For 109 years, AAFES has provided support to troops serving around the world.  In recent years, AAFES has provided support to the military fighting horrific forest fires in the Continental United States, to our troops working the Olympic Games in Utah, and to US and allied troops participating in “Operation Enduring Freedom,” “Operation Joint Guardian,” “Operation Joint Forge,” Operations Northern and Southern Watch.”  AAFES was in the shadow of the impact site at the Pentagon and at “Ground Zero” in New York City supporting rescue efforts in the wake of the September 11 attacks.  In 2003 through the present, AAFES has provided unfaltering support to our service members and allies in “Operation Iraqi Freedom” despite adverse threats and conditions.

AAFES mission is to provide quality merchandise and services of necessity and convenience to authorized customers at competitively low prices; and generate reasonable earnings to supplement appropriated funds for the support of Army and Air Force Morale, Welfare, and Recreation Programs.  These contributions to the Soldier and Airman and their families make AAFES a major non-pay benefit to customers.

AAFES is charged with generating reasonable earnings, but returns every cent to the customer.  The only congressionally appropriated money spent in AAFES comes in the form of utilities and transportation of merchandise to overseas exchanges and for military salaries.  A non-appropriated fund activity (NAF) of the Department of Defense, AAFES funds 98% of its operating budget (civilian employee salaries, inventory investments, utilities and capital investments for equipment, vehicles and facilities) from the sale of merchandise, food and services to customers.

Roughly 67% of AAFES earnings are paid to Morale, Welfare and Recreation (MWR) Programs.  In the past 10 years, $2.24 billion has been contributed by AAFES to the Army and Air Force to spend on quality of life improvements for Soldiers, Airmen and their families—libraries, sports programs, swimming pools, youth activities, tickets and tour services, bowling centers, hobby shops, music programs, outdoor facilities and unit functions.

In FY 2004, AAFES earned $344.5 million from direct sales (retail, food, and vending/services), finance revenue, and concessions on revenues of $7.9 billion.  MWR and services programs received $242.3 million, which was distributed as follows:

• Army, $147.5 million
• Air Force, $82.3 million
• Marine Corps, $11.9 million
• Navy, $.6 million

The per capita dividend in 2004 was $277 for every Soldier and Airman.

In addition to funding MWR programs, AAFES earnings are used to build new stores or renovate existing facilities without expense to the Federal Government.  Funds to construct these new or replacement facilities come entirely from sales of merchandise and services.  It’s another way that AAFES supports and gives back to the military community.

AAFES is also a major source of employment for members of the Army and Air Force family.  Approximately 25% of the 48,982 AAFES associates are military family members.  Many associates have worked for years with AAFES as they’ve moved from one installation to another with their military sponsors.  Another 1.2% of associates are military members who work part time in exchanges during their off duty hours.

AAFES operates thousands of facilities worldwide; including more than 12,000 facilities in more than 35 countries and in all 50 states.  These include 3,150 retail facilities of which 160 are main stores on Army, Air Force, and Marine installations around the world.

AAFES is in business to serve Soldiers, Airmen and their families around the world.  Now in our second century of service, AAFES is dedicated to adding to the quality of life of our customers and serving as a partner with the Army, Air Force and the MWR community.