Page 26 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
Management's Discussion and Analysis (Unaudited) (continued)
Fiscal Years Ended June 30, 2017,2016, and 2015

SUMMARY OF CASH FLOW ACTIVITIES

The following shows a summary of the major sources and uses of cash and cash equivalents for
the past three years. Cash and cash equivalents are considered cash-on-hand, bank deposits and
highly liquid investments with an original maturity of three months or less:

2017 2016 2015

Cash Flow from Operating Activities $18,491,783 $16,167,886 $14,307,425
Cash Flow from Capital and Related
Financing Activities (6,186,140) (5,560,086) (13,008,195)
Cash Flow from Investing Activities (5,490,955) 3,163,191 974,322

Net Increase in Cash and
Cash Equivalents
6,814,688 13,770,991 2,273,552
Cash and Cash Equivalents:
Beginning of the Year 74,437,666 60,666,675 58,393,123

End of the Year $81,252,354 $74,437,666 $60,666,675

The Authority's available cash and cash equivalents increased from $74.4 million at the end of
2016 to $81.3 million at the end of 2017 due primarily to the final reimbursement for the Terminal
Modernization Project from the FAA.

FINANCIAL STATEMENTS

The Authority's financial statements are prepared on an accrual basis in accordance with U.S.
generally accepted accounting principles promulgated by the Governmental Accounting Standards
Board (GASB). The Authority is structured as a proprietary fund with revenues recognized when
earned and expenses are recognized when incurred. Capital assets are capitalized and (except land
and construction in progress) are depreciated over their useful lives. Amounts are restricted for
debt service and, where applicable, for construction activities. See the notes to the financial
statements for a summary of the Authority's significant accounting policies.

CAPITAL ACQUISITIONS AND CONSTRUCTION ACTIVITIES

During 2017, the Authority expended $5.5 million on capital activities. Major capital activities
were as follows: QTA Land Acquisition - $4.3 million, runway and taxiway improvements - $512
thousand, Master Plan - $261 thousand, and other projects - $409 thousand.

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