FY2016 CCDOA Financial Report as of 6302016.pdf - page 46

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For FY 2016, income before capital contributions totaled $4.3 million, a $2.6 million decrease over the FY 2015
income before capital contributions of $6.9 million. Operating income before depreciation in FY 2016 was $301.1
million, an increase of $13.7 million over the previous fiscal year and the result of a $18.5 million increase in
operating revenues offset by a $4.7 million increase in operating expenses. Depreciation and amortization expense
essentially remained flat, declining by only $0.9 million.
Non-operating expenses increased by $17.2 million from FY 2015 to FY 2016, primarily due to the change in the
methodology of valuation of investment derivative instruments from mark-to-market value to fair value pursuant to
the implementation of GASB 72. This change in these valuations of $(29.2) million was offset by an increase in
interest income of $6.6 million and an increase in Passenger Facility Charges of $5.6 million. The decrease of $10.1
million in the net gain on the disposition of capital assets offset was essentially offset by the reduction in interest
expense of $10.2 million.
For FY 2015, income before capital contributions totaled $6.9 million, a $64.8 million increase over the FY 2014 loss
before capital contributions of $57.9 million. Operating income before depreciation in FY 2015 was $287.4 million, an
increase of $14.3 million over the previous fiscal year and the result of a $14.7 million increase in operating revenues
offset by a $0.4 million increase in operating expenses. Depreciation and amortization expense essentially remained
flat, increasing by only $0.4 million. Non-operating expense decreased by $51.0 million. This decline in part was due
to a change in the value of investment derivative instruments of $17.8 million. The values of the investment
derivative instruments for both FY 2015 and FY 2014 were recorded at their mark-to-market values, since these
valuations preceded the implementation of GASB 72 and since, as of June 30, 2015, the information required to
value the investment derivative instruments at fair value was not available for FY 2015 or FY 2014. The decline in non-
operating expense was also due to a reduction in interest expense of $20.6 million and an increase in the net gain
on the disposition of capital assets of $10.0 million. These increases were offset by a decrease in interest income of
$2.0 million.
Capital Contributions
During FY 2016, the Department requested reimbursements of $19.2 million in grants from the Federal Aviation
Administration ("FAA") for approved capital projects within the Department. These FAA grants represent the
Department’s portion of entitlement funds allocated to airports in the United States based on an enplanement
formula plus any discretionary grants obtained by the Department. The $10.8 million decrease in FAA grant funding
for FY 2016 over FY 2015 can be attributed to several grant-funded projects ending in FY 2016. The major grant-
funded project for FY 2016 was the rehabilitation of Runway 7L/25R.
During FY 2015, the Department requested reimbursements of $30.0 million in grants from the Federal Aviation
Administration ("FAA") for approved capital projects within the Department. These FAA grants represent the
Department’s portion of entitlement funds allocated to airports in the United States based on an enplanement
formula plus any discretionary grants obtained by the Department. The $20.2 million increase in FAA grant funding
for FY 2015 over FY 2014 can be attributed to several grant-funded projects under construction in FY 2015. The major
grant-funded project in progress in FY 2015 was the rehabilitation of Runway 7L/25R.
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