Comprehensive Annual Financial Report for the ... - WMATA.com

Washington Metropolitan Area Transit AuthorityFY 2009 Comprehensive Annual Financial ReportStatements of Net Assets (Continued)Current Year (Continued)Management's Discussion and AnalysisThe largest portion of the Authority's net assets, $7.6 billion or 96.2 percent, reflects its investment incapital assets (e.g., land, buildings, transit facilities and revenue vehicles), less any related debt used toacquire those assets. The Authority uses these capital assets to provide public transportation services forthe metropolitan area. Consequently, these assets are not available for future spending. Although theAuthority's investment in its capital assets is reported net of related debt, it should be noted that theresources needed to repay this debt must be provided from other sources, since the capital assetsthemselves cannot be used to liquidate these liabilities.A portion of the Authority's net assets, $306.0 million or 3.8 percent, represents resources that are subjectto external restrictions set by the governing jurisdictions. Restricted net assets include advancecontributions for future construction, reimbursable projects and other targeted programs.Capital assets before depreciation and amortization increased by $323.6 million, largely attributable to newrail car purchases, clean natural gas bus purchases, facilities enhancements, and rail rehabilitation. Capitalcontributions were $578.3 million.Current liabilities decreased by $432.5 million or 44.6 percent, decrease due to the repayment of the line ofcredit debt and replacement of commercial paper, with long-term bonds. In addition as of June 30, 2009five of the sixteen rail car leasing transactions were terminated reducing both assets and liabilities, but withminimal cost to the Authority.Prior YearNet assets decreased by $250.8 million or 3.1 percent due to increased capital borrowing and a decrease inthe investment portfolio in support of the capital improvement program (CIP).The largest portion of the Authority's net assets, $7.6 billion or 97.4 percent, reflects its investment incapital assets (e.g., land, buildings, transit facilities and revenue vehicles), less any related debt used toacquire those assets. The Authority uses these capital assets to provide public transportation services forthe metropolitan area. Consequently, these assets are not available for future spending. Although theAuthority's investment in its capital assets is reported net of related debt, it should be noted that theresources needed to repay this debt must be provided from other sources, since the capital assetsthemselves cannot be used to liquidate these liabilities.A portion of the Authority's net assets, $205.3 million or 2.6 percent, represents resources that are subjectto external restrictions set by the governing jurisdictions. Restricted net assets include advancecontributions for future construction, reimbursable projects and other targeted programs.Capital assets before depreciation increased by $398.4 million, largely attributable to new rail carpurchases, facilities enhancements, and rail rehabilitation. Capital contributions were $252.2 million.Current liabilities increased by $202.0 million or 26.3 percent, largely due to increase in usage ofcommercial paper required to support the capital improvements program and an outstanding line of creditbalance.13