Download FY 2017 Navy Annual Financial Report PDF

TitleFY 2017 Navy Annual Financial Report
LanguageEnglish
File Size10.2 MB
Total Pages164
Document Text Contents
Page 1

ACCOUNTABILITY TO

AMERICA

Processes

People

Capabilities

DEPARTMENT OF THE NAVY

FISCAL YEAR 2017 ANNUAL FINANCIAL REPORT

Page 2

FISCAL YEAR 2017 DEPARTMENT OF THE NAVY ANNUAL FINANCIAL REPORT

A Marine conducts preflight inspections
during training. (U.S. Navy photo by
Cpl. James Guillory/Released)

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80 DEPARTMENT OF THE NAVY FISCAL YEAR 2017 ANNUAL FINANCIAL REPORT

Inventory and Related Property
As of September 30 2017

(Amounts in thousands) OM&S Gross Value Revaluation Allowance OM&S, Net Valuation Method
OM&S Categories

Held for Use
Ordinance $ 31,680,038 $ - $ 31,680,038 MAC
Uninstalled Aircraft Engines 2,309,620 - 2,309,620 LAC, HC
Remainder 28,266,260 - 28,266,260 LAC, MAC

Total Held for Use 62,255,918 - 62,255,918
Held For Repair

Ordinance 6,705,178 - 6,705,178 MAC
Uninstalled Aircraft Engines 4,035,441 - 4,035,441 LAC, HC
Remainder 5,530,949 - 5,530,949 LAC, MAC

Total Held for Repair 16,271,568 - 16,271,568
Excess, Obsolete, and Unserviceable

Ordinance 811,607 (811,607) - NRV
Uninstalled Aircraft Engines 149,245 (149,245) - NRV
Remainder 49,302 (49,302) - NRV

Total Excess, Obsolete, and Unserviceable 1,010,154 (1,010,154) -

Total $ 79,537,640 $ (1,010,154) $ 78,527,486

As of September 30 2016

(Amounts in thousands) OM&S Gross Value Revaluation Allowance OM&S, Net Valuation Method
OM&S Categories

Held for Use
Ordinance $ 30,839,841 $ - $ 30,839,841 MAC
Uninstalled Aircraft Engines 2,855,753 - 2,855,753 LAC, HC
Remainder 31,886,624 25,286 31,911,910 LAC, MAC

Total Held for Use 65,582,218 25,286 65,607,504
Held For Repair

Ordinance 6,604,735 - 6,604,735 MAC
Uninstalled Aircraft Engines 3,679,409 - 3,679,409 LAC, HC
Remainder 5,686,161 - 5,686,161 LAC, MAC

Total Held for Repair 15,970,305 - 15,970,305
Excess, Obsolete, and Unserviceable

Ordinance 784,967 (784,967) - NRV
Uninstalled Aircraft Engines 146,827 (146,827) - NRV
Remainder 72,881 (72,881) - NRV

Total Excess, Obsolete, and Unserviceable 1,004,675 (1,004,675) -

Total $ 82,557,198 $ (979,389) $ 81,577,809

Legend for Valuation Methods:
LAC = Latest Acquisition Cost NRV = Net Realizable Value HC = Historical Cost MAC = Moving Average Cost

All DON inventory is funded and reported under the Navy Working Capital Fund (NWCF). Refer to NWCF Note 7,
"Inventory and Related Property," for additional information.

OM&S includes assets to be consumed in the normal course of operations or as part of a larger asset assembly. The DON
classifies its OM&S in three categories: Ordnance (such as ammunition, conventional missiles, torpedoes), centrally
managed Uninstalled Aircraft Engines, and all other OM&S (“Other”). The “Other” OM&S includes sponsor funded
uninstalled modification kits, spares and repair parts for major end items (ships, aircraft, tanks), and clothing, textiles,
and petroleum products.

The DON assigns OM&S to categories based upon the type and condition of the asset in accordance with SFFAS No. 3,
“Accounting for Inventory and Related Property.” The DON categorizes its OM&S as Held for Use, Held for Repair, and
Excess, Obsolete, and Unserviceable. OM&S Held for Repair consists of damaged material held as inventory that is more
economical to repair than to dispose. Excess, Obsolete, and Unserviceable OM&S consists of scrap material or items that
cannot be economically repaired and are awaiting disposal. All other OM&S is classified as Held for Use.

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81DEPARTMENT OF THE NAVY

SFFAS No. 3 requires disclosure of the amount of OM&S Held for "Future Use." The DON held $7.2 billion and $6.7
billion of OM&S for future use, which is included in the "Held for Use" category as of September 30, 2017 and September
30, 2016, respectively. These items are not readily available in the market and there is a more than a remote chance that
they will eventually be needed.

There are no restrictions on the use of OM&S.

NOTE 9. GENERAL PROPERTY, PLANT AND EQUIPMENT (PP&E), NET

As of September 30 2017

(Amounts in thousands)

Depreciation/
Amortization

Method Service Life Acquisition Value

(Accumulated
Depreciation/
Amortization) Net Book Value

Major Asset Classes
Land N/A N/A $ 531,931 $ - $ 531,931
Buildings, Structures, and Facilities S/L 20 or 40 157,426,745 (119,599,723) 37,827,022
Leasehold Improvements S/L lease term 6,530 (6,530) -
Software S/L 2-5 or 10 20,285 (6,800) 13,485
General Equipment:

Vessels S/L 20-50 305,356,609 (138,872,388) 166,484,221
Aircraft S/L 15-30 150,647,315 (70,854,314) 79,793,001
Satellites S/L 10-15 12,332,990 (9,383,478) 2,949,512
Trident Missiles S/L 25 4,658,764 (2,661,592) 1,997,172
General Equipment-Remainder S/L Various 40,544,842 (30,926,778) 9,618,064

Total General PP&E 513,540,520 (252,698,550) 260,841,970
Construction-in-Progress N/A N/A 79,287,908 - 79,287,908
Other N/A N/A 11,303,358 - 11,303,358

Total General PP&E $ 762,117,277 $ (372,311,603) $ 389,805,674

As of September 30 2016

(Amounts in thousands)

Depreciation/
Amortization

Method Service Life Acquisition Value

(Accumulated
Depreciation/
Amortization) Net Book Value

Major Asset Classes
Land N/A N/A $ 571,409 $ - $ 571,409
Buildings, Structures, and Facilities S/L 20 or 40 147,098,280 (111,141,098) 35,957,182
Leasehold Improvements S/L lease term 6,530 (3,961) 2,569
Software S/L 2-5 or 10 3,593 (2,647) 946
General Equipment:

Vessels S/L 20-50 281,447,297 (143,132,472) 138,314,825
Aircraft S/L 15-30 145,058,774 (69,436,960) 75,621,814
Satellites S/L 10-15 13,365,679 (9,494,191) 3,871,488
Trident Missiles S/L 25 4,659,968 (2,447,907) 2,212,061
General Equipment-Remainder S/L Various 38,211,889 (29,157,847) 9,054,042

Total General PP&E 482,743,607 (253,669,377) 229,074,230
Construction-in-Progress N/A N/A 86,532,261 - 86,532,261
Other N/A N/A 10,228,720 - 10,228,720

Total General PP&E $ 727,184,400 $ (364,817,083) $ 362,367,317

Legend for Valuation Methods:
S/L = Straight Line N/A = Not Applicable

The DON General PP&E is comprised of General Equipment, Real Property (Land and Buildings, Structures, and Facilities),
Improvements to Assets Under Leasehold Improvements, Internal Use Software, and Construction in Progress (both
Real Property and General Equipment). The DON further segments its General Equipment into Vessels, Aircraft, Trident
Missiles, Satellites, and Other Long-lived Tangible Equipment (“Other”).

“Other” General PP&E consists of Real Property held in Caretaker Status. Caretaker is defined as those properties that
DON still owns but are awaiting further disposal action to another entity, such as Defense Base Closure and Realignment
Commission (BRAC) property awaiting sale or transfer to another federal agency.

Page 163

1. A littoral combat ship transits the Bohol Sea during an exercise. (U.S. Navy photo
by Mass Communication Specialist 3rd Class Deven Leigh Ellis/Released)

2. Sailors assigned to guided-missile destroyers move mooring lines between the
ships as they prepare to depart. (U.S. Navy photo by Mass Communication
Specialist 1st Class Byron C. Linder/Released)

3. An Ohio-class ballistic-missile submarine transits a canal as it returns to its
homeport. (U.S. Navy photo by Mass Communication Specialist 1st Class Amanda
R. Gray/Released)

4. A commanding officer of a littoral combat ship discusses ship maneuvers with the
bridge team as the ship transits to arrive at the ship’s homeport. (U.S. Navy photo
by Lt. Miranda Williams/Released)

5. An F35B Lightning II prepares to take off from the flight deck of an amphibious
assault ship. (U.S. Marine Corps photo by Lance Cpl. Dana Beesley/Released)

6. Marines assigned embark a CH-53E Super Stallion helicopter on the flight deck of
an amphibious assault ship. (U.S. Navy photo by Mass Communication Specialist
Seaman Cosmo Walrath/Released)

7. An Aircrewman prepares to take off in a MH-60R Sea Hawk helicopter. (U.S. Navy
photo by Mass Communication Specialist Seaman Zachary Wickline/Released)

8. Standing watch on the fantail of an aircraft carrier. (U.S. Navy photo by Mass
Communication Specialist 3rd Class Samuel Bacon/Released)

9. A Quartermaster assigned to an amphibious assault ship monitors the ship’s
course on the bridge. (U.S. Navy photo by Mass Communication Specialist
Seaman Vance Hand/Released)

10. A Humvee being directed onto a Landing Craft Utility (LCU) from an amphibious
transport dock ship. (U.S. Navy photo by Mass Communication Specialist 3rd
Class Jonathan Clay/Released) 170719-N-UX013-340

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Preparation of this report cost the Department of the Navy approximately $105,000 in Fiscal Year 2017. Generated on 2017Nov9 RefID: B-BC0FC6B

Page 164

CONTACT US
An electronic copy of this report is available at http://www.fmo.navy.mil

FOR MORE INFORMATION
Assistant Secretary of the Navy Financial Management and Comptroller

www.finance.hq.navy.mil/FMC

www.navy.mil | www.marines.mil

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