department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
• Held for sale, or held for repair and eventual sale;
• In the process of production for sale; or
• To be consumed in the production of goods for sale or in the provision of service for a
fee.
The Department assigns inventory items to a category based upon the type and condition of
the asset.
As a result of audit readiness efforts, adjustments had to be made to mission critical asset
balances that resulted from events that could not be identified to specific accounting
periods, and those adjustments were made against current year gain/loss accounts.
Significant accounting adjustments have been made to the Department’s mission critical
assets as a result of the Department’s ongoing audit readiness efforts. These accounting
adjustments were recognized in current year gain/loss accounts when auditable data was
not available to support restatement of prior period financial statements.
Operating Materiel and Supplies, Net Dollars in Millions
As of September 30
Inventory Categories
OM&S, Gross
Value
2012
Revaluation
Allowance
OM&S, Net
Valuation
Method
Held for Use $ 134,535.9 $ (28.0) $ 134,507.9 SP, LAC, MAC
Held for Repair 18,882.2 (798.6) 18,083.6 SP, LAC, MAC
Excess, Obsolete, and Unserviceable 1,925.0 (1,925.0) 0.0 NRV
Total OM&S
Legend for Valuation Methods:
$ 155,343.1 $ (2,751.6) $ 152,591.5
Adjusted LAC = Latest Acquisition Cost, adjusted for holding gains and losses
NRV = Net Realizable Value
SP = Standard Price
MAC = Moving Average Cost
Operating Materiel and Supplies, Net Dollars in Millions
As of September 30
Inventory Categories
OM&S, Gross
Value
2011
Revaluation
Allowance
OM&S, Net
Valuation
Method
Held for Use $ 131,405.5 $ 0.0 $ 131,405.5 SP, LAC, MAC
Held for Repair 17,561.7 (1,235.7) 16,326.0 SP, LAC, MAC
Excess, Obsolete, and Unserviceable 2,225.1 (2,225.1) 0.0 NRV
Total OM&S
Legend for Valuation Methods:
$ 151,192.3 $ (3,460.8) $ 147,731.5
Adjusted LAC = Latest Acquisition Cost, adjusted for holding gains and losses
NRV = Net Realizable Value
SP = Standard Price
MAC = Moving Average Cost
Restrictions
Some munitions included in Operating Materiel and Supplies (OM&S) are restricted due to
condition. Restricted munitions are considered obsolete or unserviceable when they cannot
meet performance requirements. However, obsolete and unserviceable OM&S may be used
in emergency combat situations in which no other suitable munitions are immediately
available.
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Financial Information