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  • The Finance Department P.O. Box 619428

    DFW Airport, Texas 75261-9428

    Dallas Fort Worth International Airport Comprehensive Annual Financial Report FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

  • Dallas/Fort Worth International Airport, Texas

    COMPREHENSIVE

    ANNUAL FINANCIAL REPORT

    FOR THE FISCAL YEAR ENDED

    SEPTEMBER 30, 2015

    (With Independent Auditors Report Thereon)

    Prepared by Department of Finance

    Christopher A. Poinsatte

    Executive Vice President and Chief Financial Officer

  • Dallas/Fort Worth International Airport Comprehensive Annual Financial Report

    For the Fiscal Year Ended September 30, 2015

    Table of Contents

    Introductory Section Page

    Transmittal Letter i Airport Board of Directors/Airport Officials v Airport Organizational Chart vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting vii

    Financial Section

    Independent Auditors Report 1 Managements Discussion and Analysis 4

    Basic Financial Statements

    Statement of Net Position 20 Statement of Revenues, Expenses, and Changes in Net Position 21 Statement of Cash Flows 22 Statement of Fiduciary Net Position 23 Statement of Changes in Fiduciary Net Position 24 Notes to the Basic Financial Statements 25

    Required Supplementary Information

    Schedule of Changes in the Net Pension Liability and Related Ratios 66 Schedule of Contributions 69 Schedule of Funding Progress Other Post-Employment Benefits 71 Other Supplementary Information

    Combining Statements of Fiduciary Net Position 72 Combining Statements of Changes in Fiduciary Net Position 73 Grand Hyatt Hotel Financial Position and Revenue and Expenses 74

    Statistical Section Financial Trends Information Net Position by Component Last Ten Fiscal Years 75

    Changes in Net Position Last Ten Fiscal Years 76 DFW Cost Center Net Revenues Last Five Fiscal Years 77 Revenue Capacity Information Operating Revenues by Source Last Ten Fiscal Years 78 Landing Fee and Terminal Rental, Airline Cost and Cost per Enplanement Last Nine Fiscal Years 79 Key Parking Financial and Operational Information Last Ten Fiscal Years 80 Key Terminal Concessions Financial and Operational Information Last Ten Fiscal Years 81 Key Rental Cars and Operational Information - Last Ten Fiscal Years 82 Key Commercial Development Financial and Operational Information Last Ten Fiscal Years 83 Key Natural Gas Financial and Operational Information Last Nine Fiscal Years 84

  • Dallas/Fort Worth International Airport Comprehensive Annual Financial Report

    For the Fiscal Year Ended September 30, 2015

    Table of Contents Debt Capacity Information Debt and Debt Service Ratios Last Ten Fiscal Years 85 Debt Service Coverage Last Five Fiscal Years 86 Economic Information Top Ten Customers - Revenues Last Ten Fiscal Years 87 Dallas-Fort Worth-Arlington Metropolitan Statistical Area (MSA) Demographic and Economic Information Ten Calendar Years 88 Operating Information Activity Statistics Last Ten Fiscal Years 89 Aircraft Operations Last Ten Fiscal Years 90 Enplaned Passengers by Airline Last Ten Fiscal Years 91 Enplanement Statistics Last Ten Fiscal Years 92 Landed Weights and Cargo Tonnage - Last Ten Fiscal Years 93

    Enplaned Passengers by Month Last Ten Fiscal Years 94 Landed Weights by Airline Last Ten Fiscal Years 95 Employee Force End of Year Last Ten Fiscal Years 96 Capital Assets as a Function of Operations 97 Schedule of Insurance in Force September 30, 2015 98

  • INTRODUCTORY SECTION

  • v

    BOARD OF DIRECTORS

    As of SEPTEMBER 30, 2015

    Lillie M. Biggins, Chair Sam Coats, Vice Chair

    Francisco Hernandez, Secretary Mayor Mike Rawlings

    Mayor Betsy Price Bridget M. Lopez William Meadows Regina T. Montoya

    Curtis E. Ransom William Tsao

    Bernice J. Washington Linda Martin (non-voting member)

    AIRPORT OFFICIALS

    As of SEPTEMBER 30, 2015

    Sean Donohue, Chief Executive Officer

    Christopher A. Poinsatte, Executive Vice President and Chief Financial Officer

    Kenneth Buchanan, Executive Vice President, Revenue Management

    James M. Crites, Executive Vice President, Operations

    Linda Valdez Thompson, Executive Vice President, Administration and Diversity

    Khaled Naja, Executive Vice President, Airport Development and Planning

    John Ackerman, Executive Vice President, Global Strategy and Development

  • Dallas Fort Worth International Airport Organizational Chart

    Sharon McCloskeyV.P.

    Marketing

    Mazhar ButtS.V.P.

    Customer Experience

    Sean DonohueChief Executive Officer

    Board of Directors

    Robert DarbyAudit Services

    Elaine RodriguezGeneral Counsel

    Christopher PoinsatteExecutive V.P.Finance & ITS

    (CFO)

    Linda ThompsonExecutive V.P.

    Admin. & Diversity

    Gregory SpoonV.P.

    Procurement & Materials Mgmt.

    Tamela LeeV.P.

    Business Diversity& Development

    Ollie Malone, Jr.

    V.P. Human Resources

    Michael Yip V.P.

    Risk Management

    Position VacantV.P.

    Operations

    Robert HortonV.P.

    Environmental Affairs

    John TerrellV.P.

    CommercialDevelopment

    Zenola CampbellV.P.

    Concessions

    Armin CruzV.P.

    Parking

    Alan BlackV.P.

    Public Safety

    Rusty HodappVP

    Energy, Transportation& Asset Management

    Karen KavanaghV.P.

    Planning

    Luis PerezV.P.

    Air ServiceDevelopment

    Jeffrey BenvegnuV.P.

    Aviation Real Estate

    Mary Jo PolidoreV.P.

    Corporate Communications

    Nate SmithV.P.

    Design, Code &Construction

    James CritesExecutive V.P.

    Operations

    Kenneth BuchananExecutive V.P.

    Revenue Management

    John AckermanExecutive V.P. Global Strategy& Development

    Stephen ShafferS.V.P.

    InformationTechnology Services

    Mike PhemisterV.P.

    Treasury Management

    Max UnderwoodV.P.

    Finance

    Brandon SteinmannA.V.P.

    Government Relations

    Khaled NajaExecutive V.P.

    Airport Development& Planning

    Effective 10/27/15vi

  • vii

  • FINANCIAL SECTION

  • 4 DFW International Airport

    MANAGEMENTS DISCUSSION AND ANALYSIS

    The following discussion and analysis of the financial performance and activity of the Dallas/Fort Worth International Airport (DFW or the Airport) provides an introduction and understanding of DFWs Basic Financial Statements for the fiscal year ended September 30, 2015. Also included are statements for DFWs fiduciary funds which have a December 31, 2014 year end. The Airport is a business-type activity. DFWs Basic Financial Statements consist of Managements Discussion and Analysis (MD&A); Statement of Net Position; Statement of Revenues, Expenses, and Changes in Net Position; and Statement of Cash Flows. Also included are Statement of Fiduciary Net Position; Statement of Changes in Fiduciary Net Position; and Notes to the Basic Financial Statements. DFWs Required Supplementary Information (RSI) includes the following fiduciary fund information: Schedule of Changes in the Net Position Liability and Related Ratios; Schedule of Contributions; as well as the Schedule of Funding Progress.

    The MD&A has been prepared by management and should be read in conjunction with the Basic Financial Statements and the attached notes.

    DFWs Controlling Documents DFW was created by a Contract and Agreement between the Cities of Dallas and Fort Worth (the Cities), dated April 15, 1968, for the purpose of developing and operating an airport as a joint venture between the Cities. The 1968 Concurrent Bond Ordinance and the 30th Supplemental Bond Ordinance were amended and restated by the Master Bond Ordinance, and approved by the Cities of Fort Worth and Dallas on September 21, 2010 and September 22, 2010, respectively. The Master Bond Ordinance became effective on July 5, 2013 after the required approval of bondholders was obtained. Bonds are issued under provisions of the Master Bond Ordinance, Supplemental Bond Ordinances, as approved by the Cities of Fort Worth and Dallas, and Applicable Laws, including Chapter 22 of the Texas Transportation Code, Chapter 1371 of the Texas Government Code, as amended. DFW is in compliance with all bond covenants. The Lease and Use Agreements (Use Agreement) with the signatory airlines define DFWs rate setting methodology and business relationships with the airlines. DFWs current ten-year Use Agreement became effective October 1, 2010. Collectively, the abovementioned documents are referred to as the Controlling Documents.

    Each year, management prepares an Annual Budget (approved by the DFW Board and the Cities) of projected expenses for the Operating Revenue and Expense Fund (commonly referred to as the 102 Operating Fund). Management also prepares an annual Schedule of Charges which is the basis for charging the airlines, tenants, and other airport users for DFW services during the fiscal year.

    The Use Agreement created three primary cost centers: Airfield, Terminal, and DFW. The airfield and terminal cost centers are residual in nature. Per Federal Aviation Administration (FAA) regulations, DFW can only cha