Notes to the Financial Statements

June 30, 2016

Note 9 Capital Assets

Capital asset activity for the year was as follows (amounts in thousands):

Beginning Ending
Balance Additions Retirements Balance
Governmental Activities
Capital Assets not being Depreciated:
Land $1,709,017 $39,882 $1,263 $1,747,636
Construction in Progress 3,664,840 1,554,823 675,348 4,544,315
Total Capital Assets not being Depreciated 5,373,857 1,594,705 676,611 6,291,951
Capital Assets being Depreciated:
Buildings 4,296,701 207,890 183,291 4,321,300
Improvements Other than Buildings 463,026 8,088 4,409 466,705
Equipment 2,736,204 162,607 280,620 2,618,191
Infrastructure 14,307,362 365,966 - 14,673,328
Total Other Capital Assets at Historical Cost 21,803,293 744,551 468,320 22,079,524
Less: Accumulated Depreciation For:
Buildings 1,792,161 108,031 183,291 1,716,901
Improvements Other than Buildings 306,610 23,148 4,409 325,349
Equipment 2,674,470 169,502 280,620 2,563,352
Infrastructure 9,372,668 687,304 - 10,059,972
Total Accumulated Depreciation 14,145,909 987,985 468,320 14,665,574
Other Capital Assets, Net 7,657,384 (243,434) - 7,413,950
Governmental Activities, Capital Assets, Net $13,031,241 $1,351,271 $676,611 $13,705,901

* Depreciation expense was charged to functions as follows:

Governmental Activities:
Legislative $5,082
General Government 34,580
Regulation and Protection 26,781
Conservation and Development 11,129
Health and Hospitals 10,101
Transportation 808,344
Human Services 1,093
Education, Libraries and Museums 30,755
Corrections 40,999
Judicial 15,518
Capital assets held by the government's internal
service funds are charged to the various functions
based on the usage of the assets 3,603
Total Depreciation Expense $987,985

Beginning Ending
Balance Additions Retirements Balance
Business-Type Activities
Capital Assets not being Depreciated:
Land $68,072 $559 $- $68,631
Construction in Progress 717,171 490,730 521,831 686,070
Total Capital Assets not being Depreciated 785,243 491,289 521,831 754,701
Capital Assets being Depreciated:
Buildings 4,786,947 543,261 18,737 5,311,471
Improvements Other Than Buildings 373,287 32,322 2,358 403,251
Equipment 995,211 90,682 43,502 1,042,391
Total Other Capital Assets at Historical Cost 6,155,445 666,265 64,597 6,757,113
Less: Accumulated Depreciation For:
Buildings 1,919,230 151,120 11,126 2,059,224
Improvements Other Than Buildings 207,087 14,116 2,246 218,957
Equipment 662,926 70,578 38,568 694,936
Total Accumulated Depreciation 2,789,243 235,814 51,940 2,973,117
Other Capital Assets, Net 3,366,202 430,451 12,657 3,783,996
Business-Type Activities, Capital Assets, Net $4,151,445 $921,740 $534,488 $4,538,697

Component Units
Capital assets of the component units consisted of the following as of June 30, 2016 (amounts in thousands):

Land $61,115
Buildings 697,352
Improvements other than Buildings 319,058
Machinery and Equipment 576,802
Construction in Progress 7,450
Total Capital Assets 1,661,777
Accumulated Depreciation 868,683
Capital Assets, Net $793,094