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Annual Report for the Fiscal Year Ended June 30, 2015

Five-Year Comparative Consolidated
Net Position (Dollars In Millions)
Current assets
Capital assets
Deferred outflows
of resources

Current liabilities
Non-current liabilities
Net position
Deferred inflows
of resources

2015
$579
$5,577
$2,225
$128

$1,462
$6,959
$88

$8,509
2014
$511
$5,458
$2,350

$1,804
$6,496
$19
$8,319

2013
$529
$5,508
$2,367

$2,514
$5,869
$21
$8,404

2012
$551
$5,284
$1,936

$2,643
$5,104
$24
$7,771

2011
$465
$3,954
$1,953

$2,148
$4,224
$6,372

Our Statement of Net Position
continued to reflect a strong and
healthy financial condition over the last
five fiscal years. Investments in capital
assets were 84% of our net position
and represented the amount by which
the carrying value of capital assets
exceeds capital-related debt, which
comprises the outstanding balances
of any bonds, mortgages, notes, or
other borrowings that are attributable
to the acquisition, construction, or
improvement of those assets. While
total assets were increasing in the last
five years, liabilities increased $187
million in fiscal year 2015 as a result
of implementation of Governmental
Accounting Standards Board (GASB)
Statement No. 68, Accounting and
Financial Reporting for Pensions.
There are five components in the
Statement of Net Position, which is
intended to present what the entity
owns (assets), owes (liabilities) and
its residual or net position.
1) Assets are resources with present
service capacity that the government
presently owns or controls.
2) Deferred inflow of resources is an
acquisition of net position by the
government that is applicable to
a future reporting period. For
example, deferred revenue and
advance collections.
3) Liabilities are present obligations
to sacrifice resources that the
government has little or no discretion
to avoid, such as debts owed. They
represent claims against assets.
4) Deferred outflow of resources is a
consumption of net position by the
government that is applicable to a
future reporting period. Examples are
prepaid items and deferred charges.

5) Net position is the residual of all
other elements presented in a
statement of financial position, i.e.
the residual interest in the items
owned or controlled after deducting
debts. Over time, increases or
decreases in net position may
serve as a useful indicator of
whether the financial position
is improving or worsening.
Our Statement of Net Position
summarized resources balanced
against debt and other liabilities as
of June 30, using the full accrual basis
of accounting. Full accrual accounting
records revenues when earned and
liabilities when incurred, regardless
of the timing of cash flows. The
statement of net position presents
assets, deferred outflows of resources,
liabilities, and deferred inflows of
resources as of the end of the fiscal
year. The difference between these
amounts is reported as net position,
which is comprised of net investment
in capital assets, restricted, and
unrestricted. Capital assets include
depreciable and non-depreciable
facilities, improvement, machinery
and equipment, intangible assets,
land and rights-of-way as well as
construction work in progress.
The Statement of Revenues,
Expenses, and Changes in Net
Position reflected continued revenue
growth. We strive to achieve strong
financial performance and effectively
control operating costs to not exceed
revenues. Total expenses decreased
from last year as primarily explained
by $39 million pension cost reduction
resulting from the adoption of GASB
Statement No. 68.

Five-Year Statements of Revenues, Expenses,
and Changes in Net Position (Dollars In Millions)
Expenses
Contractual services
Capital project bond interest expense
Depreciation expense
Materials, supplies and other expenses
Personnel services
$35
$151
$164
$248
$220

2015
$955

Revenues

$818

Expenses
$30
$151
$153
$266
$252

2014
$836

$852
$32
$163
$137
$232
$250

2013
$1,244

$814
$34
$160
$123
$239
$242

2012
$803

$798
$35
$124
$115
$196
$225

2011
$751

$695