USPTO Performance and Accountability Report - U.S. Patent and ...

Composition of USPTO Cash Flow (Dollars in Millions) FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Cash Flow from Operations
Net Income/(Cost) $ (30.4) $ (54.8) $ 94.7 $ 88.3 $ 106.1
Operating Adjustments
Depreciation $ 67.6 $ 63.3 $ 59.1 $ 52.7 $ 67.9
Accrued Payroll, Leave, and Benefits 25.2 11.1 43.6 47.2 32.9
Deferred Revenue 20.4 (48.2) (25.9) 71.4 (14.8)
Other Adjustments 11.3 (15.1) (17.3) 20.0 4.1
Total Adjustments $ 124.5 $ 11.1 $ 59.5 $ 191.3 $ 90.1
Net Cash Provided/(Used) by Operating Activities $ 94.1 $ (43.7) $ 154.2 $ 279.6 $ 196.2
Net Cash Used in Investing Activities
Property, Plant, and Equipment $ (67.2) $ (65.0) $ (27.6) $ (84.9) $ (98.2)
Financing Activities
Non-Expenditure Transfer $ (1.0) $ (2.0) $ — $ — $ (1.0)
Accounting Standard Change — (11.9)
Net Cash Used in Investing
Activities
decreases, then a reader can conclude that an
increased amount of cash was disbursed, thereby
requiring a reduction to net income/cost; alternately,
in a year when the overall liability balance increases,
a reader can conclude that a lesser amount of cash
was disbursed.
The investment of property, plant, and equipment is a
cash transaction that has not been accounted for in
net income/cost. This investment reduces net
income/cost further for calculating cash flow. Investments
decreased in FY 2010 as the USPTO chose to
refocus IT investing modifications. Instead, the USPTO
is beginning to completely re-invent our IT systems
from end-to-end, which resulted in increases
beginning in FY 2011 in IT software and software in
development values. In addition, the USPTO began
deploying ULs agency-wide in FY 2011, replacing
outdated desktop computers and work-at-home
laptops.
Adjustments to financing-type activities are infrequent
at the USPTO. Non-expenditure transfers at the
USPTO are the movement of appropriated fee collections
to other federal governmental entities, without
an impact to net income/cost. In addition, due to
the implementation of Statement of Federal Financial
$ (1.0) $ (13.9) $
MANAGEMENT’S DISCUSSION AND ANALYSIS
Accounting Standard (SFFAS) 31, Accounting for
Fiduciary Activities, in FY 2009, the presentation of
fiduciary funds were removed from the Balance Sheet
and are therefore reflected as a decrease of cash.
Limitation on Financial Statements
The principal financial statements included in this
report have been prepared by USPTO management to
report the financial position and results of operations
of the USPTO, pursuant to the requirements of 31 U.S.C.
3515(b). While the statements have been prepared
from the books and records of the USPTO in accordance
with generally accepted accounting principals
(GAAP) for federal entities and the formats prescribed
by OMB in OMB Circular A-136 (revised), the statements
are in addition to the financial reports used to
monitor and control budgetary resources, which are
prepared from the same books and records. The statements
should be read with the understanding that
they are for a component of the U.S. Government, a
sovereign entity.
Management Responsibilities
— — —
— $ — $ (1.0)
Net Cash Provided/(Used) $ 25.9 $ (122.6) $ 126.6 $ 194.7 $ 97.0
USPTO management is responsible for the fair presentation
of information contained in the principal
financial statements, in conformity with GAAP, the
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