FY2016 CCDOA Financial Report as of 6302016.pdf - page 59

Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
(g) Capitalized Interest
The Department capitalizes interest costs on Airport System construction projects. The amount
capitalized is adjusted based on the costs associated with the Airport System’s construction in progress
and interest expense. For FY 2016 and FY 2015, capitalized interest was $0.7 million and $0.3 million,
(h) Deferred Outflows of Resources and Deferred Inflows of Resources - Pension
GASB Statement No. 68,
Accounting and Financial Reporting for Pensions
("GASB 68"), requires
actuarial assumptions be made, based on the measurement date, in computing deferred outflows of
resources and deferred inflows of resources determined in connection with recording total pension
liability. These deferred outflows of resources and deferred inflows of resources include valuations
pertaining to changes in proportions, differences between actual contributions and proportionate
share of contributions, differences between expected and actual experience, differences between
the projected and actual investment earnings on pension plan investments, and the effects of
changes in assumptions. These items are to be amortized using a systematic and rational method over
a closed period starting at the measurement date. Also included in deferred outflows of resources are
contributions to the pension plan after the measurement date. Refer to Note 5, "Retirement Plans"; Note
8, "Deferred Outflows of Resources"; and Note 11, "Deferred Inflows of Resources," for further details.
(i) Deferred Costs
Deferred costs, which include losses on bond refundings, are amortized over the shorter of the life of
the related refunding bond or refunded bond using the proportionate-to-stated interest method.
Deferred costs also include deferred losses incurred on the re-association and revaluation of interest
rate swaps paired to certain bonds that were refunded. These deferred losses are amortized on a
straight-line basis against corresponding imputed debt over the life of the swap. Refer to Note 10,
"Derivative Instruments – Interest Rate Swaps," for further details.
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