Yearly Report PART II Item 8. Financial Statements and Supplementary Data

Notes to financial statements

Published on Mon, April 13, 2020 3:05PM PDT | Updated Tue, April 21, 2020 1:50PM PDT

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Notes to financial statements > Item 8. Financial Statements and Supplementary Data > PART II > Government 10-K

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General note on sources

Federal government

Federal government amounts and the related text within Notes 2 through 22 below were copied from the 2017 United States (US) Treasury (Treasury) Financial Report of the United States (the Financial Report). We condensed and reordered the Financial Report information in reproducing it here to reflect the materiality level of this report, generally rounding dollars to the nearest billion, condensing amounts in tables less than 5% of the respective totals, and deleting the corresponding text. We also excluded the following notes of the Financial Report in creating this report:

  • Note 1 – Summary of significant accounting policies – excluded because aggregated accounting policies for state and local governments are not available, and the federal accounting policies are voluminous and less helpful without the associated state and local government information. Rather, we refer you to each of our sources for information on their accounting policies – see Part I, About this Report, Structure and content, Sources of data within this report for more information on our financial statement sources;
  • Note 17 – Collections and refunds of federal revenue – excluded because the footnote provides details on federal government revenues shown in the Financial Report, whereas our revenues come from a different source and therefore this detail is not applicable to our report; and
  • Note 22 – Social insurance and Note 23Long-term fiscal projections – excluded because these footnotes primarily contain projections that a company would not normally include in its footnotes, though we have provided some supplemental information on potential future social insurance program (e.g. Medicare, Social Security) obligations in Exhibits 99.06 and 99.07 of this report.

We also reviewed the 2018 US Treasury Financial Report of the United States (the 2018 Financial Report) and noted that the Treasury had adjusted certain 2017 figures after releasing the Financial Report. We made corresponding adjustments in this report, resulting in changes to: All other programs – loans receivable (Note 4 – Loans receivable and loan guarantee liabilities, net), reflecting changes to US Department of Housing and Urban Development (HUD) estimates and corrections of errors; and various property, plant, and equipment components (Note 6 – Property, plant, and equipment, net) reflecting corrections of compilation errors. See the 2018 Financial Report for more details.

Finally, we supplemented the Financial Report information in Note 8 – Investments in government-sponsored enterprises by providing the Fannie Mae and Freddie Mac balance sheets (obtained from their respective Form 10-Ks) and in Note 22 – Stewardship land and heritage assets by providing tables that show revenues generated from federally owned land, including stewardship land (see source in Note 22).

Please see also Note 1 - Accounting policies below.

State and local government

State and local government amounts within these footnotes were sourced from the Federal Reserve. We have aggregated certain figures to reflect the materiality level of this report and grouped the figures to match the federal government categories. The Federal Reserve does not provide definitions or other accompanying text for the state and local government data. Therefore, there is a risk that we mapped the state and local government figures to the federal government categories in a different way than the state and local governments or the Federal Reserve would have mapped them. In addition, we have not provided as much information for state and local governments in these footnotes as we have for the federal government due to this data source limitation. We plan to provide more detailed state and local data in the future.

Note 1 – Accounting policies

Accounting principles

As discussed under General note on sources above, our combined financial statements and accompanying notes represent the aggregation of data prepared by other organizations. The accounting principles, including principles of combination, the preparation of estimates, and the use of assumptions can be found at each respective source. Principles we have applied in addition to theirs are discussed in this note.

Principles of combination

The combined financial statements have been prepared through the aggregation of federal and state and local government data, as described above. Certain intergovernmental amounts have been eliminated (see Note 23 – Intergovernmental transfers) and certain revenues and expenditures have been netted (see Note 24 – Offsetting amounts).

Estimates and assumptions

Preparing financial statements requires management of organizations to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenditures. As our financial statements comprise the combined data of other organizations, the related estimates and assumptions have been made by management of those organizations.

Changes in prior period amounts

Within our financial statements and footnotes, we have adjusted prior period amounts that our sources have adjusted. In addition, we have reclassified certain prior period amounts to conform to the current period presentation, with no impact on combined net deficit. See details in Note 17 – Prior period adjustments.

Note 2 – Cash and other monetary assets

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

271

 

$

468

State and local

 

754

 

 

733

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and other monetary assets

$

1,025

 

$

1,201

 

 

 

 

 

 

 

Federal government

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Unrestricted cash

 

 

 

 

 

Cash held by Treasury for federal government-wide operations

$

153

 

$

347

Other

 

4

 

 

11

Restricted cash

 

26

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

Total cash

 

183

 

 

384

International monetary assets

 

63

 

 

60

Other monetary assets

 

25

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and other monetary assets

$

271

 

$

468

 

 

 

 

 

 

 

Unrestricted cash includes cash held by Treasury for governmentwide operations (Operating Cash) and all other unrestricted cash held by the federal agencies. Operating Cash represents balances from tax collections, other revenue, federal debt receipts, and other various receipts net of cash outflows for budget outlays and other payments. Treasury checks outstanding are netted against Operating Cash until they are cleared by the Federal Reserve System. Other unrestricted cash not included in Treasury’s Operating Cash balance includes balances representing cash, cash equivalents, and other funds held by agencies, such as undeposited collections, deposits in transit, demand deposits, amounts held in trust, and imprest funds. Operating Cash held by the Treasury decreased by $194 billion (a decrease of approximately 56%) in fiscal year 2017 due to Treasury’s investment and borrowing decisions to manage the balance and timing of the federal government’s cash position.

Restrictions on cash are due to the imposition on cash deposits by law, regulation, or agreement. Restricted cash is primarily composed of cash held by the Defense Security Cooperation Agency (DSCA). The Foreign Military Sales Program - DSCA included $21 billion as of both September 30, 2017 and 2016.

International monetary assets include the US reserve position in the International Monetary Fund (IMF) and US holdings of Special Drawing Rights (SDRs). The US reserve position in the IMF is an interest-bearing claim on the IMF that includes the reserve asset portion of the financial subscription that the United States has paid in as part of its participation in the IMF as well as any amounts drawn by the IMF from a letter of credit made available by the United States as part of its financial subscription to the IMF. The IMF promotes international monetary cooperation and a stable payments system to facilitate growth in the world economy. Its primary activities are surveillance of members’ economies, financial assistance, as appropriate, and technical assistance.

Only a portion of the US financial subscription to the IMF is made in the form of reserve assets; the remainder is provided in the form of a letter of credit from the United States to the IMF. The balance available under the letter of credit totaled $105 billion and $106 billion as of September 30, 2017, and 2016 respectively. The current participation in the IMF is authorized in accordance with the Consolidated Appropriations Act of 2016 (Public Law [P.L.] 114-113). The US reserve position in the IMF had a US dollar equivalent of $12 billion and $10 billion as of September 30, 2017, and 2016, respectively.

The SDR is an international reserve asset created by the IMF to supplement the existing reserve assets of its members. These interest-bearing assets can be obtained by IMF allocations, transactions with IMF member countries, or in the form of interest earnings on SDR holdings and reserve positions in the IMF. US SDR holdings are an interest-bearing asset of Treasury’s Exchange Stabilization Fund (ESF). The total amount of SDR holdings of the United States was the equivalent of $52 billion and $50 billion as of September 30, 2017, and 2016, respectively.

The IMF allocates SDRs to its members in proportion to each member’s quota in the IMF. The SDR Act, enacted in 1968, authorized the Secretary of the Treasury to issue SDR Certificates (SDRCs) to the Federal Reserve in exchange for dollars. The amount of SDRCs outstanding cannot exceed the dollar value of SDR holdings. The Secretary of the Treasury determines when Treasury will issue or redeem SDRCs. SDRCs outstanding totaled $5 billion as of September 30, 2017, and 2016, and are included in Note 16—Other liabilities.

As of September 30, 2017, and 2016, other liabilities included $50 billion and $49 billion, respectively, of interest-bearing liability to the IMF for SDR allocations. The SDR allocation item represents the cumulative total of SDRs distributed by the IMF to the United States in allocations. The United States has received no SDR allocations since 2009.

State and local government

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Non-pension

 

 

 

 

 

Time and savings deposits

$

369

 

$

371

Security repurchase agreements

 

158

 

 

149

Money market fund shares

 

21

 

 

19

Checkable deposits and currency

 

110

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

Total non-pension cash and other monetary assets

$

658

 

$

635

Pension

 

 

 

 

 

Money market fund shares

$

58

 

$

52

Other

 

38

 

 

46

 

 

 

 

 

 

 

 

 

 

 

 

Total pension cash and other monetary assets

 

96

 

 

98

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and other monetary assets

$

754

 

$

733

 

 

 

 

 

 

 

Note 3 – Accounts and taxes receivable, net

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

143

 

$

133

State and local

 

350

 

 

330

 

 

 

 

 

 

 

 

 

 

 

 

Total accounts and taxes receivable, net

$

493

 

$

463

 

 

 

 

 

 

 

Federal government

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

 

 

Gross accounts receivable

$

118

 

$

110

Allowance for uncollectible amounts

 

(30)

 

 

(30)

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

88

 

 

80

Taxes receivable

 

 

 

 

 

Gross taxes receivable

 

204

 

 

185

Allowance for uncollectible amounts

 

(149)

 

 

(132)

 

 

 

 

 

 

 

 

 

 

 

 

Taxes receivable, net

$

55

 

$

53

 

 

 

 

 

 

 

 

 

 

 

 

Total accounts and taxes receivable, net

$

143

 

$

133

 

 

 

 

 

 

 

Gross accounts receivable include related interest receivable of $3 billion and $4 billion as of September 30, 2017, and 2016, respectively.

Treasury comprises approximately 37% of the federal government’s reported accounts and taxes receivable, net, as of September 30, 2017. The following list of agencies comprise 97% of the federal government’s accounts and taxes receivable, net, of $143 billion as of September 30, 2017. Please refer to the following financial statements for details on gross accounts and taxes receivable and the related allowance for uncollectible amounts: of the Department of the Treasury (Treasury), the Department of Health and Human Services (HHS), the Social Security Administration (SSA), the Department of the Interior (DOI), the Department of Homeland Security (DHS), the Department of Defense (DOD), the Pension Benefit Guaranty Corporation (PBGC), the Department of Energy (DOE), the Federal Deposit Insurance Corporation (FDIC), the Department of Veterans Affairs (VA), the Office of Personnel Management (OPM), the Tennessee Valley

Authority (TVA), the Department of Labor (DOL), the Department of Agriculture (USDA), the United States Postal Service (USPS), and the Department of Housing and Urban Development (HUD).

Accounts and taxes receivable, net, have historically included amounts related to criminal restitution owed to the federal government. Beginning in fiscal year 2017, additional information is disclosed related to these amounts for the current fiscal year. Included in accounts and taxes receivable, net is $9 billion of gross receivables related to criminal restitution orders monitored by the responsible agencies, of which $0.6 billion is determined to be collectible. Of this gross receivable amount, Treasury, HHS, and SSA collectively account for $8 billion of which $0.5 billion is determined to be collectible as of September 30, 2017.

State and local government

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

201

 

$

190

Taxes receivable, net

 

149

 

 

140

 

 

 

 

 

 

 

 

 

 

 

 

Total accounts and taxes receivable, net

$

350

 

$

330

 

 

 

 

 

 

 

Note 4 – Loans receivable and loan guarantee liabilities, net

Loans receivable

 

(In billions)

2017

  

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

1,332

 

$

1,261

State and local

 

256

 

 

242

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable

$

1,588

 

$

1,503

 

 

 

 

 

 

 

Loan guarantee liabilities

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

43

 

$

18

State and local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan guarantee liabilities

$

43

 

$

18

 

 

 

 

 

 

 

Federal government

The federal government has two types of loan programs: direct loans and loan guarantees. One major type of loan is direct loans such as the Department of Education’s (Education) Federal Direct Student Loans. The second type is loan guarantee programs, such as the Department of Housing and Urban Development’s (HUD’s) Federal Housing Administration Loans program.

Direct loans and loan guarantee programs are used to promote the Nation’s welfare by making financing available to segments of the population not served adequately by non-federal institutions, or otherwise providing for certain activities or investments. For those unable to afford credit at the market rate, federal credit programs provide subsidies in the form of direct loans offered at an interest rate lower than the market rate. For those to whom non-federal financial institutions are reluctant to grant credit because of the high risk involved, federal credit programs guarantee the payment of these non-federal loans and absorb the cost of defaults.

The amount of the long-term cost of post-1991 direct loans and loan guarantees outstanding equals the subsidy cost allowance for direct loans and the liability for loan guarantees (including defaulted guaranteed loans) as of September 30. The amount of the long-term cost of pre-1992 direct loans and loan guarantees equals the allowance for uncollectible amounts (or present value allowance) for direct loans and the liability for loan guarantees. The long-term cost is based on all direct loans and guaranteed loans disbursed in this fiscal year and previous years that are outstanding as of September 30. It includes the subsidy cost of these loans and guarantees estimated as of the time of loan disbursement and subsequent adjustments such as modifications, re-estimates, amortizations, and write-offs.

Net loans receivable includes related interest and foreclosed property. Foreclosed property is property that is transferred from borrowers to a federal credit program, through foreclosure or other means, in partial or full settlement of post-1991 direct loans or as a compensation for losses that the federal government sustained under post-1991 loan guarantees. Please refer to the financial statements of the United States Department of Agriculture (USDA), VA, and HUD for significant detailed information regarding foreclosed property. The total subsidy expense/(income) is the cost of direct loans and loan guarantees recognized during the fiscal year. It consists of the subsidy expense/(income) incurred for direct and guaranteed loans disbursed during the fiscal year, for modifications made during the fiscal year of loans and guarantees outstanding, and for upward or downward re-estimates as of the end of the fiscal year of the cost of loans and guarantees outstanding.

 

 

Face Value of

Loans

Outstanding

 

Long-term Cost

of (Income from)

Direct Loans and

Defaulted

Guaranteed

Loans

Outstanding

 

Loans Receivable,

Net

 

Subsidy

Expense

(Income) for the

Fiscal Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

2017

 

2016

 

2017

 

2016

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Direct Student Loans – Education

$

1,058

 

$

954

 

$

17

 

$

(5)

 

$

1,041

 

$

959

 

$

5

 

$

16

Federal Family Education Loans – Education

 

121

 

 

128

 

 

19

 

 

13

 

 

102

 

 

115

 

 

2

 

 

4

All other programs

 

217

 

 

215

 

 

28

 

 

28

 

 

189

 

 

187

 

 

(4)

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total direct loans and defaulted guaranteed loans

$

1,396

 

$

1,297

 

$

64

 

$

36

 

$

1,332

 

$

1,261

 

$

3

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal Amount

of Loans Under

Guarantee

 

Principal Amount

Guaranteed by the

US

 

Loan Guarantee

Liabilities

 

Subsidy

Expense

(Income) for the

Fiscal Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

2017

 

2016

 

2017

 

2016

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Housing Administration Loans – HUD

$

1,410

 

$

1,339

 

$

1,278

 

$

1,216

 

$

21

 

$

(1)

 

$

13

 

$

(18)

Veterans Housing Benefit Programs – VA

 

597

 

 

517

 

 

152

 

 

133

 

 

10

 

 

10

 

 

(1)

 

 

(1)

All other guaranteed loan programs

 

528

 

 

544

 

 

488

 

 

504

 

 

12

 

 

9

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan guarantees

$

2,535

 

$

2,400

 

$

1,918

 

$

1,853

 

$

43

 

$

18

 

$

12

 

$

(15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan programs

The majority of the loan programs are provided by Education, HUD, USDA, Small Business Administration (SBA), VA, and Export-Import Bank. For significant detailed information regarding the direct and guaranteed loan programs listed in the tables above, please refer to the financial statements of the agencies.

Education has two major loan programs, authorized by Title IV of the Higher Education Act of 1965 (HEA). The first program is the William D. Ford Federal Direct Loan Program, (referred to as the Direct Loan Program) that was established in fiscal year 1994. The Direct Loan Program offered four types of educational loans: Stafford, Unsubsidized Stafford, PLUS for parents and/or graduate or professional students, and consolidation loans. With this program, the federal government makes loans directly to students and parents through participating institutions of higher education. Direct loans are

originated and serviced through contracts with private vendors. Education disbursed approximately $143 billion in Direct Loans to eligible borrowers in fiscal year 2017 and approximately $141 billion in fiscal year 2016. The second program is the Federal Family Education Loan (FFEL) Program. This program was established in fiscal year 1965, and is a guaranteed loan program. Like the Direct Loan Program, it offered four types of loans: Stafford, Unsubsidized Stafford, PLUS for parents and/or graduate or professional students, and consolidation loans. The Student Aid and Fiscal Responsibility Act (SAFRA), which was enacted as part of the Health Care Education and Reconciliation Act of 2010 (P.L. 111-152), eliminated the authority to guarantee new FFEL after June 30, 2010. During fiscal year 2017, Education net loans receivable increased by $71 billion, largely the result of increased Direct Loan Program disbursements for new loan originations and FFEL consolidations, net of borrower principal and interest collections.

HUD’s Federal Housing Administration (FHA) provides mortgage insurance to encourage lenders to make credit available to expand homeownership. FHA serves many borrowers that the conventional market does not serve adequately. This includes first-time homebuyers, minorities, low-income, and other underserved households to realize the benefits of homeownership. Borrowers obtain an FHA insured mortgage and pay an upfront premium as well as an annual premium to FHA. The proceeds from those premiums are used to fund FHA program costs, including claims on defaulted mortgages and holding costs, property management fees, property sales, and other associated costs.

VA operates the following direct loan and loan guaranty programs: Home Loans, Insurance Policy Loans, and Vocational Rehabilitation and Employment Loans. The VA Home Loans program is the largest of the VA loan programs. The Home Loans program provides loan guarantees and direct loans to veterans, service members, qualifying dependents, and limited non-veterans to purchase homes and retain homeownership with favorable market terms. During fiscal year 2017, the face value of outstanding principal on loans guaranteed by the VA increased by $80 billion. This increase was primarily due to $162 billion in new loans guaranteed by the VA, partially offset by $81 billion in guaranteed loan terminations.

State and local government

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Loans (mortgages)

$

248

 

$

233

Loans (mortgages) – pensions

 

8

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable

$

256

 

$

242

 

 

 

 

 

 


Note 5 – Inventories and related property, net

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

327

 

$

314

State and local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total inventories and related property, net

$

327

 

$

314

 

 

 

 

 

 

 

Federal government

 

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

 

Defense

 

 

All

Others

 

 

Total

 

 

Defense

 

 

All

Others

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating materials and supplies held for use

$

140

 

$

4

 

$

144

 

$

105

 

$

4

 

$

109

Inventory and operating material and supplies held for repair

 

66

 

 

1

 

 

67

 

 

88

 

 

1

 

 

89

Inventory purchased for resale

 

61

 

 

1

 

 

62

 

 

62

 

 

1

 

 

63

Stockpile materials held in reserve for future use

 

1

 

 

49

 

 

50

 

 

1

 

 

47

 

 

48

Other inventories and related property

 

6

 

 

6

 

 

12

 

 

5

 

 

7

 

 

12

Allowance for loss

 

(7)

 

 

(1)

 

 

(8)

 

 

(6)

 

 

(1)

 

 

(7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total inventories and related property, net

$

267

 

$

60

 

$

327

 

$

255

 

$

59

 

$

314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating materials and supplies held for use are tangible personal property to be consumed in normal operations.

Inventory and operating materials and supplies held for repair are damaged inventory that require repair to make them suitable for sale (inventory) or is more economical to repair than to dispose of (operating materials and supplies). Excess, obsolete, and unserviceable inventory is reported at net realizable value.

Inventory purchased for resale is the cost or value of tangible personal property purchased by an agency for resale. As of September 30, 2017, DOD values approximately 98% of its resale inventory using the moving average cost (MAC) method. DOD reports the remaining 2% of resale inventories at an approximation of historical cost using LAC adjusted for holding gains and losses. DOD continues to implement SFFAS No. 48, Opening Balances for Inventory, Operating Materials and Supplies, and Stockpile Materials, permitting alternative methods in establishing opening balances. Please refer to the financial statements of DOD for more information on its inventories.

Stockpile materials include strategic and critical materials held in reserve for use in national defense, conservation, or national emergencies due to statutory requirements; for example, nuclear materials and oil. The majority of the stockpile materials held in reserve for future use were reported by the Department of Energy (DOE). Please refer to the financial statements of DOE for more information on stockpile materials.

State and local government

Based on our review of specific Comprehensive Annual Financial Reports, we know that the state governments do have inventories and related property, however the Federal Reserve does not provide information on the balances, and we are not aware of another aggregated source of the data.

Note 6 – Property, plant, and equipment, net

 

(In billions)

2017

  

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

1,087

 

$

980

State and local

 

10,719

 

 

10,350

 

 

 

 

 

 

 

 

 

 

 

 

Total property, plant, and equipment, net

$

11,806

 

$

11,330

 

 

 

 

 

 

 

Federal government

 

 

Cost

  

Accumulated

Depreciation/

Amortization

  

Net

  

Cost

  

Accumulated

Depreciation/

Amortization

  

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

2017

  

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Furniture, fixtures, and equipment

$

1,321

 

$

753

 

$

568

 

$

1,228

 

$

753

 

$

475

Buildings, structures, and facilities

 

693

 

 

407

 

 

286

 

 

659

 

 

381

 

 

278

Construction in progress

 

168

 

 

 

 

168

 

 

165

 

 

 

 

165

Land

 

24

 

 

 

 

24

 

 

24

 

 

 

 

24

Other property, plant, and equipment

 

84

 

 

43

 

 

41

 

 

79

 

 

41

 

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total property, plant, and equipment, net

$

2,290

 

$

1,203

 

$

1,087

 

$

2,155

 

$

1,175

 

$

980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DOD comprises approximately 74%52 of the federal government’s reported property, plant, and equipment, net, as of September 30, 2017. DOD continues to implement SFFAS No. 50, Establishing Opening Balances for General Property, Plant and Equipment, which permits alternative methods in establish opening balances for general property, plant and equipment.

The following agencies comprise over 97%43 of the federal government’s reported property, plant, and equipment, net, of $1,087 billion as of September 30, 2017. Refer to each agencies’ financial statements for details: DOD, DOE, General Services Administration (GSA), VA, TVA, DOI, the Department of State (DOS), Department of Transportation (DOT), USPS, DHS, National Aeronautics and Space Administration (NASA), Department of Commerce (DOC), and Department of Justice (DOJ).

State and local government

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Structures

$

10,337

 

$

9,979

Equipment

 

253

 

 

248

Intellectual property

 

129

 

 

123

 

 

 

 

 

 

 

 

 

 

 

 

Total property, plant, and equipment, net

$

10,719

 

$

10,350

 

 

 

 

 

 


Note 7 – Debt and equity securities

 

(In billions)

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

116

 

$

108

State and local

 

4,822

 

 

4,436

 

 

 

 

 

 

 

 

 

 

 

 

Total debt and equity securities

$

4,938

 

$

4,544

 

 

 

 

 

 

 

Federal government

 

(In billions)

Cost

 

Adjustment

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

Equity securities

$

4

 

$

 

$

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total held-to-maturity (net investment)

$

4

 

$

 

$

4

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

Debt securities

$

5

 

$

1

 

$

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total available-for-sale (fair value)

$

5

 

$

1

 

$

6

 

 

 

 

 

 

 

 

 

Trading Securities

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

Non-US Government

$

12

 

$

 

$

12

Corporate and other bonds

 

16