

$440.0 million in FY 2009.

ON-BUDGET TRANSFER 

The on-budget transfer consists of the prior fiscal year net income from operations (excluding seigniorage). This 

represents numismatic (including bullion) net income less the net cost of protection of assets. The United States 

Mint retains the net income from the prior fiscal year operations, pending the completion of the financial statement 

audit. Until that time, the amount is considered permanently not available as a funding source for PEF operations. 

The on-budget transfer is treated as receipts and available to reduce the deficit or fund current Federal Go vernment 

operations or programs. Resulting from FY 2009 net income from operations, the FY 2010 on-budget transfer totaled

$13.0 million. The FY 2009 on-budget transfer from FY 2008 net income from operations totaled $35.0 million.

Off­Budget Transfer (dollars in millions) On-Budget Transfer (dollars in millions) 

TRANSFERS TO THE TREASURY GENERAL FUND (dollars in millions) 

2010 2009 2008 2007 2006

% Change 

2009 to 2010

On-Budget $ 13.0 $ 35.0 $ 15.0 $ 43.0 $ 84.0 (62.9%)

Off-Budget $ 375.0 $ 440.0 $ 735.0 $ 782.0 $ 666.0 (14.8%)

Total Transfer $ 388.0 $ 475.0 $ 750.0 $ 825.0 $ 750.0 (18.3%)

 

United States Mint at West Point employee Keith Gopel checks the hardness of silver blanks. 

The United States Mint has established specifications for hardness, so employees must test incoming 

blank shipments to make sure they meet the criteria. 

40
 
Performance Goals, objectives and results 

As mandated by the Government Performance & Results Act of 1993, agencies are to identify critical activities, 

devise pertinent performance measures, and report on these activities to the President and Congress. In FY 2010, the 

United States Mint developed new strategic goals focused on effectively meeting all circulating demand; effectively 

managing bullion and numismatic programs; a safe, engaged, productive and valued workforce; and leadership and 

organizational excellence. The organization’s progress in achieving each of these goals was presented in earlier 

sections in this report. To assess performance on primary budget activities, the United States Mint monitors six key 

performance measures. 

seiGnioraGe Per dollar issued 

Seigniorage per dollar issued is the return to circulating operations, calculated as seigniorage divided by the total 

face value of circulated coinage shipped to Federal Reserve Banks (FRB). 

Seigniorage per dollar issued was $0.49 in FY 2010, below the performance target of $0.53. Base metal expenses 

and the mix of circulating coin ordered by the FRB largely determine seigniorage per dollar issued performance. 

In FY 2010, increasing metal costs and a shift in the mix of ordered coins toward lower denominations reduced 

seigniorage per dollar issued. Market prices of copper, nickel and zinc recovered from FY 2009 lows and climbed 

back to prior fiscal year levels. This caused circulating COGS to increase relative to the value of shipments. The 

composition of circulating coins ordered by the FRB shifted to lower denomination coins. Higher shipments of 

one-cent and five-cent coins reduce seigniorage relative to the value of shipments because these coins are minted 

and issued at costs that exceeds their face values. 

Metal market prices are expected to hold at higher levels as the global economy improves. To mitigate the challenge 

of rising metal prices, the United States Mint and the Department of the Treasury continue to work with Congress 

to examine options for changing the composition of circulating coinage to less expensive materials. This would 

improve future seigniorage per dollar issued performance. 

circulatinG on-time deliverY 

Circulating on-time delivery is the percentage of total scheduled orders shipped on time to the FRB. The United 

States Mint is responsible for providing the Nation’s coinage in quantities that the Secretary of the Treasury 

determines to be necessary to meet the needs of the United States. To accomplish this mission, the United States 

Mint must supply coinage in the quantities and timelines specified by the FRB. The FRB is then responsible for 

distributing coinage to the commercial banks. 

The United States Mint shipped 99.8 percent of scheduled orders on time to the FRB in FY 2010. This was a baseline 

year for the performance measure so no target was set. The bureau continuously monitors the circulating supply 

chain to ensure circulating coins are timely and accurately provided to the FRB. 

safetY incident recordable rate 

The safety incident recordable rate is the number of injuries and illnesses meeting the Occupational Safety and 

Health Administration recording criteria per 100 full-time workers. It measures the occurrence of work-related 

incidents involving death, lost time and restricted work, loss of consciousness, and medical treatment. This definition 

follows Part 1904 of Title 29, Code of Federal Register (29 C.F.R. Part 1904). 

The safety incident recordable rate fell to 2.29 in FY 2010, below the 3.86 target and down from 2.50 in FY 2009. 

The United States Mint will continue to place a high priority on ensuring employee safety. 

41
 
NUMISMATIC CUSTOMER BASE 

The numismatic customer base consists of the total number of unique purchasers within a fiscal year. A unique 

purchaser is defined as an account number and address and name combination without a prior purchase in the 

fiscal year. 

The numismatic customer based totaled 798,515 in FY 2010, below the target of 976,000 and down from 1.06 million 

in FY 2009. The United States Mint customer retention and acquisition performance declined because the bureau 

was unable to offer key gold and silver numismatic products for sale after January 2009. In particular, popular 

American Eagle numismatic products were unavailable because precious metal planchets were diverted to the 

bullion program in accordance with the United States Mint’s statutory requirement to fulfill bullion demand. 

Economic conditions may have also curtailed customer spending on collectibles from prior years. 

By the close of FY 2010, the United States Mint had sufficiently expanded gold and silver planchet supply to fulfill 

bullion demand and redirect a portion of blanks for numismatic production. Releasing popular gold and silver 

numismatic products is expected to improve customer retention and acquisition as well as customer satisfaction in 

FY 2011. The United States Mint will also work to identify and remedy inhibitors to customer satisfaction in the 

upcoming fiscal year. 

CUSTOMER SATISFACTION INDEX (CSI) 

The United States Mint conducts a quarterly Customer Satisfaction Measure Tracking Survey among a random 

sample of active customers. The survey is intended to capture customer satisfaction with the United States Mint’s 

performance as a coin supplier and the quality of specific numismatic products. CSI is as a single quantitative score 

of survey results. 

CSI was 86.1 percent in FY 2010, below the target of 88.0 percent and down from the FY 2009 result of 88.3 

percent. Satisfaction with performance as a coin supplier declined through most of FY 2010. About 77.0 percent of 

respondents reported high satisfaction with the United States Mint’s performance in this category, down from 80.5 

percent in FY 2009. Customer satisfaction with product quality declined slightly from FY 2009 but remained strong, 

with 95.2 percent of respondents highly satisfied with the quality of products. 

At the close of FY 2010, the United States Mint began repositioning manufacturing and sales operations to offer 

popular numismatic products for sale beginning in January 2011. The bureau expects early release of core products 

will augment numismatic sales and customer satisfaction in FY 2011. 

PROTECTION COST PER SQUARE FOOT 

Protection cost per square foot is the Protection Department’s total operating cost divided by the area of usable space 

of the United States Mint. Usable space is defined as 90 percent of total square footage. Operating costs exclude 

depreciation. Total square footage of usable space is relatively constant and only changes with major events such as 

the addition or removal of a facility. The measure indicates the Protection Department’s cost efficiency in safeguarding 

United States Mint facilities, employees and assets. 

Protection cost per square foot increased to $32.26 in FY 2010 from $31.57 last year. The FY 2010 result was $0.51 

above the target of $31.75. The Protection Department total operating cost increased by approximately $936,568 

(2.2 percent) from FY 2009. The Protection Department significantly reduced travel, transportation, rent, communication and utilities expenses from last fiscal year. However, these cuts were more than offset by standard growth 

in expenses for personnel compensation and benefits. 

The Protection Department will continue efforts to contain costs while fulfilling protection responsibilities in FY 2011. 

42
 
43

BUDGET PERFORMANCE MEASURES 

2010 result 2010 target 2009 2008 2007 2006

Seigniorage per Dollar Issued $ 0.49 $ 0.53 $ 0.55 $ 0.55 $ 0.58 $ 0.53

Circulatin g On-Time Delivery 99.8% Baseline n/a n/a n/a n/a

Safety Incident Recordable Rate 2.29 3.86 2.50 4.10 3.84 3.45

Numismatic Customer Base 0.799 million 0.976 million 1.06 million 1.27 million 0.97 million n/a

Customer Satisfaction Index (CSI) 86.1% 88.0% 88.3% 87.5% 90.5% 90.5%

Protection Cost per Square Foot $ 32.26 $ 31.75 $ 31.57 $ 31.76 $ 31.29 $ 32.49
AnAlysis of systems, Controls And legAl CompliAnCe
 

The United States Mint is responsible for establishing and maintaining effective internal control over financial 

reporting, which includes safeguarding of assets and compliance with laws and regulations. The United States Mint 

has made a conscious effort to meet the internal control requirements of the Federal Manager’s Financial Integrity 

Act (FMFIA), the Federal Financial Management Improvement Act (FFMIA), the Office of Management and 

Budget (OMB) Circular A-123, and the Reports Consolidation Act of 2000. The departments under the United 

States Mint’s purview are operating in accordance with the procedures and standards prescribed by the Comptroller 

General and Office of Management and Budget guidelines. 

The systems of management controls for the United States Mint are designed to ensure that: 

• programs achieve their intended results; 

• resources are used consistently with the overall mission; 

• programs and resources are free from waste, fraud and mismanagement; 

• laws and regulations are followed; 

• controls are sufficient to minimize any improper or erroneous payments; 

• performance information is reliable; 

• systems security is in substantial compliance with all relevant requirements; 

• continuity of operations planning in critical areas is sufficient to reduce risk to reasonable levels; and 

• financial management systems are in compliance with Federal financial systems standards, i.e., 

FMFIA Section 4 and FFMIA. 

For all United States Mint responsibilities, we provide herein unqualified assurance that the above listed management 

control objectives, taken as a whole, were achieved by our organization during FY 2010. Specifically, this assurance 

is provided relative to Sections 2 and 4 of the FMFIA. We further assure that our financial management systems are 

in substantial compliance with requirements imposed by the FFMIA. 

In 2010, we conducted the mandatory Treasury evaluation of the effectiveness of the United States Mint’s internal 

controls over financial reporting in accordance with OMB Circular A-123, Management’s Responsibility for Internal 

Control, Appendix A. Based on the results of this evaluation, the United States Mint can provide unqualified 

assurance that internal control over financial reporting as of June 30, 2010, is operating effectively, and no material 

weaknesses were found in the design or operation of the internal controls over financial reporting. 

44
 
In addition, the United States Mint has committed to maintaining effective internal control as demonstrated by the 

following actions: 

• Annual audits of the United States Mint’s financial statements pursuant to the Chief Financial Officers Act, as 

amended, including a) information revealed in preparing the financial statements; b) auditor’s reports on the 

financial statements; c) internal controls and compliance with laws and regulations and other materials related to 

preparing financial statements. 

• Tracking and closure of corrective actions identified in the Financial Statement Audit and A-123 Assessment. 

• Internal management and program reviews conducted for the purpose of assessing management controls. 

• Annual Action Items developed by the United States Mint’s Senior Staff to implement organization-wide 

initiatives and promote internal efficiencies, cultural accountability and greater public awareness. 

• Reviews of financial systems for requirements compliance in conjunction with OMB Circular A-127 and FFMIA. 

• Reviews of systems, applications and contingency plans conducted pursuant to the Computer Security Act of 1987 

(40 U.S.C. § 759 note) and OMB Circular A-130, Management of Federal Information Resources. 

• Annual assessments, reviews and reporting performed in compliance with the Improper Payment Information 

Act (IPIA). 

• Reviews and reporting in compliance with the Federal Information Security Management Act (FISMA). 

The United States Mint is committed to continue to monitor and improve its internal controls throughout 

the entire organization. 

45
 
Limitations of the financiaL statements 

The principal financial statements have been prepared to report the financial position and results of operations 

of the United States Mint, pursuant to the requirements of 31 U.S.C. § 3515(b). The statements have been prepared 

from the books and records of the United States Mint in accordance with generally accepted accounting principles 

for Federal entities and the formats prescribed by the Office of Management and Budget. The statements are in 

addition to the financial reports used to monitor and control budgetary resources, which are prepared from the same 

books and records. The statements should be read with the realization that they are for a component of the United 

States Government. 

46
 
Independent Auditors’ Report 

Inspector General
 

United States Department of the Treasury
 

Director 

United States Mint:
 

We have audited the accompanying balance sheets of the United States Mint as of September 30, 2010 and 2009, and the related 

statements of net cost, changes in net position, and combined statements of budgetary resources (hereinafter referred to as
 

“financial statements”) for the years then ended. These financial statements are the responsibility of the United States Mint’s 

management. Our responsibility is to express an opinion on these financial statements based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America; the standards 

applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United 

States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, 

as amended. Those standards and OMB Bulletin No. 07-04 require that we plan and perform the audits to obtain reasonable 

assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal 

control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the 

purpose of expressing an opinion on the effectiveness of the United States Mint’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well 

as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the 

United States Mint as of September 30, 2010 and 2009, and its net costs, changes in net position, and budgetary resources for the 

years then ended in conformity with U.S. generally accepted accounting principles. 

The information in the Management’s Discussion and Analysis, and Required Supplementary Information, is not a required part 

of the financial statements, but is supplementary information required by U.S. generally accepted accounting principles. We have 

applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement 

and presentation of this information. However, we did not audit this information and, accordingly, we express no opinion on it. 

Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The information 

in the United States Mint at a Glance, Director’s Letter, Organizational Profile, Our Goals and Appendix 1: FY 2010 Coin and 

Medal Products are presented for purposes of additional analysis and are not required as part of the financial statements. This 

information has not been subjected to auditing procedures and, accordingly, we express no opinion on it. 

In accordance with Government Auditing Standards, we have also issued our reports dated December 2, 2010, on our consideration of the United States Mint’s internal control over financial reporting and our tests of its compliance with certain provisions 

of laws, regulations, and contracts and other matters. The purpose of those reports is to describe the scope of our testing of internal 

control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal 

control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with 

Government Auditing Standards and should be read in conjunction with this report in assessing the results of our audits. 

December 2, 2010 

47
 
48

DEPARTMENT OF THE TREAS URY UNITED STATES MINT 

BALANCE SHEETS 

(dollars in thousands) 

As of September 30,

A

s

o

f

S

e

p

t

e

m

b

e

r

3

0

,

2010 2009

Assets

Intragovernmental:

Fund Balance with Treasury (Note 3)

$ 331,944 $ 429,476

Accounts Receivable, Net (Note 4) 456 406

Advances and Prepayments (Note 5) 3,178 2,877

Total Intragovernmental Assets 335,578 432,759

Custodial Gold and Silver Reserves (Notes 6) 10,493,740 10,493,740

Accounts Receivable, Net (Note 4) 7,365 6,890

Inventory (Notes 7 and 20) 451,560 354,900

Supplies 17,138 16,815

Property, Plant and Equipment, Net (Note 8) 190,295 200,148

Advances and Prepayments (Note 5) 2 2

Total Non-Intragovernmental Assets $ 11,160,100 $ 11,072,495

Total Assets (Notes 2 and 14) $ 11,495,678 $ 11,505,254

Heritage Assets (Note 9)

Liabilities

Intragovernmental: 

Accounts Payable $ 5,798 $ 5,597

Accrued Workers’ Compensation and Benefits 8,857 7,831

Total Intragovernmental Liabilities 14,655 13,428

Custodial Liability to Treasury (Note 6) 10,493,740 10,493,740

Accounts Payable 32,720 41,697

Surcharges Payable (Note 3) 13,055 7,330

Accrued Payroll and Benefits 17,834 17,409

Other Actuarial Liabilities 26,663 25,380

Unearned Revenue 1,846 1,710

Deposit Fund Liability 94 25

Total Non-Intragovernmental Liabilities $ 10,585,952 $ 10,587,291

Total Liabilities (notes 10 and 14) $ 10,600,607 $ 10,600,719

Commitments and Contingencies (Notes 12, 13 and 20)

Net Position

Cumulative Results of Operations - Earmarked Funds (Note 14) 895,071 904,535

Total Liabilities and Net Position $ 11,495,678 $ 11,505,254

The accompanying notes are an integral part of these financial statements.
Department of the treasury uniteD states mint 

statements of net Cost 

49
 

(dollars in thousands) 

For the years ended September 30, 

2010 2009 

numismatic production and sales

 Gross Cost $ 3,157,758 $ 2,054,905
 

Less Earned Revenue (Note 16) (3,250,844) (2,109,436)
 

Net Program Cost (Revenue) 

numismatic production and sales of Circulating Coins

 Gross Cost 5,740 6,145

 Less Earned Revenue (Note 16) (5,740) (6,145) 

(93,086) (54,531)
 

Net Program Cost – – 

Circulating production and sales

 Gross Cost 317,357 349,843

 Less Earned Revenue (Note 16) (317,357) (349,843) 

Net Program Cost 

Net Program Cost (Revenue) Before Protection of Assets 

protection of assets

 Protection Costs 41,547 41,102

Less Earned Revenue (Note 16) (3) – 

Net Cost of Protection Assets 

net Cost (revenue) from operations (notes 14 and 15) 

– – 

(93,086) (54,531) 

41,544 41,102 

$ (51,542) $ (13,429)

The accompanying notes are an integral part of these financial statements. 
Department of the treasury uniteD states mint 

statements of ChanGes in net position 

(dollars in thousands) 

For the years ended September 30, 

2010 2009 

Cumulative results of operations 

net position, Beginning of year - earmarked funds (note 14) $ 904,535 $ 906,374 

Financing Sources: 

Transfers to the Treasury General Fund On-Budget (Note 19) (13,000) (35,000) 

Transfers to the Treasury General Fund Off-Budget (Note 19) (375,000) (440,000)

 Other Financing Sources (Seigniorage) (Note 16) 312,814 447,068

 Imputed Financing Sources (Note 11) 14,180 11,834 

Transfers in Without Reimbursement – 830 

Total Financing Sources (61,006) (15,268) 

Net Revenue from Operations 51,542 13,429 

net position, end of year - earmarked funds (note 14) $ 895,071 $ 904,535 

The accompanying notes are an integral part of these financial statements. 

50
 
51

DEPARTMENT OF THE TREASURY UNITED STATES MINT 

STATEMENTS OF BUDGETARY RESOURCES

(dollars in thousands)

For the years ended September 30,

2010 2009

Budgetary resources

Unobligated balance, brought forward October 1 $ 245,683 $ 50,858

Recoveries of prior-year unpaid obligations 28,879 54,939

Budget authority

Spending authority from offsetting collections 

Earned 

Collected 3,519,214 2,467,058

Change in receivable from federal sources 50 7

Change in unfilled customer orders

Advance received 136 (9,313)

Without advance from federal sources 792 (369)

Subtotal 3,520,192 2,457,383

Permanently not available (13,000) (35,000)

Total Budgetary Resources $ 3,781,754 $ 2,528,180

Status of Budgetary Resources

Obligations incurred

Reimbursable (Note 17 and Note 21) $ 3,670,761 $ 2,282,497

Unobligated balances

Apportioned 110,993 245,683

Total Status of Budgetary Resources $ 3,781,754 $ 2,528,180

Change in Obligated Balances

Obligated balance, net

Unpaid obligations, brought forward, October 1 $ 190,523 $ 259,645

Less: Uncollected customer payments from federal sources, 

brought forward, October 1 (6,755) (7,117)

Total unpaid obligated balance, net 183,768 252,528

Obligations incurred, net (Note 17) 3,670,761 2,282,497

Gross outlays (3,603,950) (2,296,680)

Recoveries of prior-year unpaid obligations, actual (28,879) (54,939)

Change in uncollected customer payments from federal sources (842) 362

Unpaid obligations 228,454 190,523

Uncollected customer payments from federal sources (7,598) (6,755)

Total unpaid obligated balance, net, end of period 220,856 183,768

Net O utlays

Net outlays

Gross outlays 3,603,950 2,296,680

Collections (3,519,349) (2,457,745)

Total O utlays $ 84,601 $ (161,065)

The accompanying notes are an integral part of these financial statements.
NOTES TO ThE FINANCIAL STATEMENTS 

For the Years Ended September 30, 2010 and 2009 

(dollars are in thousands except Fine Troy Ounce information) 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

REPORTING ENTITY Established in 1792, the United States Mint is a bureau of the Department 

of the Treasury (Treasury). The mission of the United States Mint is as follows: To manufacture and 

distribute circulating coins, precious metals and collectible coins, and national medals to meet the 

needs of the United States. Numismatic products include medals; proof coins; uncirculated coins; 

platinum, gold, and silver bullion coins; commemorative coins; and related products or accessories. 

Custodial assets consist of the Treasury-owned gold and silver bullion reserves. These custodial reserves 

are often referred to as “deep storage” and “working stock,” and are reported on the Balance Sheet. 

The production of numismatic products is financed through sales to the public. The production of 

circulating coinage is financed through sales of coins at face value to the Federal Reserve Banks 

(FRB). Additionally, the United States Mint sells certain circulating products directly to the public as 

numismatic items. Activities related to protection of Treasury-owned custodial assets are funded by the 

United States Mint Public Enterprise Fund (PEF). 

Pursuant to Public Law (P.L.) 104-52, Treasury, Postal Service, and General Government Appropriation Act for FY 1996, as codified at 31 U.S.C. § 5136, the PEF was established to account for all 

receipts and expenses related to production and sale of numismatic items and circulating coinage, as 

well as protection activities. Expenses accounted for in the PEF include the entire cost of operating the 

United States Mint. Any amount in the PEF that is determined to be in excess of the amount required 

by the PEF shall be transferred to the Treasury General Fund. 

Treasury’s Bullion Fund (Bullion Fund) is used to account for Treasury-owned gold and silver reserves. 

A separate Schedule of Custodial Deep Storage Gold and Silver Reserves has been prepared for the 

deep storage portion of the Treasury-owned gold and silver reserves for which the United States Mint 

acts as custodian. 

BASIS OF ACCOUNTING AND PRESENTATION The accompanying financial statements were 

prepared based on the reporting format promulgated by Office of Management and Budget (OMB) 

Circular A-136, Financial Reporting Requirements, and in accordance with accounting standards issued 

by the Federal Accounting Standards Advisory Board (FASAB). The United States Mint’s financial 

statements have been prepared to report the financial position, net cost of operations, changes in net 

position, and budgetary resources, as required by 31 U.S.C. § 5134. 

Management uses estimates and assumptions in preparing financial statements. Those estimates and 

assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and 

liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. 

Accounts subject to estimates include, but are not limited to, depreciation, imputed costs, payroll 

and benefits, accrued worker’s compensation, allowance for uncollectible accounts receivable, and 

unemployment benefits. 

The accompanying financial statements have been prepared on the accrual basis of accounting. Under 

the accrual method, revenues and other financing sources are recognized when earned and expenses are 

recognized when a liability is incurred, without regard to receipt or payment of cash. 

52
 
EARNED REVENUES AND OTHER FINANCING SOURCES (SEIGNIORAGE) 

Numismatic Sales: Revenue from numismatic sales to the public is recognized when products are 

shipped to customers. Prices for most numismatic products are based on the product cost plus a 

reasonable net margin. Bullion coins are priced based on the market price of the precious metals plus 

a premium to cover manufacturing, marketing and distribution costs. 

Numismatic Sales of Circulating Coins: Specially packaged products containing circulating coins sold 

directly to the public without first being sold to the FRB. These products are treated as a circulating 

and numismatic hybrid product. Revenue is recognized when products are shipped to customers. 

Circulating Sales: The PEF provides for the sale of circulating coinage at face value to the FRB. 

Revenue from the sale of circulating coins is recognized when the product is shipped to the FRB. 

Revenue from the sale of circulating coins to the FRB and numismatic sales of circulating coins to 

the public is limited to the recovery of the cost of manufacturing and distributing those coins. 

Other Financing Source (Seigniorage): Seigniorage equals the face value of newly minted coins less 

the cost of production (which includes the cost of metal, manufacturing, and transportation). Seigniorage 

adds to the government’s cash balance, but unlike the payment of taxes or other receipts, it does not 

involve a transfer of financial assets from the public. Instead, it arises from the exercise of the government’s sovereign power to create money and the public’s desire to hold financial assets in the form 

of coins. Therefore, the President’s Budget excludes seigniorage from receipts and treats it as a means 

of financing. Seigniorage is recognized when coins are shipped to the FRB in return for deposits 

to the PEF. 

Rental Revenue: The United States Mint sublets office space at cost to other Federal entities in the two 

leased buildings in Washington, DC. In addition, a commercial vendor subleases a portion of the first 

floor space of the building at 801 9th Street, NW. 

FUND BALANCE WITH TREASURY All cash is maintained at the Treasury. Fund Balance with 

Treasury is the aggregate amount of the United States Mint’s cash accounts with the U.S. Government’s 

central accounts and from which the United States Mint is authorized to make expenditures. It is an 

asset because it represents the United States Mint’s claim to U.S. Government resources. 

ACCOUNTS RECEIVABLE Accounts receivable are amounts due to the United States Mint from 

the public and other Federal entities. An allowance for uncollectible accounts receivable is established 

for all accounts that are more than 180 days past due. However, the United States Mint will continue 

collection action on those accounts that are more than 180 days past due, as specified by the Debt 

Collection Improvement Act of 1996. 

INVENTORIES Inventories of circulating and numismatic coinage are valued at either cost or market, 

whichever is lower. Costs of the metal and fabrication components of the inventories are determined 

using a weighted average inventory methodology. Conversion costs (i.e., the cost to convert the 

fabricated blank into a finished coin) are valued using a standard cost methodology. The United States 

Mint uses three classifications for inventory: raw material (raw metal, unprocessed coil or blanks); 

work-in-process (WIP – material being transformed to finished coins), and finished goods (coins that 

are packaged or bagged and ready for sale or shipment to the public or the FRB). 

53
 
 

 

 

 

TREASURY-OWNED CUSTODIAL GOLD AND SILVER BULLION RESERVES Treasuryowned gold and silver reserves consist of both “deep storage” and “working stock” gold and silver. 

Deep Storage is defined as that portion of the Treasury-owned Gold and Silver Bullion Reserve which 

the United States Mint secures in sealed vaults. Deep storage gold comprises the vast majority of the 

Bullion Reserve and consists primarily of gold bars. Deep storage silver is also primarily in bar form. 

Working Stock is defined as that portion of the Treasury-owned Gold and Silver Bullion Reserve which 

the United States Mint can use as the raw material for minting coins. Working stock gold comprises only 

about one percent of the Gold Bullion Reserve and consists of bars, blanks, unsold coins and condemned 

coins. Similarly, working stock silver consists of bars, blanks, unsold coins and condemned coins. 

Treasury allows the United States Mint to use some of its gold and silver as working stock. Generally, 

the United States Mint does not deplete the working stock when used in production. Instead, the United 

States Mint will purchase a like amount of gold and silver on the open market to replace the working 

stock used. In those rare cases in which the gold or silver is depleted, the United States Mint reimburses 

Treasury the current market value of the depleted gold or silver. 

SUPPLIES Supplies are items that are not considered inventory and are not a part of the finished 

product. These items include plant engineering and maintenance supplies, as well as die steel and coin 

dies. Supplies are accounted for using the consumption method, in which supplies are recognized as 

assets upon acquisition and expensed as they are consumed. 

ADVANCES AND PREPAYMENTS Payments in advance of the receipt of goods and services are 

recorded as advances and prepaid expenses at the time of prepayment, and are expensed when related 

goods and services are received. 

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are valued at cost less 

accumulated depreciation. The United States Mint’s threshold for capitalizing new property, plant and 

equipment is $25,000 for single purchases and $500,000 for bulk purchases. Depreciation is computed 

on a straight-line basis over the estimated useful lives of the related assets as follows: 

Computer Equipment 3 to 5 years
	

Software 2 to 10 years
	

Machinery and Equipment 7 to 20 years
	

Structures, Facilities and Leasehold Improvements 10 to 30 years
	

Major alterations and renovations are capitalized over the shorter of a 20-year period or the remaining 

useful life of the asset and depreciated using the straight-line method, while maintenance and repair 

costs are charged to expense as incurred. There are no restrictions on the use or convertibility of general 

property, plant and equipment. 

HERITAGE ASSETS Heritage assets are items that are unique because of their historical, cultural, 

educational, or artistic importance. These items are collection-type assets that are maintained for 

exhibition and are preserved indefinitely. 

LIABILITIES Liabilities represent actual and estimated amounts likely to be paid as a result of 

transactions or events that have already occurred. All liabilities covered by budgetary resources can 

be paid from revenues received by the PEF. 

SURCHARGES Legislation authorizing commemorative coin programs often requires that the sales 

price of each coin include an amount, called a surcharge, which is authorized to provide funds to a 

qualifying organization or group of organizations for the purposes specified. A surcharges payable 

account is established for surcharges collected, but not yet paid, to designated recipient organizations. 

54
 
Recipient organizations cannot receive surcharge payments unless all of the United States Mint’s 

operating costs for the coin program are fully recovered. The United States Mint may make interim 

surcharge payments during a commemorative program if the recipient organization meets the eligibility criteria in the authorizing legislation, if the recovery of all costs of the program is determinable, 

and if the United States Mint is assured it is not at risk of a loss. Additionally, recipient organizations 

must demonstrate that they have raised from private sources an amount equal to or greater than the 

surcharges collected based on sales, and recipient organizations must prove compliance with Title VI 

of the Civil Rights Act of 1964. A recipient organization has two years from the end of the program to 

meet the matching requirement. 

EARMARKED FUNDS Pursuant to P.L. 104-52, the PEF was established as the sole funding source 

for United States Mint activities. The PEF meets the requirements of an earmarked fund as defined in 

Statement of Federal Financial Accounting Standard (SFFAS) 27, Identifying and Reporting Earmarked 

Funds. As non-entity and non-PEF assets, the Treasury-owned gold and silver bullion reserves are not 

considered to be earmarked funds. 

UNEARNED REVENUES These are amounts received for numismatic orders which have not yet 

been shipped to the customer. 

RETURN POLICY If for any reason a numismatic customer is dissatisfied, the entire product must be 

returned within seven days of receiving the order to receive a refund or replacement. Shipping charges 

are not refunded. Further, the United States Mint will not accept partial returns or issue partial refunds. 

Historically, the United States Mint receives few returns, which are immaterial. Therefore, no reserve 

for returns is considered necessary. 

SHIPPING AND HANDLING The United States Mint reports shipping and handling costs of circulating coins and numismatic products as a cost of goods sold. General postage costs for handling administrative mailings are reported as part of the United States Mint’s general and administrative expenses. 

ANNUAL, SICK AND OTHER LEAVE Annual leave is accrued when earned and reduced as leave 

is taken. The balance in the accrued leave account is calculated using current pay rates. Sick leave and 

other types of non-vested leave are charged to operating costs as they are used. 

ACCRUED WORKERS’ COMPENSATION AND OTHER ACTUARIAL LIABILITIES The 

Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to cover 

Federal civilian employees injured on the job or who have developed a work-related occupational 

disease, and to pay beneficiaries of employees whose deaths are attributable to job-related injuries or 

occupational disease. The FECA program is administered by the United States Department of Labor 

(DOL), which pays valid claims and subsequently seeks reimbursement from the United States Mint 

for these paid claims. 

The FECA liability is based on two components. The first component is based on actual claims paid 

by DOL but not yet reimbursed by the United States Mint. There is generally a two- to three-year time 

period between payment by DOL and DOL’s requesting payment from the United States Mint. The 

second component is the actuarial liability, which estimates the liability for future payments as a result 

of past events. The actuarial liability includes the expected liability for death, disability, medical and 

miscellaneous costs for approved compensation cases. 

PROTECTION COSTS Treasury-owned gold and silver reserves are in the custody of the United 

States Mint, which is responsible for safeguarding the reserves. These costs are borne by the United 

States Mint, but are not directly related to the circulating or numismatic coining operations of the 

55
 
United States Mint. The Protection Department is a separate function from coining operations and is 

responsible for safeguarding the reserves as well as United States Mint employees and facilities. 

OTHER COST AND EXPENSES (MUTILATED AND UNCURRENT) Other costs and expenses 

consist primarily of returns of mutilated or uncurrent coins to the United States Mint. Coins that are 

chipped, fused and/or not machine-countable are considered mutilated. The United States Mint 

reimburses the entity that sent in the mutilated coins, using weight formulas that estimate the face 

value of these coins. Uncurrent coins are worn, but machine-countable, and their genuineness and 

denominations are still recognizable. Uncurrent coins are replaced with new coins of the same denomination by the FRB. The FRB then seeks replacement coins from the United States Mint. All mutilated 

or uncurrent coins received by the United States Mint are sold to its fabrication contractors to be 

processed into coils or blanks to be used in future coin production. 

TAX EXEMPT STATUS As an agency of the Federal Government, the United States Mint is exempt 

from all taxes imposed by any governing body, whether it is a Federal, state, commonwealth, local or 

foreign government. 

CONCENTRATIONS The United States Mint purchases the coil and blanks used in the production 

of circulating coins from three vendors at competitive market prices. The United States Mint also purchases precious metal blanks from five different suppliers, an increase of one supplier from FY 2009. 

CONTINgENT LIAbILITIES Certain conditions exist as of the date of the financial statements 

that may result in a loss to the government, but which will be resolved only when one or more future 

events occur or fail to occur. The United States Mint recognizes a loss contingency when the future 

outflow or other sacrifice of resources is probable and reasonably estimable. Loss contingencies that 

are determined by management to have a reasonably possible chance of occurring or that cannot be 

estimated are included as a footnote to the financial statements. Contingent liabilities considered 

remote are generally not disclosed unless they involve guarantees, in which case the nature of the 

guarantee is disclosed. 

TRANSFERS TO THE TREASURY gENERAL FUND The United States Mint transfers amounts 

determined to be in excess of the amounts required for United States Mint operations and programs to 

the Treasury General Fund periodically throughout the fiscal year. 

Seigniorage derived from the sale of circulating coins and from net income from the revenues generated 

by the sale of numismatic products containing circulating coins is an off-budget receipt to the Treasury 

General Fund. Off-budget means that these funds cannot be used to reduce the annual budget deficit. 

Instead, they are used as a financing source (i.e., they reduce the amount of cash that Treasury has to 

borrow to pay interest on the national debt). 

Revenues generated from the sale of numismatic products are transferred to the Treasury General Fund 

as an on-budget receipt. Unlike seigniorage, the numismatic transfer amount is available to the Federal 

government as current operating cash or it can be used to reduce the annual budget deficit. 

bUDgETARY RESOURCES The United States Mint does not receive an appropriation from the 

Congress. Instead, the United States Mint receives all financing from the public and the FRB, and 

receives an apportionment of those funds from OMB. This apportionment is considered a budgetary 

authority, which allows the United States Mint to spend the funds. The United States Mint’s budgetary 

resources consist of unobligated balances, transfers, and spending authority from offsetting collections, 

which is net of amounts that are permanently not available. “Permanently not available” funds are 

on-budget transfers to the General Fund. 

56
 
Hedging The United States Mint engages in a hedging program to avoid fluctuation in silver costs 

as a result of the changes in market prices. The United States Mint purchases silver in large quantities 

and sells an interest in that silver to a trading partner, while maintaining physical custody and title to 

the silver. Sales of silver to the trading partner are made at the same spot price that the United States 

Mint paid to obtain the silver on the open market. The partner’s interest in United States Mint silver 

is reduced as finished silver bullion coins are sold to authorized purchasers (APs). Repurchases of the 

trading partner’s interest in the silver occurs upon sale of coins by the United States Mint. Repurchases 

are made on the same day as sales, in the same quantity sold, and using the same spot price as was 

used for the sale to the AP. Each sale to and from the trading partner carries a small transaction fee, the 

selling and buying fees net to a cost of one-half cent per ounce. The United States Mint incurred $170 

thousand in hedging fees in FY 2010, compared to $121 thousand incurred in FY 2009. 

2. nOn-enTiTY ASSeTS 

Components of Non-entity Assets as of September 30 are as follows:

 2010 2009 

Custodial Gold Reserves (Deep Storage) $ 10,355,539 $ 10,355,539 

Custodial Silver Reserves (Deep Storage) 9,148 9,148 

Custodial Gold Reserves (Working Stock) 117,514 117,514 

Custodial Silver Reserves (Working Stock) 11,539 11,539 

Total Non-entity Assets 10,493,740 10,493,740 

Total Entity Assets 1,001,938 1,011,514 

Total Assets $ 11,495,678 $ 11,505,254 

Entity assets are assets that the reporting entity has authority to use in its operations. United States 

Mint management has legal authority to use entity assets to meet entity obligations. Treasury-owned 

gold and silver bullion reserves, for which the United States Mint is custodian, are non-entity assets. 

3. FUnd BALAnCe WiTH TReASURY 

Fund Balance with Treasury as of September 30 consists of the following:

 2010 2009 

Revolving Fund $ 331,850 $ 429,451 

Other 94 25 

Total Fund Balance with Treasury $ 331,944 $ 429,476 

Status of Fund Balance with Treasury 

Unobligated Balance $ 110,993 $ 245,683 

Obligated Balance, Not Yet Disbursed 220,857 183,768 

Non-Budgetary FBWT

Total

 94 

$

25 

331,944 $ 429,476

The United States Mint does not receive appropriated budget authority. The Fund Balance with Treasury 

is entirely available for use to support United States Mint operations. At September 30, 2010 and 2009, 

the revolving fund balance included $13.1 million and $7.3 million, respectively, in restricted amounts 

for possible payment of surcharges to recipient organizations. 

57
 
4. ACCOUNTS RECEIVABLE, NET 

Components of accounts receivable are as follows:

September 30, 2010

Gross Allowance Net Receivables 

Intragovernmental $ 6,402 ($5,946) $ 456 

With the Public 9,055 (1,690) 7,365 

Total Accounts Receivable $ 15,457 ($7,636) $ 7,821

 September 30, 2009

 Gross Allowance Net Receivables 

Intragovernmental $ 6,352 ($5,946) $ 406 

With the Public 8,427 (1,537) 6,890 

Total Accounts Receivable $ 14,779 ($7,483) $ 7,296 

The Intragovernmental accounts receivable as of September 30, 2010 and 2009 was $6.4 million. This 

largely represents amounts due to the United States Mint for a joint numismatic product with another 

Federal entity. Management determined that the collection of $5.9 million related to the program was 

in doubt and has included that amount in the Allowance for Doubtful Accounts. Receivables with the 

public at September 30, 2010, are $9.1 million, of which $6.1 million is owed by fabricators for scrap 

and webbing, in addition to amounts owed by the public for numismatic products. This compares to 

receivables with the public at September 30, 2009, of $8.4 million, of which $1.6 million was owed by 

fabricators for scrap and webbing, in addition to amounts owed by the public for numismatic products. 

The allowance for doubtful accounts is the balance of the accounts receivable with the public that is past 

due by 180 days or more. Collection action continues on these accounts, but an allowance is recorded. 

5. ADVANCES AND PREPAYMENTS 

The components of advances and prepayments as of September 30 are as follows: 

2010 2009 

Intragovernmental $ 3,178 $ 2,877 

With the Public 2 2 

Total Advances and Prepayments $ 3,180 $ 2,879 

Intragovernmental advances and prepayments as of September 30, 2010 and 2009 include $1.7 million 

and $2.1 million, respectively, that the United States Mint paid the Treasury Working Capital Fund for 

a variety of centralized services. The remaining balance of approximately $1.4 million represents payments made to the United States Postal Service for product delivery services as of September 30, 2010, 

compared to approximately $700 thousand paid at September 30, 2009. Advances with the public for 

both FY 2010 and 2009 are outstanding travel advances to United States Mint employees who were 

traveling on government business. 

58
 

Receivables

Receivables
6. CUSTODIAL GOLD AND SILVER BULLION RESERVES 

As custodian, the United States Mint is responsible for safeguarding much of the Treasury-owned gold 

and silver bullion reserves, which include deep storage and working stock. The asset and the custodial 

liability to Treasury are reported on the Balance Sheet at statutory rates. In accordance with 31 U.S.C. § 

5117(b) and 31 U.S.C. § 5116(b)(2), statutory rates of $42.2222 per fine troy ounce (FTO) of gold and 

no less than $1.292929292 per FTO of silver are used to value the entire custodial reserves held by the 

United States Mint. 

The market value for gold and silver as of September 30 is determined by the London Gold Fixing 

(PM) rate. Amounts and values of custodial gold and silver in custody of the United States Mint as 

of September 30 are as follows: 

2010 2009 

Gold - Deep Storage:

 Inventories (FTO) 245,262,897 245,262,897

 Market Value ($ per FTO) $ 1,307.00 $ 995.75

 Market Value ($ in thousands) $ 320,558,606 $ 244,220,530

 Statutory Value ($ in thousands) $ 10,355,539 $ 10,355,539 

Gold - Working Stock:

 Inventories (FTO) 2,783,219 2,783,219

 Market Value ($ per FTO) $ 1,307.00 $ 995.75

 Market Value ($ in thousands) $ 3,637,667 $ 2,771,390

 Statutory Value ($ in thousands) $ 117,514 $ 117,514 

Silver - Deep Storage:

 Inventories (FTO) 7,075,171 7,075,171

 Market Value ($ per FTO) $ 22.07 $ 16.45

 Market Value ($ in thousands) $ 156,149 $ 116,387

 Statutory Value ($ in thousands) $ 9,148 $ 9,148 

Silver - Working Stock:

 Inventories (FTO) 8,924,829 8,924,829

 Market Value ($ per FTO) $ 22.07 $ 16.45 

Market Value ($ in thousands) $ 196,971 $ 146,813 

Statutory Value ($ in thousands) $ 11,539 $ 11,539 

Total Market Value of Custodial Gold 

and Silver Reserves ($ in thousands) $ 324,549,393 $ 247,255,119 

Total Statutory Value of Custodial Gold 

and Silver Reserves ($ in thousands) $ 10,493,740 $ 10,493,740 

59
 
60

7. INVENTORY 

The components of inventories as of September 30 are summarized below:

2010 2009

Raw Materials $ 243,903 $ 191,320

Work-In-Process 109,933 68,364

Inventory held for current sale 97,724 95,216

Total Inventory $ 451,560 $ 354,900

Raw materials consist of unprocessed materials and by-products of the manufacturing process and the 

metal value of unusable inventory, such as scrap or condemned coins, that will be recycled into a usable 

raw material. In addition, as of September 30, 2010 and 2009, the raw material inventory includes

$33.1 million and $88.0 million, respectively, in fair market value silver hedge activity, of which

additional information can be found in note 20. Work-In-Process consists of semi-finished materials.

8. PROPERTY, PLANT AND EQUIPMENT, NET 

Components of property, plant and equipment are as follows:

September 30, 2010

Asset Cost Accumulated Depreciation

and Amortization

Total Property, Plant

and Equipment, Net

Land $ 2,529 $ – $ 2,529

Structures, Facilities and 

Leasehold Improvements 217,840 (141,780) 76,060

Computer Equipment 30,229 (28,332) 1,897

Software 19,136 (18,014) 1,122

Construction-In-Progress 9,305 – 9,305

Machinery and Equipment 275,091 (175,709) 99,382

Total Property, Plant

and Equipment, Net $ 554,130 ($363,835) $ 190,295

September 30, 2009

Asset Cost Accumulated Depreciation

and Amortization

Total Property, Plant

and Equipment, Net

Land $ 2,529 $ – $ 2,529

Structures, Facilities and 

Leasehold Improvements 203,374 (132,661) 70,713

Computer Equipment 29,352 (27,703) 1,649

Software 57,099 (55,305) 1,794

Construction-In-Progress 17,125 – 17,125

Machinery and Equipment 265,843 (159,505) 106,338

Total Property, Plant 

and Equipment, Net $ 575,322 ($375,174) $ 200,148

The land and buildings used to manufacture circulating coinage and numismatic products are owned by 

the United States Mint and located in Philadelphia, Pennsylvania; Denver, Colorado; San Francisco, 

California; and West Point, New York. In addition, the United States Mint owns the land and buildings 

at the United States Bullion Depository at Fort Knox. Construction-In-Progress (CIP) represents assets 

that are underway, such as in the process of being readied for use, or which are being tested for acceptability, but which are not yet being fully utilized by the United States Mint.

Depreciation and amortization expenses charged to operations during the years ended September 30, 

2010 and 2009, were $32.7 million and $34.2 million, respectively.
9. HERITAGE ASSETS 

The United States Mint maintains collections of heritage assets which are any property, plant 

or equipment that is retained by the United States Mint for its historic, natural, cultural, educational 

or artistic value or significant architectural characteristics. For example, the United States Mint’s 

Historical Artifacts contain, among other things, examples of furniture and equipment used in the United 

States Mint facilities over the years, as well as examples of the coin manufacturing process, such as 

plasters, galvanos, dies, punches and actual finished coins. The Coin Collections include examples 

of the various coins produced by the United States Mint over the years, separated into collections of 

pattern pieces/prototypes, coin specimens, quality samples and exotic metal coin samples. The building 

housing the United States Mint at Denver, is considered a multi-use heritage asset. The United States 

Mint generally does not place a value on heritage assets, even though some of the coins and artifacts 

are priceless. However, the assets are accounted for and controlled for protection and conservation 

purposes. Heritage assets held by the United States Mint are generally in acceptable physical condition. 

The following chart represents the United States Mint’s various collections and historical artifacts. 

Coin Collections Quantity of Collections Held September 30,

2010 2009 

Pattern Pieces/Prototypes 1 1 

Coin Specimens 1 1 

Quality Samples 1 1 

Exotic Metal Coin Samples 

Total 

1 1 

4 4 

Historical Artifacts Quantity of Collections Held September 30,

2010 2009 

Antiques/Artifacts 1 1 

Plasters 1 1 

Galvanos 1 1 

Dies 1 1 

Punches 1 1 

Historical Documents 1 1 

Multi-use heritage asset 

(United States Mint at Denver, CO) 

Total 

1 1 

7 7 

10. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

Components of Liabilities Not Covered by Budgetary Resources as of September 30 are as follows:

2010 2009 

Custodial Gold Reserves (Deep Storage) $ 10,355,539 $ 10,355,539 

Custodial Silver Reserves (Deep Storage) 9,148 9,148 

Working Stock Inventory - Gold 117,514 117,514 

Working Stock Inventory - Silver 11,539 11,539 

Other 94 25 

Total Liabilities Not Covered by Budgetary Resources $ 10,493,834 $ 10,493,765 

Total Liabilities Covered by Budgetary Resources 

Total Liabilities 

106,773 106,954 

 $ 10,600,607 $ 10,600,719

Liabilities not covered by budgetary resources represent the United States Mint’s custodial liabilities 

to the Treasury that are entirely offset by Treasury-owned gold and silver bullion reserves held 

by the United States Mint on behalf of the Federal Government. The category “Other” represents 

the refundable security deposit received from the commercial tenant in the Headquarters building. 

61
 
11. RETIREMENT PLANS, OTHER POST-EMPLOYMENT COSTS AND OTHER 

IMPUTED COSTS 

The United States Mint contributes seven percent of basic pay for employees participating in the Civil 

Service Retirement System (CSRS). Most employees hired after December 31, 1983, are automatically 

covered by the Federal Employees’ Retirement System (FERS) and Social Security. A primary feature 

of FERS is that it offers a savings plan to which the United States Mint automatically contributes one 

percent of basic pay and matches employee contributions up to an additional four percent of basic pay. 

Employees can contribute a specific dollar amount or a percentage of their basic pay, as long as the 

annual dollar total does not exceed the Internal Revenue Code limit of $16,500 for calendar year 2010. 

Employees participating in FERS are covered by the Federal Insurance Contribution Act (FICA), for 

which the United States Mint contributes a matching amount to the Social Security Administration. 

Although the United States Mint contributes a portion for pension benefits and makes the necessary 

payroll deductions, it is not responsible for administering either CSRS or FERS. Administering and 

reporting on pension benefit programs are the responsibility of the Office of Personnel Management 

(OPM). OPM has provided the United States Mint with certain cost factors that estimate the cost of 

providing the pension benefit to current employees. The cost factors of 30.1 percent of basic pay for 

CSRS-covered employees and 13.8 percent of basic pay for FERS-covered employees were in use for 

FY 2010. The CSRS factor increased 4.3 percent over FY 2009, and the FERS factor increased 1.5 

percent over FY 2009. 

The amounts that the United States Mint contributed to the retirement plans and social security for the 

year ended September 30 are as follows: 

2010 2009 

Social Security System $ 7,437 $ 6,866 

Civil Service Retirement System 1,514 1,864 

Federal Employees Retirement System

 (Retirement and Thrift Savings Plan) 12,157 11,593 

Total Retirement Plans and Other Post-employment Cost $ 21,108 $ 20,323 

The United States Mint also recognizes its share of the future cost of pension payments and 

post-retirement health and life insurance benefits for employees while they are still working with 

an offset classified as imputed financing. OPM continues to report the overall liability of the Federal 

Government and make direct recipient payments. OPM has provided certain cost factors that estimate 

the true cost of providing the post-retirement benefit to current employees. The cost factors relating to 

health benefits are $5,906 and $5,756 per employee enrolled in the Federal Employees Health Benefits 

Program in FY 2010 and FY 2009, respectively. The cost factor relating to life insurance is two-one 

hundredths percent (.02%) of basic pay for employees enrolled in the Federal Employees Group Life 

Insurance Program for both FY 2010 and FY 2009. 

The amount of imputed cost related to retirement plans and other post-employment costs incurred 

by the United States Mint for the year ended September 30 is as follows (before the offset for 

imputing financing): 

2010 2009 

Health Benefits $ 8,748 $ 8,738 

Life Insurance 21 24 

Pension Expense 

Total Imputed Retirement and Postemployment Costs 

 5,411 3,072 

$ 14,180 $ 11,834 

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12. LEASE COMMITMENTS 

THE UNITED STATES MINT AS LESSEE: The United States Mint leases office and warehouse 

space from commercial vendors, the General Services Administration (GSA) and the Bureau of 

Engraving and Printing. In addition, the agency leases copier and other office equipment from 

commercial vendors and vehicles from GSA. With the exception of the commercial leases on two 

office buildings in Washington, DC, all leases are one-year, or one-year with renewable option years. 

The two building leases in Washington, DC have terms of 20 and 10 years. Because all of the United 

States Mint’s leases can be canceled, there are no minimum lease payments due. 

THE UNITED STATES MINT AS LESSOR: The United States Mint sublets office space at cost 

to several other Federal entities in the two leased buildings in Washington, DC. These subleases vary 

from one year with option years to multiple-year terms. As of September 30, 2010, the United States 

Mint sublet in excess of 209,000 square feet in the two leased buildings. As of September 30, 2010, 

tenants include the Internal Revenue Service, Treasury Executive Institute, Bureau of the Public Debt, 

U.S. Customs and Border Protection, and U.S. Marshals Service. All of the subleases are operating 

leases and subject to annual availability of funding. The United States Mint has also entered into an 

agreement to sublet space in the Headquarters building to a commercial tenant. The United States Mint 

received a security deposit from the tenant of $94,500. The tenant opened for business in late September 

2010, and the first rental payment was received in October 2010. The first two years of the lease offer 

substantial discounts. Years three through nine are at the full rental amount. 

Future Projected Receipts Building Sub-lease 

Year 1 (FY 2011) $ 37,800 

Year 2 (FY 2012) 302,400 

Year 3 (FY 2013) 378,000 

Year 4 (FY 2014) 378,000 

Year 5 (FY 2015) 378,000 

Years 6-9 (FY 2016 - FY 2019) 1,617,840 

Total Future Operating Lease Receipts $ 3,092,040 

13. CONTINGENCIES 

The United States Mint is subject to legal proceedings and claims which arise in the ordinary course of 

its business. Judgments, if any, resulting from pending litigation against the United States Mint generally 

would be satisfied from the PEF. Likewise, under the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002 (No FEAR Act, P. L. 107-174), settlements and judgments related 

to acts of discrimination and retaliation for whistle blowing will be paid from the PEF. In the opinion 

of management, the ultimate resolution of these actions will not materially affect the United States 

Mint’s financial position or the results of its operations. 

The Chief Counsel of the United States Mint provided a Legal Representation Letter reflecting no 

expected loss resulting from pending legal cases. However, the United States Mint was notified of a 

No FEAR Act case settlement of $10,000, which was accrued as a liability in the United States Mint’s 

general ledger as of September 30, 2010. 

63
 
 

14. EARMARKED FUNDS 

Pursuant to 31 U.S.C. § 5136, “all receipts from United States Mint operations and programs, 

including the production and sale of numismatic items, the production and sale of circulating coinage 

at face value to the FRB, the protection of government assets, and gifts and bequests of property, real 

or personal shall be deposited into the PEF and shall be available to fund its operations without fiscal 

year limitations.” The PEF meets the requirements of an earmarked fund as defined in SFFAS 27, 

Identifying and Reporting Earmarked Funds. As non-entity and non-PEF assets, the Treasury-owned 

gold and silver bullion reserves are not included in the earmarked funds. 

15. INTRAGOVERNMENTAL COSTS AND EARNED REVENUE 

Intragovernmental costs and earned revenue reflect transactions in which both the buyer and seller are 

Federal entities. Revenue with the public reflects transactions for goods or services with a non-Federal 

entity. The purpose for this classification is to enable the Federal Government to prepare consolidated 

financial statements. The following table provides earned revenues, gross cost, and net program revenue.

64
 

 2010 2009 

Numismatic Production and Sales 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 20,140 $ 18,599

 Imputed Costs 4,335 2,367 

Total Intragovernmental Costs 24,475 20,966

 Public:

 Cost of Goods Sold 3,069,173 1,974,075

 Selling, General and Administrative 64,110 59,864 

Total Public Cost 3,133,283 2,033,939 

Gross Cost 3,157,758 2,054,905 

Revenue:

 Intragovernmental:

 Rent Revenues 10,790 10,068

 Other Intragovernmental Revenues 

Total Intragovernmental Revenues 

65 146 

10,855 10,214

 Public 3,239,989 2,099,222 

Total Earned Revenue 3,250,844 2,109,436 

Net Program Cost (Revenue) $ (93,086) $ (54,531) 

Numismatic Production and Sales of Circulating Coins 

Cost:

 Intragovernmental:

Selling, General and Administrative $ 549 $ 684 

Total Intragovernmental Costs 549 684

 Public:

 Cost of Goods Sold 3,444 3,258

 Selling, General and Administrative 1,747 2,203 

Total Public Cost 5,191 5,461 

Gross Cost 5,740 6,145 

Revenue:

 Public 5,740 6,145 

Total Earned Revenue 

Net Program Cost (Revenue) 

5,740 6,145 

$ – $ – 
2010 2009 

Circulating Production and Sales 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 12,608 $ 15,043

 Imputed Costs 9,844 9,466 

Total Intragovernmental Costs 22,452 24,509

 Public:

 Cost of Goods Sold 220,932 225,556

 Selling, General and Administrative 65,559 83,078

 Other Costs and Expenses (Mutilated and Uncurrent) 8,414 16,700 

Total Public Cost 294,905 325,334

 Gross Cost 317,357 349,843 

Revenue:

 Public 317,357 349,843 

Total Earned Revenue 317,357 349,843 

Net Program Cost $ – $ – 

Net Program Cost (Revenue) Before Protection of Assets $ (93,086) $ (54,531) 

Protection of Assets

 Public:

 Protection Cost $ 41,547 $ 41,102 

Total Earned Revenue $ 3 $ –

 Net Cost of Protection of Assets $ 41,544 $ 41,102

 Net Cost (Revenue) from Operations $ (51,542) $ (13,429) 

16. EARNED REVENUE AND OTHER FINANCING SOURCE (SEIGNIORAGE) 

The Statement of Net Cost reflects the earned revenue and corresponding gross costs for Circulating 

Production and Sales and for Numismatic Production and Sales of Circulating Coins. Circulating Production and Sales represents coin sales to the FRB, and Numismatic Production and Sales of Circulating 

Coins represents sales of circulating coins to the public (i.e., numismatic customers). SFFAS Number 

7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and 

Financial Accounting, limits the amount of net program revenue from production of circulating coins to 

the cost of metal, manufacturing, and transportation. OMB Circular A-136 defines the treatment of other 

financing sources on the Statement of Changes in Net Position, particularly as it relates to seigniorage. 

Therefore, on the Statement of Net Cost, earned revenue is recognized only to the extent of the gross cost 

of production. The difference between those costs and the face value of the coin is an “Other Financing 

Source” referred to as seigniorage. Any revenue over face value for circulating coins sold as numismatic 

items is considered earned revenue and included in the category Numismatic Production and Sales on 

the Statement of Net Cost. 

The following chart reflects the two components of the receipts from the sale of circulating coin – the 

earned revenue from the Statement of Net Costs and Seigniorage from the Statement of Changes in Net 

position for the year ended September 30: 

2010 2009 

Revenue-FRB $ 317,357 $ 349,843 

Seigniorage-FRB 300,887 427,768 

Total Circulating Coins $ 618,244 $ 777,611 

Revenue-with the public $ 5,740 $ 6,145 

Seigniorage-with the public 11,927 19,300 

Total Numismatic Sales of Circulating Coins $ 17,667 $ 25,445 

Total Seigniorage $ 312,814 $ 447,068 

65
17. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

The United States Mint receives apportionments of its resources from OMB. An apportionment is a 

plan approved by OMB to spend funds as directed by law. All United States Mint obligations are 

classified as reimbursable, as they are financed by offsetting collections received in return for goods 

and services provided. OMB usually uses one of two categories to distribute budgetary resources. 

Category A apportionments distribute budgetary resources by fiscal quarters. Category B apportionments typically distribute budgetary resources by activities, projects, objects, or a combination of these 

categories. The United States Mint has only category B apportionments. 

18. EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF BUDGETARY 

RESOURCES AND THE BUDGET OF THE UNITED STATES GOVERNMENT 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, requires an explanation of material differences between the 

Statement of Budgetary Resources (SBR) and the related actual balances published in the Budget of 

the United States Government (President’s Budget). The President’s Budget for fiscal year 2010 is 

expected to be published in February 2011 and made available through OMB. Therefore, the analysis 

presented here is for the prior year (FY 2009) “actual” figures published in the President’s budget in 

February 2010. The following chart displays the comparison of the FY 2009 SBR and the actual FY 

2009 balances included in the FY 2011 President’s Budget. 

September 30, 2009 

Statement of Budgetary President’s 

Resources Budget

(rounded to millions) 

United States Mint Public Enterprise Fund 

Total Budgetary Resources 2,528,180 2,528 

Status of Budgetary Resources:

 Obligations Incurred 2,282,497 2,282

 Unobligated Balances-available 245,683 246 

Total Status of Budgetary Resources 2,528,180 2,528 

Net Outlays 161,065 161 

19. LEGAL ARRANGEMENTS AFFECTING USE OF UNOBLIGATED BALANCES 

The United States Mint PEF establishes that all receipts from United States Mint operations and 

programs, including the production and sale of numismatic items, the production and sale of circulating 

coinage, the protection of government assets, and gifts and bequests of property, real or personal, shall 

be deposited into the United States Mint PEF and shall be available without fiscal year limitations. Any 

amount that is in excess of the amount required by the United States Mint to cover obligations of the 

PEF shall be transferred to the Treasury for deposit as miscellaneous receipts. At September 30, 2010 

and 2009, the United States Mint transferred excess receipts to the Treasury General Fund of $388 

million and $475 million, respectively. 

20. HEDGING PROGRAM 

At September 30, 2010 and 2009, hedging activity of $33.1 million and $88.0 million included in 

inventory represents the value of the silver sold to the trading partner and not yet sold by the United 

States Mint and, therefore, not repurchased from the trading partner. In FY 2010, the United States 

Mint recorded an unrealized gain from hedging activity of $2.5 million, compared with $43 thousand 

in FY 2009. 

66
 
 

 

 

 

 

 

 

 

 

 

21. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET

22. UNDELIvERED ORDERS AT ThE END OF ThE PERIOD 

Budgetary resources obligated for undelivered orders as of September 30, 2010 and 2009 were 

$139,762 and $95,487, respectively. 

67
 

For The Years Ended September 30, 

2010 2009 

Resources Used to Finance Activities:

 Budgetary Resources Obligated

 Obligations Incurred $ 3,670,761 $ 2,282,497

Less: Spending Authority from

Offsetting Collections and Recoveries 3,549,070 2,512,322 

Net Obligations 121,691 (229,825)

 Other Resources 

Transfers to the Treasury General Fund On-Budget (13,000) (35,000) 

Transfers to the Treasury General Fund Off-Budget (375,000) (440,000)

Imputed Financing from Costs Absorbed by Others 14,180 11,834

Other Financing Sources (Seigniorage) 312,814 447,068 

Transfers in without reimbursement – 830

(61,006) (15,268)

60,685 (245,093) 

 Net Other Resources Used to Finance Activities 

Total Resources Used to Finance Activities 

Resources Used to Finance Items Not Part 

of the Net Cost of Operations:

 Change in Budgetary Resources Obligated for Goods,

Services and Benefits Ordered but Not Yet Provided 43,347 (61,195)

 Resources that Fund Expenses Recognized in Prior Periods – (2,287)

 Resources that Finance the Acquisition

of Assets or Liquidation of Liabilities 370,845 468,837

 Other (14,593) (35,118)

Total Resources Used to Finance Items

 Not Part of the Net Cost of Operations 399,599 370,237

Total Resources Used to Finance the Net Cost of Operations (338,914) (615,330)

Components not Requiring or Generating

Resources in the Current Period

Depreciation and Amortization 32,665 34,226

 Revaluation of Assets (1,204) 623

 Other 255,911 567,052

Total Components of Net Revenue from Operations

 that will not Require or Generate Resources 287,372 601,901

Total Components of Net Revenue from Operations

that will not Require or Generate Resources

in the Current Period 

Net Revenue from Operations 

287,372 601,901 

$ (51,542) $ (13,429) 
requIred supplementary InformatIon (unaudIted) 

for the years ended september 30, 2010 and 2009 

IntroductIon 

This section provides the Required Supplemental Information as prescribed by the Office of Management and Budget 

(OMB) Circular A-136, “Financial Reporting Requirements” and Statement of Federal Financial Accounting 

Standards (SFFAS) #29 Heritage Assets and Stewardship Land. 

HerItage assets 

The United States Mint is steward of a large, unique and diversified body of heritage assets that demonstrate the 

social, educational and cultural heritage of the United States Mint. These items include a variety of rare and 

semi-precious coin collections and historical artifacts, and are held at various United States Mint locations. Some 

of these items are placed in locked vaults within the United States Mint, where access is limited to only special 

authorized personnel. Other items are on full display to the public, requiring little if any authorization to view. 

Included in the heritage assets is the multi-use heritage asset of the building housing the United States Mint 

at Denver. The United States Mint generally does not place a value on heritage assets, even though some of the coins 

and artifacts are priceless. However, the assets are accounted for and controlled for protection and conservation 

purposes. Heritage assets held by the United States Mint are generally in acceptable physical condition, and there 

is no deferred maintenance on the United States Mint at Denver building. 

68
 
Independent Auditors’ Report on Internal Control Over Financial Reporting 

Inspector General
 

United States Department of the Treasury
 

Director
 

United States Mint:
 

We have audited the balance sheets of the United States Mint as of September 30, 2010 and 2009 and the related statements of net
 

cost, changes in net position, and combined statements of budgetary resources (hereinafter referred to as “financial statements”) 

for the years then ended, and have issued our report thereon dated December 2, 2010. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America; the standards 

applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United 

States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, 

as amended. Those standards and OMB Bulletin No. 07-04 require that we plan and perform the audits to obtain reasonable 

assurance about whether the financial statements are free of material misstatement. 

The management of the United States Mint is responsible for establishing and maintaining effective internal control. In planning and performing our fiscal year 2010 audit, we considered the United States Mint’s internal control over financial reporting 

by obtaining an understanding of the design effectiveness of United States Mint’s internal control, determining whether internal 

controls had been placed in operation, assessing control risk, and performing tests of controls as a basis for designing our auditing 

procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion 

on the effectiveness of the United States Mint’s internal control over financial reporting. Accordingly, we do not express an opinion 

on the effectiveness of the United States Mint’s internal control over financial reporting. We did not test all internal controls 

relevant to operating objectives as broadly defined by the Federal Managers’ Financial Integrity Act of 1982. 

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, 

in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. 

A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility 

that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. 

Our consideration of internal control over financial reporting was for the limited purpose described in the third paragraph of this 

report and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, 

significant deficiencies, or material weaknesses. In our fiscal year 2010 audit, we did not identify any deficiencies in internal 

control over financial reporting that we consider to be material weaknesses, as defined above. 

We noted certain additional matters that we have reported to management of the United States Mint in a separate letter dated 

December 2, 2010. 

This report is intended solely for the information and use of the United States Mint’s management, the Department of the Treasury’s 

Office of Inspector General, OMB, the U.S. Government Accountability Office, and the U.S. Congress and is not intended to be 

and should not be used by anyone other than these specified parties. 

December 2, 2010 

69
 
Independent Auditors’ Report on Compliance and Other Matters 

Inspector General
 

United States Department of the Treasury
 

Director
 

United States Mint:
 

We have audited the balance sheets of the United States Mint as of September 30, 2010 and 2009, and the related statements of 

net cost, changes in net position, and combined statements of budgetary resources (hereinafter referred to as “financial statements”) 

for the years then ended, and have issued our report thereon dated December 2, 2010. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America; the standards 

applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United 

States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, 

as amended. Those standards and OMB Bulletin No. 07-04 require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free of material misstatement. 

The management of the United States Mint is responsible for complying with laws, regulations, and contracts applicable to the 

United States Mint. As part of obtaining reasonable assurance about whether the United States Mint’s financial statements are free 

of material misstatement, we performed tests of the United States Mint’s compliance with certain provisions of laws, regulations, 

and contracts, noncompliance with which could have a direct and material effect on the determination of the financial statement 

amounts, and certain provisions of other laws and regulations specified in OMB Bulletin No. 07-04, including the provisions 

referred to in Section 803(a) of the Federal Financial Management Improvement Act of 1996 (FFMIA). We limited our tests 

of compliance to the provisions described in the preceding sentence, and we did not test compliance with all laws, regulations, 

and contracts applicable to the United States Mint. However, providing an opinion on compliance with those provisions was not 

an objective of our audit, and accordingly, we do not express such an opinion. 

The results of our tests of compliance described in the preceding paragraph of this report, exclusive of those referred to in 

FFMIA, disclosed no instances of noncompliance or other matters that are required to be reported herein under Government 

Auditing Standards or OMB Bulletin No. 07-04. 

The results of our tests of FFMIA disclosed no instances in which the United States Mint’s financial management systems did 

not substantially comply with the (1) Federal financial management systems requirements, (2) applicable Federal accounting 

standards, and (3) the United States Government Standard General Ledger at the transaction level. 

We noted certain additional matters that we have reported to management of the United States Mint in a separate letter dated 

December 2, 2010. 

This report is intended solely for the information and use of the United States Mint’s management, the Department of the Treasury’s 

Office of Inspector General, OMB, the U.S. Government Accountability Office, and the U.S. Congress and is not intended to be 

and should not be used by anyone other than these specified parties. 

December 2, 2010 

70
 
APPENDIX I: FY 2010 COIN AND MEDAL PRODUCTS
 

SENATOR EDWARD WILLIAM BROOKE III BRONZE MEDAL 

Coin Awarded: October 28, 2009 

Description: This Congressional Gold Medal honors Senator Edward William Brooke III for 

his unprecedented and enduring service to our Nation. Brooke was the first African-American 

elected by popular vote to the United States Senate. He served with distinction for two terms from 

January 3, 1967, to January 3, 1979. The Medal’s obverse features an image of Senator Brooke. 

The reverse depicts the United States Capitol Building at the top and the Massachusetts State House at the bottom 

between two olive branches. The middle of the reverse design contains the inscription AMERICA’S GREATNESS 

LIES IN ITS WONDROUS DIVERSITY, OUR MAGNIFICENT PLURALISM HAS MADE THIS COUNTRY GREAT, 

OUR EVER-WIDENING DIVERSITY WILL KEEP US GREAT. 

THE WOMEN AIRFORCE SERVICE PILOTS BRONZE MEDAL 

Coin Awarded: March 10, 2010 

Description: This Congressional Gold Medal honors the Women Airforce Service Pilots 

(WASP) of World War II in recognition of their pioneering military service that led to reform in 

the U.S. Armed Forces. The WASP was composed of the first women in history to fly American 

military aircraft. They flew more than 60 million miles in every type of aircraft and on every 

type of assignment performed by their male counterparts, except combat missions. The Medal’s 

obverse depicts the portrait of a WASP and three pilots in period uniforms walking toward their aircrafts. An airborne 

AT-6 is featured in the background. The reverse design features the three aircrafts the WASP flew during their training 

at Avenger Field near Sweetwater, Texas: the AT-6, the B-26 (Martin Marauder) and the P-51. 

2010 AMERICAN VETERANS DISABLED FOR LIFE COMMEMORATIVE COIN 

Coin Release: February 25, 2010 

Mintage Limit: 350,000 across all product options 

Description: The American Veterans Disabled for Life Commemorative Coin Act was passed 

by Congress and signed into law on July 17, 2008. The images on the 2010 American Veterans 

Disabled for Life Silver Dollar capture our disabled veterans’ courage, loyalty and sacrifice. The 

obverse features the legs of three veterans and the inscription THEY STOOD FOR US. The reverse design depicts a 

forget-me-not flower at the base of a wreath of ribbons and oak branches. The oak branches represent strength, while 

the forget-me-not is a widely recognized icon of those who fought and became disabled in World War I. Surcharges 

from the program were authorized to be paid to the Disabled Veterans’ LIFE Memorial Foundation to support the 

construction of the American Veterans Disabled for Life Memorial in Washington, D.C. 

BOY SCOUTS OF AMERICA CENTENNIAL SILVER DOLLAR COMMEMORATIVE COIN 

Coin Release: March 23, 2010 

Mintage Limit: 350,000 across all product options 

Description: The Boy Scouts of America Centennial Commemorative Coin Act, signed into law 

on October 8, 2008, commemorates the centennial anniversary of the Boy Scouts of America. 

The largest youth organization in the United States, the Boy Scouts of America has 2.8 million 

youth members and 1.1 million adult leaders. The coin’s obverse represents the Boy Scouts of 

America of today, depicting a traditional Boy Scout as well as a younger Cub Scout and an older 

female Venturer saluting. The reverse design features the Boy Scouts of America’s universal emblem. Surcharges 

from the program were authorized to be paid to the National Boy Scouts of America Foundation, which will make 

funds available to local councils for extension of scouting in hard-to-serve areas. 

71
 
THE HOT SPRINGS NATIONAL PARK QUARTER – ARKANSAS 

Coin Release: April 20, 2010 

Mintage for Circulation: 69,600,000 

Description: The Hot Springs National Park quarter is the first in the America the Beautiful 

Quarters® Program. Hot Springs was first established as a national site on April 20, 1832 (4 Stat. 

505), to conserve the water from the 47 springs that emerge from Hot Springs Mountain and 

ensure that water was available for drinking and therapy. The quarter’s reverse image depicts the 

façade of the Hot Springs National Park headquarters building with a thermal fountain in the foreground. 

THE YELLOWSTONE NATIONAL PARK QUARTER – WYOMING 

Coin Release: June 3, 2010 

Mintage for Circulation: 68,400,000 

Description: The Yellowstone National Park quarter is the second in the America the 

Beautiful Quarters Program. First established as a national site on March 1, 1872 (17 Stat. 32), 

Yellowstone National Park is home to a large variety of wildlife, including grizzly bears, 

wolves, bison and elk. Preserved within the park are Old Faithful and a collection of the world’s most extraordinary 

geysers. The reverse design features Old Faithful with a mature bull bison in the foreground. 

THE YOSEMITE NATIONAL PARK QUARTER – CALIFORNIA 

Coin Release: July 26, 2010 

Mintage for Circulation: 70,000,000 

Description: The Yosemite National Park quarter is the third in the America the Beautiful 

Quarters Program. Yosemite National Park is best known for its waterfalls, but within its nearly 

1,200 square miles are deep valleys, grand meadows and ancient giant sequoias. It was first 

established as a national site on October 1, 1890 (26 Stat. 650). The reverse image depicts the iconic El Capitan, 

which rises more than 3,000 feet above the valley floor and is the largest monolith of granite in the world. 

THE GRAND CANYON NATIONAL PARK QUARTER – ARIZONA 

Coin Release: September 20, 2010 

Mintage for Circulation: 70,200,000 

Description: The Grand Canyon National Park quarter is the fourth in the America the Beautiful 

Quarters Program. The Grand Canyon was first established as a national site on February 20, 1893 

(27 Stat. 469). A powerful and inspiring landscape, the Grand Canyon spans 277 river miles and 

is 18 miles wide and one mile deep. The reverse image features a view of the granaries above the Nankoweap Delta 

in Marble Canyon near the Colorado River. Granaries were used for storing food and seeds (A.D. 500). 

72
 
 

 

 

 

2009 COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS QUARTER 

Coin Release: November 30, 2009 

Mintage for Circulation: 72,800,000 

Description: The Commonwealth of the Northern Mariana Islands commemorative quarter-dollar 

is the sixth and final coin in the United States Mint 2009 District of Columbia and U.S.
	

Territories Quarters Program. The reverse represents the islands’ wealth of natural resources. 

Near the shore stands a large limestone latte, the supporting column of ancient indigenous Chamorro structures.
	

A canoe of the indigenous Carolinians represents the people’s seafaring skills. Two white fairy tern birds fly overhead.
	

A Carolinian mwar (head lei) composed of plumeria, langilang (Ylang Ylang), angagha (peacock flower) and teibwo 

(Pacific Basil) borders the bottom of the design.
	

: The Commonwealth of the Northern Mariana Islands commemorative quarter-dollar 

2009 LINCOLN ONE-CENT COIN – PRESIDENCY IN WASHINGTON, DC

Coin Release: November 12, 2009

Mintage for Circulation: 327,600,000

Description: The fourth and last of the 2009 one-cent coin series commemorating the 

bicentennial of President Lincoln’s birth and the 100th anniversary of the first issuance of the 

Lincoln cent, shows the half-finished United States Capitol dome. The design symbolizes a 

Nation torn apart by civil war and the resolve Lincoln showed as he guided the country through 

its gravest crisis. It was in front of the rising dome that Lincoln began his Presidency and under the completed dome 

that his body lay in state. 

2010 LINCOLN ONE-CENT COIN – 2010 AND BEYOND

Coin Release: February 11, 2010

Description: In 2010 and beyond, the Lincoln one-cent coin’s reverse design is emblematic of 

President Abraham Lincoln’s preservation of the United States as a single and united country. 

The reverse features a union shield, an important National symbol that dates back to the 1780s. 

The shield’s 13 vertical stripes and the horizontal bar above with the inscription E PLURIBUS 

UNUM—“out of many, one”—represent the union. 

2010 NATIVE AMERICAN $1 COIN

Coin Release: January 25, 2010

Mintage for Circulation: 75,040,000

Description: The theme for the 2010 Native American $1 Coin is “Government—The Great

Tree of Peace.” The reverse design commemorates the Haudenosaunee (People of the Longhouse) 

Confederation, also known as the Iroquois Confederacy, and its contribution to the history and 

development of the United States. Early European settlers saw the Haudenosaunee and similar 

Native American societies as successful examples of confederations practicing equality and democratic 

self-government. The design features an image of the Hiawatha Belt with five arrows bound together. The Hiawatha 

Belt is a visual record of the creation of the Haudenosaunee dating back to the early 1400s. The five arrows represent 

the Five Nations or the Iroquois Confederacy, which consisted of the Mohawk, Oneida, Onondaga, Cayuga 

and Seneca nations. 

73
 
ZACHARY TAYLOR PRESIDENTIAL $1 COIN – TWELFTH PRESIDENT, 1849 - 1850

Coin Release: November 19, 2009

Mintage for Circulation: 78,260,000

Description: Zachary Taylor was born in 1784 in Virginia. His Army career began at the age 

of 23 and for the next 30 years, he served in many remote outposts from Louisiana to northern 

Wisconsin. He led his forces to decisive victories in the Mexican-American War, which earned 

him the nickname “Old Rough and Ready.” His reputation as a national hero made him an 

attractive presidential candidate, and he won the general election in a three-candidate race. As the debate over slavery 

in western territories threatened to tear the country apart, he was determined that the Union be preserved at all costs. 

MARGARET TAYLOR FIRST SPOUSE GOLD COIN

AND BRONZE MEDAL – FIRST LADY, 1849–1850 

Description: Zachary Taylor once commented that Margaret “Peggy” Mackall Smith Taylor 

“was as much of a soldier as I was.” She followed her husband during his military career, 

creating homes for her family in tents, cabins and forts. During the Seminole War, Margaret 

Taylor nursed wounded soldiers returning from the battlefield and counseled the young wives 

of soldiers as they awaited news from the front. The reverse depicts Margaret Taylor comforting an injured soldier 

during that war. 

MILLARD FILLMORE PRESIDENTIAL $1 COIN – 13TH PRESIDENT, 1850 - 1853 

Coin Release: February 18, 2010 

Mintage for Circulation: 74,480,000 

Description: Millard Fillmore was born in a log cabin on January 7, 1800, in Locke (now 

Summerhill), New York. In 1828, Fillmore entered politics, serving as a New York state 

assemblyman and later in the U.S. House of Representatives, where he chaired the powerful 

Committee on Ways and Means. While comptroller of New York, he was elected to serve as 

President Zachary Taylor’s vice president in 1848. Upon Taylor’s death in July 1850, Fillmore became president. 

While Fillmore was in office, Congress passed the Compromise of 1850, a package of stop-gap measures which 

effectively postponed the Civil War for a decade. After two unsuccessful bids for election to the presidency in his 

own right, he retired to Buffalo, New York. 

ABIGAIL FILLMORE FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL– FIRST LADY, 1850–1853 

Description: Born in 1798 in Saratoga County, New York, Abigail Powers Fillmore developed 

a passion for learning early in life. While teaching at the New Hope Academy in Sempronius, 

New York, she met her future husband Millard Fillmore. After their marriage, she continued 

to teach for another two years until their first child was born, making her the first presidential 

spouse to hold a paying job after her marriage. Perhaps her most lasting contribution as first lady 

was her work in establishing a permanent White House library, for which President Fillmore asked Congress to 

appropriate funds. With $2,000 authorized for the project, Mrs. Fillmore acquired several hundred volumes to start 

the collection in a second floor oval parlor. 

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FRANKLIN PIERCE PRESIDENTIAL $1 COIN – 14TH PRESIDENT, 1853 - 1857 

Coin Release: May 20, 2010 

Mintage for Circulation: 76,580,000 

Description: Franklin Pierce was born on November 23, 1804, in Hillsboro, New Hampshire. 

He was elected to the New Hampshire legislature, and later served in the U.S. House of 

Representatives and Senate. Largely unknown to the public, Pierce was nominated for President 

in 1852 by the Democratic Party. Partly because of his strong support for the Compromise of 

1850, which attempted to mitigate the slavery issue and preserve the Union, Pierce was elected president and served 

from 1853 to 1857. While he was President, the U.S. negotiated the Gadsden Purchase with Mexico, which gave the 

U.S. land in present-day southern Arizona and New Mexico for a southern transcontinental railroad. 

JANE PIERCE FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL – FIRST LADY, 1853–1857 

Description: Jane Appleton Pierce was born on March 12, 1806, in Hampton, New Hampshire. 

Two years into her husband’s presidency, Jane Pierce emerged from an extended period of 

mourning after the death of her son. She began to attend receptions and dinner parties, and even 

organized a few of her own. By 1856, she was venturing out in Washington, regularly visiting 

the U.S. Capitol Building, where she sat in the Senate visitor’s gallery listening to heated 

debates over the issue of slavery. 

JAMES BUCHANAN PRESIDENTIAL $1 COIN – 15TH PRESIDENT, 1857 - 1861 

Coin Release: August 19, 2010 

Mintage for Circulation: 73,360,000 

Description: James Buchanan was born on April 23, 1791, near Mercersburg, Pennsylvania. 

During the War of 1812, he helped defend Baltimore against British attack. A lawyer and gifted 

orator, he became a state legislator, and later served as a member of the U.S. House of 

Representatives and Senate and as U.S. minister to Russia. In 1845, he became President James 

K. Polk’s secretary of state. His later service abroad as U.S. minister to Great Britain insulated him from the growing 

domestic controversy over slavery, helping him secure the Democratic Party’s nomination for President. 

JAMES BUCHANAN FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL – LIBERTY 

Description: President James Buchanan was not married. The obverse of the gold coin and 

bronze medal issued for any President who served without a spouse features a design emblematic of Liberty. James Buchanan’s Liberty coin’s obverse is a reproduction of the Liberty Head 

Quarter Eagle designed by Christian Gobrecht and minted and issued from 1840 through 1907. 

The reverse design depicts the future President as a boy working as a bookkeeper in his family’s 

small country store. 

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2009 AMERICAN EAGLE PLATINUM PROOF COIN – TO FORM 

A MORE PERFECT UNION 

Coin Release: December 3, 2009 

Mintage Limit: 8,000 

Description: In 2009, the United States Mint introduced a new six-year platinum proof 

coin program. This new series commemorates the core concepts of American democracy by 

highlighting the preamble of the U. S. Constitution. It will honor the six principles found in the 

preamble, beginning with To Form a More Perfect Union in 2009, followed by To Establish Justice in 2010, 

To Insure Domestic Tranquility in 2011, To Provide for the Common Defense in 2012, To Promote the General 

Welfare in 2013, and To Secure the Blessings of Liberty to Ourselves and our Posterity in 2014. Each theme was 

inspired by narratives prepared by the Chief Justice of the United States at the request of the United States Mint. 

The 2009 reverse design is emblematic of the principle To Form a More Perfect Union. It features four faces 

representing the diversity of our Nation, with the clothing and hair weaving together to symbolize the formation 

of a more perfect union. It also features an American Eagle privy mark, from an original “coin punch” identified 

at the United States Mint at Philadelphia. 

2010 AMERICAN EAGLE PLATINUM PROOF COIN – TO ESTABLISH JUSTICE 

Coin Release: August 12, 2010 

Mintage Limit: 10,000 

Description: The 2010 coin design is emblematic of the theme To Establish Justice, the second 

principle found in the preamble of the U.S. Constitution. The design features a blindfolded 

justice-symbolizing impartiality-holding traditional scales and carrying a branch of laurel. 

The coin also features the inscription JUSTICE THE GUARDIAN OF LIBERTY, from the east 

pediment of the Supreme Court building. 

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www.usmint.gov