Balance Sheet Drilldown
KP i USA Inc. | Balance Sheet Drilldown 209
Balance Sheet: USA Inc. Federal Debt + Unfunded Entitlement Liabilities (Social Security + Medicare...) Exceed Stated Assets
F1996 -.. F2003. «.. F2009 F2010 Comments ASSETS ($B)
Cash & Other Monetary Assets $193 $120 $393 $429 $200B cash balance owing to
Accounts / Loans / Taxes Receivable 206 278 626 783 temporary Fed market stabilization
Inventories 232 241 285 286 initiatives
Property, Plant & Equipment 969 658 784
T Investments - - 254 Includes $145B TARP direct loans &
Other assets 124 97 275 303 equity investment + $109B in GSEs Total Assets ($B) 1,724 1,394 2,668 2,884 Growth primarily owing to TARP
Y/Y Growth 33% 40% 35% 8% _ capitalization + Fed liquidi rogram LIABILITIES ($B)
Accounts Payable $162 $62 $73 Significant rise in debt owing to on-
going budget deficits + stimulus spending
Federal employee & veteran benefits rose 3x owing to scheduled annual pay raises + rising benefit costs
Accrued Payroll & Benefits
Liability to GSEs Other Liabilities
Uni nt Lia Unfunded entitlement liabilities up 6x Y/Y Growth between F1996 and F2010. NPV of Unfunded Social Security . NPV of Unfunded Medicare 4,815 15,819 38,107 22.813 ‘Medicare NPV down sharply Y/Y owing to new assumptions from the
Healthcare reform legislation Significant increase from rising levels of debt + unfunded future benefits
$4 -$44T of net worth for USA Inc. more 8% -23% than tripled, from -$10T in 1996
Note: USA ine.’s balance sheet presented here does not include the financial value of the Government's sovereign powers to tax, regulate commerce, and set monetary
policy. It also excludes its control over nonoperational resources, including national and natural resources, for which the Government is a steward. Total liabilities include the
net present value (NPV) of unfunded entitlement liabilities like Social Security / Medicare / other payments, which the Treasury Dept. considers ‘off-balance sheet’
KP responsibilities. U.S. government fiscal year ends in September. Source: U.S. Department of the Treasury, Financial Report on the U.S. Government, 1996 — 2010. (@E) www.kpcb.com USA Inc. | Balance Sheet Drilldown 210
NPV of Unfunded Other Benefits 79 94 97
Lia e 3)
Y/Y Growth
NE’
Y/Y Growth
HOUSE_OVERSIGHT_020946