Please complete the horizontal analysis using the information below

MASSACHUSETTS BAY TRANSPORTATION AUTHORITY A Component Unit of the Massachusetts Department of Transportation) Statements of Net Position June 30, 2017 and 2016 (Dollars in thousands) Assets and Deferred Outflows of Resources 2017 2016 Current assets: 338,403 272,459 Unrestricted cash and temporary cash investments (note 3) Restricted cash and temporary cash investments (note 3) 51,760 19,533 25,156 Bond construction accounts 15,797 19,711 12,150 Stabilization accounts Other cash and temporary investments Accounts receivable: Commonwealth of Massachusetts Federal grants Other trade, net 99,879 20,623 29,253 35,095 99,589 19.119 26,836 35,157 2,880 Materials and supplies Prepaid expenses Total current assets lo 573,534 552,489 Noncurrent assets. Restricted cash and investments accounts (note 3) Bond construction accounts Lease deposits Bond reserve accounts (note 8) 79,451 59,050 633,268 176,541 63,900 619,672 Total restricted cash and investments accounts 771,769 860.113 Net investment in direct financing lease (note 5) eilusol bsa Capital assets, at cost (notes 6, 7, and 9) 25,728 24,601 Transportation property, being depreciated 14,304.158 4289,145 1,617,177 (6.994.205)(6,766.772) 9.139,550 nnaimsa nsportation property, not being depreciated Less accumulated depreciation 2.172,233 9.482 1869.1859.399 Capital assets, net Total noncurrent assets Total assets 10.279,683 10,024.264 10,853.217576:193 10,576,753 Deferred outflows of resources: Debt refundings Derivative related amounts (note 8c) Pension related amounts (note 13) 195,870 2,652 286.105 194,223 36,457 229,728 Total deferred outflows of resources 484,627 460.408 Total assets and deferred outflows of resources 11.33784411.037.161 See accompanying notes to financial statements. 12 MASSACHUSETTS BAY TRANSPORTATION A (A Component Unit of the Massachusets Dhera UTHORITY Statements of Net Position June 30, 2017 and 2016 Dollars in thousands) Liabilities and Deferred Inflows of Resources 2017 2016 Current liabilities: Current maturities of bonds and notes payable (note 8) Current capital lease obligations (note 6) Accounts payable Due to Commonwealth Accrued liabilities: $ 464,660 3,458 256,278 344,260 4,026 263,176 15,583 Payroll and vacation Interest Injuries and damage claims, workers' compensation claims, and 42,167 119,753 44,783 30,449 other (note 10) 6331461,563 863,840 Total current liabilities 949,630 Noncurrent liabilities, less current matunities: Bonds payable, net (note 8) Obligations under capital leases (note 6) Accrued liabilities (notes 10 and 11) Pension liability (note 13) Other postemployment benefits (note 14) Liability for derivative instruments (note 8) 5,099,190 59,640 89,898 1,253,593 1,118,374 3,967 5,311,931 67,956 86,601 1,120,283 976,553 46,075 30,652 31.93930703 7,658,601 Total noncurrent liabilities 8,606,231 18,503,891 Total liabilities Deferred inflows of resources: 193 208 Debt refundings Pension related amounts (note 13) 11.576 Total deferred inflows of resources Total liabilities and deferred inflows of resources S 8.617807 8.513.887 4,523,401 19,533 Net Position 4,713,587 19,711 Net investment in capital assets Restricted Unre (2013 261) (2.019,660) 2,523,274 $ 2,720,037 Total net position See accompanying notes to financial statements. 13 Statements of Revenue, Expenses, and Changes in Net Position Years ended June 30, 2017 and 2016 Dollars in thousands) Revenue from transp 7141573.966 Wages and related employee benelts: 495,172 Wages Medical and dental insurance Health and welfare expenditures Social security taxes 189,653 173,344 16,638 benefrs 9,160 9,472 41,920 8,843 11201)22828) eshup Workers' compensation 908 Total wages and related employee benefts Materials, suppies, and services Injuries and damages Commuter railroad and local subsidy expenses (note 12) 232 897 11,323 514,626 247,380 20,343 Total other operating expenses Total operating expenses Operating loss 2164 575210799 992.192 171.417 164,023 1,653 (32.993) 40.433 16,692 Dedicated sales tax revenue (note 4) Contract assistance- Commonwealth of Massachusetts Dedicated local assessments (note 4) Fair value change in investment derivatives 986,274 155,833 162,883 (78,865) 36,117 29,308 rate swap termination and restructuring payments (note 8c) Other nonoperating income Interest income Interest expense Nonoperating revenue, net Loss before capital grants and contributions (314,923) (389.241) Capital grants and contributions 196,763 172.433 Increase in net position Beginning of year, net position End of year, net position S2.720,037 See accompanying notles to financial statements MASSACHUSETTS BAY TRANSPORTATION AUTHORITY A Component Unilt of the Massachusetts Department of Transportation) Statements of Cash Flows Years ended June 30, 2017 and 2016 Dollars in thousands) Cash Sows from operating activities: 2017 Receipts from transit customers Receipts from othor operations Payments to suppliers and vendors Payments to employees $ 659,191 621,366 3.239 61,521 (961,728) (932,648) Net cash used in operating activities Cash flows from capital and related financing activities: Cash (used in) provided by: Additions to transportation property Interest pald (Increase) decrease in deferred credits/charges Commercial paper (retirements) advances, net Payments on debt Payments to escrow for refundings Proceeds from bond and note issuances Bond construction and reserve account disbursements (receipts) Proceeds from bond premiums Interest rate swap termination and restructuring paryments Payments of capital lease activity Capital grants Other (755,827) (244,879) (677,041) (259,741) 956 100,000 (196,705) (595,177) 569,084 88,344 29,632 (32,993) (3,458) 510,182 (6,140) (27,060) (346,935) 358,405 (134,200) 23,335 (78,865) 560,479 4230 Net cash used in capital and related financing activities Cash Bows from noncapital and related financing activities: Sales tax and local assessment Payments to the Commonwealth 1,310,221 1,227,432 (15,583) Net cash provided by noncapital and related financing activities 1311.849 1.332.376 Cash flows from investing activity Interest and other income Net cash provided by investing activity Net change 17.153 (33,039) Cash, temporary cash investments, restricted, and other special accounts, beginning of year Cash, temporary cash investments, restricted, and other special accounts, end of year Adjustments to reconcile operating loss to net cash used in operating activities: 368,908 401,947 368,908 $ (1,434,157) (1,414411) not requiring current expenditure of cash Depreciation and amortization Increase in pension amounts Increase in other postemployment benefits 405,500 81,528 141,821 419,774 60,303 117,729 Changes in all other working capital accounts except cash, temporary investments, and shorl-erm debt Net cash used in operating activities See accompanying notes to financial statements. 15 MASSACHUSETTS BAY TRANSPORTATION AUTHORITY Statement of Net Position June 30, 2018 (Dollars in thousands) of Transportation) A Component Unit of the Massachusetts Department 2018 Assets and Deferred Outflows of Resources Current assets: $256,492 Unrestricted cash and temporary cash investments (note 3) Restricted cash and temporary cash investments (note 3): 356,989 20,024 36,960 Bond construction accounts Stabilization accounts Other cash and temporary investments Accounts receivable:ons i Commonwealth of Massachusetts Federal grants Other trade, net 98,752 27,274 66,190 57,583 Materials and supplies Prepaid expenses to Total current assets hoon ntw Noncurrent assets: Restricted cash and investments accounts (note 3) Forward delivery agreements (note 3h) Lease deposits Bond reserve accounts (note 8) 35,343 58,470 677,315 Total restricted cash and investments accounts 771,128 26,853 Net investment in direct financing lease (note 5) Capital assets, at cost (notes 6, 7, and 9) Transportation property, being depreciated Transportation property, not being depreciated Less accumulated depreciation and amortization 14,873,558 2,430,461 Capital assets, net Total noncurrent assets Total assets 10,729,887 11.652 192 Deferred outflows of resources: 177,886 Debt refundings Derivative related amounts (note 8c) Pension related amounts (note 13) OPEB related amounts (note 14) 266,180 69,387 513,453 S 12,165,645 Total deferred outflows of resources Total assets and deferred outflows of resources See accompanying notes to financial statements 12 MASSACHUSETTS BAY TRANSPORTATION AUTHORITY A Component Unit of the Massachusetts Department of Transportation) Statement of Net Position June 30, 2018 (Dollars in thousands) Liabilities and Deferred Inflows of Resources 2018 Current liabilities: Current maturities of bonds and notes payable (note 8) Accounts payable Accrued liabilities: 338,545 307,052 Payroll and vacation Interest Injuries and damage claims, workers' compensation claims, and 45,733 127,310 63,956 882,596 other (note 10) Total current liabilities Noncurrent liabilities, less current maturities: Bonds payable, net (note 8) Obligations under capital leases (note 6) Accrued liabilities (notes 10 and 11) Pension liability (note 13) Other postemployment benefits (note 14) Liability for derivative instruments (note 8) Unearned revenue 5,390,295 58,517 104,755 1.333,817 2,208,769 220 14.104 Total noncurrent liabilities 9,110,477 eelto Total liabilities Deferred inflows of resources: Debt refundings Pension related amounts (note 13) OPEB related amounts (note 14) 179 16,033 Total deferred inflows of resources 159,084 Total liabilities and deferred inflows of resources 10,152,157 Net Position Net investment in capital assets Restricted 5,384,327 20,024 863 $2,013,488 Total net position See accompanying notes to financial statements. 13 of Transportation) MASSACHUSETTS BAY TRANSPORTATION AUTHORITY Statement of Revenue, Expenses, and Changes in Net Position Year ended June 30, 2018 Dollars in thousands $ 661,055 Operating revenue: operating revenue bes Operating expenses: Wages and related employee benelfits: 504.128 Medical and dental insurance Other postemployment benefs n 97,129 203,434 42,473 15,157 Other 1,852 (13,864) Total wages and related employee benefts Materials, supplies, and services Injuries and damages Commuter rairoed and local subsidy expenses (note 12) Other 387,421 266,658 23,743 518.329 Total other operating expenses Total operating expenses (1.360.202) Dodicated sales tax revenue (note 4) Contract assistance-Commonwealth of Massachusetts Dedicated local assessments (note 4) Fair value change in investment derlvatives Other nonoperating income Interest income 1,006,807 201,898 168,481 116,899 26,856 Nonoperating revenue, net Loss bofore capital grants and contributions (84,983) Capital grants and contributions Increase in net position alido on Beginning of year, net position Impact of adoption of GASB No. 75 (Note 2(v) 2,720,037 End of year, net position $2,013,488 See accompanying notes to financial statements 14 MASSACHUSETTS BAY TRANSPORTATION AUTHORITY (A Component Unit of the Massachusetts Department of Transportation) Statement of Cash Flows Year ended June 30, 2018 (Dollars in thousands) Cash flows from operating activities: Receipts from transit customers Receipts from other operations Payments to suppliers and vendors Payments to employees $ 660.437 90,801 (982,903) 1567 6332 Net cash used in operating activities 080298) Cash flows from capital and related financing activities: Cash (used in) provided by Additions to transportation property Interest paid Change in deferred credits/charges Commercial paper retirements Payments on debt Proceeds from capital asset sales Proceeds from bond and note issuances Bond construction and reserve account receipts Proceeds from bond premiums Payments of capital lease activity Capital grants Other (851,384) (230,368) (18,961) (167,300) 297 501,195 35,404 74,748 4,828) 486,855 Net cash used in capital and related financing activities (386.127) Cash flows from noncapital and related financing activities: Sales tax and local assessment Net cash provided by noncapital and related financing activities 1,350.832 Cash flows from investing activity Interest and other income 108 997 108.997 284,404 Net cash provided by investing activity Net change Cash, temporary cash investments, restricted, and other special accounts, beginning of year Cash, temporary cash investments, restricted, and other special accounts, end of year Adjustments to reconcile operating loss to net cash used in operating activities: 670,465 Operating loss Changes not requiring current expenditure of cash: $(1,360,202) Depreciation and amortization Increase in pension amounts Increase in other postemployment benefits 387.421 104,798 48,808 Changes in all other working capital accounts except cash, temporary cash investments, and short-term debt 877 Net cash used in operating activities $ 789 298L See accompanying notes to financial statements. 15