05 Balance Sheet Overview
Statements of Net Assets (Balance Sheet) Audit Committee Meeting August 7, 2012 Presented by Lisa Lam, Senior Manager, Financial Reporting & Controls Accounting & Financial Reporting (AFR) ASSETS - TERMINOLOGY Cash equivalents Investments maturing within 3 months from purchase date (mostly repurchase agreements) Short-term investments Investments maturing within 1 year (of balance sheet date, not purchase date) Long-term investments Investments maturing longer than 1 year (of balance sheet date, not purchase date) Restricted vs. Unrestricted Cannot be used for current operations (such as bond funds for capital construction) 2 ASSETS (in thousands) % Change 2011 2010 CURRENT ASSETS: Cash and cash equivalents $ 161,732 $ 100,538 Restricted cash and cash equivalents: 34% Bond funds and other 77,678 78,080 Fuel hydrant assets held in trust 6,441 6,488 Short-term investments 69,091 64,215 Restricted short-term investments: Bond funds and other 38,244 49,249 15% NONCURRENT ASSETS: Long-term investments 359,046 374,958 Restricted long-term investments: Bond funds and other 204,686 298,536 Fuel hydrant assets held in trust 4,254 4,059 3 ASSETS - TERMINOLOGY Receivable Accounts receivable Invoices/billings issued to customers for services provided Allowance for doubtful accounts, > 90 days past due or other specific circumstances Grant-in-aid receivable Federal/ State grants, met reimbursement eligibility requirements Taxes receivable Ad valorem tax levy assessed at beginning of the year Materials and supplies held for use (operations/maintenance or capital) reported at cost 4 ASSETS - TERMINOLOGY Assets held for sale Eastside rail corridor, not for operational use Prepayments and other assets Insurance (OCIP/surety), contract receivables, refunds, prepaid air space rental, leasing brokerage fee, software maintenance costs Warehousemen's pension asset long-term only Deferred finance costs Debt issuance costs, e.g. bond insurance costs, rating agency fees, printing, legal, administrative expenses Capital assets For operational use, met capitalization threshold (3 years life and $20k, or greater, and ready for use) Construction work in progress Capital projects, before completion/in service 5 ASSETS (in thousands) % Change 2011 2010 CURRENT ASSETS: Accounts receivablenet 13% $ 35,843 $ 31,860 Grants-in-aid receivable 40% 2,650 4,419 Taxes receivable 7% 1,922 2,056 Materials and supplies 9% 6,564 6,041 Assets held for sale 20% 40,380 50,380 Prepayments and other current assets 71% 6,621 3,878 NONCURRENT ASSETS: Other long-term assets 29% 5,094 7,183 Deferred finance costsnet 7% 31,109 33,548 Capital assets after depreciation 1% 5,159,663 5,124,288 Construction work in progress (CWIP) 32% 449,401 339,413 6 LIABILITIES - TERMINOLOGY Accounts payable Received goods/services and other obligations, unpaid Payroll and taxes payable Salary and benefits payable at year end, paid the first payroll of new year Bond interest payable Interest expense, normally paid semi-annually Lease securities and customer advances Signatory airline lease and operating agreement Terminal 18 Debt Current principal payment due within 1 year Long-term principal payment due longer than 1 year 7 LIABILITIES - TERMINOLOGY Other postemployment benefits obligation LEOFF 1 + Portwide life insurance Net present value of future OPEB benefits, amortized by average service periods less funded amount Environmental remediation liability Obligating events criteria per accounting standards are met Reasonably estimated (probability) at current value Deferred revenue Amount of revenue collected, but not earned yet (billings in advance) 8 LIABILITIES (in thousands) % Change 2011 2010 CURRENT LIABILITIES: Accounts payable and accrued expenses 29% $ 35,545 $ 49,905 Payroll and taxes payable 8% 35,872 33,228 Bond interest payable 3% 39,868 41,301 Lease securities and customer advances 89% 41,129 21,736 Current maturities of long-term debt 19% 161,940 200,750 LONG-TERM LIABILITIES: Other postemployment benefits obligation 9% 9,106 8,359 LONG-TERM DEBT 0% 3,348,654 3,341,559 CURRENT + LONG-TERM LIABILITIES: Environmental remediation liability 6% 53,359 56,724 Deferred revenue, election expense, & 7% 22,822 21,253 others 9 NET ASSETS - TERMINOLOGY Starting 2012, new term, "Net Position" Invested in capital assets net of related debt (Net investment in capital assets) Capital assets, net of accumulated depreciation, outstanding balance of debt attributed to the acquisition, construction, or improvement of those assets Restricted Subject to externally imposed stipulations on their use, but restrictions should not be too broad Unrestricted All others not fitting the 2 categories above 10 NET ASSETS (in thousands) % Change 2011 2010 Invested in capital assetsnet of related debt 3% $ 2,306,698 $2,248,793 Restricted for: Debt service reserves 4% 110,513 105,913 Passenger facility charges 17% 24,272 20,725 Grants and other 31% 879 670 Unrestricted 10% 469,762 428,273 11 Thank you! Questions? 12
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