Full text of Treasury Bulletin : March 2014
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BULLETIN MARCH 2014 FEATURES Profile of the Economy Financial Operations International Statistics Special Reports Produced and Published by Department of the Treasury Bureau of the Fiscal Service BULLETIN The Treasury Bulletin is for sale by the Superintendent of Documents U.S. Government Printing Office Washington, D.C. 20402 The Treasury Bulletin is issued quarterly in March, June, September, and December by the Bureau of the Fiscal Service, Governmentwide Accounting, Budget Reports Division. Statistical data is compiled from sources within Treasury departmental offices and bureaus, as well as various other Federal program agencies. Readers can contact the publication staff at (202) 874-9939/9942 to inquire about any of the published information. Suggestions are welcome. The publication staff can also be reached by electronic mail. treasury.bulletin@fms.treas.gov Internet service subscribers can access the Treasury Bulletin in Microsoft Word or PDF format through the Bureau of the Fiscal Service’s home page. www.fms.treas.gov/ Contents FINANCIAL OPERATIONS PROFILE OF THE ECONOMY Analysis.—Summary of Economic Indicators....................................................................................................................... 3 FEDERAL FISCAL OPERATIONS Introduction.—Federal Fiscal Operations ............................................................................................................................ 10 Analysis.—Budget Results and Financing of the U.S. Government and First-Quarter Receipts by Source ....................... 11 FFO-A.—Chart: Monthly Receipts and Outlays ................................................................................................................ 13 FFO-B.—Chart: Budget Receipts by Source ....................................................................................................................... 13 FFO-1.—Summary of Fiscal Operations ............................................................................................................................. 14 FFO-2.—On-Budget and Off-Budget Receipts by Source .................................................................................................. 15 FFO-3.—On-Budget and Off-Budget Outlays by Agency .................................................................................................. 17 FFO-4.—Summary of U.S. Government Receipts by Source and Outlays by Agency ....................................................... 19 ACCOUNT OF THE U.S. TREASURY Introduction.— Source and Availability of the Balance in the Account of the U.S. Treasury ............................................ 20 UST-1.—Elements of Change in Federal Reserve and Tax and Loan Note Account Balances .......................................... 20 FEDERAL DEBT Introduction.—Federal Debt ................................................................................................................................................ 22 FD-1.—Summary of Federal Debt ...................................................................................................................................... 23 FD-2.—Debt Held by the Public ......................................................................................................................................... 24 FD-3.—Government Account Series ................................................................................................................................... 25 FD-4.—Interest-Bearing Securities Issued by Government Agencies ................................................................................. 26 FD-5.—Maturity Distribution and Average Length of Marketable Interest-Bearing Public Debt Held by Private Investors .................................................................................................................................................... 27 FD-6.—Debt Subject to Statutory Limit .............................................................................................................................. 28 FD-7.—Treasury Holdings of Securities Issued by Government Corporations and Other Agencies .................................. 29 BUREAU OF THE FISCAL SERVICE OPERATIONS Introduction.—Bureau of the Fiscal Service Operations ..................................................................................................... 31 TREASURY FINANCING ................................................................................................................................................. 31 PDO-1.—Offerings of Regular Weekly Treasury Bills ....................................................................................................... 38 PDO-2.—Offerings of Marketable Securities Other than Regular Weekly Treasury Bills ................................................. 39 OWNERSHIP OF FEDERAL SECURITIES Introduction.—Ownership of Federal Securities ................................................................................................................. 40 OFS-1.—Distribution of Federal Securities by Class of Investors and Type of Issues ....................................................... 41 OFS-2.—Estimated Ownership of U.S. Treasury Securities ............................................................................................... 42 U.S. CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION Introduction.—U.S. Currency and Coin Outstanding and in Circulation ............................................................................ 43 USCC-1.—Amounts Outstanding and in Circulation; Currency, Coins .............................................................................. 43 USCC-2.—Amounts Outstanding and in Circulation; by Denomination, Per Capita Comparative Totals ......................... 44 March 2014 IV Contents INTERNATIONAL STATISTICS FOREIGN CURRENCY POSITIONS Introduction.—Foreign Currency Positions ......................................................................................................................... 47 SECTION I.—Canadian Dollar Positions FCP-I-1.—Weekly Report of Major Market Participants .................................................................................................... 48 FCP-I-2.—Monthly Report of Major Market Participants .................................................................................................. 49 FCP-I-3.—Quarterly Report of Large Market Participants ................................................................................................. 49 SECTION II.—Japanese Yen Positions FCP-II-1.—Weekly Report of Major Market Participants................................................................................................... 50 FCP-II-2.—Monthly Report of Major Market Participants ................................................................................................. 51 FCP-II-3.—Quarterly Report of Large Market Participants ................................................................................................ 51 SECTION III.—Swiss Franc Positions FCP-III-1.—Weekly Report of Major Market Participants ................................................................................................. 52 FCP-III-2.—Monthly Report of Major Market Participants ................................................................................................ 53 FCP-III-3.—Quarterly Report of Large Market Participants ............................................................................................... 53 SECTION IV.—Sterling Positions FCP-IV-1.—Weekly Report of Major Market Participants ................................................................................................. 54 FCP-IV-2.—Monthly Report of Major Market Participants................................................................................................ 55 FCP-IV-3.—Quarterly Report of Large Market Participants............................................................................................... 55 SECTION V.—U.S. Dollar Positions FCP-V-1.—Weekly Report of Major Market Participants .................................................................................................. 56 FCP-V-2.—Monthly Report of Major Market Participants ................................................................................................. 57 FCP-V-3.—Quarterly Report of Large Market Participants ................................................................................................ 57 SECTION VI.—Euro Positions FCP-VI-1.—Weekly Report of Major Market Participants ................................................................................................. 58 FCP-VI-2.—Monthly Report of Major Market Participants................................................................................................ 59 FCP-VI-3.—Quarterly Report of Large Market Participants............................................................................................... 59 EXCHANGE STABILIZATION FUND Introduction.—Exchange Stabilization Fund ....................................................................................................................... 60 ESF-1.—Balance Sheet ....................................................................................................................................................... 60 ESF-2.—Income and Expense ............................................................................................................................................. 61 SPECIAL REPORTS FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT Introduction.—Financial Report Excerpt............................................................................................................................. 65 Financial Report Excerpt ..................................................................................................................................................... 66 TRUST FUNDS Introduction.—Airport and Airway Trust Fund ................................................................................................................... 83 TF-1.—Airport and Airway Trust Fund .............................................................................................................................. 84 Introduction.—Uranium Enrichment Decontamination and Decommissioning Fund ......................................................... 85 TF-2.—Uranium Enrichment Decontamination and Decommissioning Fund..................................................................... 86 Introduction.—Black Lung Disability Trust Fund ............................................................................................................... 87 March 2014 V Contents TF-3.—Black Lung Disability Trust Fund .......................................................................................................................... 88 Introduction.—Harbor Maintenance Trust Fund ................................................................................................................. 89 TF-4.—Harbor Maintenance Trust Fund ............................................................................................................................. 89 Introduction.—Hazardous Substance Superfund ................................................................................................................. 91 TF-5.—Hazardous Substance Superfund............................................................................................................................. 91 Introduction.—Highway Trust Fund ................................................................................................................................... 93 TF-6.—Highway Trust Fund ............................................................................................................................................... 94 Introduction.—Highway Trust Fund ................................................................................................................................... 96 TF-6A.—Highway Trust Fund; Highway Account, Mass Transit Account ........................................................................ 96 Introduction.—Inland Waterways Trust Fund ..................................................................................................................... 97 TF-7.—Inland Waterways Trust Fund ................................................................................................................................. 97 Introduction.—Leaking Underground Storage Tank Trust Fund......................................................................................... 98 TF-8.—Leaking Underground Storage Tank Trust Fund .................................................................................................... 98 Introduction.—Nuclear Waste Fund .................................................................................................................................... 99 TF-9.—Nuclear Waste Fund................................................................................................................................................ 99 TF-A.—Chart: Major Trust Funds, Interest on Investments .............................................................................................. 100 TF-B.—Chart: Major Trust Funds, Receipts and Expenses .............................................................................................. 100 Introduction.—Reforestation Trust Fund........................................................................................................................... 101 TF-10.—Reforestation Trust Fund .................................................................................................................................... 101 Introduction.— Sport Fish Restoration and Boating Safety Trust Fund ............................................................................ 102 TF-11.—Sport Fish Restoration and Boating Safety Trust Fund....................................................................................... 103 Introduction.—Oil Spill Liability Trust Fund .................................................................................................................... 104 TF-12.—Oil Spill Liability Trust Fund ............................................................................................................................. 105 Introduction.—Vaccine Injury Compensation Trust Fund ................................................................................................ 106 TF-13.—Vaccine Injury Compensation Trust Fund .......................................................................................................... 106 Introduction.—Wool Research, Development, and Promotion Trust Fund ....................................................................... 107 TF-14.—Wool Research, Development, and Promotion Trust Fund................................................................................. 107 Introduction.— Agriculture Disaster Relief Trust Fund .................................................................................................... 108 TF-15.—Agriculture Disaster Relief Trust Fund ............................................................................................................... 108 RESEARCH PAPER SERIES ........................................................................................................................................... 110 GLOSSARY ...................................................................................................................................................................... 112 ORDER FORM FOR TREASURY PUBLICATIONS ............................................................................... Inside back cover NOTES: Definitions for words shown in italics can be found in the glossary; Figures may not add to totals because of rounding; p = Preliminary; n.a. = Not available; r = Revised. March 2014 VI Nonquarterly Tables and Reports For the convenience of the “Treasury Bulletin” user, nonquarterly tables and reports are listed below along with the issues in which they appear. March Issues June Sept. Dec. Federal Fiscal Operations FFO-5.—Internal Revenue Receipts by State ........................................................... √ FFO-6.—Customs and Border Protection Collection of Duties, Taxes and Fees by Districts and Ports............................................................................... √ Special Reports Financial Report of the United States Government excerpt...................................... √ Trust Fund Reports: Agriculture Disaster Relief Trust Fund ............................................................. √ Airport and Airway Trust Fund ........................................................................ √ Black Lung Disability Trust Fund .................................................................... √ Harbor Maintenance Trust Fund ....................................................................... √ Hazardous Substance Superfund ....................................................................... √ Highway Trust Fund ......................................................................................... √ Inland Waterways Trust Fund ........................................................................... √ Leaking Underground Storage Tank Trust Fund .............................................. √ Nuclear Waste Fund .......................................................................................... √ Oil Spill Liability Trust Fund ........................................................................... √ Reforestation Trust Fund .................................................................................. √ Sport Fish Restoration and Boating Trust Fund ................................................ √ Uranium Enrichment Decontamination and Decommissioning Fund............... √ Vaccine Injury Compensation Trust Fund ........................................................ √ Wool Research, Development, and Promotion Trust Fund............................... √ March 2014 OPERATIONS Profile of the Economy Federal Fiscal Operations Account of the U.S. Treasury Federal Debt Public Debt Operations Ownership of Federal Securities U.S. Currency and Coin Outstanding and in Circulation 3 Profile of the Economy [Source: Office of Macroeconomic Analysis] As of February 11, 2014 Introduction The pace of real gross domestic product (GDP) growth decelerated in the fourth quarter, after a strong pace of growth in the third quarter. A slower pace of private inventory accumulation in particular contributed to the deceleration, along with declines in federal government spending and residential investment as well as slower growth in business fixed investment. These factors were partially offset by faster growth in consumer spending and exports. Job creation continued at a moderate and somewhat faster pace, on average, during the fourth quarter of 2013, and also picked up slightly in January 2014. The economy has added 8.5 million private sector jobs since job growth resumed in early 2010, and the unemployment rate has declined 3.4 percentage points from its peak level of 10 percent in October 2009, but remained elevated at 6.6 percent as of January 2014. Conditions in the housing sector continued to improve, despite a net increase in mortgage interest rates. Although the Administration has taken a number of steps in recent years to promote stronger economic growth in the near-term, it has also pursued deficit reduction measures in the interests of the nation’s longer-term growth. More than $2.7 trillion in deficit reduction measures have been enacted over the past 2-½ years, including the January 2013 enactment of the American Taxpayer Relief Act (ATRA), which will reduce the deficit by an estimated $737 billion over the next 10 years. Since fiscal year 2009, the federal budget deficit has fallen from a peak of 9.8 percent of GDP to 4.1 percent in fiscal year 2013. At its most recent meeting in January 2014, the Federal Reserve’s Federal Open Market Committee (FOMC) announced it would maintain the target range for the federal funds rate as well as existing programs for reinvestment of principal payments and roll-overs of maturing Treasuries at auction. However, it also announced a further tapering of asset purchases starting in February, beyond the amounts announced at the December 2013 meeting (that were implemented in January). Economic Growth Since the current expansion began in mid-2009, the economy has grown by about 11 percent and, as of the fourth quarter of 2013, real GDP was 6.5 percent above its level at the end of 2007, when the recession began. According to the advance estimate, real GDP rose 3.2 percent at an annual rate during the fourth quarter of 2013, after increasing by 4.1 percent in the third quarter of this year. The deceleration in growth in the latest quarter largely reflected a slower pace of inventory investment relative to a large build in the third quarter. Federal government outlays fell sharply, as did residential investment, while nonresidential investment grew more slowly. These factors were partly offset by faster growth in consumer spending and a larger contribution from net exports. Consensus forecasts currently put real GDP growth in the first quarter of 2014 at a 2.2 percent annual rate. Private domestic final demand (consumption plus private fixed investment, considered a better measure of underlying private demand because it subtracts out government spending, inventory movements, and net exports) grew at a 2.9 percent annual rate in the fourth quarter, accelerating from the third quarter’s 2.7 percent pace. Real personal consumption expenditures—which account for about 70 percent of GDP—rose at a 3.3 percent annual rate in the fourth quarter, faster than the 2.0 percent rise in the third quarter. Consumption added 2.3 percentage points to real GDP growth in the latest quarter. Residential investment—mostly residential homebuilding—declined 9.8 percent in the fourth quarter, decelerating sharply from the 10.3 percent pace in the third quarter. Residential activity shaved 0.3 percentage point from fourth-quarter real GDP growth. The fourth quarter decline was the first in 3 years; growth in residential investment had averaged just over 11 percent per quarter for the previous 12 consecutive quarters. Significantly, residential investment grew by nearly 13 percent in 2012, the strongest yearly increase since 1992. Noteworthy progress has been made in the housing market for the past 18 months, as captured by several measures. After reaching a 5-½ year high in November, single-family housing starts fell 7.0 percent in December 2013 to 667,000 units at an annual rate, but were still 7.6 percent above the level in December 2012. The level of March 2014 4 PROFILE OF THE ECONOMY single-family starts has risen by almost 90 percent from a low of 353,000 in March 2009, but in December 2013, it remained about 63 percent below the January 2006 peak, and well below the 1.1 million unit average observed from 1980 to 2004. Sales of new single-family homes have risen by 4.5 percent over the past year, reaching 414,000 at an annual rate in December 2013. Sales of existing singlefamily homes (94 percent of all home sales) fell 0.6 percent over the past year to 4.87 million at an annual rate in December 2013. The inventory of homes available for sale has trended lower. Relative to sales, there was a 5.0-month supply of new homes on the market in December, near its long-run average. The inventory of existing single-family homes has also fallen noticeably, relative to sales. In December, it stood at a 4.6-month supply, down considerably from a peak of 12.1 months in June 2010. House price measures continue to rise, reflecting a pick-up in demand and tight inventories in some markets. The FHFA purchase-only house price index rose 0.1 percent in November to its highest level in over 5 years, and was up 7.6 percent over the past year. This was the 10th consecutive year-over-year gain of more than 7 percent; price increases in recent months have been the strongest since 2006. In November 2013, the Standard & Poor’s (S&P)/Case-Shiller composite 20-city home price index increased 0.9 percent to its highest level since July 2008, and rose 13.8 percent yearover-year, the largest year-over-year gain since January 2006. Reflecting optimism in the housing market, the February 2014 Zillow Home Price Expectations Survey predicted that on average, home prices will rise by 4.5 percent through the fourth quarter of 2014. Nonresidential fixed investment—about 12 percent of GDP—grew 3.8 percent (annual rate) in the fourth quarter of 2013, slowing from the 4.8 percent advance in the third quarter. The slowdown in business fixed investment primarily reflected a large swing in outlays for structures, which fell 1.2 percent in the fourth quarter after advancing 13.4 percent in the third quarter. Growth in business spending on equipment accelerated, rising nearly 7 percent in the fourth quarter after edging up 0.2 percent in the third quarter. Investment in intellectual property products-a new category that includes outlays for software, research and development, and entertainment, literary and artistic originals-grew 3.2 percent in the fourth quarter, after a 5.8 percent rise in the third quarter. Altogether, nonresidential fixed investment added 0.5 percentage point to real GDP growth in the fourth quarter of 2013, compared with a 0.6 percentage point contribution in the third quarter. Inventory accumulation made a smaller but positive contribution to growth in the fourth quarter, adding 0.4 percentage point to GDP growth, after making a 1.7 percentage point contribution in the third quarter. Exports account for about 13 percent of GDP, while imports (which are subtracted from total domestic spending to calculate GDP) account for about 17 percent. After contributing nearly 1 percentage point, on average, to March 2014 quarterly GDP growth in 2007 through 2009, net exports subtracted 0.6 percentage point in 2010, and then added 0.1 percentage point in 2011, 2012, and 2013. In the fourth quarter of 2013, the net export deficit narrowed as exports rose 11.4 percent, far exceeding the 0.9 percent increase in imports. Net exports added 1.3 percentage point to GDP growth in the fourth quarter, after adding 0.1 percentage point to growth in the third quarter. The current account balance (reflecting international trade in goods and services, investment income flows, and unilateral transfers) has been in deficit almost continuously since the early 1980s and, in 2006, reached a record $798 billion, equivalent to 5.8 percent of GDP. After narrowing to $382 billion (2.6 percent of GDP) in 2009, the current account deficit widened again to $449 billion (3.0 percent of GDP) in 2010 and to $458 billion (2.9 percent of GDP) in 2011. It narrowed in 2012, to $440 billion, or 2.7 percent of GDP. As of the third quarter of 2013, the current account deficit had narrowed further, to $379 billion, or 2.2 percent of GDP Government purchases—which account for close to 20 percent of GDP—fell nearly 5 percent in the fourth quarter of 2013, swinging from a 0.4 percent increase in the third quarter of the year. Government outlays for consumption and investment have fallen in 13 of the past 17 quarters and, in the fourth quarter of this year, subtracted 0.9 percentage point from GDP growth. Federal spending plunged 12.6 percent in the fourth quarter after a 1.5 percent decline in the third quarter. After 10 straight quarterly declines in State and local government spending—the longest period of falling expenditures at this level of government in postwar history—State and local spending grew 0.6 percent in the second quarter of 2012, but fell again in the subsequent three quarters. However, State and local spending has grown in each of the most recent three quarters, including a 0.5 percent increase in the fourth quarter, after a 1.7 percent rise in the third quarter. This was the first three consecutive quarters of positive contribution at the State and local government level since 2009. Labor Markets During the recession (from December 2007 through June 2009), the economy lost 7.7 million private-sector jobs. Job losses continued even after the recovery began but, in February 2010, nonfarm payrolls began to rise again. Since then, through January 2014, total nonfarm payroll employment has grown by about 7.8 million. In the private sector, employment has increased by 8.5 million during the same period. Job losses during the recession were spread broadly across most sectors but, with the resumption of job growth, all of these sectors have added jobs. Since the labor market recovery began in early 2010, payrolls in professional and business services have risen by about 2.3 million, and the leisure and hospitality industries’ employment has increased by just over 1.5 million through January 2014. Although PROFILE OF THE ECONOMY growth in manufacturing payrolls has fluctuated in the last several months, payrolls in this sector have expanded by 622,000 since early 2010. A few sectors continued to add jobs throughout the recession and still continue to hire new workers: since early 2010, the health care and social assistance sector has created an additional 1.2 million jobs. The government sector also added workers to payrolls during the recession, but the State and local sectors have since cut employment considerably, and after a brief reversal, losses have resumed in recent months. From February 2010 through January 2014, the government sector’s job losses totaled 667,000. Over that same period, State and local job losses numbered 531,000, including 443,000 local government jobs (of which 306,000 were in local education). The unemployment rate peaked at 10.0 percent in October 2009—a 26-year high—and 5.6 percentage points above the May 2007 low of 4.4 percent. After October 2009, the unemployment rate trended lower, reaching 6.6 percent in January 2014 – its lowest level since October 2008. Broader measures of unemployment have also declined. One such measure, that includes workers who are underemployed and those who are only marginally attached to the labor force (the U-6 unemployment rate), reached a record high of 17.1 percent in late 2009 (series dates from 1994)—more than double the low of 7.9 percent reached in December 2006. This measure stood at 12.7 percent in January 2014. 5 The percentage of the unemployed who have been out of work for 27 weeks or more peaked at an all-time high of 45.3 percent in April 2010. This measure dropped to 35.8 percent in January 2014, the lowest since July 2009. Inflation Headline inflation has generally leveled off over the past 2 years, while core inflation (excluding food and energy) has moderated. Headline consumer prices rose 1.5 percent over the 12 months ending in December 2013, below the 1.7 percent rise over the year through December 2012. Energy prices rose 0.5 percent in the year through December, matching the year-earlier gain. Food prices rose 1.1 percent over the year through December 2013, less than the 1.8 percent increase in the year through December 2012. On a 12-month basis, core consumer prices (excluding food and energy) rose 1.7 percent through December 2013, less than the 1.9 percent advance in the year through December 2012 Oil and gasoline prices have fluctuated in a stable range over the past year. The front-month futures price of West Texas Intermediate (WTI) crude oil averaged $94.86 per barrel in January 2014, only three cents above the January 2013 average. The retail price of regular gasoline averaged $3.31 per gallon in January 2014, down one cent from the year-earlier average. Prices for crude oil and gasoline remained below the all-time highs reached in July 2008, of $147 per barrel and $4.11 per gallon, respectively. March 2014 6 PROFILE OF THE ECONOMY Economic Policy Federal Budget and Debt The federal budget deficit declined to $680 billion (4.1 percent of GDP) in fiscal year 2013, sharply dropping $1.089 trillion (6.8 percent of GDP) in fiscal year 2012. The deficit has declined by nearly 6 percentage points as a share of the economy from a peak of 9.8 percent in fiscal year 2009, making the past 4 years the most rapid period of fiscal consolidation that the United States has experienced since the year following the end of World War II. The debt-toGDP ratio was 72.1 percent in fiscal year 2013, up from 70.1 percent in fiscal year 2012. On March 1, 2013, $1.2 trillion in mandated public spending cuts, collectively known as the sequester, took effect. In April 2013, the Administration released its fiscal year 2014 budget proposal, which would replace the sequester with a deficit reduction package worth $1.8 trillion over the next 10 years. Together with the $2.5 trillion in deficit reduction measures enacted in the previous 2 years, these measures would bring the total amount of deficit reduction over 10 years to $4.3 trillion. According to the Congressional Budget Office’s (CBO) analysis of the President’s fiscal year 2014 budget (released in May 2013), the deficit is projected to fall to about 2.0 percent of GDP by 2017, putting Federal debt on a declining path as a share of the economy. The budget is projected to post a primary surplus (the budget deficit net of interest payments) starting in fiscal year 2017. Primary surpluses will average 0.5 percent of GDP over the last five years of the budget window (2009-2023). The debt-to-GDP ratio is projected to peak at around 77 percent of GDP in fiscal year 2014 and then begin to decline, falling to 69.8 percent in fiscal year 2023. In late January 2014, the Administration announced that the fiscal year 2015 budget will be released in early March. March 2014 Key fiscal and monetary policy actions taken over the past few years have aided the recovery. On the fiscal policy side, the American Recovery and Reinvestment Act (ARRA) authorized the Federal Government to spend $787 billion to stimulate domestic demand, an amount that was increased to $840 billion to be consistent with the President’s Fiscal Year 2012 Budget. This spending provided an important boost to economic activity, but the Administration also proposed and implemented a variety of additional programs to maintain the recovery’s momentum. These included an extension and expansion of the first-time home buyer tax credit, a new Small Business Jobs and Wages Tax Credit, and additional financial support for State and local Governments. In December 2010, the 2010 Tax Relief Act authorized a 2 percentage point payroll tax cut, extensions of unemployment benefits and refundable tax credits, and a 2year extension of the 2001 tax cuts. In late December 2011, the 2 percentage point payroll tax cut and extended unemployment benefits included in the 2010 tax legislation were each extended for 2 additional months. In late February 2012, the extension of the payroll tax cut and extended unemployment benefits for the remainder of 2012 were signed into law. In January 2013, the ATRA was signed into law. The ATRA permanently extended tax cuts for the vast majority of Americans and small businesses, extended Emergency Unemployment benefits for an additional year, extended a variety of other tax cuts and credits, postponed the sequester, originally scheduled to take effect on January 1, until March 1, 2013, and raised tax rates for high-income earners (representing about 2 percent of taxpayers). Altogether, the ATRA is projected to reduce the deficit by $737 billion over the next decade. Partly in response to rising financial market stress, as well as to signs of more slowing in the broader economy, the Federal Reserve began the current cycle of monetary policy easing in September 2007. By late 2008, the FOMC had lowered the federal funds target interest rate dramatically, reducing it to a historically low target range of 0 percent to 0.25 percent at the December 2008 FOMC meeting. Beginning with the August 2011 meeting, the FOMC also began identifying an expected timeframe for maintaining the Federal funds rate target at “exceptionally low levels.” Initially put at mid-2013, the timeframe was extended to “at least late 2014” at the January 2012 FOMC meeting, and then to “at least mid-2015” at the September 2012 meeting, a timeframe for the target range which was maintained at the October 2012 meeting. At the December 2012 meeting, however, the FOMC implemented numerical thresholds for its policy rate guidance. Specifically, the FOMC indicated that it would maintain the target range as long as the unemployment rate remained above 6.5 percent, inflation between 1 and 2 years ahead is projected to be no more than 0.5 percentage point above the FOMC’s 2 percent longer-run PROFILE OF THE ECONOMY goal, and long-term inflation expectations remain well anchored. At the December 2013 meeting, the FOMC commented on the role of the numerical thresholds in formulating monetary policy, indicating that, “it will likely be appropriate to maintain the current target range funds rate well past the time that the unemployment rate declines below 6-½ percent, especially if projected inflation continues to run below the Committee’s longer run goal.” At the most recent FOMC meeting in January 2014, the Committee reiterated this view. The Federal Reserve significantly expanded its tools to increase liquidity in credit markets, and eased lending terms to sectors in need of liquidity, including a variety of facilities and funds directed at specific financial markets. As of June 30, 2010, all of these special facilities had expired. At the August 2010 FOMC meeting, the Federal Reserve announced it would maintain its holdings of securities at current levels by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities, and continue rolling over the Federal Reserve’s holdings of Treasury securities as they mature. At the end of June 2011, the FOMC completed purchases of $600 billion of longer-term Treasury securities. At the September 2011 meeting, the FOMC announced it would extend the average maturity of its holdings (a socalled “twist” operation) by purchasing $400 billion of longer-term (6 to 30 years) Treasury securities and selling an equal amount of shorter-term (3 years or less) Treasury securities, all by the end of June 2012. The Committee also announced the reinvestment of principal payments from its holdings of agency debt and agency mortgage-backed securities into the latter securities. At the June 2012 meeting, the FOMC extended and expanded its program to extend the average maturity of its holdings (the so-called “twist” operation announced in September 2011). At the September 2012 meeting, the FOMC announced it would increase monetary accommodation through $40 billion per month in additional purchases of mortgage-backed securities through the end of the year. The FOMC announced additional monetary accommodation at the December 2012 meeting, including the completion of short-term securities sales (which drain liquidity) and the continuation of purchases of long-term Treasury securities at a rate of $45 billion per month beyond the end of 2012. The FOMC also indicated that monthly purchases of mortgage-backed securities at a pace of $40 billion per month would continue, and affirmed its existing policy of reinvesting principal payments. At the December 2013 meeting, the FOMC announced a tapering of long-term Treasury security purchases and mortgagebacked securities purchases, of $5 billion each, beginning in January 2014. The tapering brought monthly purchases to $40 billion and $35 billion, respectively. At its most recent meeting in January 2014, the Committee announced a further tapering of asset purchases to begin in February 2014, of $5 billion each. The latest tapering, to begin in 7 February 2014, brings monthly purchases to $35 billion and $30 billion, respectively. Financial Markets Financial markets have largely recovered from the unprecedented strains experienced in the fall of 2008, but came under renewed pressure in 2011, as investors expressed concerns about slowing economic growth in the United States as well as globally, and about strains in debt markets in Europe. The concerns persisting in 2012 and 2013, expanded to include ongoing uncertainty about the. United States fiscal situation and debt ceiling brinksmanship. While certain domestic headwinds appear to have receded, and concerns have eased about the sovereign debt crisis in Europe, prospects for global growth have become more tentative. Overall, though, financial conditions in general continue to improve. Credit flows have increased substantially since early 2009, and in the fourth quarter of 2013, banks generally continued to ease standards and terms across several lending categories, and demand for most loans was higher, with the exception of residential mortgages. After some deterioration in the summer of 2011, measures of risk tolerance and volatility have all improved. After plunging 38.5 percent in 2008, the sharpest loss since 1931 (when an earlier version of the index, containing only 90 stocks, dropped 47 percent), the S&P 500 index rose 23.5 percent in 2009 and 12.8 percent in 2010. Although the index was flat in 2011, it advanced 13.4 percent in 2012 and last year gained 29.6 percent, ending the year at a new record high. However, thus far in 2014, the index has declined by nearly 4 percent. The S&P Stock Market Volatility Index (VIX), often used as a measure of financial market uncertainty, surged to an all-time high of 80 in late October 2008, after hovering in a range of 20 to 30 for most of that year. The VIX retreated fairly steadily during 2009, ending that year at about 20. Since then, the VIX has fluctuated more widely, resurging to 46 in mid-May 2010 and to that level again in early October 2011. Since the most recent peak, this index has generally trended lower, and stood at about 15.3 as of early February 2014. A variety of factors have buffeted long-term Treasury interest rates, including flight-to-quality flows in response to a variety of specific risk events, as well as supply concerns related to funding of the government’s debt, concern about the need for fiscal retrenchment, the downgrade of U.S. Treasury debt by rating agency S&P in August 2011, ongoing concerns about European debt markets and debt downgrades in some European countries, and more recently, concerns about fiscal drag in the United States and slowing global growth. The yield on the 10-year note traded above the 3 percent level during the first half of 2011, but thereafter trended lower, reaching a record low of 1.43 percent in late July 2012. The yield subsequently rose and fluctuated around the 2 percent mark in early 2013, then fell to about 1.7 percent in early May 2013. Thereafter, the yield March 2014 8 PROFILE OF THE ECONOMY trended much higher, surpassing the 3 percent level in late 2013. However, thus far in 2014, the yield has declined about 30 basis points to 2.7 percent as of early February. The 3-month Treasury bill yield fluctuated in a range from about 0.05 percent to 0.17 percent for much of 2011 but, between August 2011 and January 2012, the yield fluctuated in a range of 0.0 percent to 0.02 percent. Since then, the yield has fluctuated around 0.1 percent as of early February 2014. The 2- to 10-year Treasury yield spread, one measure of the steepness of the yield curve, widened to 291 basis points in early February 2011, then trended noticeably lower, reaching 132 basis points in mid-November 2012. The spread widened again after that, reaching about 270 basis points in November 2013, but since then has narrowed, reaching 240 basis points as of early February 2014. Key interest rates on private securities, which spiked in response to financial market turbulence in late 2008, have since retraced as conditions have stabilized. The spread between the 3-month London Inter-bank Offered Rate (LIBOR) and the 3-month Treasury bill rate (the TED spread, a measure of inter-bank liquidity and credit risk) rose to an all-time high of nearly 460 basis points in early October 2008. However, improvements in short-term credit availability have led to a narrowing of this spread. Through early August 2011, the TED spread fluctuated in a range from 14 to 25 basis points. Subsequently, this spread widened, reaching almost 60 basis points earlier in 2013, before narrowing since then to 16 basis points in early February 2014. The spread between the Baa corporate bond yield and the 10-year Treasury yield peaked at nearly 620 basis points in December 2008. After narrowing on trend in the intervening years, and trading below 300 basis points for much of 2011, the spread widened above that level again in March 2014 early August 2011 to about 340 basis points. The spread remained above 300 basis points for much of 2012, but dropped below that level late in the year, where it has remained since then. This spread stood at 242 basis points as of early February 2014, still very high by historical standards. Rates for conforming mortgages have trended lower in recent years, as have rates for jumbo mortgages, although over the summer and fall of 2013, mortgage rates spiked. The interest rate for a 30-year conforming fixed-rate mortgage fell to a record low of 3.31 percent in November 2012; starting in May 2013, however, it started moving sharply higher. From early May through mid-September 2013, the rate jumped up by nearly 135 basis points. Since then, the rate has trended lower, and stood at 4.3 percent as of early February 2014. Foreign Exchange Rates The value of the U.S. dollar compared with the currencies of seven major trading partners (the euro area countries, Japan, Canada, the United Kingdom, Australia, Sweden, and Switzerland) appreciated to a peak level in February 2002, and then depreciated significantly over the next several years. From its peak in February 2002, to the recent low reached in August 2011, the exchange value of the dollar compared to an index of these currencies fell by about 38.5 percent. Although the dollar’s exchange value against this index remains well below the February 2002 peak, it has appreciated between August 2011 and January 2014 by about 12 percent. Over the longer timeframe, the dollar depreciated by about 42 percent against the yen and by 39 percent against the euro. In the period since August 2011 through January 2014, the dollar has appreciated by PROFILE OF THE ECONOMY nearly 35 percent against the yen, but has depreciated by 5 percent against the euro. Against an index of currencies of 19 other important trading partners (including China, India, 9 and Mexico), the dollar depreciated 10.2 percent over the longer timeframe, and has appreciated by about 5.5 percent against this basket between August 2011 and January 2014. March 2014 10 INTRODUCTION: Federal Fiscal Operations Budget authority usually takes the form of appropriations that allow obligations to be incurred and payments to be made. Reappropriations are Congressional actions that extend the availability of unobligated amounts that have expired or would otherwise expire. These are counted as new budget authority in the fiscal year of the legislation in which the reappropriation act is included, regardless of when the amounts were originally appropriated or when they would otherwise lapse. Obligations generally are liquidated by the issuance of checks or the disbursement of cash—outlays. Obligations may also be liquidated (and outlays recorded) by the accrual of interest on public issues of Treasury debt securities (including an increase in redemption value of bonds outstanding); or by the issuance of bonds, debentures, notes, monetary credits, or electronic payments. Refunds of collections generally are treated as reductions of collections, whereas payments for earned-income tax credits in excess of tax liabilities are treated as outlays. Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year. Outlays, therefore, flow in part from unexpended balances of prior year budget authority and from budget authority provided for the year in which the money is spent. Total outlays include both budget and off-budget outlays and are stated net of offsetting collections. Receipts are reported in the tables as either budget receipts or offsetting collections. They are collections from the public, excluding receipts offset against outlays. These, also called governmental receipts, consist mainly of tax receipts (including social insurance taxes), receipts from court fines, certain licenses, and deposits of earnings by the Federal Reserve system. Refunds of receipts are treated as deductions from gross receipts. Total Government receipts are compared with total outlays in calculating the budget surplus or deficit. Offsetting collections from other Government accounts or the public are of a business-type or market-oriented nature. They are classified as either collections credited to appropriations or fund accounts, or offsetting receipts (i.e., amounts deposited in receipt accounts). The former normally can be used without an appropriation act by Congress. These occur in two instances: (1) when authorized by law, amounts collected for materials or services are treated as reimbursements to appropriations. For accounting purposes, earned reimbursements are also known as revenues. These offsetting collections are netted against gross outlays in determining net outlays from such appropriations; and (2) in the three types of revolving funds (public enterprise, intragovernmental, and trust); offsetting collections are March 2014 netted against spending, and outlays are reported as the net amount. Offsetting receipts in receipt accounts cannot be used without appropriation. They are subdivided into three categories: (1) proprietary receipts, or collections from the public, offset against outlays by agency and by function; (2) intragovernmental transactions, or payments into receipt accounts from governmental appropriation or fund accounts. They finance operations within and between Government agencies and are credited with collections from other Government accounts; and (3) offsetting governmental receipts that include foreign cash contributions. Intrabudgetary transactions are subdivided into three categories: (1) interfund transactions—payments are from one fund group (either Federal funds or trust funds) to a receipt account in the other fund group; (2) Federal intrafund transactions—payments and receipts both occur within the Federal fund group; and (3) trust intrafund transactions— payments and receipts both occur within the trust fund group. Offsetting receipts are generally deducted from budget authority and outlays by function, subfunction, or agency. There are four types of receipts, however, that are deducted from budget totals as undistributed offsetting receipts. They are: (1) agencies’ payments (including payments by offbudget Federal entities) as employers into employees’ retirement funds; (2) interest received by trust funds; (3) rents and royalties on the Outer Continental Shelf lands; and (4) other interest (i.e., that collected on Outer Continental Shelf money in deposit funds when such money is transferred into the budget). The Government has used the unified budget concept set forth in the “Report of the President’s Commission on Budget Concepts” as a foundation for its budgetary analysis and presentation since 1969. The concept calls for the budget to include all of the Government’s fiscal transactions with the public. Since 1971, however, various laws have been enacted removing several Federal entities from (or creating them outside of) the budget. Other laws have moved certain off-budget Federal entities onto the budget. Under current law, the off-budget Federal entities consist of the two Social Security trust funds, Federal Old-Age and Survivors Insurance and the Federal Disability Insurance Trust Fund, and the Postal Service. Although an off-budget Federal entity’s receipts, outlays, and surplus or deficit ordinarily are not subject to targets set by the Congressional resolution, the Balanced Budget and Emergency Deficit Control Act of 1985 [commonly known as the Gramm-Rudman-Hollings Act as amended by the Budget Enforcement Act of 1990 (2 United States Code 900- FEDERAL FISCAL OPERATIONS 922)] included off-budget surplus or deficit in calculating deficit targets under that act and in calculating excess deficit. Partly for this reason, attention has focused on both on- and off-budget receipts, outlays and deficit of the Government. Tables FFO-1, FFO-2, and FFO-3 are published quarterly and cover 5 years of data, estimates for 2 years, detail for 13 months, and fiscal year-to-date data. They provide a summary of data relating to Federal fiscal operations reported by Federal entities and disbursing officers, and daily reports from the FRBs. They also detail accounting transactions affecting receipts and outlays of the Government and off-budget Federal entities and their related effect on assets and liabilities of the Government. Data are derived from the “Monthly Treasury Statement of Receipts and Outlays of the United States Government.” Table FFO-1 summarizes the amount of total receipts, outlays, and surplus or deficit, as well as transactions in Federal securities, monetary assets, and balances in Treasury operating cash. Table FFO-2 includes on- and off-budget receipts by source. Amounts represent income taxes, social insurance taxes, net contributions for other insurance and retirement, excise taxes, estate and gift taxes, customs duties, and net miscellaneous receipts. Table FFO-3 details on- and off-budget outlays by agency. 11 Table FFO-4 summarizes on- and off-budget receipts by source and outlays by function as reported to each major fund group classification for the current fiscal year to date and prior fiscal year to date. Table FFO-5 summarizes internal revenue receipts by states and by type of tax. Amounts reported are collections made in a fiscal year. They span several tax liability years because they consist of prepayments (estimated tax payments and taxes withheld by employers for individual income and Social Security taxes), payments made with tax returns and subsequent payments made after tax returns are due or are filed (that is, payments with delinquent returns or on delinquent accounts). Amounts are reported based on the primary filing address provided by each taxpayer or reporting entity. For multistate corporations, the address may reflect only the district where such a corporation reported its taxes from a principal office rather than other districts where income was earned or where individual income and Social Security taxes were withheld. In addition, an individual may reside in one district and work in another. Table FFO-6 includes customs collection of duties, taxes, and fees by districts and ports. Budget Results and Financing of the U.S. Government and First-Quarter Receipts by Source [Source: Office of Tax Analysis, Office of Tax Policy] First-Quarter Receipts The following capsule analysis of budget receipts, by source, for the first quarter of fiscal year 2014 supplements fiscal data reported in the December issue of the “Treasury Bulletin.” At the time of that issue’s release, not enough data were available to analyze adequately collections for the quarter. Individual income taxes—Individual income tax receipts, net of refunds, were $306.4 billion for the first quarter of fiscal year 2014. This is a decrease of $6.0 billion over the comparable prior year quarter. Withheld receipts decreased by $11.1 billion and non-withheld receipts increased by $4.3 billion during this period. Refunds decreased by $0.9 billion over the comparable fiscal year 2013 quarter. There was a decrease of $6.4 billion in accounting adjustments between individual income tax receipts and the Social Security and Medicare trust funds over the comparable quarter in fiscal year 2013. Corporate income taxes—Net corporate income tax receipts were $69.3 billion for the first quarter of fiscal year 2014. This is an increase of $6.8 billion compared to the prior year first quarter. The $6.8 billion change is comprised of an increase of $5.1 billion in estimated and final payments, and a decrease of $1.6 billion in corporate refunds. Employment taxes and contributions—Employment taxes and contributions receipts for the first quarter of fiscal year 2014 were $216.2 billion, an increase of $44.1 billion over the comparable prior year quarter. Receipts to the Federal Old-Age and Survivors Insurance, Federal Disability Insurance, and Federal Hospital Insurance trust funds changed by $30.8 billion, $5.2 billion, and $7.9 billion respectively. There was a -$2.0 billion accounting adjustment for prior years employment tax liabilities made in the first quarter of fiscal year 2014, while there was a -$8.4 billion adjustment in the first quarter of fiscal year 2013. Unemployment insurance—Unemployment insurance receipts, net of refunds, for the first quarter of fiscal year 2014 were $8.4 billion, an increase of $0.2 billion over the comparable quarter of fiscal year 2013. Net State taxes deposited in the U.S. Treasury increased by $0.2 billion to $7.8 billion. Net Federal Unemployment Tax Act taxes increased by $0.1 billion to $0.7 billion. March 2014 FEDERAL FISCAL OPERATIONS 12 Budget Results and Financing of the U.S. Government and First-Quarter Receipts by Source, continued Contributions for other insurance and retirement— Contributions for other retirement were $0.8 billion for the first quarter of fiscal year 2014. This was a negligible change from the comparable quarter of fiscal year 2013. Excise taxes—Net excise tax receipts for the first quarter of fiscal year 2014 were $19.2 billion, a decrease of $0.9 billion over the comparable prior year quarter. Total excise tax refunds for the quarter were $0.5 billion, an increase of $0.1 billion over the comparable prior year quarter. Estate and gift taxes—Net estate and gift tax receipts were $5.3 billion for the first quarter of fiscal year 2014. These receipts represent an increase of $2.1 billion over the same quarter in fiscal year 2013. Customs duties—Customs duties net of refunds were $8.8 billion for the first quarter of fiscal year 2014. This is an increase of $0.8 billion over the comparable prior year quarter. Miscellaneous receipts—Net miscellaneous receipts for the first quarter of fiscal year 2014 were $30.1 billion, an increase of $2.1 billion over the comparable prior year quarter. This change is due in part to deposits of earnings by Federal Reserve banks increasing by $0.5 billion. Total On- and Off-Budget Results and Financing of the U.S. Government [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Fiscal year 2013 First quarter Oct. - Dec. Total on- and off-budget results: Total receipts ............................................................... On-budget receipts .................................................. Off-budget receipts .................................................. Total outlays ................................................................. On-budget outlays.................................................... Off-budget outlays.................................................... Total surplus or deficit (-) ............................................. On-budget surplus or deficit (-) ................................ Off-budget surplus or deficit (-) ................................ Means of financing: Borrowing from the public ............................................ Reduction of operating cash ........................................ Other means ................................................................ Total on- and off-budget financing ........................... 686,835 519,036 167,800 857,285 662,041 195,245 -170,450 -143,007 -27,445 2,774,011 2,100,705 673,274 3,454,241 2,820,440 633,815 -680,229 -719,737 39,460 69,016 46,472 54,963 170,449 702,019 -2,940 -18,803 680,275 First-Quarter Net Budget Receipts by Source, Fiscal Year 2014 [In billions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Source Individual income taxes...................................................... Corporate income taxes ..................................................... Employment and general retirement.................................. Unemployment insurance .................................................. Contributions for other insurance and retirement .............. Excise taxes ....................................................................... Estate and gift taxes .......................................................... Customs duties .................................................................. Miscellaneous receipts....................................................... Total budget receipts ..................................................... Note.—Detail may not add to totals due to independent rounding. March 2014 Oct. Nov. Dec. 99.1 6.5 67.6 3.3 0.3 5.9 1.8 3.2 11.3 198.9 82.7 0.5 72.8 4.6 0.3 6.9 2.1 2.8 9.7 182.5 124.6 62.3 75.8 0.5 0.3 6.4 1.4 2.8 9.1 283.2 FEDERAL FISCAL OPERATIONS 13 March 2014 FEDERAL FISCAL OPERATIONS 14 TABLE FFO-1.—Summary of Fiscal Operations [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Total on-budget and off-budget results Total surplus or deficit (-) (7) Total receipts (1) Off-budget receipts (3) Total outlays (4) 2,104,365 2,161,728 2,302,495 2,449,092 2,773,979 1,450,355 1,530,040 1,736,709 1,879,592 2,100,705 654,010 631,688 565,787 569,500 673,274 3,520,088 3,455,931 3,598,086 3,538,447 3,454,254 3,003,070 2,901,248 3,099,477 3,030,856 2,820,439 517,018 554,683 498,609 507,589 633,815 -1,415,722 -1,294,204 -1,295,591 -1,089,353 -680,276 -1,552,714 -1,371,208 -1,362,769 -1,151,263 -719,738 136,992 77,004 67,179 61,913 39,460 1,889,727 1,652,342 1,234,576 1,286,476 667,974 2014 - Est .................... 3,023,004 2,283,787 739,217 3,773,373 3,068,252 705,121 -750,369 -784,465 34,096 1,004,520 2009 ............................ 2010 ............................ 2011 ............................ 2012 ............................ 2013 ............................ Off-budget outlays (6) On-budget surplus or deficit (-) (8) On-budget receipts (2) Fiscal year or month On-budget outlays (5) Means of financing – net transactions Borrowing from the public– Off-budget Federal securities surplus or Public debt deficit (-) securities (10) (9) 2012 - Dec ................... 2013 - Jan ................... Feb .................. Mar .................. Apr ................... May.................. June................. July .................. Aug .................. Sept ................. Oct ................... Nov .................. Dec .................. 269,508 272,225 122,815 186,018 406,723 197,182 286,627 200,030 185,370 301,435 198,927 182,453 283,221 230,049 207,810 67,807 120,570 332,553 139,762 220,392 146,265 130,599 242,172 148,871 128,657 228,231 39,459 64,415 55,008 65,448 74,170 57,420 66,235 53,765 54,771 59,264 50,056 53,796 54,990 270,699 269,342 326,354 292,548 293,833 335,914 170,126 297,627 333,293 226,366 290,520 317,679 230,001 267,740 212,018 260,700 226,200 236,743 269,499 150,562 237,755 265,356 158,930 226,427 250,867 212,435 2,959 57,324 65,653 66,348 57,091 66,415 19,564 59,872 67,937 67,436 64,093 66,813 17,566 -1,191 2,883 -203,539 -106,530 112,889 -138,732 116,501 -97,597 -147,923 75,070 -91,592 -135,226 53,220 -37,691 -4,208 -192,894 -105,630 95,810 -129,737 69,830 -91,491 -134,757 83,241 -77,555 -122,210 15,796 36,500 7,091 -10,645 -900 17,079 -8,995 46,672 -6,107 -13,166 -8,172 -14,037 -13,017 37,424 63,743 1,215 253,395 85,043 59,272 -90,096 -3,629 -3,474 254 -2,266 410,381 61,108 134,373 Fiscal year 2014 to date ... 664,601 505,759 158,842 838,200 689,729 148,472 -173,598 -183,969 10,370 605,862 Other (18) Transactions not applied to year’s surplus or deficit (19) Total Financing (20) Means of financing—net transactions, con. Borrowing from the publicFederal securities, con. Fiscal year or month Agency securities (11) Investments of Government Total accounts 10+11-12 (12) (13) Cash and monetary assets (deduct) Reserve position on the U.S. Treasury Special U.S. quota in operating drawing the IMF cash rights Other (deduct) (14) (15) (16) (17) 2009 ...................................... 2010 ...................................... 2011 ...................................... 2012 ...................................... 2013 ...................................... 99 771 1,014 -589 703 146,766 179,044 125,742 133,641 -33,340 1,743,060 1,474,069 1,109,849 1,152,249 702,019 -96,343 34,567 -251,743 27,356 2,939 45,528 -535 -1,535 -643 -267 1,674 -538 6,011 5,955 42 8,719 -531 9,719 819 -3,658 -368,200 -147,277 -51,806 -29,408 -23,503 -375 816 1,415,282 1,293,454 1,295,591 1,089,353 680,276 2014 - Est .............................. 962 131,799 873,683 -20,000 * * * -143,314 * 750,369 2012 - Dec ............................ 2013 - Jan ............................. Feb ............................ Mar ............................ Apr............................. May ........................... June .......................... July ............................ Aug ............................ Sept ........................... Oct............................. Nov ............................ Dec ............................ 399 98 -219 -133 46 97 193 165 -199 171 10 -446 -175 34,804 22,252 -8,776 -10,445 31,419 -43,736 -4,543 -15,529 -49,349 -9,486 206,251 -32,491 60,555 29,338 -20,938 261,952 95,355 27,899 -46,263 1,107 12,220 49,404 7,392 204,141 93,153 73,643 43,774 27,527 -38,497 -2,599 134,711 -179,182 100,176 -25,165 -83,558 62,251 -5,385 -49,568 128,966 76 158 -945 -560 351 -360 186 333 78 674 142 -95 172 39 -151 -304 -334 -133 -128 248 -230 343 354 143 -787 231 -527 111 -573 -825 57 -1,346 618 223 -1,295 318 -1,017 -724 -942 15,215 45,700 -98,732 6,857 -5,802 3,979 -16,615 60,538 13,760 -19,119 -118,666 -9,101 1,564 235 327 254 - 1,191 -2,883 203,539 106,530 -112,889 138,732 -116,501 97,597 147,923 -75,070 91,592 135,226 -53,220 Fiscal year 2014 to date ............. -611 234,315 370,937 74,013 219 -413 -2,683 -126,203 - 173,598 Note.—These estimates are based on the mid-session review of the President’s Budget for Fiscal Year 2014, released by the Office of Management and Budget on July 8, 2013. March 2014 * Less than $500,000. - No transactions. Detail may not add to totals due to rounding. FEDERAL FISCAL OPERATIONS 15 TABLE FFO-2.—On-Budget and Off-Budget Receipts by Source [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Social insurance and retirement receipts Employment and general retirement Old-age, disability, and hospital insurance Income taxes Individual Fiscal year or month Corporation Net income taxes (8) Net (4) Gross (5) Refunds (6) Net (7) 258,940 260,035 237,827 238,251 229,992 915,307 898,549 1,091,473 1,132,207 1,316,405 225,891 279,880 243,492 281,841 312,477 87,662 88,443 62,407 39,552 38,970 138,229 191,437 181,085 242,290 273,505 1,053,536 1,089,986 1,272,559 1,374,497 1,589,910 847,184 813,505 756,371 772,948 884,988 2,511 1,749 2,094 2,305 2,443 844,673 811,756 754,276 770,643 882,545 * * 1,395,844 333,444 * 333,444 1,729,288 963,310 * 963,310 128,078 93,832 92,779 103,809 85,958 88,094 72,874 94,757 82,808 85,481 88,055 85,333 117,835 9,657 62,262 5,757 9,181 209,034 6,436 50,482 7,088 5,703 58,362 18,258 4,889 10,481 2,404 127 66,309 58,363 54,788 16,090 5,050 3,764 3,225 2,974 7,206 7,510 3,708 135,331 155,967 32,227 54,627 240,204 78,439 118,306 98,082 85,286 140,870 99,106 82,711 124,608 60,877 10,206 5,382 33,842 41,035 8,586 64,768 9,208 4,966 59,905 10,302 4,349 65,063 3,207 2,454 4,209 4,988 4,951 2,324 1,809 2,035 1,370 2,759 3,827 3,852 2,776 57,670 7,752 1,173 28,854 36,083 6,262 62,959 7,173 3,595 57,146 6,475 498 62,287 193,001 163,719 33,400 83,481 276,287 84,701 181,265 105,255 88,881 198,016 105,581 83,209 186,895 55,597 83,981 70,117 83,033 96,756 73,300 85,293 69,527 71,079 80,995 67,170 72,330 75,378 2,443 - 55,597 83,981 70,117 83,033 96,756 73,300 85,293 69,527 71,079 78,552 67,170 72,330 75,378 291,223 33,628 18,424 306,425 79,714 10,455 69,260 375,685 214,878 - 214,878 Withheld (1) Other (2) 2009 .................. 2010 .................. 2011 .................. 2012 .................. 2013 .................. 861,774 880,361 990,952 1,018,104 1,102,745 312,474 278,223 338,348 352,355 443,651 2014 - Est .......... 1,395,844 2012 - Dec ......... 2013 - Jan ......... Feb ........ Mar ........ Apr ......... May........ June....... July ........ Aug ........ Sept ....... Oct ......... Nov ........ Dec ........ Fiscal year 2014 to date ................ Fiscal year or month Refunds (3) Social insurance and retirement receipts, con. Employment and general retirement, con. Unemployment insurance Net employment Net unRailroad retirement employment and general insurance retirement Gross Refunds Gross Refunds Net (18) (15) (16) (17) (12) (13) (14) Gross (9) Refunds (10) Net (11) Net for other insurance and retirement Federal employees Other retirement retirement Total (19) (20) (21) 2009 ............................ 2010 ............................ 2011 ............................ 2012 ............................ 2013 ............................ 4,214 4,141 4,240 4,289 4,963 1 1 2 6 63 4,213 4,140 4,238 4,283 4,900 848,886 815,896 758,515 774,926 887,445 37,996 44,922 56,335 66,747 56,958 107 99 95 99 149 37,889 44,823 56,241 66,647 56,811 4,104 4,042 4,021 3,712 3,539 38 35 30 30 25 4,142 4,076 4,051 3,739 3,564 2014 - Est .................... 5,172 - 5,172 968,482 57,191 - 57,191 4,516 17 4,533 2012 - Dec .................. 2013 - Jan ................... Feb .................. Mar .................. Apr................... May ................. June ................ July .................. Aug .................. Sept ................. Oct................... Nov .................. Dec .................. 387 463 569 498 455 484 -131 501 395 433 410 487 442 58 * 4 * * 1 * * * * * * * 329 463 565 498 455 483 -131 501 395 433 410 487 442 55,925 84,444 70,683 83,530 97,211 73,783 85,163 70,028 71,474 78,985 67,580 72,817 75,820 649 5,050 3,598 698 9,863 18,255 542 4,432 5,981 301 3,341 4,592 478 4 2 1 18 47 16 10 15 12 15 2 1 6 645 5,048 3,596 680 9,817 18,240 532 4,418 5,969 286 3,340 4,590 472 289 277 271 330 279 312 275 267 311 306 291 270 272 3 2 2 2 2 2 2 2 2 2 2 4 1 292 279 273 332 281 314 277 269 313 308 293 273 273 Fiscal year 2014 to date ... 1,339 - 1,339 216,217 8,411 9 8,402 833 7 839 See footnotes at end of table. March 2014 FEDERAL FISCAL OPERATIONS 16 TABLE FFO-2.—On-Budget and Off-Budget Receipts by Source, continued [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Social insurance and retirement receipts, con. Net social insurance and retirement receipts (22) Fiscal year or month 2009 .............................. 2010 .............................. 2011 .............................. 2012 .............................. 2013 .............................. Excise taxes Airport and Airway Trust Fund Gross (23) Refunds (24) Net (25) Black Lung Disability Trust Fund Gross Refunds (26) (27) Highway Trust Fund Net (28) Gross (29) Refunds (30) Miscellaneous Net (31) Gross (32) Refunds (33) Net (34) 890,918 864,795 818,807 845,312 947,820 10,679 10,632 11,551 12,184 12,677 110 19 18 23 19 10,569 10,613 11,532 12,161 12,658 645 595 623 664 529 - 645 595 623 664 529 36,007 35,562 36,907 41,159 36,410 1,046 569 - 34,961 34,993 36,907 41,159 36,410 23,408 27,942 27,510 29,551 38,423 7,100 7,234 4,191 4,476 4,015 16,308 20,709 23,320 25,076 34,409 2014 - Est ..................... 1,030,206 14,020 - 14,020 587 - 587 37,637 - 37,637 52,925 - 52,925 2012 - Dec .................... 56,862 2013 - Jan ..................... 89,771 Feb .................... 74,552 Mar .................... 84,542 Apr .................... 107,309 May ................... 92,337 June .................. 85,972 July.................... 74,715 Aug.................... 77,756 Sept................... 79,579 Oct .................... 71,212 Nov.................... 77,680 Dec.................... 76,565 1,129 1,049 1,084 1,345 1,089 1,105 664 1,051 1,049 1,698 178 1,254 1,024 7 3 6 3 - 1,129 1,049 1,084 1,338 1,089 1,105 661 1,051 1,043 1,695 178 1,254 1,024 59 55 53 24 53 45 3 43 45 74 8 58 48 - 59 55 53 24 53 45 3 43 45 74 8 58 48 3,560 3,305 3,156 2,306 3,161 3,190 1,531 3,031 3,384 5,252 568 3,852 3,141 - 3,560 3,305 3,156 2,306 3,161 3,190 1,531 3,031 3,384 5,252 568 3,852 3,141 1,845 1,998 875 4,221 2,780 2,732 5,169 3,191 2,965 4,809 5,172 1,988 2,433 34 55 117 527 161 179 645 105 1,123 716 74 214 227 1,811 1,943 758 3,694 2,619 2,553 4,525 3,086 1,842 4,093 5,098 1,774 2,206 Fiscal year 2014 to date ..... 225,457 2,456 - 2,456 114 - 114 7,561 - 7,561 9,593 515 9,078 Net miscellaneous receipts Fiscal year or month 2009 ....................... 2010 ....................... 2011 ....................... 2012 ....................... 2013 ....................... Excise taxes, con. Net excise taxes (35) Estate and gift taxes Gross (36) Customs duties Refunds (37) Net (38) Gross (39) Refunds (40) Net (41) Deposits of earnings by Universal service fund Federal Reserve and all banks other Total (42) (43) (44) Total receipts On-budget (45) Off-budget (46) 62,484 66,909 72,381 79,062 84,008 24,677 19,751 9,079 14,451 19,830 1,195 866 1,680 477 919 23,482 18,885 7,399 13,971 18,910 23,546 26,266 30,697 32,079 33,119 1,092 969 1,178 1,774 1,305 22,454 25,298 29,519 30,306 31,814 34,318 75,845 82,546 81,955 75,766 17,172 20,010 19,284 23,991 25,750 51,490 95,855 101,831 105,943 101,514 1,450,355 1,530,040 1,736,708 1,879,592 2,100,706 654,010 631,688 565,787 569,500 673,274 2014 - Est ............... 105,169 15,243 - 15,243 36,481 - 36,481 83,000 23,617 106,617 2,283,787 739,217 2012 - Dec ............. 2013 - Jan .............. Feb ............. Mar ............. Apr.............. May ............ June ........... July ............. Aug ............. Sept ............ Oct.............. Nov ............. Dec ............. 6,559 6,352 5,051 7,362 6,922 6,893 6,719 7,211 6,315 11,114 5,852 6,938 6,418 1,215 1,162 1,107 1,194 6,206 1,385 1,271 1,624 1,305 1,184 1,800 2,236 1,500 37 32 80 67 317 53 38 47 52 55 28 127 94 1,178 1,130 1,027 1,126 5,888 1,333 1,233 1,577 1,253 1,129 1,772 2,109 1,406 2,576 2,873 2,408 2,608 2,643 2,493 2,667 2,999 2,949 3,070 3,281 2,941 2,942 116 74 124 82 148 93 104 114 106 114 115 93 109 2,460 2,799 2,284 2,526 2,495 2,400 2,563 2,884 2,843 2,956 3,166 2,848 2,833 7,119 5,650 3,845 5,080 5,815 7,211 7,080 6,623 6,343 6,311 8,910 6,290 7,091 2,328 2,802 2,656 1,899 2,007 2,308 1,795 1,765 1,978 2,332 2,434 3,377 2,013 9,447 8,453 6,501 6,980 7,822 9,518 8,875 8,388 8,322 8,642 11,344 9,668 9,105 230,049 207,810 67,807 120,570 332,553 139,762 220,392 146,265 130,599 242,172 148,871 128,657 228,231 39,459 64,415 55,008 65,448 74,170 57,420 66,235 53,765 54,771 59,264 50,056 53,796 54,990 Fiscal year 2014 to date ...................... 19,208 5,536 249 5,287 9,164 317 8,847 22,291 7,824 30,117 505,759 158,842 Note.—These estimates are based on the President’s Budget for Fiscal Year 2014, released by the Office of Management and Budget on July 8, 2013. March 2014 * Less than $500,000. - No transactions. Detail may not add to totals due to rounding. FEDERAL FISCAL OPERATIONS 17 TABLE FFO-3.—On-Budget and Off-Budget Outlays by Agency [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Fiscal year or month Legislative branch (1) Judicial branch (2) Department of Agriculture (3) Department of Commerce (4) Department of Depart- DepartDefense, ment of ment of military Education Energy (6) (7) (5) Department of Health and Human Services (8) Department of Homeland Security (9) Department of Housing and Urban Development (10) Department of the Interior (11) Department of Justice (12) Department of Labor (13) 2009 ....................... 2010 ....................... 2011 ....................... 2012 ....................... 2013 ....................... 4,703 5,838 4,583 4,438 4,328 6,643 7,185 7,295 7,228 7,066 114,436 129,454 139,394 139,712 155,897 10,720 13,233 9,930 10,267 9,137 636,772 666,717 678,077 650,869 607,801 53,387 92,858 64,271 57,248 40,910 23,684 30,775 31,371 32,485 24,677 796,266 854,060 891,245 848,055 886,293 51,720 44,455 45,744 47,423 57,220 61,018 60,143 57,008 49,591 56,577 11,778 13,163 13,529 12,886 9,605 27,713 29,558 30,518 31,161 29,740 138,156 173,053 131,973 104,742 80,309 2014 - Est ............... 4,894 7,621 149,080 9,327 585,950 74,352 29,426 962,354 53,666 40,283 13,065 35,515 81,066 2012 - Dec .............. 2013 - Jan .............. Feb ............. Mar ............. Apr .............. May ............. June ............ July ............. Aug ............. Sept ............ Oct .............. Nov ............. Dec ............. 354 380 328 338 399 363 310 324 345 374 358 344 329 563 563 545 738 542 616 501 576 669 557 573 533 532 16,363 15,537 11,811 11,049 11,756 11,747 10,443 10,801 10,859 9,409 17,910 13,860 13,882 811 736 688 545 927 705 802 680 682 814 512 625 669 50,140 50,885 43,625 53,615 46,514 54,277 42,282 48,904 53,367 47,859 57,391 47,209 49,890 6,054 -1,032 7,971 7,180 81 6,465 -9,296 4,699 7,028 2,185 2,857 5,503 5,620 2,451 1,964 2,055 967 1,949 2,319 2,577 1,900 1,650 2,099 2,331 1,809 2,192 55,528 72,350 70,377 72,497 75,319 93,732 53,035 78,891 94,535 53,399 76,630 88,798 58,709 5,613 5,866 5,146 5,532 4,519 4,321 3,812 3,621 3,633 4,947 3,592 3,598 3,674 3,006 2,530 2,749 2,761 2,412 2,363 1,828 7,089 2,289 24,031 2,916 3,383 3,226 913 851 789 879 940 726 1,552 633 1,153 1,151 1,194 959 435 1,431 2,615 2,450 2,492 2,486 2,899 1,700 2,568 2,428 2,617 2,830 2,503 69 7,647 8,936 6,516 7,287 7,703 6,020 5,955 6,750 5,972 4,379 3,887 5,750 6,889 Fiscal year 2014 to date ...................... 1,031 1,638 45,652 1,806 154,490 13,980 6,332 224,137 10,864 9,525 2,588 5,402 16,526 Fiscal year or month Department of State (14) Department of the Treasury, interest on DepartTreasury ment of debt Transpor- securities tation (gross) (15) (16) Department of the Treasury, other (17) Department of Veterans Affairs (18) Corps of Engineers (19) Other Defense, civil programs (20) Environmental Protection Agency (21) Executive Office of the President (22) InterGeneral national Services Admin- Assistance Program istration (23) (24) 2009 ....................... 2010 ....................... 2011 ....................... 2012 ....................... 2013 ....................... 21,430 23,804 24,334 26,948 25,928 73,006 77,751 77,302 75,148 76,317 383,073 413,955 454,015 359,240 415,671 318,701 30,385 82,720 105,456 -16,618 95,454 108,275 126,917 124,127 138,463 6,840 9,875 10,138 7,777 6,301 57,276 54,031 54,775 77,316 56,811 8,070 11,007 10,770 12,794 9,485 742 583 484 405 380 320 861 1,889 1,754 -368 14,801 20,040 20,601 20,060 19,745 2014 - Est ............... 30,412 86,422 419,797 93,387 149,501 7,059 57,722 8,403 408 -508 26,375 2012 - Dec ............. 2013 - Jan .............. Feb ............. Mar ............. Apr.............. May ............ June ........... July ............. Aug ............. Sept ............ Oct.............. Nov ............. Dec ............. 2,186 1,723 1,757 1,824 1,836 1,874 1,615 2,357 1,714 4,153 2,218 2,488 2,362 6,708 5,091 4,787 5,089 5,574 5,998 6,460 6,883 7,730 8,715 6,903 6,542 6,425 95,737 17,817 16,882 23,472 35,952 24,378 93,032 25,077 25,488 19,844 15,799 22,327 87,712 -2,065 3,101 52,350 -742 10,836 6,774 -63,386 2,746 2,619 -40,438 3,256 2,330 -36,745 10,628 6,344 10,719 12,332 11,335 16,631 7,150 11,145 17,996 6,975 12,126 16,954 11,646 672 537 422 424 471 499 437 472 389 556 725 529 513 5,254 1,523 5,208 4,759 2,338 8,833 1,153 4,661 8,299 908 5,403 9,112 5,986 835 891 951 817 748 685 604 553 782 938 790 730 613 31 29 32 37 34 34 28 29 36 34 23 34 29 63 -60 -119 142 -191 219 -103 -67 105 -186 76 -21 -158 1,624 -12 2,081 2,313 845 2,473 3,150 662 1,499 1,821 1,424 774 2,461 Fiscal year 2014 to date ...................... 7,068 19,870 125,838 -31,159 40,726 1,767 20,501 2,133 86 -103 4,659 See footnotes at end of table. March 2014 FEDERAL FISCAL OPERATIONS 18 TABLE FFO-3.—On-Budget and Off-Budget Outlays by Agency, continued [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Fiscal year or month National Aeronautics National Office of and Science Personnel Space ManageFounAdminisment dation tration (27) (26) (25) Small Business Administration (28) Social Security Administration (29) Independent agencies (30) Undistributed offsetting receipts Rents and royalties on the Employer Outer Interest share, received Continenemployee tal Shelf by trust retirelands Other funds ment (33) (34) (32) (31) Total outlays OffOnbudget budget (35) (36) 2009 .................. 19,168 5,958 72,302 2,246 727,549 50,356 -70,656 -181,561 -5,293 -16,690 3,003,070 517,018 2010 .................. 18,906 6,720 69,916 6,126 754,182 -3,094 -77,036 -185,764 -4,883 -197 2,901,248 554,684 2011 .................. 17,617 7,146 74,091 6,162 784,194 14,505 -79,681 -188,017 -6,384 -431 3,099,477 498,609 2012 .................. 17,190 7,255 79,456 2,937 821,145 34,007 -83,938 -127,142 -6,606 -12,993 3,030,856 507,589 2013 .................. 16,978 7,418 83,868 473 867,395 25,906 -81,321 -156,676 -8,874 -2,588 2,820,440 633,815 2014 - Est .......... 17,992 7,798 95,862 1,134 912,719 18,237 -84,706 -150,649 -7,516 36,925 3,068,252 705,121 2012 - Dec ........ 1,846 669 6,390 101 71,118 2,039 -5,178 -75,680 -567 2,588 267,740 2,959 2013 - Jan ......... 980 370 7,416 123 67,180 1,941 -5,336 -1,930 -567 - 212,018 57,324 Feb ........ 1,281 607 6,886 98 71,911 1,528 -5,290 -166 -621 - 260,700 65,653 Mar ........ 1,455 593 6,537 117 72,501 2,006 -5,765 -1,138 -104 - 226,200 66,348 Apr......... 1,172 402 7,535 -687 71,743 1,090 -5,440 -6,231 -1,075 - 236,743 57,091 May ....... 1,580 598 6,799 115 77,140 2,653 -5,781 -1,537 -604 - 269,499 66,415 June ...... 1,278 674 6,377 106 72,962 3,386 -5,402 -74,458 -437 - 150,562 19,564 July ........ 1,422 650 7,673 96 72,777 2,639 -5,419 -2,716 -1,450 - 237,755 59,872 Aug ........ 1,490 851 6,908 111 77,509 3,298 -5,678 -2,095 -369 - 265,356 67,937 Sept ....... 1,743 760 6,990 105 68,976 -2,314 -5,766 -444 -827 - 158,930 67,436 Oct......... 968 504 7,662 89 72,920 1,450 -19,361 5,134 -571 - 226,427 64,093 Nov ........ 1,617 653 7,216 96 77,828 86 -5,246 -1,150 -93 - 250,867 66,813 Dec ........ 1,880 480 6,652 81 74,058 -3,365 -5,240 -70,528 -980 - 212,435 17,566 Fiscal year 2014 to date ................ 4,465 1,637 21,530 266 224,806 -1,829 -29,847 -66,544 -1,644 - 689,729 148,472 Note.—These estimates are based on the President’s Budget for Fiscal Year 2014, released by the Office of Management and Budget on July 8, 2013. March 2014 * Less than $500,000. - No transactions. Detail may not add to totals due to rounding. FEDERAL FISCAL OPERATIONS 19 TABLE FFO-4.—Summary of U.S. Government Receipts by Source and Outlays by Agency, December 2013 and Other Periods [In millions of dollars. Source: Financial Management Service] Classification Budget receipts: Individual income taxes............................................... Corporation income taxes ........................................... Social insurance and retirement receipts: Employment and general retirement (off-budget) ... Employment and general retirement (on-budget) ... Unemployment insurance ....................................... Other retirement ...................................................... Excise taxes ................................................................ Estate and gift taxes ................................................... Customs duties ........................................................... Miscellaneous receipts ................................................ Total receipts ....................................................... (On-budget) ..................................................... (Off-budget) ..................................................... Budget outlays: Legislative branch ....................................................... Judicial branch ............................................................ Department of Agriculture ........................................... Department of Commerce........................................... Department of Defense-military .................................. Department of Education ............................................ Department of Energy ................................................. Department of Health and Human Services ............... Department of Homeland Security.............................. Department of Housing and Urban Development....... Department of the Interior ........................................... Department of Justice ................................................. Department of Labor ................................................... Department of State .................................................... Department of Transportation ..................................... Department of the Treasury: Interest on the public debt....................................... Other ....................................................................... Department of Veterans Affairs .................................. Corps of Engineers ..................................................... Other defense civil programs ...................................... Environmental Protection Agency............................... Executive Office of the President................................ General Services Administration ................................ International Assistance Program ............................... National Aeronautics and Space Administration ........ National Science Foundation ...................................... Office of Personnel Management ............................... Small Business Administration ................................... Social Security Administration .................................... Other independent agencies ....................................... Undistributed offsetting receipts: Interest .................................................................... Other ....................................................................... Total outlays ........................................................ (On-budget) ..................................................... (Off-budget) ..................................................... Surplus or deficit (-) ............................................. (On-budget) ..................................................... (Off-budget) ..................................................... - No transactions. * Less than $500,000. General funds (1) This fiscal year to date Management, consolidated, Trust revolving and funds special funds (2) (3) Total funds (4) General funds (5) Prior fiscal year to date Management, consolidated, revolving and Trust special funds funds (6) (7) Total funds (8) 306,424 69,260 2 - * 306,426 69,260 312,396 62,508 2 - * 312,398 62,508 5,448 5,287 5,809 24,848 417,076 417,076 - 313 2,615 4,734 7,663 7,663 - 158,842 57,375 8,401 839 13,448 423 535 239,863 81,020 158,842 158,842 57,375 8,401 839 19,208 5,287 8,847 30,116 664,601 505,759 158,842 8,517 3,215 5,216 22,972 414,823 414,823 - 246 -. 2,413 3,976 6,637 6,637 - 122,778 49,367 8,225 918 11,306 435 1,064 194,093 71,315 122,778 122,778 49,367 8,225 918 20,069 3,215 8,063 28,013 615,553 492,775 122,778 1,006 1,648 31,805 1,757 153,142 13,983 6,788 165,662 11,814 9,632 2,397 5,262 6,561 6,894 15,128 21 43 13,610 44 1,277 -5 -456 -489 -968 -110 90 201 43 -15 -36 3 -53 237 5 71 1 * 58,964 19 3 101 -61 9,923 189 4,778 1,030 1,638 45,652 1,806 154,490 13,980 6,332 224,137 10,865 9,524 2,588 5,402 16,528 7,067 19,870 1,138 1,439 34,208 2,413 164,734 15,637 7,765 152,253 14,560 8,531 2,547 7,178 10,750 6,955 9,552 25 362 18,032 149 1,727 -8 -568 -101 1,279 -7 -1,721 381 -147 -10 -86 4 -43 246 -4 11 * * 70,006 -16 1 105 -74 10,189 130 10,526 1,168 1,758 52,485 2,558 166,472 15,628 7,197 222,158 15,823 8,525 932 7,485 20,791 7,075 19,992 125,838 -32,452 41,290 1,569 78,735 2,301 86 -11 5,576 4,460 1,609 2,779 266 21,161 3,038 1,056 -759 167 -1,646 -32 * -93 -86 4 21 -633 * -14 -5,607 238 195 31 -54,820 -136 -831 * 7 19,385 * 203,660 739 125,838 -31,159 40,727 1,767 20,501 2,133 86 -104 4,659 4,465 1,637 21,530 266 224,807 -1,830 133,728 9,205 38,315 1,855 73,905 2,804 87 16 4,466 4,626 1,867 2,786 287 49,702 3,095 34 -667 159 -4,677 -71 * -124 -107 -49 36 -726 3 -14 4,909 282 187 81 -50,100 -216 554 * 10 18,687 * 165,007 1,675 133,728 9,521 37,835 2,094 19,129 2,516 87 -108 4,913 4,577 1,913 20,747 290 214,695 9,679 -1,644 688,081 688,006 75 -271,005 -270,930 -75 -7,650 -2,020 -540 -1,481 9,684 8,203 1,481 -66,544 -22,197 153,907 4,030 149,877 85,956 76,991 8,965 -66,544 -31,492 838,199 689,728 148,471 -173,598 -183,969 10,371 -5,407 760,995 760,870 125 -346,172 -346,047 -125 -8,529 9,483 11,833 -2,350 -2,846 -5,196 2,350 -65,961 -22,915 138,373 29,973 108,400 55,720 41,342 14,378 -65,961 -36,851 908,851 802,677 106,175 -293,298 -309,901 16,603 Note.—Detail may not add to totals due to rounding. March 2014 20 INTRODUCTION: Source and Availability of the Balance in the Account of the U.S. Treasury The Department of the Treasury’s (Treasury’s) operating cash is maintained in accounts with the Federal Reserve banks (FRBs) and branches, as well as in tax and loan accounts in other financial institutions. Major information sources include FRBs, Treasury Regional Financial Centers, Internal Revenue Service Centers, Bureau of the Public Debt, and various electronic systems. As the FRB accounts are depleted, funds are called in (withdrawn) from thousands of tax and loan accounts at financial institutions throughout the country. Under authority of Public Law 95-147 (codified at 31 United States Code 323), Treasury implemented a program on November 2, 1978, to invest a portion of its operating cash in obligations of depositaries maintaining tax and loan accounts. Under the Treasury tax and loan (TT&L) investment program, depositary financial institutions select the manner in which they will participate. Financial institutions wishing to retain funds deposited into their tax and loan accounts in interest-bearing obligations can participate. The program permits Treasury to collect funds through financial institutions and to leave the funds in TT&L depositaries and in the financial communities in which they arise until Treasury needs the funds for its operations. In this way, Treasury is able to neutralize the effect of its fluctuating operations on TT&L financial institution reserves and on the economy. Likewise, those institutions wishing to remit the funds to the Treasury account at FRBs do so as collector depositaries. Deposits to tax and loan accounts occur as customers of financial institutions deposit tax payments that the financial institutions use to purchase Government securities. In most cases, this involves a transfer of funds from a customer’s account to the tax and loan account in the same financial institution. Also, Treasury can direct the FRBs to invest excess funds in tax and loan accounts directly from the Treasury account at the FRBs. TABLE UST-1.—Elements of Change in Federal Reserve and Tax and Loan Note Account Balances 1 [In millions of dollars. Source: Financial Management Service] Credits and withdrawals Fiscal year or month Federal Reserve accounts Credits 2 Received through remittance option tax Received directly and loan depositaries (1) (2) Withdrawals 3 (3) Tax and loan note accounts Withdrawals (transfers to Federal Taxes 4 Reserve accounts) (4) (5) 2009 ................................................ 2010 ................................................ 2011 ................................................ 2012 ................................................ 2013 ................................................ 11,577,153 11,016,385 10,508,615 9,656,367 9,451,987 482,146 556,403 592,338 1,357,452 2,297,190 12,118,510 11,538,208 11,352,518 10,984,657 11,746,237 1,398,542 1,362,591 1,366,003 700,687 - 1,435,675 1,362,604 1,366,181 702,492 - 2012 - Dec ...................................... 2013 - Jan....................................... Feb ...................................... Mar ...................................... Apr ....................................... May...................................... June..................................... July ...................................... Aug ...................................... Sept ..................................... Oct ....................................... Nov ...................................... Dec ...................................... 746,167 811,055 787,139 667,629 1,018,049 767,537 653,891 735,024 753,024 881,837 245,049 185,580 166,969 218,342 238,276 167,350 217,151 173,251 156,275 225,937 947,442 969,109 992,604 888,570 1,121,614 1,114,069 770,866 933,439 992,856 1,045,523 836,083 612,157 790,907 165,149 161,051 257,396 1,006,617 822,776 919,337 - - See footnotes at end of table. March 2014 ACCOUNT OF THE U.S. TREASURY 21 TABLE UST-1.—Elements of Change in Federal Reserve and Tax and Loan Note Account Balances, con. 1 [In millions of dollars. Source: Financial Management Service] Balances End of period Fiscal year or month Federal Reserve (6) SFP (7) High Tax and loan note accounts (8) Federal Reserve (9) SFP (10) Tax and loan note accounts (11) Federal Reserve (12) During period Low Tax and loan note SFP accounts (13) (14) Average Federal Reserve (15) Tax and loan note accounts (17) SFP (16) 2009 ....................... 108,324 164,945 1,996 136,672 558,864 79,897 3,987 - 284 52,381 144,538 4,161 2010 ....................... 107,888 199,962 1,983 186,632 199,965 2,630 3,191 - 62 53,632 115,525 1,957 2011 ....................... 56,284 - 1,805 147,189 199,964 3,067 3,302 5,000 113 58,431 83,628 1,982 2012 ....................... 85,446 - - 166,619 - - 13,680 - - 65,396 - - 2013 ....................... 88,386 - - 213,863 - - 11,476 - - 59,950 - - 2012 - Dec ............. 92,720 - - 92,720 - - 19,121 - - 49,448 - - 2013 - Jan.............. 120,247 - - 120,247 - - 42,637 - - 67,626 - - 1 Feb ............. 81,750 - - 81,750 - - 14,411 - - 40,394 - - Mar ............. 79,152 - - 90,815 - - 22,220 - - 56,669 - - Apr .............. 213,863 - - 213,863 - - 52,487 - - 101,126 - - May............. 34,681 - - 184,624 - - 11,950 - - 71,117 - - June............ 134,858 - - 134,858 - - 11,476 - - 72,062 - - July ............. 109,693 - - 128,534 - - 49,324 - - 74,309 - - Aug ............. 26,135 - - 79,176 - - 25,064 - - 51,378 - - Sept ............ 88,386 - - 94,495 - - 16,949 - - 40,252 - - Oct .............. 83,001 - - 83,001 - - 23,393 - - 37,782 - - Nov ............. 33,433 - - 67,234 - - 23,564 - - 43,720 - - Dec ............. 162,399 - - 162,399 - - 20,065 - - 68,305 - - This report does not include Supplementary Financing Program (SFP) balances. Represents transfers from tax and loan note accounts, proceeds from sales of securities other than Government account series, and taxes. 3 Represents checks paid, wire transfer payments, drawdowns on letters of credit, redemptions of securities other than Government account series, and investment (transfer) of excess funds out of this account to the tax and loan note accounts. 2 4 Taxes eligible for credit consist of those deposited by taxpayers in the tax and loan depositaries as follows: withheld income taxes beginning March 1948; taxes on employers and employees under the Federal Insurance Contributions Act beginning January 1950 and under the Railroad Retirement Tax Act beginning July 1951; a number of excise taxes beginning July 1953; estimated corporation income taxes beginning April 1967; all corporation income taxes due on or after March 15, 1968; Federal Unemployment Tax Act taxes beginning April 1970; and individual estimated income taxes beginning October 1988. March 2014 22 INTRODUCTION: Federal Debt Treasury securities (i.e., public debt securities) comprise most of the Federal debt, with securities issued by other Federal agencies accounting for the rest. Tables in this section of the “Treasury Bulletin” reflect the total. Further detailed information is published in the “Monthly Statement of the Public Debt of the United States.” Likewise, information on agency securities and on investments of Federal Government accounts in Federal securities is published in the “Monthly Treasury Statement of Receipts and Outlays of the United States Government.” Treasury’s Bureau of the Fiscal Service compiles data in the “Treasury Bulletin” tables FD-2 and FD-6 from the “Monthly Statement of the Public Debt of the United States.” Table FD-1 summarizes the Federal debt by listing public debt and agency securities held by the public, including the Federal Reserve. It also includes debt held by Federal agencies, largely by the Social Security and other Federal retirement trust funds. The net unamortized premium and discount also are listed by total Federal securities, securities held by Government accounts and securities held by the public. The difference between the outstanding face value of the Federal debt and the net unamortized premium and discount is classified as the accrual amount. (For greater detail on holdings of Federal securities by particular classes of investors, see the ownership tables, OFS-1 and OFS-2.) Table FD-2 categorizes by type, that is, marketable and nonmarketable, the total public debt securities outstanding that are held by the public. In table FD-3, nonmarketable Treasury securities held by U.S. Government accounts are summarized by issues to particular funds within Government. Many of the funds invest in par value special series nonmarketabletes at interest rates determined by law. Others invest in marketbased special Treasury securities whose terms mirror those of marketable securities. Table FD-4 presents interest-bearing securities issued by Government agencies. Federal agency borrowing March 2014 has declined in recent years, in part because the Federal Financing Bank has provided financing to other Federal agencies. (Federal agency borrowing from Treasury is presented in the “Monthly Treasury Statement of Receipts and Outlays of the United States Government.”) Table FD-5 illustrates the average length of marketable interest-bearing public debt held by private investors and the maturity distribution of that debt. In March 1971, Congress enacted a limited exception to the amount of bonds with rates greater than 4-1/4 percent that could be held by the public. This permitted Treasury to offer securities maturing in more than 7 years at current market interest rates for the first time since 1965. In March 1976, the definition of a bond was changed to include those securities longer than 10 years to maturity. This exception has expanded since 1971, authorizing Treasury to continue to issue long-term securities. The ceiling on Treasury bonds was repealed on November 10, 1988. The volume of privately held Treasury marketable securities by maturity class reflects the remaining period to maturity of Treasury bills, notes and bonds. The average length is comprised of an average of remaining periods to maturity, weighted by the amount of each security held by private investors. In other words, computations of average length exclude Government accounts and the FRBs. In table FD-6, the debt ceiling is compared with the outstanding debt subject to limitation by law. The other debt category includes Federal debt Congress has designated as being subject to the debt ceiling. Table FD-7 details Treasury holdings of securities issued by Government corporations and other agencies. Certain Federal agencies are authorized to borrow money from the Treasury, largely to finance direct loan programs. In addition, agencies such as the Bonneville Power Administration are authorized to borrow from the Treasury to finance capital projects. Treasury, in turn, finances these loans by selling Treasury securities to the public. FEDERAL DEBT 23 TABLE FD-1.—Summary of Federal Debt [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] End of fiscal year or month Total (1) Amount outstanding Public debt securities (2) Agency securities (3) Total (4) Securities held by Government accounts Public debt Agency Total securities securities (6) (7) (5) The public Public debt securities (8) Agency securities (9) 2009 ............................... 2010 ............................... 2011 ............................... 2012 ............................... 2013 ............................... 11,933,031 13,585,596 14,815,328 16,090,640 16,763,286 11,909,828 13,561,622 14,790,340 16,066,241 16,738,183 23,203 23,974 24,988 24,399 25,103 4,355,292 4,534,014 4,658,307 4,791,850 4,757,211 4,355,291 4,534,011 4,658,301 4,791,845 4,757,205 1 3 6 5 5 7,577,739 9,051,582 10,157,021 11,298,790 12,006,076 7,554,537 9,027,611 10,132,039 11,274,396 11,980,978 23,202 23,971 24,982 24,394 25,098 2012 - Dec ..................... 2013 - Jan ...................... Feb ..................... Mar ..................... Apr ..................... May .................... June ................... July..................... Aug..................... Sept.................... Oct ..................... Nov..................... Dec..................... 16,457,613 16,458,774 16,712,052 16,796,009 16,853,522 16,763,595 16,763,286 16,763,730 16,763,581 16,763,286 17,181,230 17,241,818 17,376,462 16,432,729 16,433,792 16,687,289 16,771,378 16,828,845 16,738,821 16,738,319 16,738,599 16,738,649 16,738,183 17,156,117 17,217,151 17,351,970 24,884 24,982 24,763 24,631 24,677 24,774 24,967 25,131 24,932 25,103 25,113 24,667 24,492 4,846,174 4,868,335 4,859,474 4,848,930 4,880,244 4,836,371 4,831,752 4,816,157 4,766,719 4,757,211 4,969,004 4,936,273 4,996,782 4,846,169 4,868,329 4,859,468 4,848,924 4,880,239 4,836,365 4,831,746 4,816,151 4,766,714 4,757,205 4,968,998 4,936,267 4,996,776 5 5 5 5 5 5 5 5 5 5 5 5 5 11,611,439 11,590,439 11,852,578 11,947,079 11,973,278 11,927,224 11,931,534 11,947,573 11,996,862 12,006,076 12,212,226 12,305,545 12,379,680 11,586,560 11,565,463 11,827,821 11,922,454 11,948,606 11,902,456 11,906,573 11,922,447 11,971,936 11,980,978 12,187,119 12,280,884 12,355,194 24,879 24,977 24,758 24,626 24,672 24,769 24,962 25,126 24,926 25,098 25,108 24,662 24,487 Federal debt securities Net Amount unamortized outstanding premium Accrual face value and discount amount (10) (11) (12) Securities held by Government accounts Net Amount unamortized Accrual outstanding premium amount face value and discount (14) (15) (13) Securities held by the public Net Amount unamortized Accrual outstanding premium amount face value and discount (17) (18) (16) 2009 ............................... 2010 ............................... 2011 ............................... 2012 ............................... 2013 ............................... 11,933,031 13,585,596 14,815,328 16,090,640 16,763,286 59,219 58,963 53,105 42,529 46,496 11,873,812 13,526,633 14,762,223 16,048,111 16,716,791 4,355,292 4,534,014 4,658,307 4,791,850 4,757,211 25,467 25,145 23,697 23,592 22,292 4,329,825 4,508,869 4,634,610 4,768,258 4,734,919 7,577,739 9,051,582 10,157,021 11,298,790 12,006,076 33,752 33,818 29,408 18,937 24,203 7,543,987 9,017,764 10,127,613 11,279,854 11,981,872 2012 - Dec ..................... 2013 - Jan ...................... Feb ..................... Mar ..................... Apr...................... May .................... June ................... July ..................... Aug ..................... Sept .................... Oct...................... Nov ..................... Dec ..................... 16,457,613 16,458,774 16,712,052 16,796,009 16,853,522 16,763,595 16,763,286 16,763,730 16,763,581 16,763,286 17,181,230 17,241,818 17,376,462 40,757 40,603 40,705 39,752 37,947 38,020 41,147 44,900 44,696 46,496 54,048 53,974 54,420 16,416,857 16,418,170 16,671,347 16,756,257 16,815,575 16,725,576 16,722,139 16,718,830 16,718,885 16,716,791 17,127,182 17,187,845 17,322,042 4,846,174 4,868,335 4,859,474 4,848,930 4,880,244 4,836,371 4,831,752 4,816,157 4,766,719 4,757,211 4,969,004 4,936,273 4,996,782 23,062 22,971 22,886 22,787 22,682 22,544 22,469 22,402 22,314 22,292 27,834 27,594 27,548 4,823,112 4,845,364 4,836,588 4,826,143 4,857,562 4,813,826 4,809,283 4,793,754 4,744,405 4,734,919 4,941,170 4,908,679 4,969,234 11,611,439 11,590,439 11,852,578 11,947,079 11,973,278 11,927,224 11,931,534 11,947,573 11,996,862 12,006,076 12,212,226 12,305,545 12,379,680 17,695 17,632 17,819 16,965 15,265 15,476 18,678 22,497 22,383 24,203 26,214 26,380 26,872 11,593,745 11,572,806 11,834,759 11,930,114 11,958,013 11,911,750 11,912,856 11,925,076 11,974,480 11,981,872 12,186,013 12,279,166 12,352,809 End of fiscal year or month March 2014 FEDERAL DEBT 24 TABLE FD-2.—Debt Held by the Public [In millions of dollars. Source: “Monthly Statement of the Public Debt of the United States”] Marketable Bonds (5) Treasury inflation-protected securities (6) Nonmarketable Total (7) 3,772,964 5,252,585 6,406,983 7,114,960 7,750,336 677,491 846,054 1,016,407 1,194,715 1,363,114 551,308 593,614 705,352 807,469 936,041 563,924 546,880 522,731 539,415 398,879 7,320,862 7,380,028 7,416,574 7,428,092 7,520,728 7,557,102 7,574,018 7,672,139 7,658,872 7,750,336 7,804,727 7,795,110 7,875,065 1,236,669 1,249,625 1,265,673 1,278,670 1,291,619 1,307,774 1,320,622 1,333,834 1,350,079 1,363,114 1,379,099 1,395,101 1,408,110 849,473 860,597 867,353 882,497 891,251 906,846 913,153 904,262 922,513 936,041 944,571 958,712 972,555 548,034 464,944 534,432 539,471 547,011 520,387 525,424 453,003 399,802 398,879 515,502 512,858 509,134 End of fiscal year or month Total public debt securities outstanding (1) Total (2) Bills (3) Notes (4) 2009 .................................. 2010 .................................. 2011 .................................. 2012 .................................. 2013 .................................. 7,551,862 9,022,808 10,127,031 11,269,586 11,976,279 6,987,937 8,475,928 9,604,300 10,730,170 11,577,400 1,986,173 1,783,675 1,475,557 1,613,026 1,527,909 2012 - Dec ........................ 2013 - Jan ......................... Feb ........................ Mar ........................ Apr......................... May ....................... June ...................... July ........................ Aug ........................ Sept ....................... Oct......................... Nov ........................ Dec ........................ 11,581,518 11,560,176 11,822,436 11,916,888 11,943,148 11,897,151 11,901,292 11,917,023 11,967,014 11,976,279 12,187,370 12,281,126 12,355,427 11,033,484 11,095,232 11,288,004 11,377,417 11,396,138 11,376,764 11,375,869 11,464,020 11,567,212 11,577,400 11,671,868 11,768,268 11,846,292 1,626,480 1,604,981 1,738,404 1,788,158 1,692,540 1,605,043 1,568,076 1,553,784 1,635,748 1,527,909 1,543,471 1,619,345 1,590,563 U.S. savings securities (8) Depositary compensation securities (9) Nonmarketable, con. End of fiscal year or month Foreign series (10) Government account series (11) State and local government series (12) Domestic series (13) Other (14) 2009 .................................... 2010 .................................... 2011 .................................... 2012 .................................... 2013 .................................... 192,452 188,796 185,187 183,661 180,022 - 4,886 4,186 2,986 2,986 2,986 118,636 129,355 151,346 162,880 60,445 216,488 193,208 151,831 158,514 124,079 29,995 29,995 29,995 29,995 29,995 1,466 1,340 1,386 1,380 1,353 2012 - Dec .......................... 2013 - Jan ........................... Feb .......................... Mar .......................... Apr........................... May ......................... June ........................ July .......................... Aug .......................... Sept ......................... Oct........................... Nov .......................... Dec .......................... 182,513 182,245 182,054 181,783 181,559 181,233 180,958 180,630 180,270 180,022 179,792 179,608 179,226 - 2,986 2,986 2,986 2,986 2,986 2,986 2,986 2,986 2,986 2,986 2,986 2,986 2,986 168,647 90,661 164,095 165,586 167,609 138,165 155,293 99,954 57,550 60,445 180,786 179,952 179,999 162,587 157,729 153,957 157,814 163,574 166,692 154,875 138,083 127,632 124,079 120,597 118,936 115,488 29,995 29,995 29,995 29,995 29,995 29,995 29,995 29,995 29,995 29,995 29,995 29,995 29,995 1,306 1,328 1,346 1,307 1,288 1,315 1,317 1,355 1,369 1,353 1,345 1,382 1,440 March 2014 FEDERAL DEBT 25 TABLE FD-3.—Government Account Series [In millions of dollars. Source: “Monthly Statement of the Public Debt of the United States”] Employees Life Insurance Fund (4) Exchange Stabilization Fund (5) Federal Disability Insurance Trust Fund (6) Federal employees retirement funds (7) Federal Hospital Insurance Trust Fund (8) End of fiscal year or month Total (1) Airport and Airway Trust Fund (2) 2009 .................. 2010 .................. 2011 .................. 2012 .................. 2013 .................. 4,454,316 4,645,280 4,793,916 4,939,455 4,803,100 7,829 7,045 8,641 10,245 11,808 16,076 37,441 34,926 35,248 36,864 36,146 37,605 39,678 41,250 41,951 18,615 20,436 22,721 22,680 22,669 207,932 187,222 161,965 132,345 100,791 757,656 785,988 811,768 836,336 731,125 309,702 279,475 245,939 228,292 206,010 10,668 4,194 4,160 2,777 3 2012 - Dec ........ 2013 - Jan ......... Feb ........ Mar ........ Apr......... May ....... June ...... July ........ Aug ........ Sept ....... Oct......... Nov ........ Dec ........ 4,999,647 4,943,694 5,008,104 4,998,995 5,032,189 4,958,796 4,972,693 4,901,566 4,809,725 4,803,100 5,125,910 5,092,114 5,152,908 10,329 10,570 10,912 11,525 12,247 12,112 11,699 11,451 11,550 11,808 12,435 13,063 12,650 37,086 36,883 36,805 35,554 38,374 37,639 31,972 32,844 32,712 36,864 36,930 37,608 40,682 41,160 41,176 41,460 41,500 41,507 41,739 41,781 41,783 41,575 41,951 41,991 42,133 42,145 22,679 22,680 22,677 22,678 22,679 22,673 22,673 22,674 22,669 22,669 22,671 22,666 22,667 122,802 120,655 117,261 114,965 114,848 111,509 111,225 107,700 103,821 100,791 96,175 92,283 90,723 815,965 828,595 832,316 828,544 824,127 800,609 744,014 743,967 731,172 731,125 840,669 836,390 848,005 219,979 219,545 213,006 208,549 217,368 204,701 216,653 210,013 197,327 206,010 202,257 195,948 205,250 5,949 7,148 8,572 9,776 10,988 12,409 13,843 15,804 17,683 3 3 3 3 End of fiscal year or month Federal Old-Age and Survivors Insurance Trust Fund (10) Federal Savings and Loan Corporation, Resolution Fund (11) Federal Supplementary Medical Insurance Trust Fund (12) Highway Trust Fund (13) National Service Life Insurance Fund (14) Postal Service Fund (15) Railroad Retirement Account (16) Unemployment Trust Fund (17) 2009 ..................... 2010 ..................... 2011 ..................... 2012 ..................... 2013 ..................... 2,296,316 2,399,111 2,492,531 2,586,697 2,655,599 3,313 3,388 3,374 3,424 825 61,764 70,982 70,446 69,324 67,385 11,484 24,455 16,302 9,970 1,957 8,735 8,161 7,541 6,912 6,256 4,239 1,142 1,207 1,533 2,860 405 506 696 704 788 19,628 18,703 16,030 20,673 29,478 683,808 759,426 855,991 931,045 886,731 2012 - Dec ........... 2013 - Jan ............ Feb ........... Mar ........... Apr............ May .......... June ......... July ........... Aug ........... Sept .......... Oct............ Nov ........... Dec ........... 2,610,272 2,618,654 2,611,958 2,613,914 2,630,299 2,625,157 2,672,229 2,668,964 2,660,513 2,655,599 2,646,434 2,636,662 2,674,490 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 825 825 825 826 67,220 66,158 67,523 68,363 67,800 60,464 69,175 68,283 60,152 67,385 73,472 67,127 74,882 13,448 13,917 13,890 12,681 13,221 12,317 9,332 8,018 4,815 1,957 12,589 11,386 10,020 6,858 6,772 6,690 6,605 6,506 6,426 6,500 6,416 6,336 6,256 6,178 6,113 6,179 3,215 3,976 3,979 3,032 3,203 3,353 3,415 3,845 2,969 2,860 2,488 3,204 4,350 432 557 597 592 630 701 515 606 506 788 678 447 455 20,169 19,097 21,516 19,390 20,521 33,264 28,951 26,646 30,029 29,478 27,655 30,178 27,845 998,659 923,886 995,517 997,902 1,004,446 970,298 985,291 929,127 882,471 886,731 1,102,460 1,096,078 1,091,736 Deposit Insurance Fund (3) Federal Housing Administration (9) Other (18) Note.—Detail may not add to totals due to rounding. March 2014 FEDERAL DEBT 26 TABLE FD-4.—Interest-Bearing Securities Issued by Government Agencies [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Total outstanding (1) Department of Housing and Urban Development Federal Housing Administration (2) Architect of the Capitol (3) Other independent Tennessee Valley Authority (4) National Archives and Records Administration (5) Other/Federal Communications Commission (6) 2009 ............................ 23,203 33 144 22,834 193 * 2010 ............................ 23,974 29 139 23,627 180 * 2011 ............................ 24,988 29 133 24,660 166 * 2012 ............................ 24,399 19 128 24,103 151 * 2013 ............................ 25,103 19 130 24,821 134 * 2012 - Dec .................. 24,884 19 130 24,585 151 * 2013 - Jan ................... 24,982 19 131 24,682 151 * Feb .................. 24,763 19 124 24,471 151 * Mar .................. 24,631 19 124 24,345 142 * Apr................... 24,677 19 125 24,391 142 * May ................. 24,774 19 126 24,487 142 * June ................ 24,967 19 127 24,678 142 * July .................. 25,131 19 128 24,842 142 * Aug .................. 24,932 19 128 24,651 134 * Sept ................. 25,103 19 130 24,821 134 * Oct................... 25,113 19 131 24,830 134 * Nov .................. 24,667 19 131 24,384 134 * Dec .................. 24,492 19 132 24,207 134 * End of fiscal year or month Note.—Detail may not add to totals due to rounding. March 2014 * Less than $500,000. FEDERAL DEBT 27 TABLE FD-5.—Maturity Distribution and Average Length of Marketable Interest-Bearing Public Debt Held by Private Investors [In millions of dollars. Source: Office of Debt Management, Office of the Under Secretary for Domestic Finance] Amount outstanding privately held (1) Within 1 year (2) 1-5 years (3) Maturity classes 5-10 years (4) 10-20 years (5) 20 years or more (6) Average length (months) (7) 2009 ............................... 6,228,565 2,604,676 2,074,723 994,688 350,550 203,928 49 2010 ............................... 7,676,335 2,479,518 2,955,561 1,529,283 340,861 371,112 57 2011 ............................... 7,951,366 2,503,926 3,084,882 1,543,847 309,151 509,559 60 2012 ............................... 9,039,954 2,896,780 3,851,873 1,487,726 270,921 532,654 55 2013 ............................... 9,518,102 2,939,037 4,134,968 1,647,954 230,758 565,384 55 2012 - Dec ...................... 9,373,556 2,932,843 4,124,101 1,516,995 261,723 537,895 54 2013 - Jan ...................... 9,391,764 2,944,052 4,125,151 1,523,751 259,977 538,834 54 Feb ..................... 9,540,293 3,088,899 4,128,157 1,520,833 251,891 550,513 54 Mar ..................... 9,531,585 3,140,173 4,072,625 1,518,590 250,764 549,433 53 Apr ...................... 9,566,751 3,054,099 4,146,448 1,566,604 249,491 550,108 54 May..................... 9,501,911 2,978,685 4,137,715 1,583,519 247,762 554,229 54 June.................... 9,394,294 2,952,585 4,066,202 1,566,245 246,724 562,539 55 July ..................... 9,495,318 2,949,386 4,126,062 1,612,954 245,489 561,427 55 Aug ..................... 9,492,159 3,034,960 4,062,450 1,598,970 231,820 563,958 54 Sept .................... 9,518,102 2,939,037 4,134,968 1,647,954 230,758 565,384 55 Oct ...................... 9,562,172 2,969,441 4,127,631 1,663,688 230,610 570,803 54 Nov ..................... 9,548,526 3,055,713 4,057,019 1,633,795 228,844 573,155 54 Dec ..................... 9,645,574 3,039,316 4,134,538 1,671,970 227,589 572,162 54 End of fiscal year or month Note.—Detail may not add to totals due to rounding. March 2014 FEDERAL DEBT 28 TABLE FD-6.—Debt Subject to Statutory Limit [In millions of dollars. Source: “Monthly Statement of the Public Debt of the United States”] End of fiscal year or month Statutory debt limit (1) Securities outstanding Debt subject to limit Total (2) Public debt (3) Other debt 1 (4) Public debt (5) Other debt (6) Securities not subject to limit (7) 2009 ................................................ 12,104,000 11,853,434 11,853,420 14 11,909,829 14 56,408 2010 ................................................ 14,294,000 13,510,840 13,510,829 10 13,561,623 10 50,794 2011 ................................................ 15,194,000 14,746,553 14,746,543 10 14,790,340 10 43,797 2012 ................................................ 16,394,000 16,027,021 16,027,021 - 16,066,241 - 39,221 2013 ................................................ 16,699,421 16,699,396 16,699,396 - 16,738,184 - 38,787 2012 - Dec .............................. 16,394,000 16,393,975 16,393,975 - 16,432,730 - 38,756 2013 - Jan .............................. 16,394,000 16,393,975 16,393,975 - 16,433,792 - 39,818 Feb2 ............................ - 16,647,907 16,647,907 - 16,687,289 - 39,383 Mar2 ............................ - 16,732,270 16,732,270 - 16,771,379 - 39,110 Apr2............................. - 16,790,780 16,790,780 - 16,828,845 - 38,067 May............................. 16,699,421 16,699,396 16,699,396 - 16,738,822 - 39,427 June............................ 16,699,421 16,699,396 16,699,396 - 16,738,320 - 38,925 July ............................. 16,699,421 16,699,396 16,699,396 - 16,738,599 - 39,203 Aug ............................. 16,699,421 16,699,396 16,699,396 - 16,738,650 - 39,254 Sept ............................ 16,699,421 16,699,396 16,699,396 - 16,738,184 - 38,787 Oct3............................. - 17,108,378 17,108,378 - 17,156,117 - 47,739 Nov3 ............................ - 17,168,987 17,168,987 - 17,217,152 - 48,165 Dec3 ............................ - 17,303,558 17,303,558 - 17,351,971 - 48,413 1 Consists of guaranteed debt issued by the Federal Housing Administration. Pursuant to 31 U.S.C. 310(b). By Act of February 4, 2013, Public Law 113-3, the Statutory Debt Limit has been suspended and shall not apply for the period beginning February 4, 2013 and ending on May 18, 2013. 2 March 2014 3 Pursuant to 31 U.S.C. 310(b). By The Continuing Appropriations Act, 2014, Public Law 113-46, the Statutory Debt Limit has been suspended and shall not apply for the period beginning October 17, 2013 and ending on February 7, 2014. FEDERAL DEBT 29 TABLE FD-7.—Treasury Holdings of Securities Issued by Government Corporations and Other Agencies [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] End of fiscal year or month Total (1) Farm-Service Agency (2) Rural Utilities Service (3) Department of Agriculture Rural Business Rural Housing and Community and Cooperative Development Development Service Service (4) (5) Foreign Agricultural Service (6) 2009 ................................................ 2010 ................................................ 2011 ................................................ 2012 ................................................ 2013 ................................................ 747,566 881,890 937,923 979,021 1,115,182 11,617 11,284 9,349 9,009 12,135 26,074 25,098 24,883 24,759 26,069 16,675 18,534 19,438 20,523 22,111 481 522 523 495 554 778 1,160 1,163 1,001 908 2012 - Dec ............................. 2013 - Jan .............................. Feb ............................. Mar ............................. Apr.............................. May ............................ June ........................... July ............................. Aug ............................. Sept ............................ Oct.............................. Nov ............................. Dec ............................. 1,070,328 1,071,958 1,081,368 1,085,168 1,079,533 1,086,192 1,138,206 1,132,832 1,110,241 1,115,182 1,140,285 1,143,489 1,155,980 19,641 12,150 12,040 11,961 11,584 11,079 11,080 11,371 10,848 12,135 17,388 20,058 13,289 25,228 25,360 25,707 25,985 25,048 25,162 25,336 25,336 25,874 26,069 26,155 26,286 26,436 20,970 21,107 21,373 21,590 21,462 21,318 21,430 21,430 22,062 22,111 22,184 22,323 22,467 509 515 519 523 506 508 510 509 542 554 557 566 572 1,001 1,001 1,001 1,001 1,001 1,001 1,001 1,001 907 908 908 908 908 End of fiscal year or month Department of Education (7) Department of Energy Bonneville Power Administration (8) Department of Housing and Urban Development Federal Housing Other Housing Administration programs (9) (10) Department of the Treasury Federal Financing Bank (11) 2009 ................................................ 2010 ................................................ 2011 ................................................ 2012 ................................................ 2013 ................................................ 234,918 373,717 546,321 714,368 851,295 2,130 2,513 2,943 3,421 3,885 4,420 4,749 6,032 11,527 25,940 5 21 58 40 139 47,107 46,809 45,257 57,134 63,061 2012 - Dec ............................. 2013 - Jan .............................. Feb ............................. Mar ............................. Apr ............................. May ............................ June ........................... July............................. Aug............................. Sept............................ Oct ............................. Nov............................. Dec ............................. 799,329 803,837 808,681 808,681 820,528 826,789 880,835 872,629 861,072 851,295 877,281 877,281 899,477 3,506 3,615 3,648 3,701 3,769 3,817 3,890 3,915 3,994 3,885 4,025 4,040 4,065 11,527 11,527 11,527 11,527 11,527 11,527 11,527 11,527 11,527 25,940 25,940 25,940 25,940 40 70 70 68 68 68 68 133 139 139 139 139 139 58,790 59,102 59,779 60,442 60,787 61,214 61,647 62,680 62,927 63,061 54,955 55,271 55,354 March 2014 FEDERAL DEBT 30 TABLE FD-7.—Treasury Holdings of Securities Issued by Government Corporations and Other Agencies, con. [In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”] Export-Import Bank of the United States (12) Railroad Retirement Board (13) Small Business Administration (14) Other (15) 2009 ...................................... 3,805 3,359 10,873 385,323 2010 ...................................... 7,254 3,481 11,752 374,997 2011 ...................................... 8,279 3,484 11,190 259,006 2012 ...................................... 11,301 3,402 7,920 114,117 2013 ...................................... 18,102 3,587 8,088 79,308 2012 - Dec ............................ 13,495 4,400 8,073 103,816 2013 - Jan ............................. 13,818 4,742 9,081 106,032 Feb ............................ 13,953 5,010 9,081 108,978 Mar ............................ 14,964 5,354 9,081 110,288 Apr............................. 15,788 5,699 8,522 93,243 May ........................... 16,194 6,005 8,522 92,988 June .......................... 16,381 2,606 8,541 93,354 July ............................ 18,121 2,952 8,541 92,687 Aug ............................ 18,694 3,246 8,541 79,867 Sept ........................... 18,102 3,587 8,088 79,308 Oct............................. 18,246 3,937 8,391 80,179 Nov ............................ 18,456 4,217 8,391 79,614 Dec ............................ 18,957 4,568 8,391 75,417 End of fiscal year or month Note.—For the Department of Housing and Urban Development, other HUD Housing Programs were reclassified from “Other” to “Other Housing Programs” for fiscal year 2009 through the current fiscal year to date. March 2014 Note.—Detail may not add to totals due to rounding. 31 INTRODUCTION: Bureau of the Fiscal Service Operations Chapter 31 of Title 31 of the United States Code allows the Secretary of Treasury to borrow money by issuing Treasury securities. The Secretary determines the terms and conditions of issue, conversion, maturity, payment, and interest rate. New issues of Treasury notes mature in 2 to 10 years. Bonds mature in more than 10 years from the issue date. Each outstanding marketable security is listed in the “Monthly Statement of the Public Debt of the United States.” The information in this section of the “Treasury Bulletin” pertains only to marketable Treasury securities. The Bureau of the Fiscal Service is a new bureau within the Treasury Department, formed on October 7, 2012, from the consolidation of the Financial Management Service and the Bureau of the Public Debt. Our mission is to promote the financial integrity and operational efficiency of the U.S. government through exceptional accounting, financing, collections, payments, and shared services. As one bureau, the organization is better positioned to help transform financial management and the delivery of shared services in the federal government. The bureau will be a valued partner for agencies as they work to strengthen their own financial management or as they look for a quality service provider who can allow them to focus on their missions. Table PDO-1 presents the results of weekly auctions of 4-, 13-, and 26-week bills. Treasury bills mature each Thursday. Issues of 4- and 13-week bills are reopenings of 26-week bills. High yields on accepted tenders and the dollar value of total bids are presented, with the dollar value of awards made on both competitive and noncompetitive bases. To encourage the participation of individuals and smaller institutions, Treasury accepts noncompetitive tenders of up to $5 million for bills and $5 million for notes and bonds in each auction of securities. Table PDO-2 lists the results of auctions of marketable securities, other than weekly bills, in chronological order over the past 2 years. Issues of cash management bills also are presented. Note: Cash management bills identified below are issued as part of the Supplementary Financing Program (SFP). For more details about the SFP, visit www.treasury.gov/press/ releases/hp1144.htm or call 202-622-2960. TREASURY FINANCING: OCTOBER-DECEMBER [Source: Bureau of the Fiscal Service, Division of Financing Operations] OCTOBER Cash Management Bills On September 30, 2013, Treasury announced it would auction $20,000 million of 7-day bills. They were issued October 3 and matured October 10. The issue was to raise new cash. Treasury auctioned the bills on October 2. Tenders totaled $87,467 million; Treasury accepted $20,001 million. The high bank discount rate was 0.030 percent. On October 8, Treasury announced it would auction $35,000 million of 5-day bills. They were issued October 10 and matured October 15. The issue was to raise new cash. Treasury auctioned the bills on October 9. Tenders totaled $99,540 million; Treasury accepted $35,001 million. The high bank discount rate was 0.300 percent. On October 15, Treasury announced it would auction $26,000 million of 189-day bills. They were issued October 17 and matured April 24, 2014. The issue was to raise new cash. Treasury auctioned the bills on October 16. Tenders totaled $99,664 million; Treasury accepted $26,000 million. The high bank discount rate was 0.135 percent. Auction of 3-Year Notes On October 3, 2013, Treasury announced it would auction $30,000 million of 3-year notes. The issue was to refund $32,280 million of securities maturing October 15 and to raise new cash of approximately $31,720 million. The 3-year notes of Series AR-2016 were dated and issued October 15. They are due October 15, 2016, with interest payable on April 15 and October 15 until maturity. Treasury set an interest rate of 0-5/8 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon eastern time (e.t.) for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 8. Tenders totaled $91,436 million; Treasury accepted $30,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.710 percent with an equivalent price of $99.748139. Treasury accepted in full all competitive tenders at yields lower than 0.710 percent. Tenders at the high yield were allotted 39.11 percent. The March 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 32 TREASURY FINANCING: OCTOBER- DECEMBER, con. median yield was 0.684 percent, and the low yield was 0.600 percent. Noncompetitive tenders totaled $23 million. Competitive tenders accepted from private investors totaled $29,867 million. The minimum par amount required for Separate Trading of Registered Interest and Principal Securities (STRIPS) of notes of Series AR-2016 is $100. Auction of 9-Year 10-Month 2-1/2 Percent Notes On October 3, 2013, Treasury announced it would auction $21,000 million of 9-year 10-month 2-1/2 percent notes. The issue was to refund $32,280 million of securities maturing October 15 and to raise new cash of approximately $31,720 million. The 9-year 10-month notes of Series E-2023 were dated August 15 and issued October 15. They are due August 15, 2023, with interest payable on February 15 and August 15 until maturity. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 9. Tenders totaled $54,200 million; Treasury accepted $21,000 million. All noncom-petitive and successful competitive bidders were allotted securities at the high yield of 2.657 percent with an equivalent price of $98.645362. Treasury accepted in full all competitive tenders at yields lower than 2.657 percent. Tenders at the high yield were allotted 16.83 percent. The median yield was 2.623 percent, and the low yield was 2.535 percent. Noncompetitive tenders totaled $17 million. Competitive tenders accepted from private investors totaled $20,973 million. Accrued interest of $4.14402 per $1,000 must be paid for the period from August 15 to October 15. The minimum par amount required for STRIPS of notes of Series E-2023 is $100. Auction of 29-Year 10-Month 3-5/8 Percent Bonds On October 3, 2013, Treasury announced it would auction $13,000 million of 29-year 10-month 3-5/8 percent bonds. The issue was to refund $32,280 million of securities maturing October 15 and to raise new cash of approximately $31,720 million. The 29-year 10-month bonds of August 2043 were dated August 15 and issued October 15. They are due August 15, 2043, with interest payable on February 15 and August 15 until maturity. Treasury received tenders for the bonds before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 10. Tenders totaled $34,337 million; Treasury accepted $13,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 3.758 percent with an equivalent price of $97.618838. Treasury accepted in full all competitive March 2014 tenders at yields lower than 3.758 percent. Tenders at the high yield were allotted 78.39 percent. The median yield was 3.740 percent, and the low yield was 3.680 percent. Noncompetitive tenders totaled $2 million. Competitive tenders accepted from private investors totaled $12,988 million. Accrued interest of $6.00883 per $1,000 must be paid for the period from August 15 to October 15. The minimum par amount required for STRIPS of bonds of August 2043 is $100. 52-Week Bills On October 10, 2013, Treasury announced it would auction $22,000 million of 364-day Treasury bills. They were issued October 17, and will mature October 16, 2014. The issue was to refund $119,994 million of all maturing bills and to raise new cash of approximately $13,006 million. Treasury auctioned the bills on October 16. Tenders totaled $90,562 million; Treasury accepted $22,000 million. That included $119 million of noncompetitive tenders from the public. The high bank discount rate was 0.160 percent. Auction of 29-Year 4-Month 0-5/8 Percent Treasury Inflation-Protected Security (TIPS) On October 17, 2013, Treasury announced it would auction $7,000 million of 29-year 4-month 0-5/8 percent TIPS. The issue was to refund $61,394 million of securities maturing October 31 and to raise new cash of approximately $41,606 million. The 29-year 4-month TIPS of February 2043 were dated August 15 and issued October 31. They are due February 15, 2043, with interest payable on February 15 and August 15 until maturity. Treasury received tenders for the TIPS before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 24. Tenders totaled $19,303 million; Treasury accepted $7,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1.330 percent with an equivalent adjusted price of $84.370207. Treasury accepted in full all competitive tenders at yields lower than 1.330 percent. Tenders at the high yield were allotted 76.13 percent. The median yield was 1.278 percent, and the low yield was 1.200 percent. Noncompetitive tenders totaled $10 million. Competitive tenders accepted from private investors totaled $6,990 million. Adjusted accrued interest of $1.33025 per $1,000 must be paid for the period from August 15 to October 31. Both the unadjusted price of $82.942762 and the unadjusted accrued interest of $1.30774 were adjusted by an index ratio of 1.01721, for the period from August 15 to October 31. The minimum par amount required for STRIPS of TIPS of February 2043 is $100. BUREAU OF THE FISCAL SERVICE OPERATIONS 33 TREASURY FINANCING: OCTOBER- DECEMBER, con. Auction of 2-Year Notes Auction of 7-Year Notes On October 24, 2013, Treasury announced it would auction $32,000 million of 2-year notes. The issue was to refund $61,394 million of securities maturing October 31 and to raise new cash of approximately $41,606 million. The 2-year notes of Series AS-2015 were dated and issued October 31. They are due October 31, 2015, with interest payable on April 30 and October 31 until maturity. Treasury set an interest rate of 0-1/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 28. Tenders totaled $106,090 million; Treasury accepted $32,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.323 percent with an equivalent price of $99.854588. Treasury accepted in full all competitive tenders at yields lower than 0.323 percent. Tenders at the high yield were allotted 13.56 percent. The median yield was 0.305 percent, and the low yield was 0.250 percent. Noncompetitive tenders totaled $141 million. Competitive tenders accepted from private investors totaled $31,749 million. The minimum par amount required for STRIPS of notes of Series AS-2015 is $100. On October 24, 2013, Treasury announced it would auction $29,000 million of 7-year notes. The issue was to refund $61,394 million of securities maturing October 31 and to raise new cash of approximately $41,606 million. The 7-year notes of Series R-2020 were dated and issued October 31. They are due October 31, 2020, with interest payable on April 30 and October 31 until maturity. Treasury set an interest rate of 1-3/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 30. Tenders totaled $77,133 million; Treasury accepted $29,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1.870 percent with an equivalent price of $99.216081. Treasury accepted in full all competitive tenders at yields lower than 1.870 percent. Tenders at the high yield were allotted 69.67 percent. The median yield was 1.837 percent, and the low yield was 1.750 percent. Noncompetitive tenders totaled $10 million. Competitive tenders accepted from private investors totaled $28,986 million. The minimum par amount required for STRIPS of notes of Series R-2020 is $100. Auction of 5-Year Notes NOVEMBER On October 24, 2013, Treasury announced it would auction $35,000 million of 5-year notes. The issue was to refund $61,394 million of securities maturing October 31 and to raise new cash of approximately $41,606 million. The 5-year notes of Series AE-2018 were dated and issued October 31. They are due October 31, 2018, with interest payable on April 30 and October 31 until maturity. Treasury set an interest rate of 1-1/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on October 29. Tenders totaled $92,669 million; Treasury accepted $35,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1.300 percent with an equivalent price of $99.758710. Treasury accepted in full all competitive tenders at yields lower than 1.300 percent. Tenders at the high yield were allotted 75.35 percent. The median yield was 1.267 percent, and the low yield was 1.200 percent. Noncompetitive tenders totaled $23 million. Competitive tenders accepted from private investors totaled $34,962 million. The minimum par amount required for STRIPS of notes of Series AE-2018 is $100. 52-Week Bills On November 7, 2013, Treasury announced it would auction $25,000 million of 364-day Treasury bills. They were issued November 14, and will mature November 13, 2014. The issue was to refund $98,995 million of all maturing bills and to raise new cash of approximately $33,005 million. Treasury auctioned the bills on November 13. Tenders totaled $110,917 million; Treasury accepted $25,001 million. That included $165 million of noncompetitive tenders from the public. The high bank discount rate was 0.135 percent. November Quarterly Financing On November 6, 2013, Treasury announced it would auction $30,000 million of 3-year notes, $24,000 million of 10-year notes, and $16,000 million of 30-year bonds to refund $63,489 million of securities maturing November 15 and to raise new cash of approximately $6,511 million. The 3-year notes of Series AS-2016 were dated and issued November 15. They are due November 15, 2016, with interest payable on May 15 and November 15 until maturity. Treasury set an interest rate of 0-5/8 percent after determining which tenders were accepted on a yield auction basis. March 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 34 TREASURY FINANCING: OCTOBER- DECEMBER, con. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on November 12. Tenders totaled $103,673 million; Treasury accepted $30,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.644 percent with an equivalent price of $99.943637. Treasury accepted in full all competitive tenders at yields lower than 0.644 percent. Tenders at the high yield were allotted 85.86 percent. The median yield was 0.621 percent, and the low yield was 0.550 percent. Noncompetitive tenders totaled $33 million. Competitive tenders accepted from private investors totaled $29,867 million. The minimum par amount required for STRIPS of notes of Series AS-2016 is $100. The 10-year notes of Series F-2023 were dated and issued November 15. They are due November 15, 2023, with interest payable on May 15 and November 15 until maturity. Treasury set an interest rate of 2-3/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on November 13. Tenders totaled $64,694 million; Treasury accepted $24,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2.750 percent with an equivalent price of $100.000000. Treasury accepted in full all competitive tenders at yields lower than 2.750 percent. Tenders at the high yield were allotted 62.67 percent. The median yield was 2.719 percent, and the low yield was 2.650 percent. Noncompetitive tenders totaled $47 million. Competitive tenders accepted from private investors totaled $23,954 million. The minimum par amount required for STRIPS of notes of Series F-2023 is $100. The 30-year bonds of November 2043 were dated and issued November 15. They are due November 15, 2043, with interest payable on May 15 and November 15 until maturity. Treasury set an interest rate of 3-3/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the bonds before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on November 14. Tenders totaled $34,628 million; Treasury accepted $16,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 3.810 percent with an equivalent price of $98.932768. Treasury accepted in full all competitive tenders at yields lower than 3.810 percent. Tenders at the high yield were allotted 73.59 percent. The median yield was 3.758 percent, and the low yield was 3.700 percent. Noncompetitive tenders totaled $15 million. Competitive tenders accepted from private investors totaled $15,985 million. The minimum par amount required for STRIPS of bonds of November 2043 is $100. March 2014 Auction of 9-Year 8-Month 0-3/8 Percent TIPS On November 14, 2013, Treasury announced it would auction $13,000 million of 9-year 8-month 0-3/8 percent TIPS. The issue was to raise new cash of approximately $13,000 million. The 9-year 8-month TIPS of Series D-2023 were dated July 15 and issued November 29. They are due July 15, 2023, with interest payable on January 15 and July 15 until maturity. Treasury received tenders for the TIPS before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on November 21. Tenders totaled $33,709 million; Treasury accepted $13,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.560 percent with an equivalent adjusted price of $98.864759. Treasury accepted in full all competitive tenders at yields lower than 0.560 percent. Tenders at the high yield were allotted 96.89 percent. The median yield was 0.540 percent, and the low yield was 0.465 percent. Noncompetitive tenders totaled $18 million. Competitive tenders accepted from private investors totaled $12,982 million. Adjusted accrued interest of $1.40453 per $1,000 must be paid for the period from July 15 to November 29. Both the unadjusted price of $98.268271 and the unadjusted accrued interest of $1.39606 were adjusted by an index ratio of 1.00607, for the period from July 15 to November 29. The minimum par amount required for STRIPS of TIPS of Series D-2023 is $100. DECEMBER Auction of 2-Year Notes On November 21, 2013, Treasury announced it would auction $32,000 million of 2-year notes. The issue was to refund $64,404 million of securities maturing November 30 and to raise new cash of approximately $31,596 million. The 2-year notes of Series AT-2015 were dated November 30 and issued December 2. They are due November 30, 2015, with interest payable on May 31 and November 30 until maturity. Treasury set an interest rate of 0-1/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on November 25. Tenders totaled $113,177 million; Treasury accepted $32,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.300 percent with an equivalent price of $99.900644. Treasury accepted in full all competitive tenders at yields lower than 0.300 percent. Tenders at the high yield were allotted 16.64 percent. The median yield was 0.280 percent, and the low yield was 0.250 percent. Noncompetitive tenders totaled $147 million. BUREAU OF THE FISCAL SERVICE OPERATIONS 35 TREASURY FINANCING: OCTOBER- DECEMBER, con. Competitive tenders accepted from private investors totaled $31,743 million. Accrued interest of $0.01374 per $1,000 must be paid for the period from November 30 to December 2. The minimum par amount required for STRIPS of notes of Series AT-2015 is $100. Auction of 5-Year Notes On November 21, 2013, Treasury announced it would auction $35,000 million of 5-year notes. The issue was to refund $64,404 million of securities maturing November 30 and to raise new cash of approximately $31,596 million. The 5-year notes of Series AF-2018 were dated November 30 and issued December 2. They are due November 30, 2018, with interest payable on May 31 and November 30 until maturity. Treasury set an interest rate of 1-1/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on November 26. Tenders totaled $91,252 million; Treasury accepted $35,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1.340 percent with an equivalent price of $99.566562. Treasury accepted in full all competitive tenders at yields lower than 1.340 percent. Tenders at the high yield were allotted 67.41 percent. The median yield was 1.308 percent, and the low yield was 1.270 percent. Noncompetitive tenders totaled $44 million. Competitive tenders accepted from private investors totaled $34,951 million. Accrued interest of $0.06868 per $1,000 must be paid for the period from November 30 to December 2. The minimum par amount required for STRIPS of notes of Series AF-2018 is $100. Auction of 7-Year Notes On November 21, 2013, Treasury announced it would auction $29,000 million of 7-year notes. The issue was to refund $64,404 million of securities maturing November 30 and to raise new cash of approximately $31,596 million. The 7-year notes of Series S-2020 were dated November 30 and issued December 2. They are due November 30, 2020, with interest payable on May 31 and November 30 until maturity. Treasury set an interest rate of 2 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 11:00 a.m. e.t. for noncompetitive tenders and before 11:30 a.m. e.t. for competitive tenders on November 27. Tenders totaled $68,491 million; Treasury accepted $29,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2.106 percent with an equivalent price of $99.313835. Treasury accepted in full all competitive tenders at yields lower than 2.106 percent. Tenders at the high yield were allotted 31.60 percent. The median yield was 2.059 percent, and the low yield was 1.995 percent. Noncompetitive tenders totaled $10 million. Competitive tenders accepted from private investors totaled $28,990 million. Accrued interest of $0.10989 per $1,000 must be paid for the period from November 30 to December 2. The minimum par amount required for STRIPS of notes of Series S-2020 is $100. 52-Week Bills On December 5, 2013, Treasury announced it would auction $25,000 million of 364-day Treasury bills. They were issued December 12, and will mature December 11, 2014. The issue was to refund $125,003 million of all maturing bills and to pay down approximately $1,003 million. Treasury auctioned the bills on December 10. Tenders totaled $112,034 million; Treasury accepted $25,000 million. That included $137 million of noncompetitive tenders from the public. The high bank discount rate was 0.135 percent. Auction of 3-Year Notes On December 5, 2013, Treasury announced it would auction $30,000 million of 3-year notes. The issue was to refund $32,468 million of securities maturing December 15 and to raise new cash of approximately $31,532 million. The 3-year notes of Series AT-2016 were dated December 15 and issued December 16. They are due December 15, 2016, with interest payable on June 15 and December 15 until maturity. Treasury set an interest rate of 0-5/8 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on December 10. Tenders totaled $106,583 million; Treasury accepted $30,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.631 percent with an equivalent price of $99.982208. Treasury accepted in full all competitive tenders at yields lower than 0.631 percent. Tenders at the high yield were allotted 68.71 percent. The median yield was 0.610 percent, and the low yield was 0.579 percent. Noncompetitive tenders totaled $29 million. Competitive tenders accepted from private investors totaled $29,871 million. Accrued interest of $0.01717 per $1,000 must be paid for the period from December 15 to December 16. The minimum par amount required for STRIPS of notes of Series AT-2016 is $100. Auction of 9-Year 11-Month 2-3/4 Percent Notes On December 5, 2013, Treasury announced it would auction $21,000 million of 9-year 11-month 2-3/4 percent notes. The issue was to refund $32,468 million of securities March 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 36 TREASURY FINANCING: OCTOBER- DECEMBER, con. maturing December 15 and to raise new cash of approximately $31,532 million. The 9-year 11-month notes of Series F-2023 were dated November 15 and issued December 16. They are due November 15, 2023, with interest payable on May 15 and November 15 until maturity. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on December 11. Tenders totaled $54,722 million; Treasury accepted $21,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2.824 percent with an equivalent price of $99.361224. Treasury accepted in full all competitive tenders at yields lower than 2.824 percent. Tenders at the high yield were allotted 74.96 percent. The median yield was 2.783 percent, and the low yield was 2.735 percent. Noncompetitive tenders totaled $34 million. Competitive tenders accepted from private investors totaled $20,966 million. Accrued interest of $2.35497 per $1,000 must be paid for the period from November 15 to December 16. The minimum par amount required for STRIPS of notes of Series F-2023 is $100. Auction of 29-Year 11-Month 3-3/4 Percent Bonds On December 5, 2013, Treasury announced it would auction $13,000 million of 29-year 11-month 3-3/4 percent bonds. The issue was to refund $32,468 million of securities maturing December 15 and to raise new cash of approximately $31,532 million. The 29-year 11-month bonds of November 2043 were dated November 15 and issued December 16. They are due November 15, 2043, with interest payable on May 15 and November 15 until maturity. Treasury received tenders for the bonds before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on December 12. Tenders totaled $30,549 million; Treasury accepted $13,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 3.900 percent with an equivalent price of $97.359944. Treasury accepted in full all competitive tenders at yields lower than 3.900 percent. Tenders at the high yield were allotted 17.28 percent. The median yield was 3.859 percent, and the low yield was 3.800 percent. Noncompetitive tenders totaled $5 million. Competitive tenders accepted from private investors totaled $12,995 million. Accrued interest of $3.21133 per $1,000 must be paid for the period from November 15 to December 16. The minimum par amount required for STRIPS of bonds of November 2043 is $100. March 2014 Auction of 2-Year Notes On December 12, 2013, Treasury announced it would auction $32,000 million of 2-year notes. The issue was to refund $66,175 million of securities maturing December 31 and to raise new cash of approximately $45,825 million. The 2-year notes of Series AU-2015 were dated and issued December 31. They are due December 31, 2015, with interest payable on June 30 and December 31 until maturity. Treasury set an interest rate of 0-1/4 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on December 17. Tenders totaled $120,553 million; Treasury accepted $32,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0.345 percent with an equivalent price of $99.810817. Treasury accepted in full all competitive tenders at yields lower than 0.345 percent. Tenders at the high yield were allotted 70.75 percent. The median yield was 0.329 percent, and the low yield was 0.300 percent. Noncompetitive tenders totaled $109 million. Competitive tenders accepted from private investors totaled $31,791 million. The minimum par amount required for STRIPS of notes of Series AU-2015 is $100. Auction of 5-Year Notes On December 12, 2013, Treasury announced it would auction $35,000 million of 5-year notes. The issue was to refund $66,175 million of securities maturing December 31 and to raise new cash of approximately $45,825 million. The 5-year notes of Series AG-2018 were dated and issued December 31. They are due December 31, 2018, with interest payable on June 30 and December 31 until maturity. Treasury set an interest rate of 1-1/2 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 11:00 a.m. e.t. for noncompetitive tenders and before 11:30 a.m. e.t. for competitive tenders on December 18. Tenders totaled $84,610 million; Treasury accepted $35,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1.600 percent with an equivalent price of $99.521314. Treasury accepted in full all competitive tenders at yields lower than 1.600 percent. Tenders at the high yield were allotted 2.21 percent. The median yield was 1.555 percent, and the low yield was 1.473 percent. Noncompetitive tenders totaled $31 million. Competitive tenders accepted from private investors totaled $34,969 million. The minimum par amount required for STRIPS of notes of Series AG-2018 is $100. BUREAU OF THE FISCAL SERVICE OPERATIONS 37 TREASURY FINANCING: OCTOBER- DECEMBER, con. Auction of 7-Year Notes On December 12, 2013, Treasury announced it would auction $29,000 million of 7-year notes. The issue was to refund $66,175 million of securities maturing December 31 and to raise new cash of approximately $45,825 million. The 7-year notes of Series T-2020 were dated and issued December 31. They are due December 31, 2020, with interest payable on June 30 and December 31 until maturity. Treasury set an interest rate of 2-3/8 percent after determining which tenders were accepted on a yield auction basis. Treasury received tenders for the notes before 12:00 noon e.t. for noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders on December 19. Tenders totaled $71,021 million; Treasury accepted $29,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2.385 percent with an equivalent price of $99.935882. Treasury accepted in full all competitive tenders at yields lower than 2.385 percent. Tenders at the high yield were allotted 59.56 percent. The median yield was 2.338 percent, and the low yield was 2.270 percent. Noncompetitive tenders totaled $15 million. Competitive tenders accepted from private investors totaled $28,985 million. The minimum par amount required for STRIPS of notes of Series T-2020 is $100. Auction of 4-Year 4-Month 0-1/8 Percent TIPS TIPS. The issue was to refund $66,175 million of securities maturing December 31 and to raise new cash of approximately $45,825 million. The 4-year 4-month TIPS of Series X-2018 were dated October 15 and issued December 31. They are due April 15, 2018, with interest payable on April 15 and October 15 until maturity. Treasury received tenders for the TIPS before 11:00 a.m. e.t. for noncompetitive tenders and before 11:30 a.m. e.t. for competitive tenders on December 19. Tenders totaled $40,603 million; Treasury accepted $16,000 million. All noncompetitive and successful competitive bidders were allotted securities at the high yield of -0.375 percent with an equivalent adjusted price of $103.227104. Treasury accepted in full all competitive tenders at yields lower than -0.375 percent. Tenders at the high yield were allotted 35.43 percent. The median yield was -0.441 percent, and the low yield was -0.500 percent. Noncompetitive tenders totaled $11 million. Competitive tenders accepted from private investors totaled $15,989 million. Adjusted accrued interest of $0.26717 per $1,000 must be paid for the period from October 15 to December 31. Both the unadjusted price of $102.163581 and the unadjusted accrued interest of $0.26442 were adjusted by an index ratio of 1.01041, for the period from October 15 to December 31. The minimum par amount required for STRIPS of TIPS of Series X-2018 is $100. On December 12, 2013, Treasury announced it would auction $16,000 million of 4-year 4-month 0-1/8 percent March 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 38 TABLE PDO-1.—Offerings of Regular Weekly Treasury Bills [In millions of dollars. Source: Bureau of the Fiscal Service, Division of Financing Operations] On total competitive bids accepted Issue date Description of new issue Amount Number of bids of days to Maturity date tendered maturity 1 (1) (2) (3) Amounts of bids accepted On On nonTotal competitive competitive basis amount 2 basis 3 (6) (4) (5) High price per hundred (7) High discount rate (percent) (8) High investment rate (percent) 4 (9) 99.990667 99.997472 99.979778 99.972778 99.991153 99.969667 99.981333 99.967139 99.924167 99.997667 99.991153 99.964611 99.995569 99.988625 99.959556 99.996111 99.987361 99.957028 99.995333 99.981042 99.951972 99.995333 99.979778 99.949444 99.995125 99.980000 99.947208 99.997667 99.981042 99.949444 99.998056 99.982306 99.951972 99.999222 99.983569 99.954500 99.999611 99.982306 99.954500 0.120 0.010 0.040 0.350 0.035 0.060 0.240 0.130 0.150 0.030 0.035 0.070 0.055 0.045 0.080 0.050 0.050 0.085 0.060 0.075 0.095 0.060 0.080 0.100 0.065 0.080 0.105 0.030 0.075 0.100 0.025 0.070 0.095 0.010 0.065 0.090 0.005 0.070 0.090 0.122 0.010 0.041 0.355 0.035 0.061 0.243 0.132 0.152 0.030 0.035 0.071 0.056 0.046 0.081 0.051 0.051 0.086 0.061 0.076 0.096 0.061 0.081 0.101 0.066 0.081 0.107 0.030 0.076 0.101 0.025 0.071 0.096 0.010 0.066 0.091 0.005 0.071 0.091 Regular weekly: (4 week, 13 week, and 26 week) 2013 – Oct. 03................. Oct. 10 ................. Oct. 17 ................. Oct. 24 ................. Oct. 31 ................. Nov. 07 ................ Nov.14 ................. Nov. 21 ................ Nov. 29 ................ Dec. 05 ................ Dec.12 ................. Dec.19 ................. Dec. 26 ................ 1 2013 – Oct. 31 2014 – Jan. 02 Apr. 03 2013 – Nov. 07 2014 – Jan. 09 Apr. 10 2013 – Nov. 14 2014 – Jan. 16 Apr. 17 2013 – Nov. 21 2014 – Jan. 23 Apr. 24 2013 – Nov. 29 2014 – Jan. 30 May 01 2013 - Dec. 05 2014 – Feb. 06 May 08 2013 – Dec. 12 2014 – Feb. 13 May 15 2013 – Dec. 19 2014 – Feb. 20 May 22 2013 – Dec. 26 2014 – Feb. 27 May 29 2014 – Jan. 02 Mar. 06 June 05 2014 – Jan. 09 Mar. 13 June 12 2014 – Jan. 16 Mar. 20 June 19 2014 – Jan. 23 Mar. 27 June 26 28 91 182 28 91 182 28 91 182 28 91 182 29 91 182 28 91 182 28 91 182 28 91 182 27 90 181 28 91 182 28 91 182 28 91 182 28 91 182 108,282.4 114,338.1 116,824.7 82,532.9 135,668.4 132,021.4 86,525.4 109,694.1 105,575.0 151,001.9 141,003.8 133,444.0 170,273.0 132,143.4 126,617.0 175,482.1 136,633.1 129,009.5 183,383.2 150,129.7 129,342.8 173,879.6 128,005.1 123,114.7 170,043.0 137,519.8 117,378.6 177,267.2 143,567.5 130,243.3 157,741.5 138,680.2 125,364.4 123,826.5 144,783.4 119,819.3 100,364.8 127,771.0 115,744.4 35,000.2 25,001.2 25,000.6 30,000.5 35,000.7 30,000.7 20,000.1 35,000.8 30,000.5 35,000.9 35,000.8 30,000.7 45,000.6 34,001.2 30,000.5 45,000.3 33,001.1 29,000.9 45,001.1 33,000.9 29,001.0 45,000.5 32,000.4 28,001.3 45,001.0 32,000.5 28,001.0 45,000.8 32,000.4 27,000.3 40,000.6 32,001.4 27,000.2 30,000.2 32,000.1 27,000.4 20,000.5 32,000.5 27,001.1 All 4-week and 13-week bills represent additional issues of bills with an original maturity of 26 weeks or 52 weeks. Certain 26-week bills represent additional issues of bills with an original maturity of 52 weeks. 2 Includes amount awarded to the Federal Reserve System. March 2014 34,724.3 24,109.4 24,043.6 29,730.6 34,503.0 29,042.7 19,777.1 34,445.8 28,970.4 34,784.4 34,568.0 28,926.2 44,299.6 32,791.4 28,795.5 44,732.0 32,373.0 28,165.0 44,769.6 32,424.5 28,139.4 44,773.6 31,449.5 27,235.4 44,406.9 30,736.7 26,897.4 44,764.5 31,283.6 26,087.7 39,754.4 31,517.8 26,187.0 29,741.4 31,450.2 26,235.8 19,117.2 30,706.2 25,688.1 275.8 541.7 381.1 269.9 447.8 382.0 223.0 454.9 354.1 216.6 432.8 328.0 213.9 405.3 329.1 268.3 428.1 359.9 231.6 476.4 385.6 227.0 450.9 389.9 258.8 489.1 352.7 236.3 416.8 336.5 246.2 483.6 337.2 258.9 435.0 388.6 242.7 470.1 336.9 3 Tenders for $5 million or less from any one bidder are accepted in full at the high price of accepted competitive bids. All Treasury Marketable auctions are conducted in a single-price format as of November 2, 1998. 4 Equivalent coupon-issue yield. BUREAU OF THE FISCAL SERVICE OPERATIONS 39 TABLE PDO-2.—Offerings of Marketable Securities Other than Regular Weekly Treasury Bills [In millions of dollars. Source: Bureau of the Fiscal Service, Division of Financing Operations] Auction date 10/02/13 1 Issue date (1) Description of securities 1 (2) 10/03/13 0.030% bill—10/10/13 Period to final maturity (years, months, days) 2 (3) 7d Amount tendered (4) Amount accepted 3, 4 (5) 87,467 20,001 91,436 30,000 99,540 35,001 54,200 21,000 2.657 - 98.645362 3.758 - 97.618838 10/08/13 10/15/13 0.625% note—10/15/16-AR 10/09/13 10/10/13 0.300% bill—10/15/13 10/09/13 10/15/13 2.500% note—08/15/23-E 9y 10m 10/10/13 10/15/13 3.625% bond—08/15/43 29y 10m 34,337 13,000 10/16/13 10/17/13 0.135% bill—04/24/14 189d 99,664 26,000 10/16/13 10/17/13 0.160% bill—10/16/14 364d 90,562 22,000 10/24/13 10/31/13 0.625% TIPS—02/15/43 10/28/13 10/31/13 0.250% note—10/31/15-AS 3y 3d Accepted yield and equivalent price for notes and bonds (6) 0.710 - 99.748139 19,303 7,000 1.330 - 84.370207 2y 106,090 32,000 0.323 - 99.854588 29y 4m 10/29/13 10/31/13 1.250% note—10/31/18-AE 5y 92,669 35,000 1.300 - 99.758710 10/30/13 10/31/13 1.750% note—10/31/20-R 7y 77,133 29,000 1.870 - 99.216081 11/12/13 11/15/13 0.625% note—11/15/16-AS 3y 103,673 30,000 0.644 - 99.943637 11/13/13 11/14/13 0.135% bill—11/13/14 110,917 25,001 11/13/13 11/15/13 2.750% note—11/15/23-F 10y 64,694 24,000 2.750 - 100.000000 30y 34,628 16,000 3.810 - 98.932768 33,709 13,000 0.560 - 98.864759 364d 11/14/13 11/15/13 3.750% bond—11/15/43 11/21/13 11/29/13 0.375% TIPS—07/15/23-D 9y 11/25/13 12/02/13 0.250% note—11/30/15-AT 2y 113,177 32,000 0.300 - 99.900644 8m 11/26/13 12/02/13 1.250% note—11/30/18-AF 5y 91,252 35,000 1.340 - 99.566562 11/27/13 12/02/13 2.000% note—11/30/20-S 7y 68,491 29,000 2.106 - 99.313835 12/10/13 12/12/13 0.135% bill—12/11/14 112,034 25,000 12/10/13 12/16/13 0.625% note—12/15/16-AT 3y 106,583 30,000 0.631 - 99.982208 12/11/13 12/16/13 2.750% note—11/15/23-F 9y 11m 54,722 21,000 2.824 - 99.361224 12/12/13 12/16/13 3.750% bond—11/15/43 29y 11m 30,549 13,000 3.900 - 97.359944 12/17/13 12/31/13 0.250% note—12/31/15-AU 2y 120,553 32,000 0.345 - 99.810817 12/18/13 12/31/13 1.500% note—12/31/18-AG 5y 84,610 35,000 1.600 - 99.521314 12/19/13 12/31/13 0.125% TIPS—04/15/18-X 4y 40,603 16,000 -0.375 - 103.227104 12/19/13 12/31/13 2.375% note—12/31/20-T 7y 71,021 29,000 2.385 - 99.935882 364d Currently, all issues are sold at auction. For bill issues, the rate shown is the high bank discount rate. For note and bond issues, the rate shown is the interest rate. For details of bill offerings, see table PDO-1. As of October 1, 1997, all Treasury issues of notes and bonds are eligible for STRIPS. 2 From date of additional issue in case of a reopening. 3 In reopenings, the amount accepted is in addition to the amount of original offerings. 4m 4 Includes securities issued to the Federal Reserve System; and to foreign and international monetary authorities, whether in exchange for maturing securities or for new cash. Note.—Amounts listed as tendered and accepted are amounts tendered and awarded on auction day. March 2014 40 INTRODUCTION: Ownership of Federal Securities Federal securities presented in the following tables are public debt securities such as savings bonds, bills, notes, and bonds that the Treasury issues. The tables also detail debt issued by other Federal agencies under special financing authorities. [See the Federal debt (FD) tables for a more complete description of the Federal debt.] Effective January 1, 2001, Treasury’s Bureau of the Fiscal Service revised formats, titles, and column headings in the “Monthly Statement of the Public Debt of the United States,” Table I: Summary of Treasury Securities Outstanding and Table II: Statutory Debt Limit. These changes should reduce confusion and bring the publication more in line with the public’s use of terms. Treasury’s Bureau of the Fiscal Service compiles data in the “Treasury Bulletin” table OFS-1 from the “Monthly Statement of the Public Debt of the United States.” Effective June 2001, Bureau of the Fiscal Service revised procedures and categories in this table to agree with the Bureau of the Fiscal Service’s publication changes. March 2014 Table OFS-1 presents Treasury marketable and nonmarketable securities and debt issued by other Federal agencies held by Government accounts, the FRBs, and private investors. Social Security and Federal retirement trust fund investments comprise much of the Government account holdings. The FRBs acquire Treasury securities in the market as a means of executing monetary policy. Table OFS-2 presents the estimated ownership of U.S. Treasury securities. Information is primarily obtained from the Federal Reserve Board of Governors Flow of Funds data, Table L209. State, local, and foreign holdings include special issues of nonmarketable securities to municipal entities and foreign official accounts. They also include municipal, foreign official, and private holdings of marketable Treasury securities. (See footnotes to the table for description of investor categories.) OWNERSHIP OF FEDERAL SECURITIES 41 TABLE OFS-1.—Distribution of Federal Securities by Class of Investors and Type of Issues [In millions of dollars. Source: Bureau of the Fiscal Service] Total Federal securities outstanding (1) Total outstanding (2) 2009 ................................................ 2010 ................................................ 2011 ................................................ 2012 ................................................ 2013 ................................................ 11,933,031 13,585,596 14,815,328 16,090,640 16,763,286 11,909,828 13,561,622 14,790,340 16,066,241 16,738,183 2012 - Dec ....................................... 2013 - Jan ....................................... Feb ...................................... Mar ...................................... Apr ....................................... May...................................... June..................................... July ...................................... Aug ...................................... Sept ..................................... Oct ....................................... Nov ...................................... Dec ...................................... 16,457,613 16,458,774 16,712,052 16,796,009 16,853,522 16,763,595 16,763,286 16,763,730 16,763,581 16,763,286 17,181,230 17,241,818 17,376,463 16,432,730 16,433,792 16,687,289 16,771,378 16,828,845 16,738,821 16,738,319 16,738,599 16,738,649 16,738,183 17,156,117 17,217,152 17,351,971 End of fiscal year or month Public debt securities Held by U.S. Government accounts Marketable (4) Nonmarketable (5) Public issues held by Federal Reserve banks (6) 4,355,292 4,534,014 4,658,307 4,791,850 4,757,211 - 4,355,292 4,534,014 4,658,307 4,791,850 4,757,211 827,126 909,910 1,689,186 1,744,275 2,315,023 4,846,173 4,868,335 4,859,474 4,848,930 4,880,244 4,836,371 4,831,752 4,816,157 4,766,719 4,757,211 4,969,004 4,936,273 4,996,782 - 4,846,173 4,868,335 4,859,474 4,848,930 4,880,244 4,836,371 4,831,752 4,816,157 4,766,719 4,757,211 4,969,004 4,936,273 4,996,782 1,786,023 1,848,206 1,911,125 1,971,959 2,025,818 2,084,249 2,145,596 2,204,961 2,261,118 2,315,023 2,372,206 2,428,444 2,484,411 Total (3) Public debt securities, con. Agency securities 1 Held by private investors End of fiscal year or month Total (7) Marketable (8) Nonmarketable (9) Total outstanding (10) Held by private investors (11) Held by Government accounts (12) 2009 ................................................ 2010 ................................................ 2011 ................................................ 2012 ................................................ 2013 ................................................ 6,727,410 8,117,698 8,442,847 9,530,116 9,665,949 6,182,607 7,588,415 7,935,360 9,005,483 9,281,132 544,804 529,284 507,488 524,634 384,818 23,203 23,974 24,988 24,399 25,103 23,202 23,971 24,982 24,394 25,098 1 3 5 5 5 2012 - Dec ....................................... 2013 - Jan ....................................... Feb ...................................... Mar ...................................... Apr ....................................... May...................................... June..................................... July ...................................... Aug ...................................... Sept ..................................... Oct ....................................... Nov ...................................... Dec ...................................... 9,800,534 9,717,251 9,916,690 9,950,490 9,922,783 9,818,201 9,760,971 9,717,481 9,710,813 9,665,949 9,814,907 9,852,435 9,870,778 9,267,179 9,267,115 9,397,228 9,426,046 9,390,943 9,313,062 9,249,407 9,278,530 9,325,061 9,281,132 9,322,791 9,363,193 9,385,023 533,355 450,136 519,462 524,444 531,841 505,040 511,565 438,952 385,752 384,818 492,116 489,241 485,755 24,884 24,982 24,763 24,631 24,677 24,774 24,967 25,131 24,932 25,103 25,113 24,667 24,492 24,879 24,977 24,758 24,626 24,672 24,769 24,962 25,126 24,926 25,098 25,108 24,662 24,487 5 5 5 5 5 5 5 5 5 5 5 5 5 1 Table has been revised to show separate amounts for Agency Securities to include Held by Private Investors and Held by Government Accounts. Note. – Public issues held by the Federal Reserve banks have been revised to include Ginnie Mae and exclude the following Government-Sponsored Enterprises: Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and the Federal Home Loan Bank System. March 2014 OWNERSHIP OF FEDERAL SECURITIES 42 TABLE OFS-2.—Estimated Ownership of U.S. Treasury Securities [In billions of dollars. Source: Office of Debt Management, Office of the Under Secretary for Domestic Finance] Pension funds 3 End of month Total public debt 1 (1) 2013 - Dec ......... Sept ........ June ....... Mar ......... 2012 - Dec ......... Sept ........ June ....... Mar ......... 2011 - Dec ......... Sept ........ June ....... Mar ......... 2010 - Dec ......... Sept ........ June ....... Mar ......... 2009 - Dec ......... Sept ........ June ....... Mar ......... 2008 - Dec ......... Sept ........ June ....... Mar ......... 2007 - Dec ......... Sept ........ June ....... Mar ......... 2006 - Dec ......... Sept ........ June ....... Mar ......... 2005 - Dec ......... Sept ........ June ....... Mar ......... 2004 - Dec ......... Sept ........ June ....... Mar ......... 17,352 16,738 16,738 16,772 16,433 16,066 15,855 15,582 15,223 14,790 14,343 14,270 14,025 13,562 13,202 12,773 12,311 11,910 11,545 11,127 10,700 10,025 9,492 9,438 9,229 9,008 8,868 8,850 8,680 8,507 8,420 8,371 8,170 7,933 7,836 7,777 7,596 7,379 7,274 7,131 1 SOMA and Intragovernmental Holdings 2,3 (2) 7,205 6,834 6,773 6,657 6,524 6,447 6,476 6,397 6,440 6,328 6,220 5,959 5,656 5,350 5,345 5,260 5,277 5,127 5,027 4,785 4,806 4,693 4,686 4,695 4,834 4,738 4,715 4,577 4,558 4,433 4,389 4,257 4,200 4,068 4,034 3,922 3,906 3,772 3,743 3,628 Total U.S. privately Depository savings held institutions 4, 5 bonds 6 (3) (4) (5) 10,147 9,904 9,965 10,115 9,909 9,619 9,380 9,185 8,783 8,462 8,123 8,311 8,369 8,211 7,857 7,513 7,034 6,783 6,518 6,342 5,893 5,332 4,806 4,743 4,396 4,270 4,153 4,273 4,122 4,074 4,031 4,114 3,971 3,865 3,803 3,855 3,691 3,607 3,532 3,503 n.a. 295 302 340 349 339 304 320 280 294 279 321 319 323 266 269 202 198 141 126 105 130 113 125 130 120 110 120 115 114 119 113 129 134 136 149 133 146 168 173 179 180 181 182 182 184 185 185 185 185 186 187 188 189 190 190 191 192 194 194 194 194 195 195 196 197 199 200 202 204 205 206 205 204 204 204 204 204 205 204 Source: “Monthly Statement of the Public Debt of the United States (MSPD).” Face value. 2 Sources: Federal Reserve Bulletin, Table 1.18, Federal Reserve banks, statement of condition, for System Open Market Accounts; and the U. S. Treasury MSPD for intragovernmental holdings. Federal Reserve holdings exclude Treasury securities held under repurchase agreements. 3 As of February 2005, the debt held by Government Accounts was renamed to Intragovernmental holdings. 4 Source: Federal Reserve Board of Governors, Flow of Funds Table L.209. 5 Includes U.S. chartered depository institutions, foreign banking offices in U.S., banks in U.S. affiliated areas, credit unions and bank holding companies. 6 Sources: “Monthly Statement of the Public Debt of the United States from January 1996. Federal Reserve Board of Governors, Flow of Funds Table L. 209 from January 1977 through December 1995. Current accrual value. March 2014 Private 7 (6) n.a. 493 479 465 451 437 423 411 391 380 364 354 345 334 323 311 302 291 282 272 260 253 244 240 229 225 221 220 216 202 192 186 184 184 180 177 173 174 173 170 7 State and Insurance compalocal nies 4 governments (8) (7) n.a. 234 226 226 215 204 196 189 173 165 166 165 160 150 149 153 152 147 147 137 130 137 135 135 144 153 162 156 153 149 150 153 154 161 166 157 149 140 135 144 n.a. 265 266 268 270 270 269 271 272 259 255 253 248 241 232 226 222 210 200 191 171 163 159 152 142 155 169 185 198 197 196 200 202 201 195 193 188 183 175 172 Mutual funds 4, 8 (9) n.a. 1,083 1,076 1,107 1,036 987 971 974 898 808 766 747 709 660 666 669 660 660 704 714 758 631 440 467 344 293 258 263 248 234 243 254 254 247 249 264 256 249 252 275 State and Foreign local govern- and interments 4 national 9 (10) (11) n.a. 498 536 534 536 543 550 541 545 553 569 580 591 584 583 583 584 583 588 588 601 614 635 646 648 643 638 608 571 542 532 516 512 494 461 429 405 393 390 373 n.a. 5,653 5,595 5,725 5,574 5,476 5,311 5,145 5,007 4,912 4,691 4,481 4,436 4,324 4,070 3,878 3,685 3,571 3,461 3,266 3,077 2,802 2,587 2,506 2,353 2,235 2,192 2,195 2,103 2,025 1,978 2,082 2,034 1,930 1,878 1,952 1,849 1,795 1,735 1,670 Other investors 10 (12) n.a. 1,203 1,304 1,267 1,297 1,180 1,172 1,148 1,032 905 846 1,223 1,373 1,407 1,377 1,234 1,035 930 802 854 597 407 297 276 210 248 204 325 316 407 416 404 295 312 334 329 331 323 299 322 Includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan "G Fund." Includes money market mutual funds, mutual funds, and closed-end investment companies. 9 Source: Federal Reserve Board Treasury International Capital Survey. Includes nonmarketable foreign series, Treasury securities, and Treasury deposit funds. Excludes Treasury securities held under repurchase agreements in custody accounts at the Federal Reserve Bank of New York. For additional information, see: http://www.treasury.gov/resource-center/data-chart-center/tic/pages/index.aspx. 10 Includes individuals, Government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors. 8 43 INTRODUCTION: U.S. Currency and Coin Outstanding and in Circulation The U.S. Currency and Coin Outstanding and in Circulation (USCC) statement informs the public of the total face value of currency and coin used as a medium of exchange that is in circulation at the end of a given accounting month. The statement defines the total amount of currency and coin outstanding and the portion deemed to be in circulation. It includes some old and current rare issues that do not circulate or that may do so to a limited extent. Treasury includes them in the statement because the issues were originally intended for general circulation. The USCC statement provides a description of the various issues of paper money. It also gives an estimated average of currency and coin held by each individual, using estimates of population from the Bureau of the Census. USCC information has been published by Treasury since 1888, and was published separately until 1983, when it was incorporated into the “Treasury Bulletin.” The USCC comes from monthly reports compiled by Treasury offices, U.S. Mint offices, the Federal Reserve banks (FRBs), and the Federal Reserve Board. TABLE USCC-1.—Amounts Outstanding and in Circulation, December 31, 2013 [Source: Bureau of the Fiscal Service] Currency Amounts outstanding .............................. Total currency and coin (1) Total currency (2) Federal Reserve notes 1 (3) U.S. notes (4) Currency no longer issued (5) $1,446,469,446,294 $1,401,457,801,229 $1,400,976,602,817 $240,228,566 $240,969,846 The Treasury ....................................... 293,788,200 53,120,856 52,897,145 7,505 216,206 FRBs ................................................... 205,011,583,506 203,056,107,050 203,056,103,399 - 3,651 Amounts in circulation ............................. $1,241,164,074,588 $1,198,348,573,323 $1,197,867,602,273 $240,221,081 $240,749,989 Less amounts held by: Total (1) Dollars 2, 3 (2) Fractional coins (3) $45,011,645,065 $6,448,918,110 $38,562,726,955 The Treasury ....................................... 240,667,344 52,032,470 188,634,874 FRBs ................................................... 1,955,476,456 1,379,405,072 576,071,384 Amounts in circulation ............................. $42,815,501,265 $5,017,480,568 $ 37,798,020,697 Coins 2 Amounts outstanding .............................. Less amounts held by: See footnotes following table USCC-2. March 2014 U.S. CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION 44 TABLE USCC-2.—Amounts Outstanding and in Circulation, December 31, 2013 [Source: Bureau of the Fiscal Service] Currency in circulation by denomination $1 ................................................................................ Total (1) U.S. notes (3) Currency no longer issued (4) $10,469,736,904 $143,503 $141,220,178 Federal Reserve notes 1 (2) $10,611,100,585 $2 ................................................................................ 2,093,012,098 1,961,141,924 131,857,618 12,556 $5 ................................................................................ 12,691,750,860 12,558,542,575 108,198,710 25,009,575 $10 .............................................................................. 18,458,478,380 18,438,073,390 6,300 20,398,690 $20 .............................................................................. 154,995,790,800 154,975,686,980 3,840 20,099,980 $50 .............................................................................. 74,479,886,000 74,468,395,000 500 11,490,500 $100 ............................................................................ 924,705,850,000 924,683,879,500 4 - 21,970,500 $500 ............................................................................ 142,072,000 141,879,000 5,500 187,500 $1,000 ......................................................................... 165,407,000 165,197,000 5,000 205,000 $5,000 ......................................................................... 1,765,000 1,710,000 - 55,000 $10,000 ....................................................................... 3,460,000 3,360,000 - 100,000 Fractional notes 5 ........................................................ 600 - 90 510 Total currency ......................................................... $1,198,348,573,323 $1,197,867,602,273 $240,221,061 $240,749,989 Amounts (in millions) (1) Per capita 6 (2) Dec. 31, 2013 ....................................................................................... 1,241,164 3,910 Nov. 30, 2013 ....................................................................................... 1,227,512 3,868 Oct. 31, 2013 ........................................................................................ 1,218,356 3,842 Sept. 30, 2005 ...................................................................................... 766,487 2,578 Sept. 30, 2000 ...................................................................................... 568,614 2,061 Sept. 30, 1995 ...................................................................................... 409,272 1,553 Sept. 30, 1990 ...................................................................................... 278,903 1,105 Sept. 30, 1985 ...................................................................................... 187,337 782 Sept. 30, 1980 ...................................................................................... 129,916 581 June 30, 1975 ...................................................................................... 81,196 380 June 30,1970 ....................................................................................... 54,351 265 June 30, 1965 ...................................................................................... 39,719 204 June 30, 1960 ...................................................................................... 32,064 177 June 30, 1955 ...................................................................................... 30,229 183 Comparative totals of currency and coins in circulation—selected dates 1 4 2 5 Issued on or after July 1, 1929. Excludes coins sold to collectors at premium prices. 3 Includes $481,781,898 in standard silver dollars. March 2014 6 Represents current FRB adjustment. Represents value of certain partial denominations not presented for redemption. Based on Bureau of the Census’ estimates of population. Foreign Currency Positions Exchange Stabilization Fund 47 INTRODUCTION: Foreign Currency Positions The “Treasury Bulletin” reports foreign currency holdings of large foreign exchange market participants. These reports provide information on positions in derivative instruments, such as foreign exchange futures and options that are increasingly used in establishing foreign exchange positions but were not covered in the old reports. The information is based on reports of large foreign exchange market participants on holdings of five major foreign currencies (Canadian dollar, Japanese yen, Swiss franc, pound sterling, and euro) and the U.S. dollar. Positions in the U.S. dollar, which have been collected since January 1999, are intended to approximate “all other” currency positions of reporting institutions. U.S.-based businesses file a consolidated report for their domestic and foreign subsidiaries, branches, and agencies. U.S. subsidiaries of foreign entities file only for themselves, not for their foreign parents. Filing is required by law (31 United States Code 5315; 31 Code of Federal Regulations 128, Subpart C). Weekly and monthly reports must be filed throughout the calendar year by major foreign exchange market participants, which are defined as market participants with more than $50 billion equivalent in foreign exchange contracts on the last business day of any calendar quarter during the previous year (end March, September, September, or December). Such contracts include the amounts of foreign exchange spot contracts bought and sold, foreign exchange forward contracts bought and sold, foreign exchange futures bought and sold, and one half the notional amount of foreign exchange options bought and sold. A quarterly report must be filed throughout the calendar year by each foreign exchange market participant that had more than $5 billion equivalent in foreign exchange contracts on the last business day of any quarter the previous year (end March, September, September, or December). This information is published in six sections corresponding to each of the major currencies covered by the reports. Tables I-1 through VI-1 present the currency data reported weekly by major market participants. Tables I-2 through VI-2 present more detailed currency data of major market participants, based on monthly reports. Tables I-3 through VI-3 present quarterly consolidated currency data reported by large market participants that do not file weekly reports. The information in the tables referenced above is based on the reports referenced in this Introduction: Foreign Currency Positions and is not audited by the Federal Reserve banks or the Treasury Department. Principal exchanged under cross-currency interest rate swaps is reported as part of purchases or sales of foreign exchange. Such principal also was noted separately on monthly and quarterly reports through December 1998, when this practice was discontinued. The net options position, or the net delta-equivalent value of an options position, is an estimate of the relationship between an option’s value and an equivalent currency hedge. The delta equivalent value is defined as the product of the first partial derivative of an option valuation formula (with respect to the price of the underlying currency) multiplied by the notional principal of the contract. March 2014 FOREIGN CURRENCY POSITIONS 48 SECTION I.—Canadian Dollar Positions TABLE FCP-I-1.—Weekly Report of Major Market Participants [In millions of Canadian dollars. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Net options positions (3) Exchange rate (Canadian dollars per U.S. dollar) (4) 07/03/2013 ............................................................. 778,024 783,155 n.a. 1.0521 07/10/2013 ............................................................. 784,058 788,447 n.a. 1.0510 07/17/2013 ............................................................. 779,197 781,026 n.a. 1.0423 07/24/2013 ............................................................. 781,870 783,001 n.a. 1.0298 07/31/2013 ............................................................. 813,738 812,642 n.a. 1.0287 08/07/2013 ............................................................. 782,396 787,252 n.a. 1.0415 08/14/2013 ............................................................. 774,286 781,658 n.a. 1.0319 08/21/2013 ............................................................. 804,505 808,614 n.a. 1.0442 08/28/2013 ............................................................. 817,434 827,013 n.a. 1.0491 09/04/2013 ............................................................. 822,129 826,871 n.a. 1.0482 09/11/2013 ............................................................. 835,929 843,809 n.a. 1.0336 09/18/2013 ............................................................. 722,742 727,744 n.a. 1.0312 09/25/2013 ............................................................. 710,731 716,492 n.a. 1.0294 10/02/2013 ............................................................. 712,023 718,057 n.a. 1.0330 10/09/2013 ............................................................. 708,912 714,988 n.a. 1.0396 10/16/2013 ............................................................. 730,212 738,448 55 1.0345 10/23//2013 ............................................................ 758,189 766,260 35 1.0384 10/30/2013 ............................................................. 797,726 805,415 n.a. 1.0454 11/06/2013 ............................................................. 783,676 790,358 n.a. 1.0418 11/13/2013 ............................................................. 775,976 785,522 -84 1.0468 11/20/2013 ............................................................. 791,848 799,290 n.a. 1.0446 11/27/2013 ............................................................. 810,051 816,900 1,101 1.0595 12/04/2013 ............................................................. 820,256 828,069 -57 1.0696 12/11/2013 ............................................................. 834,927 841,198 -213 1.0605 12/18/2013 ............................................................. 798,393 806,884 371 1.0645 12/25/2013 ............................................................. 716,439 724,933 n.a. 1.0631 March 2014 FOREIGN CURRENCY POSITIONS 49 SECTION I.—Canadian Dollar Positions, continued TABLE FCP-I-2.—Monthly Report of Major Market Participants [In millions of Canadian dollars. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Options positions Calls Puts Bought Written Bought Written (5) (6) (7) (8) Exchange rate (Canadian dollars per Net delta U.S. dollar) equivalent (10) (9) 2011 - Dec ................... 782,263 788,863 163,515 149,859 33,077 35,638 40,751 36,810 -72 1.0168 2012 - Dec ................... 723,826 727,471 195,584 177,964 43,124 45,411 52,812 54,827 -821 0.9958 2013 - Jan ................... 807,851 810,025 203,824 187,597 49,512 53,871 67,890 55,325 -888 0.9992 Feb .................. 850,569 857,930 179,323 169,797 55,486 60,750 86,588 70,292 n.a. 1.0286 Mar .................. 781,456 789,411 185,180 178,005 52,293 68,172 91,568 66,872 n.a. 1.0174 Apr ................... 819,558 825,912 187,197 180,781 48,889 n.a. 116,119 68,094 109 1.0072 May.................. 886,145 890,580 187,915 187,302 59,586 87,716 122,555 81,022 n.a. 1.0337 June................. 780,031 783,200 186,980 189,185 58,923 83,676 111,640 76,776 n.a. 1.0513 July .................. 816,930 816,704 188,859 191,665 54,712 62,610 98,493 79,233 n.a. 1.0287 Aug .................. 814,831 818,337 190,520 190,770 51,238 65,260 153,325 126,729 n.a. 1.0554 Sept ................. 711,277 719,838 183,335 183,207 49,552 67,189 108,424 82,460 n.a. 1.0284 Oct ................... 794,819 800,227 182,012 185,795 54,832 60,812 108,963 89,827 -163 1.0429 Nov .................. 794,896 802,448 175,920 170,755 56,358 62,296 97,461 83,397 905 1.0597 Dec .................. 777,944 787,202 166,401 162,751 62,802 75,543 122,082 97,404 529 1.0637 TABLE FCP-I-3.—Quarterly Report of Large Market Participants [In millions of Canadian dollars. Source: Treasury Foreign Currency Reporting] Spot, forward and future contracts Purchased (1) Sold (2) Assets (3) Liabilities (4) 2010 - Dec ................... 13,412 26,103 92,168 2011 - Mar ................... 26,910 38,843 June.................. 20,248 34,127 Report date Written (8) Net delta equivalent (9) Exchange rate (Canadian dollars per U.S. dollar) (10) n.a. n.a. n.a. 0.9948 112 n.a. n.a. n.a. 0.9717 1,222 1,129 1,194 869 137 .0.9642 Foreign currency denominated Options positions Puts Calls Bought (5) Written (6) 50,946 n.a. n.a. 100,865 57,266 n.a. 81,226 45,781 Bought (7) Sept .................. 16,785 31,287 87,268 41,908 375 404 n.a. 471 118 1.0389 Dec ................... 18,977 33,319 77,674 38,291 695 544 n.a. n.a. n.a. 1.0168 2012 - Mar ................... 16,450 30,333 90,621 44,773 534 565 1,408 465 n.a. 0.9990 June.................. 22,308 34,176 85,428 45,946 n.a. 474 1,753 1,833 n.a. 1.0190 Sept .................. 21,078 33,681 90,487 47,000 n.a. n.a. 1,400 1,157 n.a. 0.9837 Dec ................... 19,395 30,069 73,597 45,414 n.a. n.a. 869 662 n.a. 0.9958 2013 - Mar ................... 17,015 32,402 88,822 53,718 276 467 3,545 2,502 n.a. 1.0174 June ................. 20,876 43,404 88,990 55,033 737 673 10,749 7,496 n.a. 1.0513 Sept .................. 17,469 35,073 89,931 55,451 n.a. 1,285 2,216 3,397 n.a. 1.0284 March 2014 FOREIGN CURRENCY POSITIONS 50 SECTION II.—Japanese Yen Positions TABLE FCP-II-1.—Weekly Report of Major Market Participants [In billions of Japanese yen. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Net options positions (3) Exchange rate (Japanese yen per U.S. dollar) (4) 07/03/2013 .............................................................. 360,787 366,591 -80 99.82 07/10/2013 .............................................................. 362,832 370,818 73 100.10 07/17/2013 .............................................................. 355,237 360,249 66 99.70 07/24/2013 .............................................................. 358,056 362,474 292 100.21 07/31/2013 .............................................................. 362,502 366,536 279 98.35 08/07/2013 .............................................................. 354,347 358,368 111 96.72 08/14/2013 .............................................................. 352,363 356,457 253 98.15 08/21/2013 .............................................................. 354,435 358,263 471 97.66 08/28/2013 .............................................................. 366,722 370,948 646 97.65 09/04/2013 .............................................................. 370,983 375,203 558 99.61 09/11/2013 .............................................................. 385,349 389,203 592 100.08 09/18/2013 .............................................................. 354,117 359,233 830 99.04 09/25/2013 .............................................................. 362,912 368,390 801 98.62 10/02/2013 .............................................................. 391,807 397,275 940 97.36 10/09/2013 .............................................................. 365,635 369,818 654 97.23 10/16/2013 .............................................................. 373,181 377,412 421 98.90 10/23//2013 ............................................................. 375,356 380,935 490 97.28 10/30/2013 .............................................................. 380,089 385,551 512 98.14 11/06/2013 .............................................................. 376,703 382,474 360 98.60 11/13/2013 .............................................................. 381,114 387,217 190 99.31 11/20/2013 .............................................................. 387,120 393,015 261 100.02 11/27/2013 .............................................................. 387,917 393,392 387 102.18 12/04/2013 .............................................................. 406,266 411,743 178 102.48 12/11/2013 .............................................................. 406,251 412,073 91 102.38 12/18/2013 .............................................................. 390,370 396,886 213 103.18 12/25/2013 .............................................................. 382,163 389,165 186 104.35 March 2014 FOREIGN CURRENCY POSITIONS 51 SECTION II.—Japanese Yen Positions, continued TABLE FCP-II-2.—Monthly Report of Major Market Participants [In billions of Japanese yen. Source: Treasury Foreign Currency Reporting] Spot, forward and future contracts Report date Purchased (1) Sold (2) Foreign currency denominated Assets (3) Options positions Puts Calls Liabilities (4) Bought (5) Written (6) Bought (7) Written (8) Net delta equivalent (9) Exchange rate (Japanese yen per U.S. dollar) (10) 2011 - Dec .................. 367,595 372,433 60,901 53,768 35,198 35,193 56,040 57,701 n.a. 76.98 2012 - Dec .................. 364,964 399,781 83,896 78,585 36,393 40,545 70,462 66,147 -131 86.64 2013 - Jan .................. 364,151 373,200 86,198 80,798 42,662 49,481 86,117 78,014 -424 91.28 Feb ................. 383,414 389,451 87,831 83,490 44,236 51,935 105,089 89,866 -272 92.36 Mar ................. 340,014 345,523 89,082 83,565 46,073 54,631 95,979 86,419 -565 94.16 Apr .................. 386,710 391,542 91,025 86,090 53,366 65,040 110,554 96,806 -296 97.52 May................. 401,225 407,023 93,618 89,673 51,099 59,563 102,481 93,425 -168 100.83 June................ 369,638 373,671 93,234 88,991 50,153 61,085 104,812 93,171 128 99.21 July ................. 363,061 366,881 93,636 88,515 48,618 59,142 99,055 87,771 279 98.35 Aug ................. 357,232 361,134 95,547 91,215 48,171 58,255 99,347 88,676 669 98.22 Sept ................ 368,080 373,070 96,249 91,788 48,537 58,103 93,250 83,703 808 98.29 Oct .................. 384,587 390,544 96,696 92,361 48,681 56,103 89,677 83,537 498 98.10 Nov ................. 392,908 398,626 99,457 94,219 52,132 61,824 95,422 87,075 320 102.45 Dec ................. 367,919 373,026 100,797 95,769 49,695 56,375 91,674 85,364 424 105.25 TABLE FCP-II-3.—Quarterly Report of Large Market Participants [In billions of Japanese yen. Source: Treasury Foreign Currency Reporting] Report date 2010 - Dec ................... Spot, forward and future contracts Purchased Sold (1) (2) 2,732 3,685 Foreign currency denominated Assets Liabilities (3) (4) 5,483 2,843 Calls Bought (5) Options positions Puts Written Bought Written (6) (7) (8) Net delta equivalent (9) Exchange rate (Japanese yen per U.S. dollar) (10) n.a. 206 329 n.a. -8 81.11 2011 - Mar ................... 2,855 3,816 6,500 3,476 77 238 820 276 -28 82.76 June ................. 2,767 3,392 5,139 2,569 233 327 837 422 -28 80.64 Sept .................. 2,899 3,480 4,698 2,446 n.a. 299 538 334 n.a. 77.04 Dec ................... 2,937 4,203 5,090 2,553 n.a. 314 447 129 12 76.98 2012 - Mar ................... 3,466 4,683 7,764 2,811 180 325 1,274 982 16 82.41 June ................. 4,081 5,603 6,045 2,285 47 276 749 499 17 79.81 Sept .................. 3,610 4,018 5,481 2,227 n.a. 279 689 336 -4 77.92 Dec ................... 3,576 5,481 5,971 2,412 230 358 1,853 1,175 -47 86.64 2013 - Mar ................... 3,089 5,704 9,256 4,631 n.a. 825 2,923 1,779 24 94.16 June.................. 4,222 5,249 9,282 4,576 541 1,048 2,640 1,828 63 99.21 Sept .................. 4,488 5,477 9,360 4,481 n.a. 906 2,077 1,561 24 98.29 March 2014 FOREIGN CURRENCY POSITIONS 52 SECTION III.—Swiss Franc Positions TABLE FCP-III-1.—Weekly Report of Major Market Participants [In millions of Swiss francs. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Net options positions (3) Exchange rate (Swiss francs per U.S. dollar) (4) 07/03/2013 .............................................................. 641,992 653,409 2,923 0.9475 07/10/2013 .............................................................. 654,136 667,084 2,772 0.9682 07/17/2013 .............................................................. 622,383 633,855 2,048 0.9428 07/24/2013 .............................................................. 611,696 620,709 685 0.9354 07/31/2013 .............................................................. 621,154 633,623 n.a. 0.9284 08/07/2013 .............................................................. 613,178 627,284 1,610 0.9222 08/14/2013 .............................................................. 629,733 643,455 1,406 0.9354 08/21/2013 .............................................................. 615,133 629,931 992 0.9211 08/28/2013 .............................................................. 647,233 662,209 893 0.9221 09/04/2013 .............................................................. 628,061 641,016 693 0.9356 09/11/2013 .............................................................. 659,535 669,710 1,053 0.9314 09/18/2013 .............................................................. 615,120 628,510 n.a. 0.9260 09/25/2013 .............................................................. 608,949 622,296 1,275 0.9082 10/02/2013 .............................................................. 633,441 647,147 1,006 0.9017 10/09/2013 .............................................................. 662,447 676,917 714 0.9104 10/16/2013 .............................................................. 673,340 685,922 -160 0.9163 10/23//2013 ............................................................. 676,625 688,279 n.a. 0.8918 10/30/2013 .............................................................. 716,184 729,856 -531 0.8964 11/06/2013 .............................................................. 693,194 704,644 3 0.9109 11/13/2013 .............................................................. 714,681 728,732 -30 0.9155 11/20/2013 .............................................................. 714,691 725,568 171 0.9158 11/27/2013 .............................................................. 721,055 732,459 -83 0.9091 12/04/2013 .............................................................. 740,340 749,770 -308 0.9052 12/11/2013 .............................................................. 772,745 784,414 -412 0.8856 12/18/2013 .............................................................. 763,439 774,405 n.a. 0.8872 12/25/2013 .............................................................. 690,658 698,714 n.a. 0.8958 March 2014 FOREIGN CURRENCY POSITIONS 53 SECTION III.—Swiss Franc Positions, continued TABLE FCP-III-2.—Monthly Report of Major Market Participants [In millions of Swiss francs. Source: Treasury Foreign Currency Reporting] Report date 2011 - Dec ................... Spot, forward and future contracts Purchased Sold (1) (2) 884,081 913,811 Foreign currency denominated Assets Liabilities (3) (4) Bought (5) Options positions Puts Written Bought Written (6) (7) (8) 127,681 93,533 135,380 133,882 160,846 153,679 Calls Exchange rate Net delta (Swiss francs per U.S. dollar) equivalent (10) (9) -41 0.9374 2012 - Dec ................... 654,579 683,540 158,819 85,852 86,352 88,023 102,871 101,876 -670 0.9155 2013 - Jan ................... 768,684 797,434 124,516 89,768 110,972 113,235 139,566 132,025 1,475 0.9093 Feb .................. 717,889 751,859 135,623 96,484 116,436 120,170 166,334 164,089 2,503 0.9336 Mar .................. 659,148 684,373 123,049 90,712 110,372 117,126 142,769 131,424 375 0.9490 Apr ................... 638,933 673,464 103,172 67,744 112,355 129,916 155,499 136,638 171 0.9298 May.................. 768,751 788,807 97,148 68,760 127,287 171,998 212,608 162,632 1,289 0.9583 June................. 660,601 673,216 80,775 58,463 122,106 152,009 185,295 152,196 3,247 0.9450 July .................. 621,792 635,209 71,849 50,463 120,334 139,241 180,971 157,680 n.a. 0.9284 Aug .................. 600,982 609,661 80,494 52,317 117,161 133,399 197,729 178,353 737 0.9313 Sept ................. 627,162 638,703 70,202 52,509 117,028 131,607 168,593 153,125 889 0.9041 Oct ................... 715,206 728,063 75,328 52,490 118,895 130,949 168,771 151,743 -28 0.9056 Nov .................. 708,418 716,350 74,589 63,849 118,237 126,523 160,429 146,994 -153 0.9047 Dec .................. 615,640 639,211 96,480 74,020 105,112 115,954 139,453 127,568 -472 0.8904 TABLE FCP-III-3.—Quarterly Report of Large Market Participants [In millions of Swiss francs. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Calls Bought (5) Options positions Puts Written Bought Written (6) (7) (8) Net delta equivalent (9) Exchange rate (Swiss francs per U.S. dollar) (10) 2010 - Dec ................... 9,513 14,149 52,189 10,966 233 n.a. 256 n.a. -27 0.9341 2011 - Mar ................... 10,382 15,792 49,574 8,475 47 n.a. 1,796 n.a. n.a. 0.9157 June ................. 9,726 15,257 50,996 7,859 n.a. n.a. n.a. n.a. n.a. 0.8413 Sept .................. 11,861 15,339 51,004 7,441 n.a. n.a. n.a. n.a. n.a. 0.9048 Dec ................... 12,282 19,706 48,877 8,420 n.a. n.a. n.a. n.a. n.a. 0.9374 2012 - Mar ................... 11,411 18,791 58,909 9,829 n.a. 1,872 4,637 4,153 n.a. 0.9026 June ................. 13,949 14,899 48,392 9,618 1,289 1,531 n.a. n.a. 4 0.9485 Sept .................. 13,646 14,961 n.a. 8,085 n.a. n.a. 944 1,286 8 0.9400 Dec ................... 14,365 16,096 n.a. 8,884 n.a. n.a. n.a. n.a. n.a. 0.9155 2013 - Mar ................... 16,520 21,737 n.a. 9,348 430 1,234 3,684 n.a. -54 0.9490 June.................. 17,279 17,163 n.a. 9,609 730 1,144 5,802 4,085 n.a. 0.9450 Sept .................. 15,003 12,498 n.a. 11,857 n.a. n.a. 3,891 2,400 n.a. 0.9041 March 2014 FOREIGN CURRENCY POSITIONS 54 SECTION IV.—Sterling Positions TABLE FCP-IV-1.—Weekly Report of Major Market Participants [In millions of pounds sterling. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Net options positions (3) Exchange rate (U.S. dollars per pound) (4) 07/03/2013 .............................................................. 1,603,649 1,567,943 n.a. 1.5264 07/10/2013 .............................................................. 1,644,404 1,621,433 n.a. 1.4935 07/17/2013 .............................................................. 1,665,721 1,649,701 n.a. 1.5184 07/24/2013 .............................................................. 1,637,198 1,621,831 n.a. 1.5367 07/31/2013 .............................................................. 1,687,241 1,670,642 n.a. 1.5177 08/07/2013 .............................................................. 1,695,542 1,686,674 n.a. 1.5514 08/14/2013 .............................................................. 1,654,419 1,646,139 n.a. 1.5531 08/21/2013 .............................................................. 1,657,023 1,650,464 n.a. 1.5678 08/28/2013 .............................................................. 1,702,473 1,701,521 n.a. 1.5520 09/04/2013 .............................................................. 1,667,092 1,660,978 n.a. 1.5643 09/11/2013 .............................................................. 1,735,159 1,724,750 n.a. 1.5807 09/18/2013 .............................................................. 1,654,438 1,643,906 -119 1.5965 09/25/2013 .............................................................. 1,631,303 1,622,847 n.a. 1.6080 10/02/2013 .............................................................. 1,582,059 1,569,790 353 1.6224 10/09/2013 .............................................................. 1,606,062 1,601,322 -666 1.5943 10/16/2013 .............................................................. 1,581,821 1,575,220 -989 1.5904 10/23//2013 ............................................................. 1,619,195 1,611,364 -1,519 1.6171 10/30/2013 .............................................................. 1,676,292 1,669,893 n.a. 1.6078 11/06/2013 .............................................................. 1,665,612 1,654,015 n.a. 1.6080 11/13/2013 .............................................................. 1,698,068 1,688,992 n.a. 1.6033 11/20/2013 .............................................................. 1,721,184 1,713,972 n.a. 1.6150 11/27/2013 .............................................................. 1,709,577 1,701,488 n.a. 1.6267 12/04/2013 .............................................................. 1,713,757 1,707,776 n.a. 1.6352 12/11/2013 .............................................................. 1,729,214 1,720,504 n.a. 1.6389 12/18/2013 .............................................................. 1,705,540 1,691,950 n.a. 1.6388 12/25/2013 .............................................................. 1,537,113 1,520,778 n.a. 1.6360 March 2014 FOREIGN CURRENCY POSITIONS 55 SECTION IV.—Sterling Positions, continued TABLE FCP-IV-2.—Monthly Report of Major Market Participants [In millions of pounds sterling. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Bought (5) Options positions Puts Written Bought Written (6) (7) (8) Calls 2011 - Dec ................... 1,372,844 1,430,284 603,807 492,225 53,956 52,416 60,517 60,664 2012 - Dec ................... 1,457,283 1,438,257 658,674 554,948 46,300 45,013 48,575 2013 - Jan ................... 1,677,493 1,651,760 638,253 551,188 53,592 86,346 99,707 Feb .................. 1,742,402 1,723,009 635,481 537,504 66,473 n.a. Mar .................. 1,637,994 1,622,393 637,349 542,434 73,239 Apr ................... 1,684,697 1,659,558 613,972 539,805 May.................. 1,730,801 1,697,334 599,499 June................. 1,645,811 1,619,769 581,864 July .................. 1,691,970 1,674,202 Aug .................. 1,631,825 Net delta equivalent (9) Exchange rate (U.S. dollars per pound) (10) n.a. 1.5537 51,867 n.a. 1.6262 70,387 -490 1.5856 221,642 120,562 52 1.5192 98,708 129,208 102,655 -664 1.5193 75,451 103,072 134,577 104,822 n.a. 1.5539 520,823 72,955 96,068 135,434 110,790 n.a. 1.5185 506,029 73,518 95,886 128,913 102,991 n.a. 1.5210 589,832 512,196 80,758 102,726 149,502 119,894 n.a. 1.5177 1,624,850 579,353 502,514 74,160 82,034 113,169 99,766 162 1.5468 Sept ................. 1,590,758 1,578,000 569,889 490,430 76,225 78,736 94,800 88,849 -180 1.6179 Oct ................... 1,679,737 1,677,088 617,239 534,485 74,634 76,360 91,078 87,573 n.a. 1.6068 Nov .................. 1,705,094 1,698,910 586,099 516,602 81,385 81,323 88,086 85,814 n.a. 1.6373 Dec .................. 1,560,072 1,549,461 558,331 482,587 68,177 65,277 71,494 73,631 -179 1.6574 TABLE FCP-IV-3.—Quarterly Report of Large Market Participants [In millions of pounds sterling. Source: Treasury Foreign Currency Reporting] Report date 2010 - Dec ................... Spot, forward and future contracts Purchased Sold (1) (2) 8,984 13,361 Foreign currency denominated Assets Liabilities (3) (4) 113,538 Calls Bought (5) Options positions Puts Written Bought Written (6) (7) (8) Net delta equivalent (9) Exchange rate (U.S. dollars per pound) (10) 1.5598 43,007 n.a. n.a. n.a. n.a. n.a. 2011 - Mar ................... 14,298 16,138 118,729 43,723 n.a. n.a. n.a. n.a. -106 1.6048 June ................. 10,468 12,578 115,514 38,337 n.a. n.a. n.a. 371 n.a. 1.6067 Sept .................. 15,005 14,989 131,501 44,370 n.a. n.a. 2,711 715 -178 1.5624 Dec ................... 11,774 12,622 127,285 29,650 n.a. n.a. n.a. 657 74 1.5537 2012 - Mar ................... 14,740 12,296 127,456 32,805 705 347 2,298 623 5 1.5985 June ................. 11,790 11,560 165,914 47,081 668 429 2,271 570 16 1.5686 Sept .................. 16,441 15,379 147,991 33,874 n.a. n.a. 2,046 409 -18 1.6132 Dec ................... 18,837 16,899 57,032 32,581 n.a. n.a. n.a. n.a. n.a. 1.6262 2013 - Mar ................... 22,023 21,376 68,646 38,456 332 497 3,585 856 -12 1.5193 June.................. 25,286 23,953 66,608 37,013 714 977 3,877 1,328 39 1.5210 Sept .................. 22,298 18,411 68,374 35,752 1,006 1,145 n.a. 1,287 155 1.6179 March 2014 FOREIGN CURRENCY POSITIONS 56 SECTION V.—U.S. Dollar Positions TABLE FCP-V-1.—Weekly Report of Major Market Participants [In millions of U.S. dollars. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Net options positions (3) Exchange rate (4) 07/03/2013 ............................................................ 17,739,074 17,321,088 1,425 n.a. 07/10/2013 ............................................................ 18,167,491 17,726,024 6,595 n.a. 07/17/2013 ............................................................ 18,095,653 17,645,118 3,286 n.a. 07/24/2013 ............................................................ 18,107,110 17,776,829 -4,650 n.a. 07/31/2013 ............................................................ 18,614,484 18,179,339 -4,775 n.a. 08/07/2013 ............................................................ 17,798,654 17,332,163 84 n.a. 08/14/2013 ............................................................ 17,827,544 17,354,521 -4,060 n.a. 08/21/2013 ............................................................ 18,029,077 17,524,372 -3,800 n.a. 08/28/2013 ............................................................ 18,676,402 18,181,420 -2,046 n.a. 09/04/2013 ............................................................ 18,327,100 17,850,168 -1,127 n.a. 09/11/2013 ............................................................ 19,119,736 18,654,087 -504 n.a. 09/18/2013 ............................................................ 17,932,688 17,459,565 776 n.a. 09/25/2013 ............................................................ 18,186,154 17,711,143 -3,816 n.a. 10/02/2013 ............................................................ 17,749,207 17,232,840 -6,233 n.a. 10/09/2013 ............................................................ 17,815,337 17,309,436 -137 n.a. 10/16/2013 ............................................................ 18,201,906 17,674,379 4,111 n.a. 10/23//2013 ........................................................... 18,615,573 18,078,827 1,290 n.a. 10/30/2013 ............................................................ 19,370,418 18,789,001 1,555 n.a. 11/06/2013 ............................................................ 18,806,290 18,252,545 469 n.a. 11/13/2013 ............................................................ 19,405,671 18,839,482 7,986 n.a. 11/20/2013 ............................................................ 19,642,851 19,102,136 4,000 n.a. 11/27/2013 ............................................................ 19,886,510 19,351,188 2,687 n.a. 12/04/2013 ............................................................ 19,909,376 19,380,437 3,531 n.a. 12/11/2013 ............................................................ 20,510,685 19,986,590 1,530 n.a. 12/18/2013 ............................................................ 19,519,164 18,984,634 439 n.a. 12/25/2013 ............................................................ 18,468,998 17,902,529 -99 n.a. March 2014 FOREIGN CURRENCY POSITIONS 57 SECTION V.—U.S. Dollar Positions, continued TABLE FCP-V-2.—Monthly Report of Major Market Participants [In millions of U.S. dollars. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Calls Bought (5) Written (6) Options positions Puts Bought Written (7) (8) Net delta equivalent (9) Exchange rate (10) 2011 - Dec .............. 19,824,454 19,659,998 - - 1,960,401 1,864,790 2,067,617 1,995,663 -4,242 n.a. 2012 - Dec .............. 17,398,629 16,771,084 - - 1,550,821 2,000,809 1,229,560 1,766,978 1,689 n.a. 2013 - Jan .............. 19,567,518 19,147,340 - - 1,596,533 1,513,685 1,178,289 1,215,025 9,221 n.a. Feb ............. 19,885,930 19,517,370 - - 1,767,592 1,864,088 1,278,583 1,548,621 11,170 n.a. Mar ............. 18,185,851 17,729,905 - - 1,825,082 1,723,900 1,232,546 1,312,701 9,466 n.a. Apr .............. 18,849,906 18,425,422 - - 1,951,646 1,811,444 1,368,366 1,456,066 5,958 n.a. May............. 19,847,383 19,415,262 - - 1,941,273 1,858,474 1,401,262 1,440,136 -1,730 n.a. June............ 18,665,861 18,230,134 - - 1,995,665 1,873,388 1,416,498 1,479,492 -681 n.a. July ............. 18,882,611 18,423,688 - - 2,046,196 1,897,017 1,384,917 1,481,170 -4,740 n.a. Aug ............. 18,429,077 17,943,883 - - 2,045,486 1,898,114 1,392,635 1,486,109 -363 n.a. Sept ............ 18,211,622 17,633,545 - - 1,828,403 1,714,314 1,368,301 1,424,339 -2,709 n.a. Oct .............. 19,429,008 18,852,211 - - 1,790,659 1,743,262 1,419,376 1,442,357 -191 n.a. Nov ............. 19,746,921 19,191,943 - - 2,497,609 1,761,318 2,123,797 1,521,380 2,715 n.a. Dec ............. 18,146,995 17,569,818 - - 1,682,472 1,649,879 1,356,942 1,366,251 2,182 n.a. TABLE FCP-V-3.—Quarterly Report of Large Market Participants [In millions of U.S. dollars. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Calls Bought (5) Written (6) Options positions Puts Bought Written (7) (8) Net delta equivalent (9) Exchange rate (10) 2010 - Dec ................... 270,278 247,274 - - 14,838 14,605 11,007 9,394 -901 n.a. 2011 - Mar ................... 308,306 268,728 - - 23,859 13,314 19,004 14,882 -1,380 n.a. June ................. 303,785 266,617 - - 28,158 15,066 30,490 26,443 -2,250 n.a. Sept .................. 307,505 258,447 - - 25,246 16,710 41,329 26,316 -598 n.a. Dec ................... 280,638 237,104 - - 29,815 11,500 18,618 19,252 -1,380 n.a. 2012 - Mar ................... 288,754 266,557 - - 30,838 21,200 24,943 21,699 210 n.a. June ................. 302,534 263,951 - - 36,184 22,751 13,751 15,998 n.a. n.a. Sept .................. 271,014 297,070 - - 25,109 13,575 20,027 16,847 n.a. n.a. Dec ................... 316,746 316,764 - - 33,820 24,090 27,325 11,864 n.a. n.a. 2013 - Mar ................... 326,700 307,558 - - 57,680 33,599 20,709 21,604 n.a. n.a. Jun.................... 324,857 305,608 - - 98,395 64,260 25,319 25,299 1,863 n.a. Sept .................. 275,551 315,379 - - 57,525 36,377 28,655 25,091 n.a. n.a. March 2014 FOREIGN CURRENCY POSITIONS 58 SECTION VI.—Euro Positions TABLE FCP-VI-1.—Weekly Report of Major Market Participants [In millions of euros. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Net options positions (3) Exchange rate (Euros per U.S. dollar) (4) 07/03/2013 ......................................................................... 5,034,948 4,990,239 2,699 0.7689 07/10/2013 ......................................................................... 5,183,603 5,134,199 -508 0.7785 07/17/2013 ......................................................................... 5,096,911 5,049,849 1,543 0.7637 07/24/2013 ......................................................................... 5,055,820 5,019,228 n.a. 0.7560 07/31/2013 ......................................................................... 5,203,844 5,165,984 n.a. 0.7529 08/07/2013 ......................................................................... 4,923,869 4,897,927 n.a. 0.7502 08/14/2013 ......................................................................... 4,949,019 4,929,298 n.a. 0.7544 08/21/2013 ......................................................................... 4,972,759 4,952,468 n.a. 0.7481 08/28/2013 ......................................................................... 5,176,272 5,154,575 n.a. 0.7504 09/04/2013 ......................................................................... 5,065,520 5,032,658 n.a. 0.7569 09/11/2013 ......................................................................... 5,295,921 5,266,458 2,870 0.7518 09/18/2013 ......................................................................... 5,006,867 4,985,276 4,067 0.7490 09/25/2013 ......................................................................... 5,128,208 5,108,051 n.a. 0.7388 10/02/2013 ......................................................................... 4,924,992 4,929,539 n.a. 0.7357 10/09/2013 ......................................................................... 5,004,312 5,004,865 n.a. 0.7400 10/16/2013 ......................................................................... 5,051,317 5,049,679 3,069 0.7413 10/23//2013 ........................................................................ 5,201,968 5,194,597 5,082 0.7254 10/30/2013 ......................................................................... 5,430,218 5,418,222 n.a. 0.7262 11/06/2013 ......................................................................... 5,260,863 5,261,506 n.a. 0.7391 11/13/2013 ......................................................................... 5,457,615 5,464,515 4,009 0.7432 11/20/2013 ......................................................................... 5,543,327 5,556,150 n.a. 0.7434 11/27/2013 ......................................................................... 5,597,319 5,621,579 5,610 0.7373 12/04/2013 ......................................................................... 5,549,032 5,592,751 n.a. 0.7377 12/11/2013 ......................................................................... 5,745,196 5,767,837 n.a. 0.7247 12/18/2013 ......................................................................... 5,491,572 5,525,575 n.a. 0.7264 12/25/2013 ......................................................................... 5,114,033 5,148,715 n.a. 0.7310 March 2014 FOREIGN CURRENCY POSITIONS 59 SECTION VI.—Euro Positions, continued TABLE FCP-VI-2.—Monthly Report of Major Market Participants [In millions of euros. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Bought (5) Written (6) Calls Options positions Puts Bought Written (7) (8) Net delta equivalent (9) Exchange rate (10) 2011 - Dec ................... 5,557,886 5,594,727 2,212,049 2,098,286 380,524 430,827 565,230 521,678 -8,026 0.7708 2012 - Dec ................... 4,742,320 4,617,740 2,124,942 1,995,883 345,564 383,059 431,599 400,556 -3,395 0.7584 2013 - Jan ................... 5,533,187 5,411,447 2,070,571 1,932,021 419,502 406,678 421,143 424,355 2,590 0.7362 Feb .................. 5,711,400 5,616,840 2,095,782 1,980,412 377,951 450,952 485,330 442,258 -317 0.7646 Mar .................. 5,275,002 5,183,932 2,098,352 1,986,269 376,009 399,661 460,995 419,430 1,007 0.7803 Apr ................... 5,256,805 5,176,470 2,091,683 1,989,291 376,907 395,581 454,047 423,584 1,318 0.7594 May.................. 5,476,174 5,412,009 2,040,447 1,959,135 390,222 395,208 446,123 429,359 3,674 0.7699 June................. 5,287,699 5,223,223 1,971,010 1,890,657 381,746 392,708 442,864 410,420 3,428 0.7686 July .................. 5,220,260 5,177,601 1,841,488 1,758,210 375,744 401,996 461,646 418,322 n.a. 0.7529 Aug .................. 5,051,155 5,020,424 1,979,141 1,898,153 360,458 394,891 449,771 409,472 n.a. 0.7578 Sept ................. 4,983,867 4,981,003 1,873,625 1,798,450 361,071 391,608 433,625 390,856 n.a. 0.7388 Oct ................... 5,418,472 5,428,512 973,146 887,604 391,353 429,283 468,266 426,603 n.a. 0.7356 Nov .................. 5,466,526 5,502,024 1,989,944 1,890,343 388,243 423,382 469,250 433,541 6,233 0.7350 Dec .................. 4,986,374 5,023,973 1,899,825 1,777,324 334,550 358,527 391,263 369,449 6,489 0.7257 TABLE FCP-VI-3.—Quarterly Report of Large Market Participants [In millions of euros. Source: Treasury Foreign Currency Reporting] Report date Spot, forward and future contracts Purchased Sold (1) (2) Foreign currency denominated Assets Liabilities (3) (4) Calls Bought (5) Options positions Puts Written Bought Written (6) (7) (8) Net delta equivalent (9) Exchange rate (10) 2010 - Dec ................... 59,618 69,885 239,412 119,562 9,683 2,980 7,674 7,781 -115 0.7467 2011 - Mar ................... 68,004 77,932 261,631 131,370 10,426 3,469 6,505 6,628 534 0.7051 June ................. 64,976 75,325 277,916 140,625 11,741 6,946 13,773 8,825 -624 0.6886 Sept .................. 67,032 80,620 273,218 122,781 11,708 7,866 13,578 10,704 -1,065 0.7436 Dec ................... 68,457 76,675 275,793 110,758 8,485 4,847 6,131 8,070 -909 0.7708 2012 - Mar ................... 78,078 82,647 318,663 135,064 10,420 4,907 9,969 11,105 70 0.7500 June ................. 73,202 69,492 494,312 209,043 15,867 7,315 13,923 12,535 n.a. 0.7894 Sept .................. 88,373 76,674 274,639 123,965 9,525 4,526 6,688 6,407 28 0.7778 Dec ................... 69,920 61,111 202,499 120,619 8,126 2,152 3,662 n.a. 8 0.7584 2013 - Mar ................... 86,922 82,911 226,324 238,669 7,953 6,697 11,137 6,602 n.a. 0.7803 June.................. 80,198 71,480 225,064 138,339 10,852 5,750 15,771 12,375 313 0.7686 Sept .................. 71,851 66,210 242,344 150,495 11,714 4,796 7,815 5,601 818 0.7388 March 2014 60 INTRODUCTION: Exchange Stabilization Fund To stabilize the exchange value of the dollar, the Exchange Stabilization Fund (ESF) was established pursuant to chapter 6, section 10 of the Gold Reserve Act of January 30, 1934 (codified at 31 United States Code 5302), which authorized establishment of a Treasury fund to be operated under the exclusive control of the Secretary, with approval of the President. Subsequent amendment of the Gold Reserve Act modified the original purpose somewhat to reflect termination of the fixed exchange rate system. Resources of the fund include dollar balances, partially invested in U.S. Government securities, special drawing rights (SDRs), and balances of foreign currencies. Principal sources of income (+) or loss (-) for the fund are profits (+) or losses (-) on SDRs and foreign exchange, as well as interest earned on assets. Table ESF-1 presents the assets, liabilities, and capital of the fund. The figures are in U.S. dollars or their equivalents based on current exchange rates computed according to the accrual method of accounting. The capital account represents the original capital appropriated to the fund by Congress of $2 billion, minus a subsequent transfer of $1.8 billion to pay for the initial U.S. quota subscription to the International Monetary Fund. Gains and losses are reflected in the cumulative net income (+) or loss (-) account. Table ESF-2 shows the results of operations by quarter. Figures are in U.S. dollars or their equivalents computed according to the accrual method. “Profit (+) or loss (-) on foreign exchange” includes realized profits or losses. “Adjustment for change in valuation of SDR holdings and allocations” reflects net gain or loss on revaluation of SDR holdings and allocations for the quarter. TABLE ESF-1.—Balances as of June 30, 2013, and September 30, 2013 [In thousands of dollars. Source: Office of the Assistant Secretary of the Treasury for Management] June 30, 2013 July 1, 2013, through Sept. 30, 2013 22,673,239 53,881,299 -3,968 1,084,735 22,669,271 54,966,034 14,072,855 9,389,560 86,397 587,260 92,490 -834 14,660,115 9,482,050 85,563 Total assets.......................................................................... 100,103,350 1,759,683 101,863,033 Liabilities and capital Current liabilities: Accounts payable................................................................. 5,806 656 6,462 Total current liabilities ...................................................... 5,806 656 6,462 Other liabilities: SDR certificates ................................................................... SDR allocations ................................................................... Unearned revenue .............................................................. 5,200,000 53,113,371 - 1,063,709 - 5,200,000 54,177,080 - Total other liabilities ......................................................... 58,313,371 1,063,709 59,377,080 Capital: Capital account .................................................................... Net income (+) or loss (-) (see Table ESF-2) ...................... 200,000 -2,324,809 695,397 200,000 -1,629,412 Assets, liabilities, and capital Assets U.S. dollars: Held with Treasury: Fund Balance ................................................................... U.S. Government securities ............................................. Government Sponsored Enterprises (GSE) Securities ... Special drawing rights 1 ........................................................... Foreign exchange and securities: European euro ..................................................................... Japanese yen....................................................................... Accounts receivable ................................................................. Sept. 30, 2013 Total capital...................................................................... 41,784,173 695,318 42,479,491 Total liabilities and capital ............................................ 100,103,350 1,759,683 101,863,033 See footnote on the following page. March 2014 EXCHANGE STABILIZATION FUND 61 TABLE ESF-2.—Income and Expense [In thousands of dollars. Source: Office of the Assistant Secretary of the Treasury for Management] Current quarter July 1, 2013, through Sept. 30, 2013 Fiscal year to date Oct. 1, 2012, through Sept. 30, 2013 Income and expense Profit (+) or loss (-) on: Foreign exchange ........................................................................ 655,625 -1,741,739 Adjustment for change in valuation of SDR holdings and allocations 1 .............................................. 15,458 -3,910 SDRs ............................................................................................ 17 412 U.S. Government securities ......................................................... 1,442 12,645 GSE Securities............................................................................. - - Foreign exchange ........................................................................ 22,855 103,180 Insurance premiums .................................................................... - - Commissions ............................................................................... - - Income from operations ............................................................... 695,397 -1,629,412 Net income (+) or loss (-) ............................................................. 695,397 -1,629,412 Interest (+) or net charges (-) on: 1 Beginning July 1974, the International Monetary Fund adopted a technique for valuing the SDRs based on a weighted average of exchange rates for the currencies of selected member countries. The U.S. SDR holdings and allocations are valued on this basis beginning July 1974. Note. — Annual balance sheets for fiscal years 1934 through 1940 appeared in the 1940 “Annual Report of the Secretary of the Treasury” and those for succeeding years appeared in subsequent reports through 1980. Quarterly balance sheets beginning with December 31, 1938, have been published in the “Treasury Bulletin.” Data from inception to September 30, 1978, may be found on the statements published in the January 1979 “Treasury Bulletin.” March 2014 Financial Report of the United States Government Excerpt Trust Funds 65 INTRODUCTION: Financial Report of the United States Government The following pages are excerpted from the 2013 Financial Report of the United States Government (Financial Report). The report and accompanying information, prepared and published annually by the Financial Management Service, are modeled after corporate-type reports and are developed on an accrual basis of accounting. The excerpts represent some of the most noteworthy information contained in the Financial Report. Data for the Financial Report are compiled from Federal program agency accounting systems Governmentwide. Treasury also presents a management discussion and analysis, the customary notes to the financial statements, a section on stewardship information, and supplemental information in the complete document. The Government Accountability Office (GAO) is required by law to audit the Financial Report. GAO’s report, as well as the complete Financial Report, can be accessed easily through the internet at www.fms.treas.gov/fr. March 2014 66 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT Financial Statements of the United States Government for the Years Ended September 30, 2013, and 2012 Statements of Net Cost These statements present the net cost of the United States Government (Government)1 operations for Fiscal Years 2013 and 2012, including the operations related to funds from dedicated collections (funds financed by specifically identified revenues, often supplemented by other financing sources, which remain available over time). The Government’s fiscal year begins October 1 and ends September 30. Costs and earned revenues are categorized on the Statement of Net Cost by significant entity, providing greater accountability by showing the relationship of the agencies’ net cost to the Governmentwide net cost. Costs and earned revenues are presented in this Financial Report by significant entity on an accrual basis, while the budget presents costs and revenues by obligations and receipts, generally on a cash basis. The focus of the budget of the United States is by agency. Budgets are prepared, defended, and monitored by agency. In reporting by agency, we are assisting the external users in assessing the budget integrity, operating performance, stewardship, and systems and controls of the Government. These statements contain the following four components: Gross cost—is the full cost of all the departments and entities excluding (gain)/loss from changes in assumptions. These costs are assigned on a cause-and-effect basis, or reasonably allocated to the corresponding departments and entities. Earned revenue—is exchange revenue resulting from the Government providing goods and services to the public at a price. (Gain)/loss from changes in assumptions—is the gain or loss from changes in long-term assumptions used to measure the liabilities reported for federal civilian and military employee pensions, other post-employment benefits, and other retirement benefits, including veterans’ compensation. Net cost—is computed by subtracting earned revenue from gross cost, adjusted by the (gain)/loss from changes in assumptions. Individual agency net cost amounts will differ from the agency’s financial statements primarily because of allocations of Office of Personnel Management (OPM) benefit program costs and intragovernmental eliminations, as adjusted for buy/sell cost, buy/sell revenues and imputed costs. Because of its specific function, most of the costs originally associated with OPM have been allocated to their user agencies for Governmentwide reporting purposes. The remaining costs for OPM on the Statements of Net Cost are the administrative operating costs, the expenses from prior and past costs from health and pension plan amendments, and the actuarial gains and losses, if applicable. With regard to intragovernmental buy/sell costs and related revenues, the amounts recognized by each agency are added to, and subtracted from, respectively, the individual agency non-federal net cost amounts. Because of the specific functions of the General Services Administration (GSA), as the primary provider of goods and services to federal agencies, once GSA’s net cost is adjusted for its intragovernmental buy/sell costs and related revenues, the remaining costs for GSA on the Statements of Net Cost are its administrative operating costs. In addition, the intragovernmental imputed costs recognized for the receipt of goods and services, financed in whole or part by the providing agencies, are added to the individual agency non-federal net cost amounts. The interest on securities issued by the Department of the Treasury (Treasury) and held by the public is reported on Treasury’s financial statements, but, because of its importance and the dollar amounts involved, it is reported separately in these statements. 1 For purposes of this document, “Government” refers to the U.S. Government. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 67 Statements of Operations and Changes in Net Position These statements report the results of Government operations, which include the results of operations for funds from dedicated collections. They include nonexchange revenues which are generated from transactions where the government gives (or receives) value without giving (or receiving) equal value in return. These are generated principally by the Government’s sovereign power to tax, levy duties, and assess fines and penalties. These statements also present the cost of Government operations, net of revenue earned from the sale of goods and services to the public (exchange revenue). They further include certain adjustments and unreconciled transactions that affect the net position. Revenue Individual income tax and tax withholdings include Federal Insurance Contributions Act (FICA)/Self-Employment Contributions Act (SECA) taxes and other taxes. These taxes are characterized as nonexchange revenue. Excise taxes consist of taxes collected for various items, such as airline tickets, gasoline products, distilled spirits and imported liquor, tobacco, firearms, and other items. These also are characterized as nonexchange revenue. Other taxes and receipts include Federal Reserve Banks (FRBs) earnings, tax related fines, penalties and interest, and railroad retirement taxes. Miscellaneous earned revenues consist of earned revenues received from the public with virtually no associated cost. These revenues include rents and royalties on the Outer Continental Shelf Lands resulting from the leasing and development of mineral resources on public lands. Generally, funds from dedicated collections are financed by specifically identified revenues, provided to the government by non-federal sources, often supplemented by other financing sources, which remain available over time. These specifically identified revenues and other financing sources are required by statute to be used for designated activities, benefits or purposes, and must be accounted for separately from the Government’s general revenue. See Note 22—Funds from Dedicated Collections for detailed information. Intragovernmental interest represents interest earned from the investment of surplus dedicated collections, which finance the deficit spending of all other fund’s non-dedicated operations. These investments are recorded as intragovernmental debt holdings and are included in Note 12—Federal Debt Securities Held by the Public and Accrued Interest, in the table titled Intragovernmental Debt Holdings: Federal Debt Securities Held as Investments by Government Accounts. These interest payments and the associated investments are eliminated in the consolidation process. Net Cost of Government Operations The net cost of Government operations (gross cost [including (gains)/losses from changes in assumptions] less earned revenue) flows through from the Statements of Net Cost. The net cost associated with funds from dedicated collections activities is separately reported. Intragovernmental Transfers Intragovernmental transfers reflect budgetary and other financing sources for funds from dedicated collections, excluding financing sources related to nonexchange, intragovernmental interest and miscellaneous revenues. These intragovernmental transfers include appropriations, transfers and other financing sources. These amounts are labeled as “other changes in fund balance” in Note 22—Funds from Dedicated Collections. Some transfers reflect amounts required by statute to be transferred from the General Fund of the Treasury to funds from dedicated collections. An example is the annual transfer to the Department of Health and Human Services’ (HHS) Supplementary Medical Insurance Trust Fund Medicare Parts B and D which received approximately 75 percent and 74 percent, respectively, of 2013 program costs, from the General Fund. March 2014 68 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT Unmatched Transactions and Balances Unmatched transactions and balances are adjustments needed to bring the change in net position into balance due to unreconciled intragovernmental differences and unreconciled General Fund differences, agency reporting errors and restatements in the consolidated financial statements. See Note 1.T—Unmatched Transactions and Balances for detailed information. The unmatched transactions and balances are included in net operating cost to make the sum of net operating costs and prior period adjustments for the year equal to the change in the net position balance. Net Position, Beginning of Period The net position, beginning of period, reflects the net position reported on the prior year’s balance sheet as of the end of that fiscal year. The net position for funds from dedicated collections is shown separately. Prior-period adjustments are revisions to adjust the beginning net position and balances presented on the prior year financial statements due to corrections of errors or changes in accounting principles. See Note 19—Prior Period Adjustments for detailed information. Net Position, End of Period The net position, end of period, amount reflects the net position as of the end of the fiscal year. The net position for funds from dedicated collections is separately shown. Reconciliations of Net Operating Cost and Unified Budget Deficit These statements reconcile the results of operations (net operating cost) on the Statements of Operations and Changes in Net Position to the unified budget deficit. The premise of the reconciliation is that the accrual and budgetary accounting bases share transaction data. Receipts and outlays in the budget are measured primarily on a cash basis and differ from the accrual basis of accounting used in the Financial Report. Refer to Note 1.B—Basis of Accounting and Revenue Recognition for details. These statements begin with the net results of operations (net operating cost), where operating revenues are reported on a modified cash basis of accounting and the net cost of Government operations on an accrual basis of accounting and report activities where the bases of accounting for the components of net operating cost and the unified budget deficit differ. Components of Net Operating Cost Not Part of the Budget Deficit This information includes the operating components, such as the changes in benefits payable for veterans, military and civilian employees, the environmental and disposal liabilities, and depreciation expense, not included in the budget results. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 69 Components of the Budget Deficit Not Part of Net Operating Cost This information includes the budget components, such as capitalized fixed assets (that are recorded as outlays in the budget when purchased and reflected in net operating cost through depreciation expense over the useful life of the asset), and increases in other assets that are not included in the operating results. Statements of Changes in Cash Balance from Unified Budget and Other Activities The primary purpose of these statements is to report how the annual unified budget deficit relates to the change in the Government’s cash and other monetary assets and debt held by the public. It explains why the unified budget deficit normally would not result in an equivalent change in the Government’s cash and other monetary assets. These statements reconcile the unified budget deficit to the change in cash and other monetary assets during the fiscal year and explain how the budget deficits were financed. A budget deficit is the result of outlays (expenditures) exceeding receipts (revenue) during a particular fiscal year. The budget deficit is primarily financed through borrowings from the public. Other transactions such as the payment of interest on debt held by the public also require cash disbursements and are not part of the deficit. The budget deficit also includes certain amounts that are recognized in the budget and will be disbursed in a future period or are adjustments that did not affect the cash balance. These amounts include interest accrued on debt issued by Treasury and held by the public and subsidy expense related to direct and guaranteed loans. These statements show the adjustments for noncash outlays included in the budget and items affecting the cash balance not included in the budget to explain the change in cash and other monetary assets. Balance Sheets The balance sheets show the Government’s assets, liabilities, and net position. When combined with stewardship information, this information presents a more comprehensive understanding of the Government’s financial position. The net position for funds from dedicated collections is shown separately. Assets Assets included on the balance sheets are resources of the Government that remain available to meet future needs. The most significant assets that are reported on the balance sheets are loans receivable, net; property, plant, and equipment (PP&E), net; inventories and related property, net; and cash and other monetary assets. There are, however, other significant resources available to the Government that extend beyond the assets presented in these balance sheets. Those resources include the Government’s sovereign powers to tax, and set monetary policy. Liabilities and Net Position Liabilities are obligations of the Government resulting from prior actions that will require financial resources. The most significant liabilities reported on the balance sheets are Federal debt securities held by the public and accrued interest and Federal employee and veteran benefits payable. Liabilities also include environmental and disposal liabilities, benefits due and payable, and insurance and guarantee program liabilities. As with reported assets, the Government’s responsibilities, policy commitments, and contingencies are much broader than these reported balance sheet liabilities. They include the social insurance programs reported in the Statements of Social Insurance and disclosed in the Required Supplementary Information—Social Insurance section, the fiscal long-term March 2014 70 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT projections of non-interest spending disclosed in the Required Supplementary Information (RSI)—Statement of Fiscal Projections for the United States Government (Government) section, and a wide range of other programs under which the Government provides benefits and services to the people of this Nation, as well as certain future loss contingencies. The Government has entered into contractual commitments requiring the future use of financial resources and has unresolved contingencies where existing conditions, situations, or circumstances create uncertainty about future losses. Commitments, as well as contingencies that do not meet the criteria for recognition as liabilities on the balance sheets, but for which there is at least a reasonable possibility that losses have been incurred, are disclosed in Note 20—Contingencies and Note 21—Commitments. The collection of taxes and other revenue is credited to the corresponding funds from dedicated collections that will use these funds to meet a particular Government purpose. If the collections from taxes and other sources exceed the payments to the beneficiaries, the excess revenue is invested in Treasury securities or “loaned” to Treasury’s General Fund; therefore, the trust fund balances do not represent cash. An explanation of the trust funds for social insurance is included in Note 22— Funds from Dedicated Collections. That note also contains information about trust fund receipts, disbursements, and assets. Because of its sovereign power to tax and borrow, and the country’s wide economic base, the Government has unique access to financial resources through generating tax revenues and issuing Federal debt securities. This provides the Government with the ability to meet present obligations and those that are anticipated from future operations, and are not reflected in net position. The net position is the residual difference between assets and liabilities and is the cumulative results of operations since inception. For detailed components that comprise the net position, refer to the section “Statement of Operations and Changes in Net Position.” Statements of Social Insurance and Changes in Social Insurance Amounts The Statements of Social Insurance provide estimates of the status of the most significant social insurance programs: Social Security, Medicare, Railroad Retirement, and Black Lung social insurance programs. They are administered by the Social Security Administration (SSA), HHS, the Railroad Retirement Board (RRB), and the Department of Labor (DOL), respectively. The estimates are actuarial present values2 of the projections and are based on the economic and demographic assumptions representing the trustees’ reasonable estimates as set forth in the relevant Social Security and Medicare trustees’ reports and in the agency financial reports of HHS, SSA, and DOL (Black Lung) and in the relevant agency performance and accountability report for the RRB. The projections are based on the continuation of program provisions contained in current law. The magnitude and complexity of social insurance programs, coupled with the extreme sensitivity of projections relating to the many assumptions of the programs, produce a wide range of possible results. In preparing the Statements of Social Insurance, Government management considers and selects assumptions and data that it believes provide a reasonable basis for the assertions in the statements. However, because of the large number of factors that affect the Statements of Social Insurance and the fact that such assumptions are inherently subject to substantial uncertainty (arising from the likelihood of future events, significant uncertainties, and contingencies), there will be differences between the estimates in the Statements of Social Insurance and the actual results, and those differences may be material. Note 24—Social Insurance describes the social insurance programs, reports long-range estimates that can be used to assess the financial condition of the programs, and explains some of the factors that impact the various programs. The Statements of Changes in Social Insurance Amounts reconcile the change between the current valuation period and the prior valuation period. 2 Present values recognize that a dollar paid or collected in the future is worth less than a dollar today, because a dollar today could be invested and earn interest. To calculate a present value, future amounts are thus reduced using an assumed interest rate, and those reduced amounts are summed. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT United States Government Statement of Net Cost for the Year Ended September 30, 2013 (In billions of dollars) Gross Cost Earned Revenue (Gain)/Loss from Changes in Subtotal Assumptions 71 Net Cost Department of Health and Human Services ............... Social Security Administration .................................... Department of Defense ............................................... Department of Veterans Affairs................................... Interest on Treasury Securities Held by the Public ..... Department of Agriculture ........................................... Office of Personnel Management ............................... Department of Labor ................................................... Department of Transportation ..................................... Department of Homeland Security .............................. Department of Housing and Urban Development ....... Department of Energy ................................................. Department of Justice ................................................. Department of State .................................................... National Aeronautics and Space Administration ......... Department of the Interior ........................................... Agency for International Development ........................ Department of Education ............................................ Federal Communications Commission ....................... Railroad Retirement Board ......................................... Environmental Protection Agency ............................... Department of Commerce........................................... National Science Foundation ...................................... U.S. Postal Service ..................................................... Smithsonian Institution ................................................ Small Business Administration.................................... U.S. Nuclear Regulatory Commission ........................ Export-Import Bank of the United States .................... Farm Credit System Insurance Corporation................ Pension Benefit Guaranty Corporation ....................... Securities and Exchange Commission ....................... Tennessee Valley Authority ........................................ General Services Administration................................. National Credit Union Administration .......................... Federal Deposit Insurance Corporation ...................... Department of the Treasury ........................................ All other entities .......................................................... 968.4 867.4 685.1 243.3 247.6 147.6 67.3 80.1 77.3 70.7 42.6 38.5 31.8 29.4 18.1 16.9 10.6 32.9 9.9 13.5 9.8 11.1 7.1 72.4 0.8 0.7 1.0 1.1 9.1 1.3 10.7 0.1 (1.8) (2.9) 75.3 46.1 72.9 0.4 44.9 4.5 7.5 19.2 0.9 9.7 1.5 4.3 1.3 4.2 0.2 2.7 0.2 23.2 0.4 4.2 0.5 2.9 66.3 0.4 0.8 1.0 0.1 9.4 1.8 11.0 0.7 0.9 12.7 103.5 1.3 895.5 867.0 640.2 238.8 247.6 140.1 48.1 80.1 76.4 61.0 41.1 34.2 30.5 25.2 17.9 14.2 10.4 9.7 9.5 9.3 9.3 8.2 7.1 6.1 0.8 0.3 0.2 0.1 (0.1) (0.3) (0.5) (0.3) (0.6) (2.7) (15.6) (28.2) 44.8 0.2 (62.8) 114.1 81.9 (2.4) 0.4 (0.2) - 895.7 867.0 577.4 352.9 247.6 140.1 130.0 80.1 76.4 58.6 41.1 34.2 30.5 25.6 17.9 14.2 10.4 9.7 9.5 9.3 9.3 8.2 7.1 6.1 0.8 0.3 0.2 0.1 (0.1) (0.3) (0.5) (0.5) (0.6) (2.7) (15.6) (28.2) 44.8 Total .................................................................. 3,940.9 415.5 3,525.4 131.2 3,656.6 The accompanying notes are an integral part of these financial statements. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 72 United States Government Statement of Net Cost for the Year Ended September 30, 2012 (See Note 1.U.) (In billions of dollars) Gross Cost Department of Health and Human Services ............... Social Security Administration .................................... Department of Defense ............................................... Department of Veterans Affairs................................... Interest on Treasury Securities Held by the Public ..... Department of Agriculture ........................................... Office of Personnel Management ............................... Department of Labor ................................................... Department of Transportation ..................................... Department of Homeland Security .............................. Department of Housing and Urban Development ....... Department of Energy ................................................. Department of Justice ................................................. Department of State .................................................... National Aeronautics and Space Administration ......... Department of the Interior ........................................... Agency for International Development ........................ Department of Education ............................................ Federal Communications Commission ....................... Railroad Retirement Board ......................................... Environmental Protection Agency ............................... Department of Commerce........................................... National Science Foundation ...................................... U.S. Postal Service ..................................................... Smithsonian Institution ................................................ Small Business Administration.................................... U.S. Nuclear Regulatory Commission ........................ Export-Import Bank of the United States .................... Farm Credit System Insurance Corporation................ Pension Benefit Guaranty Corporation ....................... Securities and Exchange Commission ....................... Tennessee Valley Authority ........................................ General Services Administration................................. National Credit Union Administration .......................... Federal Deposit Insurance Corporation ...................... Department of the Treasury ........................................ All other entities .......................................................... 922.4 822.9 769.6 209.9 245.4 158.8 82.0 102.6 77.3 58.9 74.0 60.2 38.8 29.5 18.1 21.7 11.4 62.6 10.0 15.2 10.7 12.0 7.3 81.5 0.7 1.5 1.0 1.2 20.2 1.2 11.0 0.1 1.3 2.4 (152.9) 54.4 67.8 0.3 56.0 4.1 12.0 19.1 0.8 9.9 1.5 4.3 1.3 3.5 0.2 2.7 0.2 20.0 0.4 5.1 0.3 2.6 64.2 0.4 0.8 0.8 0.1 10.4 1.6 11.3 0.5 1.0 19.3 27.5 0.8 854.6 822.6 713.6 205.8 245.4 146.8 62.9 102.6 76.5 49.0 72.5 55.9 37.5 26.0 17.9 19.0 11.2 42.6 9.6 10.1 10.4 9.4 7.3 17.3 0.7 1.1 0.2 0.4 (0.1) 9.8 (0.4) (0.3) (0.4) 0.3 (16.9) (180.4) 53.6 0.3 70.4 149.3 98.9 0.4 0.8 0.1 - 854.9 822.6 784.0 355.1 245.4 146.8 161.8 102.6 76.5 49.4 72.5 55.9 37.5 26.8 17.9 19.0 11.2 42.6 9.6 10.1 10.4 9.4 7.3 17.3 0.7 1.1 0.2 0.4 (0.1) 9.8 (0.4) (0.2) (0.4) 0.3 (16.9) (180.4) 53.6 3,844.9 350.8 3,494.1 320.2 3,814.3 Total .................................................................. Earned Revenue Loss from Changes in Subtotal Assumptions The accompanying notes are an integral part of these financial statements. March 2014 Net Cost FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 73 United States Government Statement of Operations and Changes in Net Position for the Year Ended September 30, 2013 Funds other than those from Dedicated Collections (Combined) Eliminations Consolidated 2013 (In billions of dollars) Revenue (Note 18): Individual income tax and tax withholdings ............................................... Corporation income taxes .......................... Excise taxes ............................................... Unemployment taxes ................................. Customs duties .......................................... Estate and gift taxes .................................. Other taxes and receipts ............................ Miscellaneous earned revenues ................ Intragovernmental interest ......................... Total Revenue ............................................ Funds from Dedicated Collections (Note 22) (Combined) 30.6 18.8 139.7 7.0 1,793.3 36.4 4.2 119.6 1,169.4 (0.6) (119.6) (120.2) Net Cost of Government Operations: Net cost ...................................................... Intragovernmental interest ......................... Total net cost ............................................. 2,175.2 119.6 2,294.8 1,482.0 1,482.0 (0.6) (119.6) (120.2) 3,656.6 3,656.6 Intragovernmental transfers ...................... (307.6) 307.6 - - Unmatched transactions and balances (Note 1.T) .................................................. 9.0 - - 9.0 (800.1) (5.0) - (805.1) (19,248.8) 3,147.8 - (16,101.0) (4.1) (800.1) (20,053.0) 0.9 (5.0) 3,143.7 - (3.2) (805.1) (16,909.3) Net operating (cost)/revenue Net position, beginning of period ............. Prior period adjustments–changes in accounting principles (Note 19) .............. Net operating (cost)/revenue ..................... Net position, end of period 1,294.0 270.4 32.8 902.4 52.8 54.0 2,196.4 270.4 85.6 54.0 30.6 18.8 175.5 11.2 2,842.5 The accompanying notes are an integral part of these financial statements. March 2014 74 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT United States Government Statement of Operations and Changes in Net Position for the Year Ended September 30, 2012 (Restated - See Note 22) Funds other than those from Dedicated Collections (Combined) Eliminations Consolidated 2012 (In billions of dollars) Revenue (Note 18): Individual income tax and tax withholdings .............................................. Corporation income taxes ......................... Excise taxes .............................................. Unemployment taxes ................................ Customs duties ......................................... Estate and gift taxes ................................. Other taxes and receipts ........................... Miscellaneous earned revenues ............... Intragovernmental interest ........................ Total Revenue ........................................... Funds from Dedicated Collections (Note 22) (Combined) 1,135.2 237.5 24.6 789.9 56.5 - 1,925.1 237.5 81.1 ‐ 66.5 ‐ 66.5 28.6 13.9 115.3 13.5 1,568.6 31.3 6.2 128.4 1,078.8 (0.8) (128.4) (129.2) 28.6 13.9 145.8 19.7 2,518.2 Net Cost of Government Operations: Net cost ..................................................... Intragovernmental interest ........................ Total net cost ............................................ 2,381.8 128.4 2,510.2 1,433.3 1,433.3 (0.8) (128.4) (129.2) 3,814.3 3,814.3 Intragovernmental transfers ..................... (419.7) 419.7 - - Unmatched transactions and balances (Note 1.T) ................................................. (20.2) - - (20.2) Net operating (cost)/revenue .................... (1,381.5) 65.2 - (1,316.3) Net position, beginning of period ............ Prior period adjustments–changes in accounting principles (Note 19) ............. Net operating (cost)/revenue .................... Net position, end of period ....................... (15,533.6) 748.2 - (14,785.4) (2,333.7) (1,381.5) (19,248.8) 2,334.4 65.2 3,147.8 - 0.7 (1,316.3) (16,101.0) The accompanying notes are an integral part of these financial statements. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 75 United States Government Reconciliations of Net Operating Cost and Unified Budget Deficit for the Year Ended September 30, 2013, and 2012 2013 2012 (805.1) (1,316.3) (Decrease)/increase in liability for military employee benefits (Note 13): Increase in military pension liabilities .......................................................................... (Decrease) in military health liabilities ......................................................................... (Decrease) in other military benefits ........................................................................... (Decrease)/increase in liability for military employee benefits .................................... 42.2 (85.7) (0.4) (43.9) 120.7 (9.0) (0.6) 111.1 Increase in liability for veteran's compensation (Note 13) ......................................... 213.2 227.9 Increase in liabilities for civilian employee benefits (Note 13): Increase in civilian pension liabilities........................................................................... (Decrease) in civilian health liabilities ......................................................................... Increase in other civilian benefits ................................................................................ Increase in liabilities for civilian employee benefits..................................................... 95.6 (1.4) 0.8 95.0 152.6 (14.4) 4.6 142.8 Increase in environmental and disposal liabilities (Note 14): Increase in Energy's environmental and disposal liabilities ........................................ (Decrease) in all others' environmental and disposal liabilities................................... Increase in environmental and disposal liabilities ....................................................... 11.8 (1.7) 10.1 17.8 (2.9) 14.9 Property, plant, and equipment depreciation expense ..................................................... Property, plant, and equipment disposals and revaluations ............................................ Increase/(decrease) in benefits due and payable ............................................................ (Decrease) in insurance and guarantee program liabilities .............................................. (Decrease)/increase in other liabilities.............................................................................. Increase in accounts payable ........................................................................................... Decrease/(increase) in net accounts and taxes receivable .............................................. TARP yearend (downward) re-estimate ........................................................................... (Decrease) in liabilities to Government-sponsored enterprises (GSEs)........................... (Decrease)/increase in valuation loss on investments in GSEs ....................................... 62.1 (36.2) 8.1 (26.4) (20.9) 1.0 8.0 (8.1) (9.0) (30.9) 59.1 9.4 (4.8) (5.3) 5.6 1.8 (4.9) (9.0) (307.2) 42.3 Components of the budget surplus (or deficit) that are not part of net operating revenue/(or cost): Capitalized property, plant, and equipment: Department of Defense .................................................................................................. All other agencies .......................................................................................................... Total capitalized property, plant, and equipment ........................................................ (37.0) (30.6) (67.6) (33.6) (37.1) (70.7) Effect of prior year TARP downward/(upward) re-estimate .............................................. (Increase) in inventory ...................................................................................................... (Increase) in investments in GSEs ................................................................................... Decrease in debt and equity securities............................................................................. (Increase)/decrease in other assets ................................................................................. Credit reform and other loan activities .............................................................................. All other reconciling items ................................................................................................. Unified budget deficit 9.0 (12.1) 2.4 (5.2) (25.4) 1.6 (680.3) (23.3) (2.9) (18.6) 0.4 21.7 38.6 (2.0) (1,089.4) (In billions of dollars) Net operating cost .......................................................................................................... Components of net operating cost not part of the budget deficit: The accompanying notes are an integral part of these financial statements. March 2014 76 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT United States Government Statements of Changes in Cash Balance from Unified Budget and Other Activities for the Years Ended September 30, 2013, and 2012 (In billions of dollars) 2013 2012 (680.3) Unified budget deficit ............................................................ (1,089.4) Adjustments for Noncash Outlays Included in the budget: Interest accrued by Treasury on debt held by the public ...... TARP yearend re-estimates................................................... TARP Subsidy (income) (Note 5) .......................................... Other Federal entity subsidy (income) (Note 4) ..................... Subtotal ............................................................................... 242.7 (0.9) (11.9) (63.4) 240.1 32.3 (10.8) (29.4) 166.5 232.2 Items Affecting the Cash Balance Not Included in the budget: Net Transactions from financing activity: Borrowings from the public ................................................... Repayment of debt held by the public .................................. Agency securities ................................................................... Subtotal ............................................................................... Transactions from monetary and other activity: Interest paid by Treasury on debt held by the public ............ Net TARP direct loans and equity investments activity ......... Net GSEs-mortgage-backed securities activity ..................... Net loan receivable activity .................................................... Allocations of special drawing rights ...................................... Uninvested principal from the Thrift Savings Plan (TSP) G Fund ....................................................................................... Other ...................................................................................... Subtotal ............................................................................... Cash and other monetary assets: (Note 2) Increase in Cash and other monetary assets ........................ Balance, beginning of period ................................................. Balance, end of period ........................................................... 8,145.4 (7,444.0) 0.7 7,766.9 (6,614.0) (0.4) 702.1 1,152.5 (248.7) (234.3) 31.7 (125.6) (0.2) 52.3 70.6 (153.7) (0.7) 119.9 - 34.7 (0.3) (188.2) (266.1) 0.1 206.2 206.3 29.2 177.0 206.2 The accompanying notes are an integral part of these financial statements. For budgetary purposes, the effect of the yearend downward re-estimates (reduction of net outlays) and upward re-estimates (increase of net outlays) is not recognized until the subsequent fiscal year. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 77 United States Government Balance Sheets as of September 30 2013 2012 (Restated Note 22) Assets: Cash and other monetary assets (Note 2) ...................................................... Accounts and taxes receivable, net (Note 3) .................................................. Loans receivable, net (Note 4) ........................................................................ TARP direct loans and equity investments, net (Note 5) ................................ Inventories and related property, net (Note 6) ................................................ Property, plant and equipment, net (Note 7)................................................... Debt and equity securities (Note 8) ................................................................ Investments in GSEs (Note 9) ........................................................................ Other assets (Note 10).................................................................................... 206.3 103.2 1,022.3 17.9 311.1 896.7 107.8 140.2 162.8 206.2 111.2 859.6 40.2 299.0 855.0 110.2 109.3 157.6 Total assets .................................................................................................. 2,968.3 2,748.3 Liabilities: Accounts payable (Note 11)............................................................................ Federal debt securities held by the public and accrued interest (Note 12) .... Federal employee and veteran benefits payable (Note 13)............................ Environmental and disposal liabilities (Note 14) ............................................. Benefits due and payable (Note 15) ............................................................... Insurance and guarantee program liabilities (Note 16).................................. Loan guarantee liabilities (Note 4) .................................................................. Liabilities to GSEs (Note 9) ............................................................................. Other liabilities (Note 17) ................................................................................ 66.2 12,028.4 6,538.3 349.1 174.3 130.0 59.2 532.1 65.2 11,332.3 6,274.0 339.0 166.2 156.4 74.6 9.0 432.6 Total liabilities ............................................................................................... 19,877.6 18,849.3 Net Position: Funds from Dedicated Collections (Note 22) .................................................. Funds other than those from Dedicated Collections ....................................... 3,143.7 (20,053.0) 3,147.8 (19,248.8) Total net position .......................................................................................... (16,909.3) (16,101.0) Total liabilities and net position .................................................................... 2,968.3 2,748.3 (In billions of dollars) Stewardship land and heritage assets (Note 25) Contingencies (Note 20) and Commitments (Note 21) The accompanying notes are an integral part of these financial statements. March 2014 78 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT United States Government Statements of Social Insurance (Note 24) Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections (In billions of dollars) Federal Old-age, Survivors and Disability Insurance (Social Security): 14 Revenue (Contributions and Dedicated Taxes) from: Participants who have attained eligibility age (age 62 and over) ......... Participants who have not attained eligibility age ................................ Future participants............................................................................... All current and future participants ..................................................... Expenditures for Scheduled Future Benefits for: Participants who have attained eligibility age (age 62 and over) ......... Participants who have not attained eligibility age ................................ Future participants............................................................................... All current and future participants ..................................................... Present value of future expenditures in excess of future revenue ............................................................................................ Federal Hospital Insurance (Medicare Part A): 14 Revenue (Contributions and Dedicated Taxes) from: Participants who have attained eligibility age (age 65 and over) ......... Participants who have not attained eligibility age ................................ Future participants............................................................................... All current and future participants ........................................................ Expenditures for Scheduled Future Benefits for: Participants who have attained eligibility age (age 65 and over) ......... Participants who have not attained eligibility age ................................ Future participants............................................................................... All current and future participants ..................................................... Present value of future expenditures in excess of future revenue ............................................................................................ Federal Supplementary Medical Insurance (Medicare Part B): 14 Revenue (Premiums) from: Participants who have attained eligibility age (age 65 and over) ......... Participants who have not attained eligibility age ................................ Future participants............................................................................... All current and future participants ..................................................... Expenditures for Scheduled Future Benefits for: Participants who have attained eligibility age (age 65 and over) ......... Participants who have not attained eligibility age ................................ Future participants............................................................................... All current and future participants ..................................................... Present value of future expenditures in excess of future revenue 6 .......................................................................................... Totals may not equal the sum of components due to rounding. The accompanying notes are an integral part of these financial statements. March 2014 2013 2012 2011 2010 2009 908 24,591 23,419 48,918 847 22,703 21,649 45,198 726 20,734 20,144 41,603 672 19,914 19,532 40,118 575 18,559 18,082 37,217 (11,021) (40,591) (9,600) (61,212) (9,834) (37,753) (8,890) (56,477) (8,618) (34,042) (8,100) (50,760) (8,096) (32,225) (7,744) (48,065) (7,465) (30,207) (7,223) (44,894) (12,294)1 (11,278)2 (9,157)3 (7,947)4 (7,677)5 301 8,147 7,744 16,192 302 7,929 7,367 15,598 262 7,581 7,260 15,104 248 7,216 6,944 14,408 209 6,348 5,451 12,008 (3,422) (14,629) (2,913) (20,964) (3,369) (14,919) (2,891) (21,179) (2,923) (12,887) (2,546) (18,356) (2,648) (12,032) (2,411) (17,091) (2,958) (18,147) (4,673) (25,778) (4,772)1 (5,581)2 (3,252)3 (2,683)4 (13,770)5 701 4,073 944 5,718 635 3,826 884 5,344 570 3,651 865 5,086 538 3,460 839 4,836 498 4,224 1,270 5,992 (2,887) (15,075) (3,415) (21,377) (2,646) (14,303) (3,211) (20,159) (2,343) (13,489) (3,108) (18,940) (2,166) (12,587) (2,984) (17,737) (2,142) (16,342) (4,672) (23,156) (15,659)1 (14,815)2 (13,854)3 (12,901)4 (17,165)5 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 79 United States Government Statements of Social Insurance (Note 24), continued Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections 2013 2012 2011 2010 2009 Participants who have attained eligibility age (age 65 and over) ..... 184 179 173 165 140 Participants who have not attained eligibility age ............................ 1,491 1,510 1,608 1,626 1,442 Future participants........................................................................... 665 661 703 694 618 All current and future participants ................................................. 2,340 2,349 2,484 2,486 2,199 Participants who have attained eligibility age (age 65 and over) ..... (722) (694) (695) (646) (595) Participants who have not attained eligibility age ............................ (5,871) (5,866) (6,438) (6,355) (6,144) Future participants........................................................................... (2,617) (2,568) (2,817) (2,714) (2,632) All current and future participants ................................................. (9,211) (9,128) (9,950) (9,715) (9,371) Present value of future expenditures in excess of future revenue 6 .................................................................................................. (6,871)1 (6,778)2 (7,466)3 (7,229)4 (7,172)5 Participants who have attained eligibility ......................................... 7 7 6 5 5 Participants who have not attained eligibility ................................... 60 56 46 47 48 (In billions of dollars) Federal Supplementary Medical Insurance (Medicare Part D): 14 Revenue (Premiums and State Transfers) from: Expenditures for Scheduled Future Benefits for: Railroad Retirement: Revenue (Contributions and Dedicated Taxes) from : Future participants........................................................................... 79 78 65 66 70 All current and future participants ................................................. 146 141 117 118 123 (123) (119) (109) (105) (102) Participants who have not attained eligibility ................................... (96) (95) (86) (88) (91) Future participants........................................................................... (34) (34) (28) (27) (30) All current and future participants ................................................. (253) (248) (223) (220) (223) Present value of future expenditures in excess of future revenue 7 .................................................................................................. (107)1 (107)2 (106)3 (103)4 (100)5 59 510 511 612 613 (39,698) (38,554) (33,830) (30,857) (45,878) Expenditures for Scheduled Future Benefits for: Participants who have attained eligibility Black Lung (Part C): Present value of future revenue in excess of future expenditures 8 ............................................................................................. Total present value of future expenditures in excess of future revenue .............................................................................................. Totals may not equal the sum of components due to rounding. The accompanying notes are an integral part of these financial statements. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 80 United States Government Statements of Social Insurance (Note 24), continued Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections 2013 2012 2011 2010 2009 Participants who have attained eligibility age: Revenue (e.g., Contributions and dedicated taxes)......................... 2,101 Expenditures for scheduled future benefits ..................................... (18,175) 1,970 (16,662) 1,737 (14,688) 1,628 (13,661) 1,427 (13,262) (14,692) (12,951) (12,033) (11,835) 36,024 (72,936) 33,620 (66,942) 32,263 (63,287) 30,621 (70,931) (36,912) (33,322) (31,024) (40,310) (51,604) (46,272) (43,057) (52,145) 30,639 (17,589) 29,037 (16,594) 28,075 (15,875) 25,491 (19,224) 13,050 12,443 12,200 6,267 (38,554) (33,830) (30,857) (45,878) (In billions of dollars) Social Insurance Summary 14 Present value of future expenditures in excess of future revenue ........................................................................... (16,074) Participants who have not attained eligibility age: Revenue (e.g., Contributions and dedicated taxes)......................... 38,362 Expenditures for scheduled future benefits ..................................... (76,262) Present value of future expenditures in excess of future revenue ........................................................................... (37,900) Closed-group – Total present value of future expenditures in excess of future revenue ....................................................... (53,974) Future participants: Revenue (e.g., Contributions and dedicated taxes)......................... 32,851 Expenditures for scheduled future benefits ..................................... (18,575) Present value of future revenue in excess of future expenditure................................................................................ 14,276 Open-group – Total present value of future expenditures in excess of future revenue ................................................................. (39,698) 1 The projection period is 1/1/2013‐12/31/2087 and the valuation date is 1/1/2013. The projection period is 1/1/2012‐12/31/2086 and the valuation date is 1/1/2012. 3 The projection period is 1/1/2011‐12/31/2085 and the valuation date is 1/1/2011. 4 The projection period is 1/1/2010‐12/31/2084 and the valuation date is 1/1/2010. 5 The projection period is 1/1/2009‐12/31/2083 and the valuation date is 1/1/2009. 6 These amounts represent the present value of the future transfers from the General Fund of the Treasury to the Supplementary Medical Insurance Trust Fund. These future intragovernmental transfers are included as income in both HHS’ and the Centers for Medicare & Medicaid Services’ Financial Reports but are not income from the Governmentwide perspective of this report. 7 These amounts approximate the present value of the future financial interchange and the future advances from the General Fund of the Treasury to the Social Security Equivalent Benefit Account and future repayments from the Social Security Equivalent Benefit Account to the General Fund (see discussion of Railroad Retirement Program in the unaudited required supplementary information section of this report). They are included as income in the Railroad Retirement Financial Report but are not income from the Governmentwide perspective of this report. 8 Does not include interest expense accruing on the outstanding debt. 9 The projection period is 9/30/2013‐9/30/2040 and the valuation date is 9/30/2013. 10 The projection period is 9/30/2012‐9/30/2040 and the valuation date is 9/30/2012. 11 The projection period is 9/30/2011‐9/30/2040 and the valuation date is 9/30/2011. 12 The projection period is 9/30/2010‐9/30/2040 and the valuation date is 9/30/2010. 13 The projection period is 9/30/2009‐9/30/2040 and the valuation date is 9/30/2009. 14 Current participants for the Social Security and Medicare programs are assumed to be the “closed‐group” of individuals who are at least 15 years of age at the start of the projection period, and are participating as either taxpayers, beneficiaries, or both. 2 Totals may not equal the sum of components due to rounding. The accompanying notes are an integral part of these financial statements. March 2014 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT 81 United States Government Statement of Changes in Social Insurance Amounts for the Year Ended September 30, 2013 (Note 24) (In billions of dollars) Net present value (NPV) of future revenue less future expenditures for current and future participants (the “open group”) over the next 75 years, beginning of the year .................................. Social Security1 Open group measure, end of year.............................. Medicare SMI1 Other2 Total (11,278) (5,581) (21,593) (102) (38,554) (543) (285) (983) (2) (1,813) (681) (273) (553) 724 31 (330) 2 2 - (285) (273) (520) 1,034 - - - 1,034 - 31 308 (125) 499 - (94) 807 (1,016) 809 (937) - (1,144) (12,294) (4,772) (22,530) (102) (39,698) Reasons for changes in the NPV during the year: Changes in valuation period ................................... Changes in demographic data and assumptions ........................................................ Changes in economic data and assumptions Changes in law or policy ......................................... Changes in methodology and programmatic data .............................................. Changes in economic and other health care assumptions ........................................................ Change in projection base ...................................... Net change in open group measure Medicare HI1 Totals may not equal the sum of components due to rounding. The accompanying notes are an integral part of these financial statements. 1 Amounts represent changes between valuation dates 1/1/2012 and 1/1/2013. 2 Includes Railroad Retirement changes between valuation dates 1/1/2012 and 1/1/2013 and Black Lung changes between 9/30/2012 and 9/30/2013. March 2014 82 FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT, EXCERPT United States Government Statement of Changes in Social Insurance Amounts for the Year Ended September 30, 2012 (Note 24) (In billions of dollars) Net present value (NPV) of future revenue less future expenditures for current and future participants (the “open group”) over the next 75 years, beginning of the year ................................. Reasons for changes in the NPV during the year: Change in valuation period .................................... Changes in demographic data and assumptions .. Changes in economic data and assumptions ....... Changes in law or policy ........................................ Changes in methodology and programmatic data . Changes in economic and other health care Social Security1 Medicare HI1 Medicare SMI1 Other2 Total (9,157) (3,252) (21,320) (101) (33,830) (473) (140) (1,037) (125) (97) - (1,013) 752 - (2) 3 (2) (1,613) 518 (1,039) (471) 153 - 40 - - 193 (471) assumptions .......................................................... Change in projection base ..................................... Net change in open group measure ...................... - (2,546) 286 (55) 3 - (2,601) 289 (2,121) (2,329) (273) (1) (4,724) Open group measure, end of year............................ (11,278) (5,581) (21,593) (102) (38,554) Totals may not equal the sum of components due to rounding. The accompanying notes are an integral part of these financial statements. 1 Amounts represent changes between valuation dates 1/1/2011 and 1/1/2012. 2 Includes Railroad Retirement changes between valuation dates 1/1/2011 and 1/1/2012 and Black Lung changes between 9/30/2011 and 9/30/12. March 2014 83 TRUST FUNDS INTRODUCTION: Airport and Airway Trust Fund The Airport and Airway Trust Fund was established on the books of Treasury in fiscal year 1971, according to provisions of the Airport and Airway Revenue Act of 1970 [49 United States Code 1742(a), repealed]. The Tax Equity and Fiscal Responsibility Act of 1982 (Public Law 97-248, dated September 3, 1982) reestablished the trust fund in the Internal Revenue Code (26 United States Code 9502) effective September 1, 1982. Treasury transfers from the general fund to the trust fund amounts equivalent to the taxes received from transportation of persons and property by air, gasoline and jet fuel used in commercial and noncommercial aircraft, and an international arrival and departure tax. The Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508, dated November 5, 1990) increased rates for the excise taxes transferred to the fund. Treasury bases these transfers on estimates made by the Secretary of the Treasury. These are subject to adjustments in later transfers in the amount of actual tax receipts. The FAA Modernization and Reform Act 2012 (Public Law 112-095), effective February 14, 2012, extended the aviation excise taxes until September 30, 2015. The Act included provisions that: Retained the existing passenger ticket, flight segment, and freight waybill taxes. The flight segment tax is indexed to the Consumer Price Index; effective calendar year 2014, the tax is $4.00. It also retained a special rule applied to flights between the continental United States and Alaska or Hawaii. This departure tax is indexed to the Consumer Price Index; effective calendar year 2014, the tax is $8.70. Retained the existing tax per person for international flights that begin or end in the United States. The tax is indexed to the Consumer Price Index; effective calendar year 2014, the tax is $17.50. Retained the existing tax on payments to airlines for frequent flyer and similar awards by banks and credit card companies, merchants and frequent flyer program partners, such as other airlines, hotels and rental car companies, and other businesses. Retained the commercial aviation fuel tax and the general aviation jet fuel/gas taxes. Imposed a new surtax on fuel used in aircraft that is part of a fractional ownership program; the surtax applies to fuel used after March 31, 2012. It also changed the classification of transportation as part of a fractional ownership program from commercial aviation to noncommercial aviation. Repealed the excise tax exemption for transportation by small aircraft operating on nonestablished lines. (IRS defines the term “operated on an established line” to mean operated with some degree of regularity between definite points). When the provisions of 26 United States Code 9602(b) are met, amounts available in the trust fund exceed outlay requirements, Treasury invests excess amounts in public debt securities and credits the interest to the fund. Additional sums from the general fund also are credited as authorized and made available, by law, if they are needed to meet outlay requirements. Treasury makes available to the Federal Aviation Administration (FAA), Department of Transportation (DOT), amounts required for outlays to carry out the Airport and Airway program. The Secretary of the Treasury makes other charges to the trust fund to transfer certain refunds of taxes and certain outfits, under section 34 of the Internal Revenue Code (IRC). Annual reports to Congress, required by 26 U.S.C. 9602 (a), are submitted by the Secretary of the Treasury, after consultation with the Secretary of Transportation. These reports are required to cover the financial condition and results of operations of the trust fund during the past fiscal year and those expected during the next 5 fiscal years. March 2014 TRUST FUNDS 84 TABLE TF-1.—Airport and Airway Trust Fund Results of Operations, Fiscal Year 2013 [Source: DOT] Description IRC section (26 United States Code) Amount Balance Oct. 1, 2012* ..................................................................................................................................................................................................... $11,623,031,953 Receipts: Excise taxes (transferred from general fund): Liquid fuel in a fractional ownership flight............................................. 4043 ...................................................................................... Liquid fuel other than gasoline.............................................................. 4041 ...................................................................................... Gasoline ................................................................................................ 4081 ...................................................................................... Transportation by airseats, berths, etc ................................................. 4261 (a) (b) ........................................................................... Use of international travel facilities ....................................................... 4261 (c)................................................................................. Transportation of property, cargo ......................................................... 4271 ...................................................................................... Gross excise taxes ............................................................................................................................................................................................. 8,920,522 548,702,810 14,665,328 8,769,362,010 2,911,287,681 618,896,419 12,871,834,769 Less refunds of taxes (reimbursed to general fund): Liquid fuel other than gasoline.................................................................. 4041 ...................................................................................... Gasoline ...................................................................................................................................................................................................................... Total refunds of taxes ............................................................................................................................................................................................. Net taxes ................................................................................................................................................................................................................. Interest on investments............................................................................................................................................................................................... Total receipts .......................................................................................................................................................................................................... Offsetting collections ....................................................................................................................................................................................................... 13,260,754 5,014,220 18,274,974 12,853,559,795 234,670,305 13,088,230,100 110,000,000 Expenses: Operations .................................................................................................................................................................................................................. Grants in aid ................................................................................................................................................................................................................ Facilities and equipment ............................................................................................................................................................................................. Research, engineering, and development.................................................................................................................................................................. Air carriers ................................................................................................................................................................................................................... Total expenses........................................................................................................................................................................................................ Offsetting collections ....................................................................................................................................................................................................... Balance Sept. 30, 2013 .................................................................................................................................................................................................. 4,796,000,000 3,653,396,193 2,848,772,426 158,301,077 161,000,000 11,617,469,696 110,000,000 $13,203,792,357 *Adjusted for actuals Airport and Airway Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In millions of dollars. Source: DOT] 2014 2015 2016 2017 2018 13,203 13,523 12,889 13,071 13,677 Excise taxes, net of refunds.................................................... 13,347 13,814 14,407 14,926 15,426 Interest on investments........................................................... 248 254 258 310 393 $100 Surcharge ...................................................................... - 967 1,008 1,050 1,089 Balance Oct. 1 ............................................................................ Receipts: Offsetting collections ............................................................... 46 46 46 46 46 Total receipts ...................................................................... 13,641 15,081 15,719 16,332 16,954 Gross Outlays ......................................................................... 13,321 15,714 15,537 15,726 15,739 Balance Sept. 30......................................................................... 13,523 12,889 13,071 13,677 14,892 Expenses: March 2014 TRUST FUNDS 85 INTRODUCTION: Uranium Enrichment Decontamination and Decommissioning (D&D) Fund The Uranium Enrichment Decontamination and Decommissioning Fund was established on the books of the Treasury in fiscal year 1993, according to provisions of the Energy Policy Act of 1992 (42 United States Code 2297g). Receipts represent (1) fees collected from domestic public utilities based on their pro rata share of purchases of separative work units from the Department of Energy (DOE) and (2) appropriations toward the Government contribution based on the balance of separative work unit purchases. Expenditures from the fund are for the purpose of (1) decontamination and decommissioning of the three gaseous diffusion plants, (2) remedial actions and related environmental restoration costs at the gaseous diffusion plants, and (3) reimbursement to uranium/thorium producers for the costs of decontamination, decommissioning, reclamation, and remedial action of uranium/thorium sites that are incident to sales to the U.S. Government. Amounts available in the fund exceeding current needs may be invested by the Secretary of the Treasury in obligations of the United States (1) having maturities congruent with the needs of the fund and (2) bearing interest at rates determined appropriate, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to these investments. The Secretary of the Treasury is required by 42 United States Code 2297g(b)(1) to provide an annual report to Congress, after consultation with the Secretary of Energy. This report must present the financial condition and the results of operations of the fund during the preceding fiscal year. The Energy Policy Act of 1992 (42 United States Code 2297g-1, as amended) authorizes funding to ensure annual deposits to the fund of $518.2 million before adjustments for inflation. The Act stipulates that the Government deposit $369.6 million, adjusted for inflation, annually. The Act also calls for deposits of $150 million from domestic public utility assessments. The assessments were authorized for 15 years with the final assessment scheduled for fiscal year 2007. Between fiscal years 1993 and 2007, the total Government contribution amount authorized by the Act was $6,281.0 million. During that time span, the Government contributed only $5,362.4 million to the fund. The resulting shortfall in authorized Government contributions was, therefore, $918.6 million. The Government continued to make annual contributions to eliminate this shortfall. Through fiscal year 2009 contributions, the overall shortfall (after adjustments for inflation) was $40.6 million. Also, during fiscal year 2009, the Government designated $390 million of American Recovery and Reinvestment Act (ARRA) funding for the fund’s mission. The ARRA funding was not an actual deposit into the fund’s invested balances, but it provides a dollar for dollar reduction in the required outlays from the invested balances. The DOE recognizes the ARRA funding as an offset to the Government’s contribution shortfall, thereby satisfying the Government’s contribution responsibility. March 2014 TRUST FUNDS 86 TABLE TF-2.—Uranium Enrichment Decontamination and Decommissioning Fund Results of Operations, Fiscal Year 2013 [Source: DOE] Balance Oct. 1, 2012 ................................................................................................................................................................................. $4,990,361 Receipts: Fees collected ........................................................................................................................................................................................ - Penalties collected ................................................................................................................................................................................. - Interest on investments .......................................................................................................................................................................... 87,831,653 Total receipts ...................................................................................................................................................................................... 87,831,653 Outlays: DOE, decontamination and decommissioning activities........................................................................................................................ 426,682,510 Cost of investments................................................................................................................................................................................ -338,812,051 Total outlays ....................................................................................................................................................................................... 87,870,459 Balance Sept. 30, 2013.............................................................................................................................................................................. $4,951,555 Uranium Enrichment Decontamination and Decommissioning Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In thousands of dollars. Source: DOE] 2014 2015 2016 2017 2018 4,952 4,952 4,952 4,952 4,952 Fees collected ...................................................................... - - - - - Interest collected .................................................................. 62,370 52,248 41,729 30,804 19,460 Total receipts ................................................................... 62,370 52,248 41,729 30,804 19,460 DOE, decontamination and decommissioning fund ............ 554,823 568,509 578,174 588,003 597,999 Costs of investments ........................................................... -492,453 -516,261 -536,445 -557,199 -578,539 Total outlays..................................................................... 62,370 52,248 41,729 30,804 19,460 Balance Sept. 30...................................................................... 4,952 4,952 4,952 4,952 4,952 Balance Oct. 1 ......................................................................... Receipts: Outlays: March 2014 TRUST FUNDS 87 INTRODUCTION: Black Lung Disability Trust Fund The Black Lung Disability Trust Fund was established on the books of the Treasury in fiscal year 1978 according to the Black Lung Benefits Revenue Act of 1977 (Public Law 95227). The Black Lung Benefits Revenue Act of 1981 (Public Law 97-119) reestablished the fund in the Internal Revenue Code (IRC), 26 United States Code 9501. The Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), enacted April 7, 1986, provided for an increase in the coal tax rates effective April 1, 1986, through December 31, 1995, and a 5-year forgiveness of interest retroactive to October 1, 1985. The 5-year moratorium on interest payments ended on September 30, 1990. Payment of interest on advances resumed in fiscal year 1991. The Omnibus Budget Reconciliation Act of 1987 (Public Law 100-203, title X, section 10503), signed December 22, 1987, extended the temporary increase in the coal tax through December 31, 2013. The Emergency Economic Stabilization Act of 2008 (Public Law 110-343, title I, subtitle B, section 113), enacted October 3, 2008, restructured the Trust Fund Debt by 1) refinancing the outstanding principal of the repayable advances and unpaid interest on such advances and 2) providing a one time Appropriation to the Trust Fund in an amount sufficient to pay to the general fund of the Treasury the difference between the market value of the outstanding repayable advances, plus accrued interest and the proceeds from the obligations issued by the Trust Fund to the Secretary of the Treasury. The Act also extends the temporary increase in the coal tax through December 31, 2018, and allows the prepayment of the Trust Fund debt prior to the maturity date. The Code designates the following receipts to be appropriated and transferred from the general fund of the Treasury to the trust fund: excise taxes on coal sold; taxable expenditures of self-dealing by, and excess contributions to, private black lung benefit trusts; reimbursements by responsible mine operators; and related fines, penalties and interest charges. Estimates made by the Secretary of the Treasury determine monthly transfers of amounts for excise taxes to the trust fund subject to adjustments in later transfers to actual tax receipts. After retirement of the current indebtedness, amounts available in the fund exceeding current expenditure requirements will be invested by the Secretary of the Treasury in interest-bearing public debt securities. Any interest earned will be credited to the fund. Also credited, if necessary, will be repayable advances from the general fund to meet outlay requirements exceeding available revenues. To carry out the program, amounts are made available to the Department of Labor (DOL). Also charged to the fund are administrative expenses incurred by the Department of Health and Human Services (HHS) and the Treasury, repayments of advances from the general fund and interest on advances. The Code requires the Secretary of the Treasury to submit an annual report to Congress after consultation with the Secretary of Labor and the Secretary of HHS [26 United States Code 9602(a)]. The report must present the financial condition and results of operations of the fund during the past fiscal year and the expected condition and operations of the fund during the next 5 fiscal years. March 2014 TRUST FUNDS 88 TABLE TF-3.—Black Lung Disability Trust Fund Results of Operations, Fiscal Year 2013 [Source: DOL] $96,917,182 Balance Oct. 1, 2012 ........................................................................................................................................................................................... Receipts: Excise taxes (transferred from general fund): $1.10 tax on underground coal .................................................................................................................................................................... $0.55 tax on surface coal ............................................................................................................................................................................. 4.4 percent tax on underground coal ........................................................................................................................................................... 4.4 percent tax on surface coal .................................................................................................................................................................... Fines, penalties, and interest ....................................................................................................................................................................... Collection—responsible mine operators ...................................................................................................................................................... Recovery of prior year funds ........................................................................................................................................................................ Repayable advances from the general fund ................................................................................................................................................ Total receipts ............................................................................................................................................................................................ Net receipts .............................................................................................................................................................................................. Outlays: Treasury administrative expenses ................................................................................................................................................................... Salaries and expenses—DOL—Departmental Management .......................................................................................................................... Salaries and expenses—DOL—Office of Inspector General .......................................................................................................................... Salaries and expenses—DOL—Employment Standards Administration ........................................................................................................ Total outlays ................................................................................................................................................................................................. Expenses: Program expenses—DOL ................................................................................................................................................................................ Repayable advances and interest ................................................................................................................................................................... Repayment of bond principal ........................................................................................................................................................................... Interest on principal debt.................................................................................................................................................................................. Total expenses ............................................................................................................................................................................................. Balance Sept. 30, 2013 ........................................................................................................................................................................................ Cumulative debt, end of year ............................................................................................................................................................................... 256,993,968 199,413,053 6,121,800 70,700,511 905,669 19,236,759 401,000,000 954,371,760 954,371,760 527,385 23,930,933 310,323 31,227,793 55,996,434 199,691,308 214,372,360 396,403,116 56,035,884 866,502,668 128,789,840 $4,634,844,901 Black Lung Disability Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In thousands of dollars. Source: DOL] Balance Oct. 1 ........................................................................................ Receipts: Excise taxes ....................................................................................... Advances from the general fund........................................................ Fines, penalties, and interest ............................................................. Total receipts ................................................................................. Outlays: Benefit payments ............................................................................... Administrative expenses .................................................................... Repayable advances ......................................................................... Interest on repayable advances ........................................................ Repayment of principal debt .............................................................. Interest on principal debt ................................................................... Total outlays................................................................................... Balance Sept. 30.................................................................................... Cumulative debt, end of year ................................................................. Note.—Detail may not add to totals due to rounding. March 2014 2014 2015 2016 2017 2018 128,790 128,790 128,790 128,790 128,790 562,000 541,696 2,000 1,105,696 572,000 685,087 2,000 1,259,087 547,000 872,329 2,000 1,421,329 550,000 1,081,100 2,000 1,633,100 570,000 1,298,248 2,000 1,870,248 172,373 59,081 401,000 393 397,383 75,466 1,105,696 128,790 4,237,462 163,733 60,074 541,696 975 395,769 96,840 1,259,087 128,790 3,841,693 154,823 60,074 685,087 3,836 396,213 121,295 1,421,328 128,791 3,445,480 146,392 60,074 872,329 13,783 393,126 147,397 1,633,101 128,789 3,052,354 139,236 60,074 1,081,100 29,190 385,968 174,680 1,870,248 128,790 2,666,386 TRUST FUNDS 89 INTRODUCTION: Harbor Maintenance Trust Fund The Harbor Maintenance Trust Fund was established on the books of the Treasury on April 1, 1987, according to the Water Resources Development Act of 1986 (Public Law 99662, November 17, 1986) (26 United States Code 9505). Amounts in the Harbor Maintenance Trust Fund are available as provided by appropriation acts for making expenditures to carry out section 210(a) of the Water Resources Development Act of 1986. The appropriations act for the Department of Transportation (DOT) for fiscal year 1995 (Public Law 103-331, September 28, 1994), section 339, waived collection of charges or tolls on the Saint Lawrence Seaway in accordance with section 13(b) of the Act of May 13, 1954 (as in effect on April 1, 1987). Legislation was passed in the North American Free Trade Agreement Implementation Act (Public Law 103-182, section 683), which amends paragraph (3) of section 9505(c) of the IRC of 1986, to authorize payment of up to $5 million annually to Treasury for all expenses of administration incurred by the Treasury, the U.S. Army Corps of Engineers and the Department of Commerce (Commerce) related to the administration of subchapter A of chapter 36 (relating to harbor maintenance tax). Section 201 of the Water Resources Development Act of 1996 (Public Law 104-303) authorizes use of the Harbor Maintenance Trust Fund for construction of dredged material disposal facilities associated with the operation and maintenance of Federal navigation projects for commercial navigation. A summary judgment issued October 25, 1995, by the United States Court of International Trade in the case United States Shoe Corp. v. United States (Court No. 94-11-00668) found the Harbor Maintenance fee unconstitutional under the Export Clause of the Constitution (Article I, section 9, clause 5) and enjoined the Customs Service from collecting the fee. The decision was affirmed by the Supreme Court on March 31, 1998 (118 Supreme Court 1290). With the tax on exports no longer collected, revenues have been reduced by approximately 30 percent. The Code requires the Secretary of the Treasury to submit an annual report to Congress [26 United States Code 9602(a)]. The report must present the financial condition and results of operations of the fund during the past fiscal year and the expected condition and operations of the fund during the next 5 fiscal years. TABLE TF-4.—Harbor Maintenance Trust Fund Results of Operations, Fiscal Year 2013 [Source: Department of the Army Corps of Engineers] Balance Oct. 1, 2012* ............................................................................................................................................................................................................. $6,950,042,771 Receipts: Excise taxes: Imports ............................................................................................................................................................................................................................... 1,139,832,309 Exports ............................................................................................................................................................................................................................... - Domestic ............................................................................................................................................................................................................................ 122,800,912 Passengers ........................................................................................................................................................................................................................ 11,843,062 Foreign trade...................................................................................................................................................................................................................... 248,827,286 Interest on investments...................................................................................................................................................................................................... 172,714,203 Total receipts ............................................................................................................................................................................................................... 1,696,017,772 Expenses: Corps of Engineers ............................................................................................................................................................................................................. 855,203,419 Saint Lawrence Seaway Development Corporation/DOT .................................................................................................................................................. 30,571,661 Administrative cost for Department of Homeland Security (Customs) ............................................................................................................................... 3,274,000 Operating expenses, miscellaneous returns....................................................................................................................................................................... - Total expenses................................................................................................................................................................................................................... 889,049,080 Balance Sept. 30, 2013 ............................................................................................................................................................................................................. $7,757,011,463 * Beginning balance adjusted to reconcile with Treasury Statement in which the ending balance would also change. March 2014 TRUST FUNDS 90 Harbor Maintenance Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018* [In millions of dollars. Source: Department of the Army Corps of Engineers] 2014 2015 2016 2017 2018 7,757.0 8,676.1 9,718.2 10,900.5 12,237.1 Harbor maintenance fee .................................................................................. 1,617.9 1,695.8 1,764.0 1,818.6 1,879.3 Interest on investments.................................................................................... 225.5 280.0 370.6 489.0 562.7 Total receipts ............................................................................................... 9,600.4 10,651.9 11,852.8 13,208.1 14,679.1 Harbor Maintenance Trust Fund, legislative proposal not subject to paygo ..................................................................................... - - - - - Corps of Engineers operation, maintenance, and administrative expenses ....................................................................... 834.2 842.5 858.0 875.0 898.5 Corps of Engineers construction ..................................................................... 55.8 56.4 59.0 60.0 60.0 Saint Lawrence Seaway Development Corporation/DOT ............................... 30.3 30.8 31.3 32.0 32.5 Administrative expenses for Department of Homeland Security (Customs Service) ................................................................................................... 4.0 4.0 4.0 4.0 4.0 Total outlays................................................................................................. 924.3 933.7 952.3 971.0 995.0 Balance Sept. 30.................................................................................................. 8,676.1 9,718.2 10,900.5 12,237.1 13,684.1 Balance Oct. 1 ..................................................................................................... Receipts: Outlays: * Outyear projections are for planning purposes and are based on economic conditions and agencies’ best projections of revenues and expenses. March 2014 TRUST FUNDS 91 INTRODUCTION: Hazardous Substance Superfund The Hazardous Substance Response Trust Fund was established on the books of the Treasury in fiscal year 1981, in accordance with section 221 of the Hazardous Substance Response Revenue Act of 1980 [42 United States Code 9631(a), repealed]. The trust fund was renamed the Hazardous Substance Superfund (Superfund) and relocated in accordance with section 517 of the Superfund Amendments and Reauthorization Act of 1986 [Public Law 99-499, dated October 17, 1986 (26 United States Code 9507)]. The authority to collect excise taxes on petroleum and chemicals, and an environmental tax for all corporations with modified alternative taxable income in excess of $2 million, expired in 1995. To implement the Superfund program, amounts are appropriated from the Superfund to the Environmental Protection Agency (EPA) for programmatic and administrative expenses. An annual report to Congress by the Secretary of Treasury is required by 26 United States Code 9602(a). These reports present the financial condition of the Superfund and the results of operation for the past fiscal year, and its expected condition during the next 5 fiscal years. TABLE TF-5.—Hazardous Substance Superfund1, 2, 3 Results of Operations, Fiscal Year 2013 [Source: EPA] Balance Oct. 1, 2012 ...................................................................................................................................................................................... $79,600,000 Receipts: Crude and petroleum .................................................................................................................................................................................. - Certain chemicals........................................................................................................................................................................................ - Corporate environmental ............................................................................................................................................................................ - General fund appropriation ......................................................................................................................................................................... 1,035,000,000 Cost recoveries ........................................................................................................................................................................................... 35,000,000 Fines and penalties ..................................................................................................................................................................................... 3,000,000 Interest on investments ............................................................................................................................................................................... 47,000,000 Offsetting collections ................................................................................................................................................................................... - Agency for Toxic Substance and Disease Registry offsetting collections .................................................................................................. - Sequestered Resources and Rescission3 .................................................................................................................................................. 76,000,000 Total receipts ........................................................................................................................................................................................... 1,196,000,000 Expenses: EPA expense .............................................................................................................................................................................................. 1,115,000,000 Other expenses ........................................................................................................................................................................................... 10,600,000 Total expenses ........................................................................................................................................................................................ 1,125,000,000 Balance Sept. 30, 2013................................................................................................................................................................................... $150,000,000 1 Reporting in this Superfund Trust Fund table is consistent with previously reported presentations. However, the structure of this table may not accurately reflect the status of this trust fund. As a result, this table may be revised in future reports and other resources should be utilized for accurate trust fund reporting. 2 Reporting excludes the Iron Mountain account in the Hazardous Substance Superfund Trust Fund. 3 Balance as of September 30, 2013, includes the temporarily sequestered resources that came available with the appropriation on October 1, 2013. March 2014 TRUST FUNDS 92 Hazardous Substance Superfund Expected Condition and Results of Operations, Fiscal Years 2014-20181, 2 [In millions of dollars. Source: EPA] 2014 2015 2016 2017 2018 150 228 173 187 197 Interest ......................................................................................................... 84 105 124 139 148 Recoveries ................................................................................................... 98 98 98 98 98 Fines and penalties ...................................................................................... 2 2 2 2 2 Taxes3 .......................................................................................................... - - - - - Offsetting collections .................................................................................... - - - - - General revenues ........................................................................................ 1,008 861 916 902 892 Total receipts ........................................................................................... 1,192 1,066 1,140 1,141 1,140 Appropriations4................................................................................................. 1,089 1,089 1,089 1,089 1,089 Other expenses................................................................................................ 25 32 37 42 44 Balance Sept. 30.............................................................................................. 228 173 187 197 204 Balance Oct. 1 ................................................................................................. Receipts: 1 Reporting in this Superfund Trust Fund table is consistent with previously reported presentations. However, the structure of this table may not accurately reflect the status of this trust fund. As a result, this table may be revised in future reports and other resources should be utilized for accurate trust fund reporting. March 2014 2 The 2014 balance includes the temporarily sequestered resources that came available with the appropriation on October 1, 2013. 3 Tax policy decisions have not been made as of January 17, 2014. 4 As directed in the Consolidated Appropriations Act of 2014. TRUST FUNDS 93 INTRODUCTION: Highway Trust Fund The Highway Trust Fund was established on the books of the Treasury in fiscal year 1957, according to provisions of the Highway Revenue Act of 1956 (Act of June 29, 1956, chapter 462, section 209). It has been amended and extended by various highway surface transportation and other acts since 1959. Section 1110(d) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy For Users (SAFETEA-LU) (Public Law 109-59) extended the Highway Trust Fund to be available for making expenditures before September 30, 2009 (October 1, 2009, in the case of expenditures for administrative expenses). Amounts equivalent to taxes on gasoline, diesel fuel, special motor fuels, certain tires, heavy trucks and trailers, and heavy vehicle use are designated by the Act to be appropriated and transferred from the general fund of the Treasury to the trust fund. These transfers are made twice monthly based on estimates by the Secretary of the Treasury, subject to later adjustments to reflect the amount of actual tax receipts. Amounts available in the fund exceeding outlay requirements are invested in non-interest-bearing public debt securities. Within the fund is a mass transit account, funded by a portion of the excise tax collections under sections 4041 and 4081 of the IRC (title 26 United States Code). The funds from this account are used for expenditures in accordance with chapter 53 of title 49 United States Code, the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240), the Transportation Equity Act for the 21st Century (TEA-21), and SAFETEA-LU. The remaining excise taxes are included in a separate account within the trust fund commonly referred to as the highway account. Expenditures from this account are made according to the provisions of various transportation acts. Amounts required for outlays to carry out the eligible surface transportation programs are made available to the responsible operating administrations within the Department of Transportation. Other charges to the trust fund are made by the Secretary of the Treasury for transfer of certain taxes to the Land and Water Conservation Fund and the Aquatic Resources Trust Fund. The Secretary of the Treasury, in consultation with the Secretary of Transportation, is required to submit annual reports to Congress by section 9602(a) of title 26 United States Code. These reports cover the financial condition and results of operations of the fund for the past fiscal year and expected condition and operations during the next 5 fiscal years. In addition, the Secretary of the Treasury is required by 26 U.S.C. 9503(d)(7) to report to specified Congressional Committees any estimate which he, in consultation with the Secretary of Transportation, makes pursuant to 26 U.S.C. 9503(d)(1) or any determination which he makes pursuant to 26 U.S.C. 9503(d)(2). The Congressional Committees are the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, the Committees on the Budget of both Houses, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Environment and Public Works of the Senate. March 2014 TRUST FUNDS 94 TABLE TF-6.—Highway Trust Fund Results of Operations, Fiscal Year 2013 [Source: DOT] Description IRC section (26 United States Code) Balance Oct. 1, 2012 ........................................................................................................................................................................................... Receipts: Excise taxes (transferred from general fund): Gasoline ....................................................................................................... 4081 .......................................................................... Diesel and special motor fuels ..................................................................... 4041 .......................................................................... Highway tires ................................................................................................ 4071 .......................................................................... Retail tax on trucks....................................................................................... 4051 .......................................................................... Heavy vehicle use ........................................................................................ 4481 .......................................................................... Total excise taxes .................................................................................................................................................................................... Less refunds and tax credits (reimbursed to general fund): Diesel fuel..................................................................................................................................................................................................... Gasoline ....................................................................................................................................................................................................... Total refunds and tax credits.................................................................................................................................................................... Less transfers: To Land and Water Conservation Fund....................................................................................................................................................... To Aquatic Resources Trust Fund ............................................................................................................................................................... To Airport and Airway Trust Fund ................................................................................................................................................................ To general fund—Rescission Section 1007(b) of P.L. 111-18 .................................................................................................................... Total transfers .......................................................................................................................................................................................... Other income: Fines and penalties ...................................................................................................................................................................................... Interest ......................................................................................................................................................................................................... Transfer from TIFIA loan subsidy re-estimate ............................................................................................................................................. Transfer from the General Fund1 ................................................................................................................................................................. Total other income ................................................................................................................................................................................... Net receipts .......................................................................................................................................................................................... Expenses: Federal Highway Administration: Federal aid to highways ............................................................................................................................................................................... Right-of-way revolving fund ......................................................................................................................................................................... Appalachian Development Highway System ............................................................................................................................................... Other ............................................................................................................................................................................................................ Total ......................................................................................................................................................................................................... Federal Motor Carrier Safety Administration ............................................................................................................................................... Federal Transit Administration ..................................................................................................................................................................... National Highway Traffic Safety Administration: Operations and research ......................................................................................................................................................................... Highway traffic safety grants .................................................................................................................................................................... National driver register ............................................................................................................................................................................. Total ..................................................................................................................................................................................................... Federal Railroad Administration ...................................................................................................................................................................... Other agencies ............................................................................................................................................................................................. Total expenses ......................................................................................................................................................................................... Balance Sept. 30, 2013........................................................................................................................................................................................ 1 Transfer of $6,200,000 pursuant to P.L. 112-141 of which #316,200,000 was sequestered. March 2014 Note.—Detail may not add to totals due to rounding. Amount $14,925,029,309 23,462,805,235 9,468,623,333 359,314,762 3,197,406,580 1,090,600,624 37,578,750,533 1,000,000 459,007,000 670,938,244 1,130,945,244 15,454,279 6,452,546 5,883,800,000 42,353,512,114 41,742,174,308 -16,380,481 2,326,482 16,373,609 41,744,493,918 544,912,559 8,098,183,171 109,991,831 517,609,022 214,810 627,815,663 51,015,405,311 $6,263,136,112 TRUST FUNDS 95 Highway Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In billions of dollars. Source: DOT] Combined Statement Highway and Mass Transit Accounts 2014 2015 2016 2017 2018 6 3 -12 -28 -44 Excise taxes, net of refunds....................................... 38 38 39 39 40 Interest, net ................................................................ - - - - - Total receipts ......................................................... 38 38 39 39 40 Adjustments1 .......................................................... 12 - - - - Outlays ........................................................................... 53 53 55 55 55 Balance Sept. 30............................................................ 3 -12 -28 -44 -59 Balance Oct. 1 ............................................................... Receipts: Mass Transit Account Balance Oct. 1 .................................................................... 2014 2015 2016 2017 2018 2 1 -2 -7 -11 5 Receipts: Excise taxes, net of refunds............................................ 5 5 5 5 Interest, net ..................................................................... - - - - - Total receipts .............................................................. 7 6 3 -2 -6 Flex fund transfers .......................................................... 1 1 1 1 1 Adjustments1 ................................................................... 2 - - - - Outlays ................................................................................ 9 9 10 11 11 Balance Sept. 30................................................................. 1 -2 -7 -11 -16 Highway Account 2014 2015 2016 2017 2018 4 2 -10 -22 -32 Excise taxes, net of refunds................................................. 33 33 34 34 35 Interest, net .......................................................................... - - - - - Total receipts ................................................................... 37 35 24 13 2 Flex fund transfers ............................................................... -1 -1 -1 -1 -1 Adjustments1 ........................................................................ 10 - - - - Outlays ..................................................................................... 44 44 44 44 44 Balance Oct. 1 ......................................................................... Receipts: Balance Sept. 30...................................................................... 2 -10 -22 -32 -43 Unfunded authorizations (EOY)............................................... 91 100 110 120 131 Forty-eight-month revenue estimate........................................ 131 133 135 136 138 1 Adjustment pursuant to Section 40201 of Public Law 112-141. Note.—Detail may not add to totals due to rounding. March 2014 96 TRUST FUNDS TABLE TF-6A.—Highway Trust Fund * The following information is released according to the provisions of the Byrd Amendment [codified at 26 United States Code 9503(d)] and represents data concerning the Highway Trust Fund. The figure described as “unfunded authorizations” is the latest estimate received from the DOT for fiscal year 2013. The 48-month revenue estimates for the highway and mass transit accounts, respectively, include the latest estimates received from Treasury’s Office of Tax Analysis for excise taxes, net of refunds. They represent net highway receipts for those periods beginning at the close of fiscal year 2013. Highway Account [In billions of dollars. Source: DOT] Commitments (unobligated balances plus unpaid obligations, fiscal year 2015) .............................................................................................................. 90 less: Cash balance (fiscal year 2015) ......................................................................................................................................................................................... -10 Unfunded authorizations (fiscal year 2015) ........................................................................................................................................................................ 100 48-month revenue estimate (fiscal years 2016, 2017, 2018, and 2019) ............................................................................................................................ 133 . Mass Transit Account [In billions of dollars. Source: DOT] Commitments (unobligated balances plus unpaid obligations, fiscal year 2015) .............................................................................................................. 25 less: Cash balance (fiscal year 2015) ......................................................................................................................................................................................... -2 Unfunded authorizations (fiscal year 2015) ........................................................................................................................................................................ 27 48-month revenue estimate (fiscal years 2016, 2017, 2018, and 2019) ............................................................................................................................ 25 Note.—Estimates are based on Fiscal Year 2015 President’s Budget assumptions. March 2014 Note.—Detail may not add to totals due to rounding. TRUST FUNDS 97 INTRODUCTION: Inland Waterways Trust Fund The Inland Waterways Trust Fund was established by the Treasury in fiscal year 1984, pursuant to section 203 of the Inland Waterways Revenue Act of 1978 (Public Law 95502) and continued pursuant to section 1405 of the Water Resources Development Act of 1986 (Public Law 99-662, codified at 26 United States Code 9506). Under 26 United States Code 9506(b), amounts from taxes on fuel used in commercial transportation on inland waterways, as determined by the Secretary of the Treasury, are appropriated to the trust fund. The Technical and Miscellaneous Revenue Act of 1988 (Public Law 100-647, approved November 10, 1988) increased the tax each year, 1990 through 1995. These amounts are transferred quarterly from the general fund based on estimates made by the Secretary, subject to adjustments in later transfers to the amounts of actual tax receipts. The Secretary of the Treasury invests in interest-bearing obligations of the United States that portion of the trust fund, in his judgment, not required to meet current withdrawals. The interest on, and proceeds from, the sale or redemption of any obligation held in the trust fund is credited to the trust fund. The Inland Waterways Revenue Act of 1978 (Public Law 95-502) provides that amounts in the trust fund shall be available as provided, by appropriations acts, for construction and rehabilitation expenditures for navigation on the inland and intracoastal waterways of the United States described in 33 United States Code 1804. Expenditures must be otherwise authorized by law. Annual reports to Congress are required by 26 United States Code 9602(a) to be submitted by the Secretary of the Treasury. These reports are required to cover the financial condition and the results of operations of the fund during the past fiscal year and its expected condition and operations during the next 5 fiscal years. TABLE TF-7.—Inland Waterways Trust Fund Results of Operations, Fiscal Year 2013 [Source: Department of the Army Corps of Engineers] $45,935,897 Balance Oct. 1, 2012 ........................................................................................................................................................................................... Receipts: Fuel taxes/revenues......................................................................................................................................................................................... Interest on investments .................................................................................................................................................................................... Gain on sale of investments ............................................................................................................................................................................ Total receipts................................................................................................................................................................................................ Transfers: Corps of Engineers .......................................................................................................................................................................................... Balance Sept. 30, 2013........................................................................................................................................................................................ 75,110,280 42,910 75,153,190 86,167,807 $34,921,280 Inland Waterways Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018* [In millions of dollars. Source: Department of the Army Corps of Engineers] Balance Oct. 1....................................................................................................... Receipts: Fuel taxes .......................................................................................................... Interest on investments ..................................................................................... Total receipts ................................................................................................. Transfers: Corps of Engineers ........................................................................................... Balance Sept. 30 ................................................................................................... 2014 2015 2016 2017 2018 35 26 20 19 19 85 85 86 86 89 89 90 90 91 91 94 26 92 20 90 19 90 19 90 20 * Outyear projections are based on economic conditions and agencies’ best projections of revenues and expenditures. March 2014 98 TRUST FUNDS INTRODUCTION: Leaking Underground Storage Tank Trust Fund The Leaking Underground Storage Tank (LUST) Trust Fund was established in fiscal year 1981 according to provisions of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (Public Law 96-510, codified at 26 United States Code 9508), as amended by the Superfund Amendments and Re-authorization Act of 1986 (Public Law 99-499, dated October 17, 1986), sections 13163I and 13242(d)(42) of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66, dated August 10, 1993), and section 1032(e)(13) of the Taxpayer Relief Act of 1987 (Public Law 105-34, dated August 5, 1997). The LUST Trust Fund is financed by taxes collected on gasoline, diesel fuels, special motor fuels, aviation fuels and fuels used in commercial transportation on inland waterways. Amounts available in the LUST Trust Fund, exceeding current expenditure requirements, are invested by the Secretary of the Treasury in interest-bearing Government securities (e.g., Treasury bills). All interest earned is credited directly to the LUST Trust Fund. To carry out the LUST program, amounts are appropriated for the LUST Trust Fund to the EPA for programmatic and administrative expenses. An annual report to Congress by the Secretary of the Treasury is required by 26 United States Code 9602(a). These reports present the financial condition of the LUST Trust Fund and results of operations for the past fiscal year and its expected condition and operations during the next 5 fiscal years. TABLE TF-8.—Leaking Underground Storage Tank Trust Fund Results of Operations, Fiscal Year 20131 [Source: EPA] $1,157,000,000 Balance Oct. 1, 2012 ...................................................................................................................................................................................... Receipts: Taxes .......................................................................................................................................................................................................... Interest........................................................................................................................................................................................................ Sequestered Resources2 ........................................................................................................................................................................... Gross tax receipts .................................................................................................................................................................................. Undisbursed balances: Environmental Protection Agency Leaking Underground Storage Tank balances ................................................................................... Total undisbursed balances ................................................................................................................................................................... Expenses: Environmental Protection Agency Leaking Underground Storage Tank expenses .................................................................................. Other expenses ...................................................................................................................................................................................... Total expenses ....................................................................................................................................................................................... 162,000,000 23,000,000 5,000,000 190,000,000 104,000,000 3,000,000 $107,000,000 $1,240,000,000 Balance Sept. 30, 2013 .................................................................................................................................................................................. 1 Reporting in this trust fund table is consistent with previously reported presentations. However, the structure of this table may not accurately reflect the status of this trust fund. As a result, this table may be revised in future reports and other resources should be utilized for accurate trust fund reporting. 2 Balances as of September 30, 2013 include the temporarily sequestered resources that came available with the appropriation on October 1, 2013. Leaking Underground Storage Tank Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-20181, 2 [In millions of dollars. Source: EPA] Balance Oct. 1................................................................................................................. Receipts: Taxes3 ......................................................................................................................... Interest3 ....................................................................................................................... Total receipts ........................................................................................................... Appropriations4 ................................................................................................................ Other Expenses .............................................................................................................. Balance Sept. 30 ............................................................................................................. 1 Reporting in this trust fund table is consistent with previously reported presentations. However, the structure of this table may not accurately reflect the status of the trust fund. As a result, this table may be revised in future reports and other resources should be utilized for accurate trust fund reporting. March 2014 2 2014 2015 2016 2017 2018 1,240 1,346 1,458 1,598 1,752 178 30 201 95 1,346 179 42 207 95 1,458 180 55 235 95 1,598 181 68 249 95 1,752 182 80 262 95 1,919 The 2014 balance includes the temporarily sequestered resources that came available with the appropriation on October 1, 2013. 3 Taxes and Interest are estimated. 4 As directed in the Consolidated Appropriations Act, 2014. TRUST FUNDS 99 INTRODUCTION: Nuclear Waste Fund The Nuclear Waste Fund was established on the books of the Treasury in fiscal year 1983, according to section 302 of the Nuclear Waste Policy Act of 1982 [Public Law 97-425, codified at 42 United States Code 10222I]. Receipts represent fees collected from public utilities based on electricity generated by nuclear power reactors and spent nuclear fuel. Expenditures from the fund are for purposes of radioactive waste disposal activities. Amounts available in the fund exceeding current needs may be invested by the Secretary of the Treasury in obligations of the United States (1) having maturities in tandem with the needs of the waste fund and (2) bearing interest at rates determined appropriate, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the maturities of such investments, except that the interest rate on such investments shall not exceed the average interest rate applicable to existing borrowings. An annual report to Congress by the Secretary of the Treasury, after consultation with the Secretary of the Department of Energy (DOE), is required by 42 United States Code 10222(e)(1). This report must present the financial condition and the results of operations of the waste fund during the preceding fiscal year. TABLE TF-9.—Nuclear Waste Fund Results of Operations, Fiscal Year 2013 [Source: DOE] Balance Sept. 30, 2012........................................................................................................................................................................................ $1,897,408 Receipts: Fees collected .................................................................................................................................................................................................. 733,753,204 Penalties and interest on fee payments........................................................................................................................................................... - Interest on investments .................................................................................................................................................................................... 1,162,423,483 Total receipts ................................................................................................................................................................................................ 1,896,176,687 Nonexpenditure transfers: SF-1151 transfers in (+) ................................................................................................................................................................................... - SF-1151 transfers out (-).................................................................................................................................................................................. -3,400,000 Net nonexpenditure transfers....................................................................................................................................................................... -3,400,000 Outlays: DOE radioactive waste disposal activities ....................................................................................................................................................... 2,611,602 Cost investments.............................................................................................................................................................................................. 1,890,139,973 Total outlays ................................................................................................................................................................................................. 1,892,751,575 Balance Sept. 30, 2013........................................................................................................................................................................................ $1,922,520 March 2014 100 TRUST FUNDS CHARTS TF-A and B.—Major Trust Funds [Data depicted in these charts are derived from the Trust Fund tables, which are provided by various Government agencies. See tables TF-1, TF-3, TF-5, TF-6 and TF-9.] March 2014 TRUST FUNDS 101 INTRODUCTION: Reforestation Trust Fund The Reforestation Trust Fund was established on the books of the Treasury in fiscal year 1981 to continue through September 30, 1985, according to provisions of Title III—Reforestation, of the Recreational Boating Safety and Facilities Improvement Act of 1980 [Public Law 96451, codified at 16 United States Code 1606a(a)]. The act provides that the Secretary of the Treasury shall transfer to the trust fund tariffs, limited to not more than $30 million for any fiscal year, received in the Treasury from October 1, 1979, through September 30, 1985, on (1) rough and primary wood products and wood waste; (2) lumber, flooring and moldings; and (3) wood veneers, plywood, other wood-veneer assemblies and building boards. Public Law 99-190, title II, 99 Statutes at Large 1245, extended the receipts for the trust fund. Amounts available in the reforestation trust fund exceeding current withdrawals are invested in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. The interest on, and the proceeds from the sale or redemption of, any obligations are credited to the trust fund. The Secretary of the Department of Agriculture is authorized to obligate available sums in the trust fund (including any amounts not obligated in previous years) for (1) reforestation and timber stand improvement and (2) administrative costs of the Government for these activities. Annual reports are required by 16 United States Code 1606aI (1) to be submitted by the Secretary of the Treasury, after consultation with the Secretary of Agriculture, on the financial condition and the results of the operations of the trust fund during the past fiscal year and on its expected condition and operations during the next fiscal year. TABLE TF-10.—Reforestation Trust Fund Results of Operations, Fiscal Year 2013 [Source: Department of Agriculture] Balance Oct. 1, 2012 ........................................................................................................................................................................................... 6,164,994 Receipts: Excise taxes (tariffs) ......................................................................................................................................................................................... 30,000,000 Redemption of investment ............................................................................................................................................................................... - Total receipts ................................................................................................................................................................................................ 30,000,000 Expenses: Expenditure ...................................................................................................................................................................................................... 29,279,923 Total expenses ............................................................................................................................................................................................. 29,279,923 Adjustment ........................................................................................................................................................................................................... 6,885,071 Balance Sept. 30, 2013........................................................................................................................................................................................ Reforestation Trust Fund Expected Condition and Results of Operations, Fiscal Year 2014 [In thousands of dollars. Source: Department of Agriculture] Balance Oct. 1 ..................................................................................................................................................................................................... 6,885 Receipts: Excise taxes (tariffs) ........................................................................................................................................................................................ 30,000 Redemption of investment .............................................................................................................................................................................. - Total receipts ............................................................................................................................................................................................... 30,000 Outlays ................................................................................................................................................................................................................ 30,000 Balance Sept. 30 ................................................................................................................................................................................................. 6,885 March 2014 TRUST FUNDS 102 INTRODUCTION: Sport Fish Restoration and Boating Trust Fund The Aquatic Resources Trust Fund (ARTF) was established on the books of the Treasury pursuant to the Deficit Reduction Act of 1984 [Public Law 98-369, division A, title X, section 1016(a), approved July 18, 1984]. The ARTF was restructured and renamed the Sport Fish Restoration and Boating Trust Fund by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users or “SAFETEA-LU” [Public Law 10959, title XI, subtitle B, part 2, section 11115, approved August 10, 2005,] as amended by the Sportfishing and Recreational Boating Safety Amendments Act of 2005 [Public Law 109-74, approved September 29, 2005]. Section 3 of the Dingell-Johnson Sport Fish Restoration Act, 16 United States Code 777, provides authorization of appropriations to the states to carry out the provisions of the act, and Section 4 provides the division of the remaining annual appropriation not authorized in Section 3. SAFETEA-LU comprehensively amended Section 3 and reauthorized the Sport Fish Restoration Program (for fiscal years 2006-2009) to permanently appropriate boating safety funds; to modify distribution of funds whereby all accounts receive a fixed percentage of the total fund annually; and to modify the excise tax on certain sport fishing equipment. From October 1, 2010, through June 30, 2012, the authority for SAFETEA-LU was extended via several public laws. In June 2012, Public Law 112-141, Moving Ahead for Progress in the 21st Century Act (MAP-21), established new authority for Section 4 through September 30, 2014. March 2014 Effective October 1, 2005, motorboat fuel taxes (less $1 million transferred to the Land and Water Conservation Fund) and small engine gasoline taxes [pursuant to the Omnibus Budget Reconciliation Act of 1990, Public Law 101-508, title XI, section 11211(i) (2) and (3)] were transferred from the Highway Trust Fund to the Sport Fish Restoration and Boating Trust Fund. In addition, amounts equivalent to the excise taxes received on sport fishing equipment and import duties on fishing tackle, yachts, and pleasure craft are appropriated into the fund. Amounts in the trust fund are used, as provided by appropriation acts, for the purposes of carrying out the Dingell-Johnson Sport Fish Restoration Act, approved August 9, 1950; Section 7404(d) of the Transportation Equity Act for the 21st Century; and the Coastal Wetlands Planning, Protection and Restoration Act (each as in effect on the date of enactment of the MAP-21). The general provisions of 26 United States Code 9602(b) are responsible for making amounts available in the fund exceeding outlay requirements to be invested in public debt securities with the interest credited to the fund. As required by 26 United States Code 9602(a), annual reports to Congress must be submitted by the Secretary of the Treasury. These reports will cover the financial condition and results of operations of the fund during the past fiscal year and those expected during the next 5 fiscal years. TRUST FUNDS 103 TABLE TF-11.—Sport Fish Restoration and Boating Trust Fund Sport Fish Restoration Results of Operations, Fiscal Year 2013 [Source: Bureau of the Fiscal Service, Funds Management Branch] Balance Oct. 1, 20121 ............................................................................................................................................................................................ $676,360,716 Revenue: Tax revenue: Gas, motorboat .............................................................................................................................................................................................. 337,500,000 Fish equipment............................................................................................................................................................................................... 65,192,370 Tackle boxes .................................................................................................................................................................................................. 1,451,395 Rods and poles .............................................................................................................................................................................................. 9,152,857 Electronic outboard motors ............................................................................................................................................................................ 4,264,721 Customs/import duties ................................................................................................................................................................................... 45,807,314 Gas, motorboat small engines ....................................................................................................................................................................... 121,507,000 Total, tax revenue ...................................................................................................................................................................................... 584,875,657 Investment revenue: Interest on investments (accrual basis) ......................................................................................................................................................... 5,654,812 Loss on sale of securities ............................................................................................................................................................................... Total, investment revenue.......................................................................................................................................................................... 5,654,812 Total revenue ............................................................................................................................................................................................. 590,530,469 Nonexpenditure appropriations: Interior ............................................................................................................................................................................................................ -439,065,796 Interior (U.S. Coast Guard) ............................................................................................................................................................................ -114,728,918 Interior (Corps of Engineers).......................................................................................................................................................................... -80,310,243 Total appropriations ................................................................................................................................................................................... -634,104,957 Balance Sept. 30, 20132 ........................................................................................................................................................................................ $632,786,228 1 This year the beginning equity balance was misstated by $ 2.00 due to rounding. 2 The Balance for September 30, 2013, does not tie to the September 30, 2013, published financial statement 3310 end balance. The equity balance is not affected throughout the entirety of the fiscal year, but changes for the beginning of the following fiscal year, after adjusting/closing entries are made. The balance shown here for September 30, 2013, reflects the net activity for fiscal year 2013 and adjusting/closing entries made in October 2013. Sport Fish Restoration and Boating Trust Fund Sport Fish Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In thousands of dollars. Source: Department of the Interior] 2014 2015 2016 2017 2018 632,786 656,587 679,483 706,164 737,628 Taxes ............................................................................................ 607,000 629,000 654,000 684,000 718,000 Interest .......................................................................................... 12,403 13,299 14,981 16,445 18,377 Balance Oct. 1 ..................................................................................... Receipts/revenue: Transfers ....................................................................................... - - - - - Total receipts ............................................................................ 619,403 642,299 668,981 700,445 736,377 Expenses/transfers ....................................................................... 595,602 619,403 642,300 668,981 700,445 Total expenses.......................................................................... 595,602 619,403 642,300 668,981 700,445 Balance Sept. 30............................................................................... 656,587 679,483 706,164 737,628 773,560 Expenses: March 2014 104 TRUST FUNDS INTRODUCTION: Oil Spill Liability Trust Fund The Oil Spill Liability Trust Fund was established on the books of the Treasury by section 8033 of the Omnibus Budget Reconciliation Act of 1986 (Public Law 99-509). It was made effective on January 1, 1990, by section 7811(m)(3) of the Omnibus Budget Reconciliation Act of 1989 (Public Law 101-239) and amended by section 9001of the Oil Pollution Act of 1990 (Public Law 101-380). The Energy Improvement and Extension Act of 2008 (Public Law 110-343) increased the barrel tax on petroleum from five cents per barrel to eight cents from 2009 through 2016, and to nine cents in 2017. The act also repeals the requirement that the tax be suspended when the unobligated balance exceeds $2.7 billion. Amounts equivalent to the taxes received from the environmental tax on petroleum, but only to the extent of the Oil Spill Liability Trust Fund rate, are appropriated to the fund. Certain amounts were transferred from other funds and were appropriated to the Oil Spill Liability Trust Fund as March 2014 provided by 26 United States Code 9509(b). Certain paid penalties and amounts recovered for damages are also appropriated to the fund. Amounts in the fund are available for oil spill cleanup costs and certain other related purposes as provided by appropriations acts or section 6002(b) of the Oil Pollution Act of 1990 (Public Law 101-380). When the provisions of 26 United States Code 9602(b) are met, amounts available in the fund exceeding outlay requirements are invested in public debt securities. Interest is credited to the fund. Annual reports to Congress, required by 26 United States Code 9602(a), are submitted by the Secretary of the Treasury. These reports are required to cover the financial condition and results of operations of the fund during the past fiscal year and those expected during the next 5 fiscal years. TRUST FUNDS 105 TABLE TF-12.—Oil Spill Liability Trust Fund Results of Operations, Fiscal Year 2013 [Source: Bureau of the Fiscal Service, Funds Management Branch] $2,366,997,912 Balance Oct. 1, 20121 .................................................................................................................................................................................................... Revenue: Drawback claims ........................................................................................................................................................................................................ Other income .............................................................................................................................................................................................................. Trans-Alaska Pipeline liability fund deposit ............................................................................................................................................................... Cost recoveries .......................................................................................................................................................................................................... Fines and penalties .................................................................................................................................................................................................... -20,908,090 125,353,027 402,451,172 430,223,785 Excise taxes ............................................................................................................................................................................................................... 937,119,894 Net revenue before interest ................................................................................................................................................................................... Investment income: Interest on investments .............................................................................................................................................................................................. 17,322,988 - Realized gain ............................................................................................................................................................................................................. Total investment income ........................................................................................................................................................................................ 17,322,988 Total revenue ......................................................................................................................................................................................................... Expenditures: Treasury administrative expense—BFS .................................................................................................................................................................... Nonexpenditure transfers: Transfer to Denali commission .................................................................................................................................................................................. Transfer to Interior...................................................................................................................................................................................................... Transfer to EPA.......................................................................................................................................................................................................... Transfer to PHMSA .................................................................................................................................................................................................... Transfer to U.S. Coast Guard-70x8312 (claims) ....................................................................................................................................................... Transfer to U.S. Coast Guard-70x8349 (Emer Fund) ............................................................................................................................................... 954,442,882 -165,000 Transfer to U.S. Coast Guard-annual (earmarked) ................................................................................................................................................... -6,708,757 -28,838,165 -17,290,451 -7,016,450 -84,636,182 -45,480,849 -42,693,583 Total nonexpenditure transfers .............................................................................................................................................................................. -232,664,437 Total expenditure/nonexpenditure transfers .......................................................................................................................................................... -232,829,437 Balance Sept. 30, 2013.................................................................................................................................................................................................. $3,088,611,357 1 The Balance for September 30, 2013, does not tie to the September 30, 2013, published financial statement 3310 end balance. The equity balance is not affected throughout the entirety of the fiscal year, but changes for the beginning of the following fiscal year, after adjusting/closing entries are made. The balance shown here for September 30, 2013, reflects the net activity for fiscal year 2013 and adjusting/closing entries made in October 2013. Oil Spill Liability Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In millions of dollars. Source: Department of Homeland Security] 2014 2015 2016 2017 2018 3,089 3,707 4,430 5,038 5,694 Estimated expenses ...................................................................................... 1,026 408 920 197 805 197 853 197 856 197 Balance Sept. 30............................................................................................ 3,707 4,430 5,038 5,694 6,353 Balance Oct. 1 ............................................................................................... Estimated receipts ......................................................................................... March 2014 TRUST FUNDS 106 INTRODUCTION: Vaccine Injury Compensation Trust Fund The Vaccine Injury Compensation Trust Fund was created on the books of the Treasury by section 9202 of the Revenue Act of 1987 (Public Law 100-203, approved December 22, 1987). Excise taxes on diphtheria, pertussis, tetanus, measles, mumps, rubella, polio, hepatitis B, haemophilus influenza type b, varicella, rotavirus, pneumococcal conjugate vaccines, hepatitis A (26 United States Code 4131), and trivalent influenza are appropriated into the trust fund, which is the source of funds to pay compensation awards for a vaccinerelated injury or death occurring after October 1, 1988, as well as program administrative expenses. Additionally, two new vaccines have been added for coverage effective February 1, 2007; the meningococcal vaccine and the human papillomavirus vaccine. Annual reports to Congress, required by 26 United States Code 9602(a), are submitted by the Secretary of the Treasury. These reports are required to cover the financial condition and results of operations of the fund during the past fiscal year and those expected during the next 5 fiscal years. TABLE TF-13.—Vaccine Injury Compensation Trust Fund Results of Operations, Fiscal Year 2013 [Source: Bureau of the Fiscal Service, Funds Management Branch] $3,471,159,326 Balance Oct. 1, 20121 .......................................................................................................................................................................................... Receipts: Excise tax receipts ........................................................................................................................................................................................... Interest on investments .................................................................................................................................................................................... Total receipts ................................................................................................................................................................................................ Expenditure appropriations: U.S. Court of Federal Claims expenses .......................................................................................................................................................... U.S. Department of Justice expenses ............................................................................................................................................................. GF transfer—program management................................................................................................................................................................ Total outlays ................................................................................................................................................................................................. Nonexpenditure appropriations: Health resources .............................................................................................................................................................................................. Total outlays/transfers .................................................................................................................................................................................. Backout of payable balance—Transfer to equity ......................................................................................................................................... Balance Sept. 30, 2013........................................................................................................................................................................................ 204,531,836 61,535,841 266,067,677 -4,661,407 -7,670,583 -12,331,990 -280,429,010 -292,761,000 7,403,768 $3,451,869,771 1 The Balance for September 30, 2013, does not tie to the September 30, 2013, published financial statement 3310 end balance. The equity balance is not affected throughout the entirety of the fiscal year, but changes for the beginning of the following fiscal year, after adjusting/closing entries are made. The balance shown here for September 30, 2013, reflects the net activity for fiscal year 2013 and adjusting/closing entries made in October 2013. Vaccine Injury Compensation Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In thousands of dollars. Source: Department of Health and Human Services ] Balance Oct. 1 ............................................................................................... Receipts (from tax) ........................................................................................ Interest on investments.............................................................................. Total receipts ......................................................................................... Outlays: U.S. Court of Federal Claims expenses .................................................... U.S. Department of Justice expenses ....................................................... Total outlays............................................................................................... Nonexpenditure transfers: Transfers to health resources .................................................................... Total outlays/transfers ........................................................................... Balance Sept. 30............................................................................................ March 2014 2014 2015 2016 2017 2018 3,451,869 210,668 63,382 274,050 3,425,308 216,988 65,284 282,272 3,398,304 223,498 67,242 290,740 3,370,843 230,203 69,259 299,462 3,342,911 237,109 71,337 308,446 3,718 8,051 11,769 3,718 8,051 11,769 3,718 8,051 11,769 3,718 8,051 11,769 3,718 8,051 11,769 288,842 300,611 3,425,308 297,507 309,276 3,398,304 306,432 318,201 3,370,843 315,625 327,394 3,342,911 325,094 336,863 3,314,494 TRUST FUNDS 107 INTRODUCTION: Wool Research, Development, and Promotion Trust Fund The Wool Research, Development, and Promotion Trust Fund was established in fiscal year 2000 with a sunset provision effective January, 1, 2004, according to provisions of the Trade and Development Act of 2000 (Public Law 106-200, signed May 18, 2000). The Trade Act of 2002 (Public Law 107-210, signed August 6, 2002) extended the sunset provision to January 1, 2006. The Miscellaneous Trade and Technical Corrections Act of 2004 (Public Law 108-429, signed December 3, 2004) extended the sunset provision to 2008. The Pension Protection Act of 2006 (Public Law 109-280, signed August 17, 2006) extended the sunset provision to 2010. The Emergency Economic Stabilization Act of 2008 (Public Law 110-343, signed October 3, 2008) extended the sunset provision to 2015. The Act provides that the Secretary of the Treasury shall transfer to the trust fund out of the general fund of the U.S. Treasury amounts determined to be equivalent to the duty received on articles under chapters 51 and 52 of the Harmonized Tariff Schedule of the United States. The amount to be transferred is limited to $2,500,000 in any fiscal year and may be invested in U.S. Treasury securities. The Secretary of Agriculture is authorized to provide grants to a nationally recognized council established for the development of the United States wool market for the following purposes: Assist United States wool producers in improving the quality of wool and wool production methods for wool produced in the United States. Disseminate information on improvements to United States wool producers. Assist United States wool producers in developing and promoting the wool market. Annual reports to Congress are required on the financial condition and the results of the operations of the trust fund during the past fiscal year and on its expected condition and operations during the next fiscal year. TABLE TF-14.—Wool Research, Development, and Promotion Trust Fund Results of Operations, Fiscal Year 2013 [In thousands of dollars. Source: Department of Agriculture] Balance Oct. 1, 2012 ................................................................................................................................................................................................ Receipts: - Harmonized tariff ................................................................................................................................................................................................... 2,250 Sequestration ........................................................................................................................................................................................................ -115 Total receipts ..................................................................................................................................................................................................... Expenses: 2,135 Expenditure ........................................................................................................................................................................................................... 2,135 Total expenses .................................................................................................................................................................................................. 2,135 Balance Sept. 30, 2013 ............................................................................................................................................................................................ - Wool Research, Development, and Promotion Trust Fund Expected Condition and Results of Operations, Fiscal Year 2014 [In thousands of dollars. Source: Department of Agriculture] Balance Oct. 1, 2013 ................................................................................................................................................................................................ Receipts: - Harmonized tariff ................................................................................................................................................................................................... 2,250 Sequestration ........................................................................................................................................................................................................ -162 Total receipts ..................................................................................................................................................................................................... Expenses: 2,088 Expenditure ........................................................................................................................................................................................................... 2,088 Total expenses .................................................................................................................................................................................................. 2,088 Balance Sept. 30 ...................................................................................................................................................................................................... - March 2014 TRUST FUNDS 108 INTRODUCTION: Agriculture Disaster Relief Trust Fund The Food, Conservation, and Energy Act of 2008 (Public Law 110-246) created the “Agriculture Disaster Relief Trust Fund” (Disaster Trust Fund). The Disaster Trust Fund is described in Section 902 of the public law. The Disaster Trust Fund is appropriated an amount equivalent to 3.08 percent of the amounts received in the general fund of the Treasury of the United States during fiscal years 2008 through 2011 attributable to the duties collected on articles entered, or withdrawn from the warehouse, for consumption under the Harmonized Tariff Schedule of the United States. The collection activity is made by the U.S. Department of Homeland Security, U.S. Customs and Border Protection (CBP). The CBP transfers the funds monthly to the Disaster Trust Fund Receipt Account. The Disaster Trust Fund shall make amounts available for the purpose of expenditures to meet obligations of the United States incurred under Section 901 of the Trade Act of 1974 and Section 531 of the Federal Crop Insurance Act. The Disaster Trust Fund will be used to make payments to farmers and ranchers under five disaster programs. Supplemental Revenue Assistance Payments Program (SURE) Livestock Forage Disaster Program (LFP) Livestock Indemnity Program (LIP) Tree Assistance Program (TAP) Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP) The Farm Service Agency shall invest such portions of the Disaster Trust Fund that is not required to meet current payment amounts. Investments may only be made in interest bearing obligations of the United States. The American Recovery and Reinvestment Act (ARRA) of 2009 (Public Law 111-5) created the “Agriculture Disaster Relief Trust Fund, Recovery Act” (Disaster Trust FundRecovery Act). The Disaster Trust Fund-Recovery Act provided for additional payments to farmers and ranchers from the SURE and TAP programs. The additional payments are tracked separately to meet the ARRA reporting requirements. The Disaster Trust Fund has indefinite borrowing authority via repayable advances. Annual reports to Congress, required by 19 United States Code 2497(a), are submitted by the Secretary of the Treasury. These reports are required to cover the financial condition and results of operations of the fund during the past fiscal year and those expected during the next 5 fiscal years. TABLE TF-15.—Agriculture Disaster Relief Trust Fund Results of Operations, Fiscal Year 2013 [In thousands of dollars. Source: Department of Agriculture] Cumulative debt, start of year .................................................................................................................................................................................. $1,801,041 Balance Oct. 1, 2012 ............................................................................................................................................................................................... Receipts: Transferred from customers................................................................................................................................................................................. Borrowing authority .............................................................................................................................................................................................. 209,353 Interest ................................................................................................................................................................................................................. Total receipts .................................................................................................................................................................................................... Outlays: Supplemental Revenue Assistance Payments Program ..................................................................................................................................... Livestock Forage Disaster Program .................................................................................................................................................................... Livestock Indemnity Program............................................................................................................................................................................... Tree Assistance Program .................................................................................................................................................................................... Emergency Assistance of Livestock, Honey Bees, and Farm-Raised Fish Program ......................................................................................... Other .................................................................................................................................................................................................................... Total benefit payments ..................................................................................................................................................................................... Supplemental Revenue Assistance Payments Program ..................................................................................................................................... Tree Assistance Program .................................................................................................................................................................................... Total benefit payments—Recovery Act ........................................................................................................................................................... Interest ................................................................................................................................................................................................................. Total outlays ..................................................................................................................................................................................................... Interchange Authority Transfer to Emergency Conservation Program ........................................................................................................... 115 1,595,315 1,595,430 1,761,707 1,359 141 2,089 286 1,835 1,760,627 201 201 1,760,828 - Balance Sept. 30 ...................................................................................................................................................................................................... 43,955 Cumulative debt, end of year* .................................................................................................................................................................................. $3,396,356 *The Cumulative debt, end of year reflect an adjusted Cumulative balance by $794,250. FSA FACTS II reported $2,602,106 as Cumulative debt, end of year. March 2014 TRUST FUNDS 109 Agriculture Disaster Relief Trust Fund Trust Fund Expected Condition and Results of Operations, Fiscal Years 2014-2018 [In thousands of dollars. Source: Department of Health and Human Services ] 2014 2015 2016 2017 2018 Cumulative debt, start of year ............................................................................. 3,396,356 3,396,356 3,396,356 3,395,401 1,723,938 Balance Oct. 1 .................................................................................................... 43,955 1,955 955 - - Transferred from customers ........................................................................... - - - - - Borrowing authority ......................................................................................... - - - - - Interest ............................................................................................................ - - - - - Total receipts .............................................................................................. - - - - - Supplemental Revenue Assistance Payments Program................................ 42,000 1,000 - - - Livestock Forage Disaster Program ............................................................... - - - - - Livestock Indemnity Program ......................................................................... - - - - - Tree Assistance Program ............................................................................... - - - - - Receipts: Outlays: 1 Emergency Assistance of Livestock, Honey Bees, and FarmRaised Fish Program .................................................................................. - - - - - Total benefit payments ............................................................................... 42,000 1,000 - - - Supplemental Revenue Assistance Payments Program................................ - - - - - Tree assistance program ................................................................................ - - - - - Total benefit payments—Recovery Act ...................................................... - - - - - Interest ............................................................................................................ - - - - - Total outlays................................................................................................ 42,000 1,000 - - - Authority to repay outstanding debt1 .......................................................... - - 955 1,671,463 1,723,938 Balance Sept. 30............................................................................................. Cumulative debt, end of year .......................................................................... 1,955 3,396,356 955 3,396,356 3,395,401 1,723,938 - Assumes enactment of authority to repay cumulative repayable advances in fiscal year 2016. Note.—Detail may not add to totals due to rounding. March 2014 110 Research Paper Series Available through the Office of the Assistant Secretary for Economic Policy 9002. “Historical Trends in the U.S. Cost of Capital.” Robert Gillingham and John S. Greenlees. December 1990. 9003. “The Effect of Marginal Tax Rates on Capital Gains Revenue: Another Look at the Evidence.” Robert Gillingham and John S. Greenlees. December 1990. 9004. “An Econometric Model of Capital Gains Realization Behavior.” Robert Gillingham, John S. Greenlees, and Kimberly D. Zieschang. August 1990. 9101. “The Impact of Government Deficits on Personal and National Saving Rates.” (Revised) Michael R. Darby, Robert Gillingham, and John S. Greenlees. February 1991. 9102. “Social Security and the Public Debt.” James E. Duggan. October 1991. 9201. “Issues in Eastern European Social Security Reform.” John C. Hambor. June 1992. 9202. “Life-Health Insurance Markets.” John S. Greenlees and James E. Duggan. July 1992. 9203. “Property-Casualty Insurance Markets.” Lucy Huffman and David Bernstein. August 1992. 9301. “The Bank-Reported Data in the U.S. Balance of Payments: Basic Features and an Assessment of their Reliability.” Michael Cayton. February 1993. 9302. “The Returns Paid to Early Social Security Cohorts.” James E. Duggan, Robert Gillingham, and John S. Greenlees. April 1993. 9303. “Distributional Effects of Social Security: The Notch Issue Revisited.” James E. Duggan, Robert Gillingham, and John S. Greenlees. Revised April 1995. 9501. “Progressive Returns to Social Security? An Answer from Social Security Records.” James E. Duggan, Robert Gillingham, and John S. Greenlees. November 1995. 9701. “Housing Bias in the CPI and Its Effects on the Budget Deficit and Social Security Trust Fund.” James E. Duggan, Robert Gillingham, and John S. Greenlees. January 1997. 9702. “An Improved Method for Estimating the Total Taxable Resources of the States.” Michael Compson and John Navratil. December 1997. 2001-01. “Some Regulatory and Institutional Barriers to Congestion Pricing at Airports.” Edward Murphy and John D. Worth. May 2001. 2001-02. “Actuarial Nonequivalence in Early and Delayed Social Security Benefit Claims.” James E. Duggan and Christopher J. Soares. June 2001. March 2014 RESEARCH PAPER SERIES 111 2003-01. “Annuity Risk: Volatility and Inflation Exposure in Payments from Immediate Life Annuities.” Christopher J. Soares and Mark Warshawsky. January 2003. 2005-01. “Possible Alternatives to the Medicare Trustees’ Long-Term Projections of Health Spending.” Jason D. Brown and Ralph M. Monaco. January 2005. 2005-02. “The Long-Term Real Interest Rate for Social Security.” James A. Girola. March 2005. 2006-01. “Implications of Returns on Treasury Inflation-Indexed Securities for Projections of the Long-Term Real Interest Rate.” James A. Girola. March 2006. 2007-01. “Mortality and Lifetime Income Evidence from Social Security Records.” James E. Duggan, Robert Gillingham, and John S. Greenlees. December 2006. 2007-02. “The Impact of Post-9/11 Visa Policies on Travel to the United States.” Brent Neiman and Phillip L. Swagel. June 2007. 2008-01. “Prefunding Social Security Benefits to Achieve Intergenerational Fairness: Can It Be Done in the Social Security Trust Fund?” Randall P. Mariger. December 2008. 2008-02. “Do Social Security Surpluses Pay Down Publicly Held Debt? Evidence from Budget Data.” Randall P. Mariger. December 2008. Copies may be obtained by writing to: Ann Bailey, Department of the Treasury 1500 Pennsylvania Ave., NW., Room 4409 MT Washington, DC 20220 Telephone (202) 622-1519 or fax (202) 622-4112 March 2014 112 Glossary With References to Applicable Sections and Tables Source: Bureau of the Fiscal Service Amounts outstanding and in circulation (USCC)—Includes all issues by the Bureau of the Mint purposely intended as a medium of exchange. Coins sold by the Bureau of the Mint at premium prices are excluded; however, uncirculated coin sets sold at face value plus handling charge are included. Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. As of September 2013, the debt limit was 16,699,421 million; the limit may change from year to year. Average discount rate (PDO-1, -2)—In Treasury bill auctions, purchasers tender competitive bids on a discount rate basis. The average discount rate is the weighted, or adjusted, average of all bids accepted in the auction. Pursuant to 31 U.S.C. 3101(b): By the Continuing Appropriations Act, 2014, Public Law 113-46, the Statutory Debt Limit has been suspended and shall not apply for the period beginning October 17, 2013, and ending on February 7, 2014. Budget authority (“Federal Fiscal Operations”)—Congress passes laws giving budget authority to Government entities, which gives the agencies the power to spend Federal funds. Congress can stipulate various criteria for the spending of these funds. For example, Congress can stipulate that a given agency must spend within a specific year, number of years, or any time in the future. The basic forms of budget authority are appropriations, authority to borrow, contract authority, and authority to obligate and expend offsetting receipts and collections. The period of time during which Congress makes funds available may be specified as 1-year, multiple-year, or no-year. The available amount may be classified as either definite or indefinite; a specific amount or an unspecified amount can be made available. Authority also may be classified as current or permanent. Permanent authority requires no current action by Congress. Budget deficit—The total, cumulative amount by which budget outlays (spending) exceed budget receipts (income). Cash management bills (PDO-1)—Marketable Treasury bills of irregular maturity lengths, sold periodically to fund short-term cash needs of Treasury. Their sale, having higher minimum and multiple purchase requirements than those of other issues, is generally restricted to competitive bidders. Competitive tenders (“Treasury Financing Operations”)— A bid to purchase a stated amount of one issue of Treasury securities at a specified yield or discount. The bid is accepted if it is within the range accepted in the auction. (See Noncompetitive tenders.) Currency no longer issued (USCC)—Old and new series gold and silver certificates, Federal Reserve notes, national bank notes, and 1890 Series Treasury notes. Debt outstanding subject to limitation (FD-6)—The debt incurred by the Treasury subject to the statutory limit set by Congress. Until World War I, a specific amount of debt was authorized to each separate security issue. Beginning with the March 2014 Discount—The interest deducted in advance when purchasing notes or bonds. (See Accrued discount.) Discount rate (PDO-1)—The difference between par value and the actual purchase price paid, annualized over a 360-day year. Because this rate is less than the actual yield (couponequivalent rate), the yield should be used in any comparison with coupon issue securities. Dollar coins (USCC)—Include standard silver and nonsilver coins. Domestic series (FD-2)—Nonmarketable, interest- and noninterest-bearing securities issued periodically by Treasury to the Resolution Funding Corporation (RFC) for investment of funds authorized under section 21B of the Federal Home Loan Bank Act (12 United States Code 1441b). Federal intrafund transactions (“Federal Fiscal Operations”)—Intrabudgetary transactions in which payments and receipts both occur within the same Federal fund group (Federal funds or trust funds). Federal Reserve notes (USCC)—Issues by the U.S. Government to the public through the Federal Reserve banks and their member banks. They represent money owed by the Government to the public. Currently, the item “Federal Reserve notes—amounts outstanding” consists of new series issues. The Federal Reserve note is the only class of currency currently issued. Foreign-targeted issue (PDO-2)—Foreign-targeted issues were notes sold between October 1984 and February 1986 to foreign institutions, foreign branches of U.S. institutions, foreign central banks or monetary authorities, or to international organizations in which the United States held membership. Sold as companion issues, they could be converted to domestic (normal) Treasury notes with the same maturity and interest rates. Interest was paid annually. GLOSSARY 113 Fractional coins (USCC)—Coins minted in denominations of 50, 25, and 10 cents, and minor coins (5 cents and 1 cent). of outstanding long-term notes or bonds, rather than selling new security issues. (See Reopening.) Government account series (FD-2)—Certain trust fund statutes require the Secretary of the Treasury to apply monies held by these funds toward the issuance of nonmarketable special securities. These securities are sold directly by Treasury to a specific Government agency, trust fund, or account. Their rate is based on an average of market yields on outstanding Treasury obligations, and they may be redeemed at the option of the holder. Roughly 80 percent of these are issued to five holders: the Federal Old-Age and Survivors Insurance Trust Fund; the civil service retirement and disability fund; the Federal Hospital Insurance Trust Fund; the military retirement fund; and the Unemployment Trust Fund. Receipts (“Federal Fiscal Operations”)—Funds collected from selling land, capital, or services, as well as collections from the public (budget receipts), such as taxes, fines, duties, and fees. Interfund transactions (“Federal Fiscal Operations”)— Transactions in which payments are made from one fund group (either Federal funds or trust funds) to a receipt account in another group. International Monetary Fund transactions (“Exchange Stabilization Fund”, ESF-1)—(IMF) Established by the United Nations, the IMF promotes international trade, stability of exchange, and monetary cooperation. Members are allowed to draw from the fund. Intrabudgetary transactions (“Federal Fiscal Operations”)— These occur when payment and receipt both occur within the budget, or when payment is made from off-budget Federal entities whose budget authority and outlays are excluded from the budget totals. Noncompetitive tenders (“Treasury Financing Operations”)—This is a tender or bid to purchase a stated par amount of securities at the highest yield or discount rate awarded to competitive bidders for a single-price auction. Obligations (“Federal Fiscal Operations”)—An unpaid commitment to acquire goods or services. Off-budget Federal entities (“Federal Fiscal Operations”)— Federally owned and controlled entities whose transactions are excluded from the budget totals under provisions of law. Their receipts, outlays, and surplus or deficit are not included in budget receipts, outlays, or deficits. Their budget authority is not included in totals of the budget. Outlays (“Federal Fiscal Operations”)—Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. Par value—The face value of bonds or notes, including interest. Quarterly financing (“Treasury Financing Operations”)— Treasury has historically offered packages of several “coupon” security issues on the 15th of February, May, August, and November, or on the next working day. These issues currently consist of a 3-year note, a 10-year note, and a 30-year bond. Treasury sometimes offers additional amounts Reopening (PDO-2)—The offer for sale of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP-number, and interest rate as the original issue. Special drawing rights (“Exchange Stabilization Fund,” ESF-1)—International assets created by IMF that serve to increase international liquidity and provide additional international reserves. SDRs may be purchased and sold among eligible holders through IMF. (See IMF.) SDR allocations are the counterpart to SDRs issued by IMF based on members’ quotas in IMF. Although shown in Exchange Stabilization Fund (ESF) statements as liabilities, they must be redeemed by ESF only in the event of liquidation of, or U.S. withdrawal from, the SDR department of IMF or cancellation of SDRs. SDR certificates are issued to the Federal Reserve System against SDRs when SDRs are legalized as money. Proceeds of monetization are deposited into an ESF account at the Federal Reserve Bank of New York. Spot (“Foreign Currency Positions”)—Due for receipt or delivery within 2 workdays. State and local government series (SLGS) (FD-2)—Special nonmarketable certificates, notes, and bonds offered to State and local governments as a means to invest proceeds from their own tax-exempt financing. Interest rates and maturities comply with IRS arbitrage provisions. SLGS are offered in both time deposit and demand deposit forms. Time deposit certificates have maturities of up to 1 year. Notes mature in 1 to 10 years and bonds mature in more than 10 years. Demand deposit securities are 1-day certificates rolled over with a rate adjustment daily. Statutory debt limit (FD-6)—By Act of Congress there is a limit, either temporary or permanent, on the amount of public debt that may be outstanding. When this limit is reached, Treasury may not sell new debt issues until Congress increases or extends the limit. For a detailed listing of changes in the limit since 1941, see the Budget of the United States Government. (See debt outstanding subject to limitation.) STRIPS (PDO-2)—Separate Trading of Registered Interest and Principal Securities. Long-term notes and bonds may be divided into principal and interest-paying components, which may be transferred and sold in amounts as small as $1,000. STRIPS are sold at auction at a minimum par amount, varying for each issue. The amount is an arithmetic function of the issue’s interest rate. March 2014 114 GLOSSARY Treasury bills—The shortest term Federal security (maturity dates normally varying from 3 to 12 months), are sold at a discount. Trust fund transaction (“Federal Fiscal Operations”)— An intrabudgetary transaction in which both payments and receipts occur within the same trust fund group. March 2014 United States—Includes the 50 States, District of Columbia, Commonwealth of Puerto Rico, American Samoa, Midway Island, Virgin Islands, Wake Island, and all other territories and possessions. U.S. notes (USCC)—Legal tender notes of five different issues: 1862 ($5-$1,000 notes); 1862 ($1-$2 notes); 1863 ($5$1,000 notes); 1863 ($1-$10,000 notes); and 1901 ($10 notes).
@FedFRASER