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FY 2015 Financial Plan Introduction

i DFW International Airport March 31, 2015

TABLE OF CONTENTS

Introduction o Investor Disclosure and DFW Background………………………………………. 1 o Airline Use Agreement Rate Model……………………………………………….. 2 o Related Reports …………………………………………………………………….. 4 o Public Facility Improvement Corporation…………………………………………. 4

Executive Summary o Major Assumptions ………………………………………………………………….. 5 o Seven Year Financial Plan (Operating Fund)……………………………………... 8 o Key Performance Indicators (KPIs) ………………………………………………. ..9

Core Business KPI: Passengers ……………………………………….... 10 Financial KPI: Airline Cost ………………………………………………... 10 Financial KPI: Airline Cost per Enplanement …………………………… 11 Financial KPI: Net Revenues from DFW Cost Center …………………. 12 Financial KPI: Passenger Revenues per Enplanement ……………….. 13 Joint Capital Account and Related Bond Proceeds …………………….13 DFW Capital Account and Related Bond Proceeds ………………….... 14 Debt Service/Debt Outstanding…………………………………………... 16 Debt KPI: Coverage Ratios………………………………..……..……….. 16 Debt KPI: Debt per Enplanement………………………………………….17 Cash KPI: Restricted and Unrestricted Cash …………………………… 17 Cash KPI: Days Cash on Hand ………………………………………….. 18 Pension Plans and OPEB…………………………………………………. 18

Operating Fund o Airfield and Terminal Cost Centers ………………………………………………. 19 o Passengers……………………………………………….…………………………..22 o DFW Cost Center ………………………………………………………………….. 22

Parking Business Unit …………………………………………………….. 24 Concessions Business Unit ………………………………………………. 25 Rental Car (RAC) Business Unit ……………………………………..…. 26 Commercial Development Business Unit ………………………………. 27

o Expenses…………………..………………………………………………………… 28 Capital Projects

o Joint Capital Account – TRIP………………………………….……………………30 o Joint Capital Account – Non-TRIP………………………………………………… 32 o DFW Capital Account ……………………………………………………………… 34

Debt and Cash Reserves o Existing Debt …………………………...…………………………………………… 37 o Bond Issuances (TRIP and Other Capital Projects) ……….…………………… 38 o Total Debt Outstanding…………………………………………………………...... 39 o Debt Paid By Other Sources and Debt Service Coverage…………………...... 40 o Cash and Cash Reserves …………………………………………………………. 41 o Debt Reserves ..…………… ...…………………………………………..……….. 42

Public Facility Improvement Corporation o Grand Hyatt Hotel …………………...………………………………………………43 o Rental Car Facility ………………………………..………………………………… 44 o Hyatt Place Hotel …………………………………………………………………… 45 o International Premium Lounge…………………………………..…………………46 o PFIC Cash Flow Projection ……………...…………………………………………46


1 DFW International Airport March 31, 2015

INVESTOR DISCLOSURE

This Financial Plan contains assumptions and “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such assumptions and statements may involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance and achievements to be different from future results, performance and achievements expressed or implied by such assumptions or forward-looking statements. Investors are cautioned that such assumptions and forward-looking statements could differ materially from those set forth in the assumptions and forward-looking statements included in this Financial Plan.

Report of the Airport Consultant – It should be noted that DFW will contract with LeighFisher, Inc. to develop a feasibility study to accompany the sale of bonds currently scheduled for pricing in the next fiscal year of FY 2016. A previous feasibility study was completed in FY 2014. The assumptions and forward-looking statements in this Financial Plan may differ from those in the Report of the Airport Consultant.

INTRODUCTION

DFW Background

The Dallas/Fort Worth International Airport (the “Airport” or “DFW”) was created by a “Contract and Agreement” between the Cities of Dallas, Texas, and Fort Worth, Texas (“the Cities”) on April 15, 1968 for the purpose of developing and operating an airport as a joint venture between the Cities. Although owned by Dallas and Fort Worth, DFW is located within the boundaries of the Cities of Grapevine, Coppell, Irving, Fort Worth, and Euless, and within Dallas and Tarrant Counties.

DFW is located within a four-hour flight time of 95% of the U.S. population and currently ranks third among the world’s busiest airports in terms of operations and ninth in terms of passengers. Its central location is the focal point of one of the nation’s largest intermodal hubs, connecting air, rail, and interstate highway systems. DFW currently operates daily passenger

flights to 205 destinations worldwide, including 149 nonstop domestic destinations and 56 nonstop international destinations. The Airport is recognized as a premier inland cargo hub, served by major international cargo carriers. According to the Texas Department of Transportation, DFW is the primary economic engine for North Texas, driving $31.6 billion of economic impact, supporting 143,000 jobs, and generating $9.4 billion in payroll annually.

Purpose of Financial Plan

This document represents DFW’s fifth Financial Plan (the “FY 2015 Plan” or the “Plan”). The primary purpose of the Plan is to serve as a management tool that allows DFW to monitor its future projected performance against established long term strategic goals and objectives. The Plan includes projected future revenues, expenses, capital expenditures, debt financing



requirements, cash reserves, and DFW’s Key Performance Indicators (KPIs) through FY 2020 which is the end of the current Use Agreement. Management intends to update the Financial Plan annually. The Financial Plan is reviewed but not approved by the DFW Board of Directors.

The original FY 2011 Plan coincided with the approval of the ten-year Airline Use and Lease Agreement (“Use Agreement”) which became effective October 1, 2010. The FY 2011 Plan is the baseline Plan for future comparisons since it was the baseline financial model for negotiating the Use Agreement. This Plan and all future Financial Plans will include schedules that show the changes from the prior year and comparisons to the original FY 2011 Plan with a special focus on achieving the established FY 2020 performance targets. Normally, the first year of the Plan will be the same as DFW’s Annual Budget which is typically approved by the DFW Board in July of each year. This year’s plan begins with the FY 2015 budget, as amended.

Airline Use Agreement Rate Model

The Use Agreement is a hybrid model whereby the Signatory Airlines pay landing fees and terminal rentals based on the net cost to provide those services, and DFW retains a portion of the net revenues from non-airline business units (e.g., parking) in the DFW Cost Center. The following chart is a summary of the current Airline Use Agreement rate model.

DFW Cost Centers

Airfield Terminal DFWExpenses Expenses DFW Revenues (Business Units)

Direct Costs Direct Costs Parking, Concessions, RAC,DPS and Overhead Allocations DPS and Overhead Allocations Commercial Development,Debt Service (net of PFCs) Debt Service (net of PFCs) Employee Transp., Taxis,

Utilities, and Interest IncomeLess: Misc Airfield Revenues Less: Misc. Terminal Rentals Less: Expenses

General Aviation Federal Inspection Fees Direct CostsFueling Facility Lease Turn Fees; TSA Rentals DPS and Overhead Allocations

Concessions Reimbursements Debt Service (net of PFCs)+/- Transfers/Adjustments +/- Transfers/Adjustments - Transfers/Other

- Lower Threshold Adjustment + DFW Terminal Contribution - Skylink Costs+ Upper Threshold Adjustment + Annual Capital Transfer - DFW Terminal Contribution+/- True-Up Adjustment +/- True-Up Adjustment

Net Cost = Landing Fees (KPI) Net Cost = Terminal Rentals (KPI)

+/- Threshold Adjustments+/- True-Up Adjustment

Joint Capital Account Coverage Account DFW Capital Account

+ Natural Gas Royalties

+ Sale of Land Proceeds - Annual Capital Transfer to the Terminal Cost Center

Capital Accounts (Capital Improvement Fund)

Funded from existing coverage, plus coverage from New Debt

Service from all three cost centers as debt service increases

Funded annually from DFW CC. Contributions must be higher than

"Lower Threshold" and cannot exceed the "Upper Threshold."

Operating Revenue and Expense Fund (the 102 Fund)

Airline Cost Centers

KPI = DFW Cost Center Net Revenues

Airline Cost & Airline Cost per Enplanement (KPI)

Net Revenues to the DFW Capital Account (KPI)



Airline Cost Centers – The Airline Cost Centers are residual (i.e., cost recovery) in nature, such that the amount charged to the airlines equals the cost to provide services, after certain adjustments. Landing fees and terminal rental rates are based on the net cost to operate and maintain the airfield and terminals, respectively. DFW charges the direct operating and maintenance costs for the airfield and terminals, plus allocated Department of Public Safety (DPS) and overhead costs, plus debt service, net of Passenger Facility Charges (PFCs), to each cost center; then, subtracts ancillary revenues generated in these cost centers; and credits or charges certain transfers and/or adjustments (see True-Up Adjustments below). The budgeted landing fee rate is determined by dividing the net cost of the airfield by estimated landed weights. The budgeted average terminal rental rate is determined by dividing the net cost of the terminal cost center divided by leasable square footage. The Use Agreement requires the Airport to charge an equalized terminal rental rate for all five terminals.

The amount paid by the airlines for landing fees and terminal rents/fees less airline incentive payments equals airline cost, which is an airport industry KPI. Another common industry KPI is passenger airline cost per enplaned passenger or CPE. This KPI for passenger airlines is calculated by dividing the amount paid by passenger airlines for landing fees and terminal rents fees less airline incentive payments (i.e., airline cost) by the number of enplanements.

DFW Cost Center – All non-airline business units, plus interest income, are included in the DFW Cost Center. The DFW Cost Center is also responsible for all costs associated with the Skylink people mover system per the terms of the Use Agreement. The net revenues from this cost center are transferred to the DFW Capital Account providing the net revenues are not higher than the Upper Threshold. If this occurs, then a Threshold or True-Up Adjustment is required. One of DFW’s most important KPIs is DFW Cost Center Net Revenues (i.e., net profit). This KPI measures the net revenues generated by DFW’s non-airline business units (after adjusting for the cost of Skylink and the DFW Terminal Contribution) and drives the amount of cash flow that can be transferred to the DFW Capital Account each year.

Joint Capital Account - Funds in the Joint Capital Account (JCA) require DFW and airline approval before money can be spent. The JCA is funded from the proceeds from natural gas royalties and the sale of land, plus interest income on the account. Supplemental funding for projects paid from the JCA comes from grants and the issuance of debt. Per the terms of the Use Agreement, an Annual Capital Transfer (described below) is made from the JCA to the terminal cost center to lower airline cost through FY 2017.

Coverage Account – The Airport established the Coverage Account as part of the new Use Agreements in order to implement rolling coverage. It was initially funded from coverage collected in FY 2010 (the last year of the old Use Agreement). Each year, the Coverage Account is rolled into the 102 Fund as a source of revenue, and then transferred back into the Coverage Account as excess revenue at the end of the year. The Coverage Account must equal 25% of aggregate debt service each year. If new debt is issued, each cost center must generate the incremental coverage required to fund 25% of the new debt service. These incremental coverage amounts are collected in the 102 Fund through rates and charges during the fiscal year.

DFW Capital Account – This is DFW’s discretionary account and is funded primarily from the DFW Cost Center Net Revenues, plus interest income. Supplemental funding for projects paid from the DFW Capital Account comes from grants and the issuance of debt. Funds in this account may be used for any legal purpose without prior airline approval.



Threshold Adjustments – The Use Agreement established a Lower Threshold and an Upper Threshold for DFW Cost Center Net Revenues to limit the amount transferred annually to the DFW Capital Account. If DFW Cost Center Net Revenues are budgeted to be less than the Lower Threshold ($44.2 million in FY 2015), then an incremental charge (i.e., a Lower Threshold Adjustment) is collected through landing fees in an amount sufficient to achieve the Lower Threshold amount. Conversely, if DFW Cost Center Net Revenues are budgeted to be greater than the Upper Threshold ($64.9 million in FY 2015), then 75% of the excess is credited to the Airfield Cost Center as an Upper Threshold Adjustment. This reduces budgeted landing fees. The remaining 25% may be retained in the DFW Cost Center and transferred to the DFW Capital Account at the end of the Fiscal Year. The benefit of the Lower Threshold Adjustment is that it guarantees that DFW will have a minimum level of cash to transfer to the DFW Capital Account so that DFW can replace assets on a timely basis. Conversely, the Upper Threshold limits the Airport’s ability to generate significantly more net revenues and serves to reduce airline cost over time. It also places a limit on DFW’s ability to significantly increase its coverage ratios. The Threshold Amounts are adjusted annually for inflation.

True-Up Adjustments – At the end of each Fiscal Year, DFW performs a reconciliation or true-up, such that actual revenues equal the actual net cost to operate and maintain the airfield and the terminal. Any difference becomes a True-Up Adjustment and is either charged or credited to that cost center in the next fiscal year. The True-Up Adjustments for the airline cost centers are applied back to that cost center the following year beginning in February.

Annual Capital Transfer – Per the terms of the Use Agreement, an annual transfer is made from the Joint Capital Account to the Terminal Cost Center to reduce the cost of the terminal to the airlines for a period of years. This transfer was $28 million in FY 2011 (first year of new Use Agreement) and $12 million in FY 2015. The transfer will be reduced by $4 million each year through FY 2017 until it is eliminated.

DFW Terminal Contribution – Per the terms of the Use Agreement, an annual transfer is made from the DFW Cost Center to the Terminal Cost Center to pay for DFW’s share of common use and leasable, but unleased space, in Terminals D and E. This amount is $6.4 million in FY 2015.

Related Reports and Information

For a more comprehensive understanding of DFW’s financial, operational and capital programs, readers will find additional information on the DFW website at www.dfwairport.com/investors, including the Comprehensive Annual Financial Report, Annual Budget, the Schedule of Charges, the DFW Strategic Plan, Terminal Renewal and Improvement Program status reports, Passenger Statistics, required Bond disclosures, and recent Official Statements.

Public Facility Improvement Corporation (PFIC)

DFW has a PFIC which manages the rental car facility, rental car bus transportation, the Grand Hyatt Hotel, a future Hyatt Place hotel, and an International Premium Lounge. The PFIC is a separate legal entity. Net revenues generated from the PFIC are retained in the PFIC. The majority of the PFIC cash is classified as unrestricted and available for any purpose. See further discussion beginning on page 43.

FY 2015 Financial Plan Executive Summary


DFW AIRPORT FY 2015 FINANCIAL PLAN

Major Assumptions The major assumptions used to develop this Financial Plan are highlighted below. Major changes from the FY 2014 Plan are highlighted. General Assumptions

American Airlines Group Inc. (AAG) AAG represents 84.7% of DFW passengers, 77% of landed weights, and 35% of total 102 fund revenues. DFW is AAG’s largest hub representing approximately 24% of AAG’s total traffic. AAG’s corporate headquarters are in Fort Worth. It is anticipated that the merged AAG will have a positive long-term impact on DFW; however, the air service growth assumptions in the Plan remain very close to last year’s Plan to be conservative.

Use Agreement. The current Use Agreement expires September 30, 2020. Accordingly, the Financial Plan extends through the same time period.

Passenger, Revenue, and Expense Assumptions

Passengers are projected to grow at an average of approximately 2.4% per year with the exception of FY 2016 (4.3% growth), which is due to a lower FY 2015 base year due to the opening of Love Field to all U.S. destinations.

Inflation/CPI is assumed to increase 3.0% per year. Total personnel costs (salaries, wages and benefits) are projected to increase approximately 3.4% in 2016 and average 3.6% per year beginning in FY 2017. In addition, the incremental operating cost impact of capital projects has been factored in to the Plan.

Parking revenues are correlated with originating passengers and average parking rates. The Plan assumes 3% originating passenger growth year over year and various rate increases thru FY 2020. The Plan assumes productivity improvements (i.e., increase revenue per originating passenger) through FY 2020 resulting from expanded terminal and express parking facilities, parking guidance systems, a new parking control system, and targeted marketing initiatives. Parking revenues are projected to increase $43 million from FY 2015 to FY 2020. 63% of revenue increase is contributed to originating passenger growth, while 37% is contributed to rate increases and productivity improvements.

Concessions revenues are primarily (72%) correlated with enplaned passengers, percentage rent paid by the concessionaires and average gross receipts per enplanement, while 28% is derived from non-passenger based concessions such as



advertising. Food, beverage, and retail gross receipts are projected to increase 8% from FY 2015 to FY 2020. In addition, it is projected that average percent rent rates will increase 2-3% as new concession agreements are executed in association with the TRIP and Terminal D revitalization master plan. Non-passenger based revenues are projected to increase 2% per year.

Rental car revenues are correlated with destination passengers and average car rental rates. Average rates are projected to grow 1% in 2016, and 2% thereafter, consistent with the FY 2014 Plan.

Commercial development revenues are correlated with developed acres and average

rate per acre. The FY 2015 Plan assumes the development of 758 additional acres by FY 2020 and that average rate per acre will increase with inflation. This represents a increase of 39 developed acres over the FY 2014 Plan due to changes in projected development schedules.

Capital Account Assumptions

Terminal Renewal and Improvement Program (TRIP) will continue to be constructed in phases through FY 2020 at an estimated cost of $2.7 billion (in escalated dollars). During FY2014, the airlines agreed to increase the TRIP budget by $652 million due to scope changes, higher construction costs, and higher asbestos abatement costs. See a detailed discussion of the TRIP budget on page 30.

Joint Capital Account (JCA) The FY 2015 Plan reflects the addition of $179 million of new capital projects (excluding TRIP) primarily for the T-Rail station and additional Terminal D-South expansion. A detailed list is included on page 33.

DFW Capital Account (DFWCA) is programmed annually for renewal, replacement, road

expansion, commercial development, and other discretionary projects.

PFCs/Grants. The FY 2015 Plan assumes that PFC’s remain at $4.50 through FY 2020. Entitlement grants are assumed to remain at the current annual level of $9 million through 2020. Discretionary grants are programmed for Airfield reconstruction and expansion.

Natural gas royalties are correlated with natural gas prices, the number of producing

wells, and the average production per well. Future prices are based on market conditions with the NGPL Texok zone rate serving as a base. The Plan contains the assumption that average well production decreases over time. It is assumed that additional wells will begin to be added in FY 2016.



Debt Service and Cash Reserve Assumptions

Existing debt. DFW and the Airlines agreed as part of the Use Agreement negotiations that DFW would restructure its existing debt structure (i.e., debt that existed on September 30, 2010) such that debt service, net of available PFC’s, would be forecast to increase approximately $5.2 million per year plus rolling coverage through FY 2020 for a total of $6.5 million. However, due to favorable interest rates, that has been shortened to FY 2017.

New debt. DFW has issued $3.1 billion of new debt. An additional $1.7 billion of new fixed rate bonds are forecast through FY 2020. This represents an increase of approximately $879 million primarily due to new projects added to the plan in the past year, plus the impact of higher capitalized interest.

Interest rates on new-money bonds are based on future Treasury spreads; and accordingly, the rates in the FY 2015 Plan are generally lower than in the FY 2014 Plan due to decreased future Treasury spreads. AMT and Non-AMT rates in FY 2016 are projected at 5.6% and 4.8%, respectively.

Capitalized Interest The Plan assumes that DFW will issue fixed rate bonds as

necessary to fund projects on a cash flow basis and that interest will be capitalized through the date of beneficial occupancy for each project. Some projects may be funded with cash then reimbursed with bond proceeds. Total capitalized interest was increased $56 million in the FY 2015 Plan to $156 million due to slower implementation of certain capital projects than anticipated.

Debt reserves. Future debt reserves are assumed to be funded with cash. All

outstanding sureties have been reduced to zero as a part of the refundings issued in FY 2014.

Interest Income. Plan assumes interest income of 0.5% in FY 2015, 1% in FY 2016, 2%

in FY 2017, and 3% in FY 2018, and 3.5% thereafter. These rates are lower in the first 5 years than the FY 2014 Plan.



Operating Revenue and Expense Fund The following table highlights sources and uses of cash for DFW’s Operating Revenue and Expense Fund (the “Operating Fund”) through FY 2020. The Operating Fund is projected to generate $810 million of net revenues over six years, of which $518 million is projected to be transferred to the DFW Capital Account and $293 million to reduce future landing fees.

The following table compares the FY 2014 and FY 2015 Plans from FY 2014 through FY 2020.

Terminal revenues are higher than FY 2014 Plan primarily due to debt service associated with a revised TRIP schedule and total projected expenditures. DFW cost center revenues decrease in FY 2016 primarily due to a lower FY 2015 base year and revised TRIP schedule. Operating expenses increase primarily due to the new Parking Control System (PCS), new custodial contracts, and new ITS initiatives in Disaster Recovery, Security, and Payment Card Industry (PCI) Compliance. Debt service changes correlate with revised TRIP schedule and costs.

Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total Revenues

Airfield Cost Center 146$ 147$ 157$ 166$ 170$ 175$ 178$ 993 Terminal Cost Center 180 234 288 319 346 387 401 1,974 DFW Cost Center 315 334 354 398 428 453 478 2,444 PFCs for Debt Service 111 114 116 119 121 124 126 720

Total Revenues 752 828 915 1,002 1,065 1,138 1,183 6,131 Expenses

Operating Expenses 377 391 412 432 448 461 471 2615$ Debt Service

Existing Debt Service 219 230 243 250 252 254 257 1,486 PFIC Debt Service 18 18 18 18 19 19 19 113 New Debt Service 35 86 139 175 202 247 259 1,107

Total Debt Service 273 333 401 443 473 521 535 2,706 Total Expenses 650 725 812 875 921 982 1,006 5,321

Net Revenues Generated 103 103 103 127 144 156 177 810 Landing Fee Reductions (29) (29) (27) (43) (55) (62) (76) (293)

Revs to DFW Capital Acct 74$ 75$ 76$ 83$ 89$ 94$ 101$ 518$

102 Operating Fund

Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total Revenues

Airfield Cost Center 8$ (4)$ (2)$ - - 2$ 2$ (2)$ Terminal Cost Center (9) 12 36 29 33 62 71 243$ DFW Cost Center 7 (4) (6) 5 10 5 5 15$ PFCs for Debt Service (1) - 1 1 - - - 2$

Total Revenues 6 3 28 34 44 69 79 257 Expenses

Operating Expenses 5 4 16 27 32 30 25 136$ Debt Service

Existing Debt Service - (5) 2 1 - - - (2)$ PFIC Debt Service - - - - - - - -New Debt Service (10) (11) - (2) (5) 33 46 61$

Total Debt Service (11) (16) 2 (1) (5) 33 46 59 Total Expenses (6) (12) 18 26 28 63 72 195

Net Revenues Generated 12 14 10 9 16 6 7 62 Landing Fee Reductions (8) (12) (8) (8) (13) (5) (7) (53)$

Revs to DFW Capital Acct 4$ 3$ 1$ 1$ 3$ - 1$ 9$

102 Operating Fund FY2015 Plan Increase (Decrease) Compared to FY2014 Plan



The following charts summarize projected sources and uses of cash for the Operating Fund over the six year period.

Key Performance Indicators (KPIs) The following table trends projected core business, financial, debt, and cash KPIs.

Airfield $1.0B

Terminal $2.0B

DFW $2.4B

PFCs $0.7B

Sources of Cash (FY15-FY20)$6.1 Billion

Ops Expense

$2.6B Debt

Services, $2.7B

Cash Flow $0.8B

Uses of Cash (FY15-FY20)$6.1 Billion

Key Performance Indicator (KPI) FY15 FY16 FY17 FY18 FY19 FY20 Core Business

Total Passengers (Ms) 62.6 65.3 66.8 68.3 69.9 71.4 Financial

Total Airline Cost (Ms)* 299$ 374$ 411$ 432$ 470$ 472$ Cost Per Enplanement** 9.29$ 11.17$ 12.02$ 12.41$ 13.22$ 13.01$ Net Revs - DFW CC (Ms) 103$ 103$ 127$ 144$ 156$ 177$ Passenger Revs/EPAX 7.61$ 7.61$ 8.04$ 8.32$ 8.52$ 8.83$ Non-Aviation Revenues (Ms) 342$ 361$ 395$ 416$ 435$ 460$

Debt Coverage Ratio :

Gross Revenue 1.52 1.49 1.47 1.46 1.46 1.45 Current Gross Revenue 1.23 1.22 1.21 1.21 1.21 1.20 All Sources 1.62 1.59 1.58 1.58 1.57 1.55

Debt Service/EPAX 10.29$ 11.79$ 12.91$ 13.60$ 14.58$ 14.84$ Net Debt Service/EPAX 7.02$ 8.71$ 9.71$ 10.29$ 11.36$ 11.45$ Debt Outstanding/EPAX 219$ 208$ 221$ 216$ 216$ 207$

CashDays Cash on Hand 604 556 523 531 545 571

*Post True Up, Threshold Adjustment, and ASIP

**Post True Up, Threshold Adjustment, and ASIP (excludes Cargo)



Passengers DFW’s passenger forecast assumes a steady growth through FY 2020, averaging about 2.2% annually except in FY 2015, the first year of expiration of the Wright Amendment. DFW has projected some loss of originating passengers in that year, with a recovery in FY 2016. Management believes that even if the loss of originating passengers is higher, connecting passengers will offset any loss. Actual passengers in FY 2014 were 2.8% greater than was projected in the FY 2014 Plan. Total passengers in FY 2020 are 3.4% above the FY 2014 Plan. Airline Cost Airline cost is defined as the revenues paid to the airport by the Airlines for landing fees, terminal rents, and other miscellaneous airfield and terminal charges. The chart compares projected airline cost in FY 2015, FY 2017, and FY 2020 between the original FY 2011 Plan, the FY 2014 Plan and the current Plan. The table highlights terminal costs (in blue) and airfield costs (in green). Total airline cost, and the terminal cost center costs, rise over time primarily due to the net impact of the elimination of an assumed $1.50 increase in PFCs (from the original FY 2011 Plan), lower interest rates than originally planned, and incremental borrowing for TRIP. The changes between the FY 2014 and FY 2015 Plans for the terminal cost center reflect debt service changes associated with the revised TRIP budget. The reductions in airfield cost over time are primarily related to higher DFWCC net revenues (which are shared with the airlines to reduce landing fees), lower interest rates, and lower expenses. The increase in airline costs in FY 2020 over the FY 2014 Plan is primarily due to increases in TRIP debt service and increases in operating expenses.

20

30

40

50

60

70

09 10 11 12 13 14 15 16 17 18 19 20

Passenger Projections (Millions)

Total Pax Enpl. Total O&D Conn Pax

$191 $258

$298

$142

$135

$148

$197 $273

$315

$112

$116 $91

$208

$300 $385

$91

$110

$87

$333 $309 $299

$393 $388 $411

$446 $405

$472

$-

$100

$200

$300

$400

$500

FY15 FY17 FY20

Airline Cost (Millions)

Terminal 2011 Plan Airfield 2011 PlanTerminal 2014 Plan Airfield 2014 PlanTerminal 2015 Plan Airfield 2015 Plan



Airline Cost per Enplanement (CPE) CPE is defined as total passenger airline cost (i.e., revenue paid to DFW) divided by the number of enplaned passengers. The following chart compares projected CPE between the FY 2011 Plan, the FY 2014 Plan, and the FY 2015 Plan for selected fiscal years. CPE in the FY 2015 Plan is lower due to a lower base year. It increased in the later years from the prior Plans due to the loss of $1.50 PFC in the original plan, incremental borrowing for TRIP partially offset by higher DFWCC net revenues (which reduce landing fees). The increase in airline costs in FY 2020 over the FY 2014 Plan is primarily due to increases in TRIP debt service and increases in operating expenses. Although this is a standard industry metric, it is flawed because it does not compare the total cost of an airline to operate at an airport. It does not include the costs that airlines incur and pay directly for terminal maintenance or to finance terminal capital improvements. Some airports pay for all of these costs for the airlines; other pay for some or none of these costs. For example at DFW, American Airlines pays for maintenance costs of Terminals A and C. These costs should be included to get an “apples to apples” comparison. In addition, traditional CPE comparisons do not include delay costs, which are substantial. Airports that have invested in runway capacity typically have lower delay costs. To correct for these deficiencies, DFW developed the following chart that shows “fully loaded CPE” for DFW’s competitive set of 18 large hub airports. Fully loaded cost includes what the airlines pay directly to the airports (light blue), what airlines pay directly for terminal maintenance and terminal debt service (dark blue), an estimate of what they pay for delay costs (in red – developed by Ricondo and Associates using FAA data), and what they pay for fuel taxes (in yellow).

$10.25$11.69

$12.47

$9.56

$11.71 $11.51

$9.29

$12.02 $13.01

$-

$3

$6

$9

$12

$15

FY15 FY17 FY20

Airline Cost Per Enplanement

2011 Plan 2014 Plan 2015 Plan



The chart shows that DFW is the third lowest cost large hub airport today. More importantly, by FY 2020 DFW’s CPE would be an estimated $30.08, still very competitive with other airports’ FY 2013 CPEs. Since most of these airports have major capital programs underway also, it is logical to assume that their costs and CPEs will rise too moving DFW back up nearer the top of the CPE benchmark chart. DFW Cost Center Net Revenues The increase in FY 2020 DFWCC net revenues in the FY 2015 Plan as compared to the FY 2014 Plan in FY 2020 primarily due to increase in interest income and lower operating expenses. The following chart shows the projected cash flow generated from the DFW cost center (blue line) and the amount transferred to the DFW capital account (solid red line) through FY 2020. When net revenues exceed the upper threshold, 75% of the surplus is credited to the airfield cost center to lower landing fees; and the other 25% is transferred to the DFW cost center. This provides a double incentive for DFW to grow net revenues (i.e., lower airline cost and higher revenues to the DFW capital account). If budgeted net revenues fall below the lower threshold, the airlines have agreed to pay an incremental landing fee to ensure that DFW achieves at least $40 million per year. This provides downside protection to ensure sufficient funds for capital replacement.

$74

$103$120

$89

$118

$170

$103

$127

$177

$0

$50

$100

$150

$200

FY15 FY17 FY20

DFWCC Net Revenues (Millions)


$40

$60

$80

$100

$120

$140

$160

$180

FY15 FY16 FY17 FY18 FY19 FY20

DFW Cost Center Net Revenues (Millions)

Lower Threshold Upper Threshold

Amount to DFW Capital Acct DFWCC Net Revenues

75% reduces landing fees



Passenger Revenues per Enplanement This KPI measures passenger related revenues from business units that operate to make a profit (i.e., parking, concessions, rental car), but excludes revenues from other business units that are priced to break even (such as employee transportation, ground transportation and non-terminal utilities), and commercial development that is not correlated to passengers. This KPI also excludes natural gas royalties which are deposited into the joint capital account, Grand Hyatt revenues, and customer facility charges (CFCs) and customer transportation charges (CTC) for the RAC which are retained in the PFIC. The decreases from the FY 2014 Plan result from a lower base year for Concessions in FY 2015 and higher enplanements. Joint Capital Account and Related Bond Proceeds The following table summarizes the primary sources and uses of cash for the joint capital account (JCA) including the sale of bonds and use of related bond proceeds through FY 2020. The JCA is funded from beginning cash, the proceeds from natural gas royalties and land sales, grants, and interest income; and supplemented with bond proceeds as needed. The major uses of cash over the next seven years include the TRIP, other capital projects, capitalized interest, debt reserves, and annual “joint capital account transfers” to reduce terminal rentals. The table highlights the significant amounts of cash retained in the JCA in FY 2014 from the accelerated bond sales.

$6.78

$7.84 $8.26

$7.74 $8.34

$9.06

$7.61 $8.04

$8.83

$-

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

FY15 FY17 FY20

Passenger Revenues per EPAX


Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total Beginning Cash 1,838$ 1,664$ 1,113$ 1,049$ 1,064$ 801$ 575$ 1,838$ Sources of Cash

Natural Gas 6 6 7 11 10 9 8 58 Debt Financing 380 - 658 661 112 121 - 1,932 Misc Sources 9 - - - - - - 9 Grants - 16 16 1 7 7 - 46 Interest Income 4 4 6 10 21 24 20 90

Total Sources of Cash 399 26 687 683 150 161 29 2,135 Uses of Cash

TRIP 247 344 436 283 142 283 192 1,926 Other Capital Projects 178 197 260 254 110 110 17 1,126 Capitalized Interest 101 78 58 24 55 22 16 353 Debt Reserves 32 - 43 47 7 21 - 151 Transfer to Operations 16 12 8 4 - - - 40 Transfer to DFWCA - 135 - - - - - 135 Cash Flow Adjustment - (189) (54) 55 100 (50) 70 (67)

Total Uses of Cash 573 578 750 668 414 387 296 3,665 Net Change in Cash (174) (551) (64) 15 (263) (226) (267) (1,531) Ending Cash 1,664$ 1,113$ 1,049$ 1,064$ 801$ 575$ 308$ 308$

Bond Funds 1,449 905 843 851 574 332 68 Unrestricted Funds 215$ 208$ 206$ 214$ 227$ 243$ 240$

Joint Capital Account and Related Bond Funds



To obtain the most accurate cash flow estimates, projected outflows of cash for construction projects have been deferred from the construction schedule by three to six months over time to account for delays in billing and payments (see Cash Flow Adjustment line). More detail on the sources and use for the joint capital account is included in the Capital Accounts section. The following table compares the FY 2014 and FY 2015 Plans for the period FY 2014 through FY 2020.

The changes in debt financing are due to the increase in the TRIP budget, other new capital projects, and timing of bond issues. The increase in grants is primarily due to an additional grant funded project added to the plan. The increase in TRIP costs is discussed below. Other capital projects increased primarily due to the additional of incremental projects as discussed on page 32. Capitalized interest increased due to the addition of capital projects and the revised schedules for TRIP and other capital projects. The $135 million transfer to the DFWCA is required to move previously issued bond funds between the two capital accounts. DFW Capital Account (DFWCA) and Related Bond Proceeds The following table summarizes the primary sources and uses of cash for the DFW capital account including the sale and use of related bond proceeds. The primary sources of cash for the DFW capital account are beginning cash and net revenues from the DFW cost center. Although the DFW capital account is a discretionary account, the primary purpose is to fund non-TRIP renewals and replacements. More detail on the projects is included in the Capital Accounts section.

Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total Beginning Cash 60$ (124)$ 194$ 188$ 614$ 533$ 365$ 60$ Sources of Cash

Natural Gas - (1) - - - - - (1) Debt Financing (186) - 33 661 112 121 - 740 Misc Sources 9 - - - - - - 9 Grants (3) (1) - (1) 7 7 - 8 Interest Income - - 1 2 12 16 13 44

Total Sources of Cash (181) (2) 34 661 131 144 13 799 Uses of Cash

TRIP (102) (87) 68 51 36 245 192 403 Other Capital Projects (39) (80) 67 147 73 98 14 280 Capitalized Interest - 1 (5) (10) 44 20 16 67 Debt Reserves 1 - - 47 7 21 - 78 Transfer to Operations - - - - - - - -Transfer to DFWCA - - - - - - - -Cash Flow Adjustment 142 (153) (91) - 50 (73) 59 (66)

Total Uses of Cash 2 (319) 40 235 211 312 280 762 Net Change in Cash (184) 317 (6) 426 (80) (168) (267) 1,120 Ending Cash (124)$ 194$ 188$ 614$ 533$ 365$ 98$ 1,960

Bond Funds (138) 179 173 599 519 315 66 Unrestricted Funds 14$ 14$ 14$ 14$ 14$ 50$ 32$

Increase (Decrease) FY 2015 Plan Compared to FY 2014 Plan Joint Capital Account and Related Bond Funds



The following table compares the FY 2014 and FY 2015 Plans for the period FY 2014 through FY 2020.

The changes in capital projects reflect the deferral in the timing of projects, the elimination of some projects, and a shift in commercial development projects over time. These changes caused the adjustments in grants and debt financing proceeds. Transfer to JCA/Operations represents debt service paid by other sources, specifically paid from the PFIC (for the Grand Hyatt Hotel and the Rental Car Center) and from American Airlines (for improvements to an AA training center) and DFW Capital (for the DFW Headquarters and the Terminal E Garage).

Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total Beginning Cash 123$ 195$ 274$ 214$ 122$ 112$ 144$ 123$ Sources of Cash

Revenues from DFW CC 72 74 75$ 76 83 89 94 562 Debt Financing Proceeds 137 - 73 24 27 69 - 330 Transfer in from JCA - 135 - - - - - 135 Misc Sources - - - - - - - -Grants 15 20 22 18 15 15 9 113 Interest Income 1 1 2 2 2 2 2 11

Total Sources of Cash 225 230 171 120 127 175 105 1,153 Uses of Cash

Capital Projects 143 220 211 189 118 125 111 1,116 Capitalized Interest 4 1 1 - 2 2 - 10 Debt Reserves 6 - 2 2 2 - - 11 Transfer to JCA/Operations - 3 10 10 10 10 10 53 Cash Flow Adjustment - (72) 7 11 6 5 6 (37)

Total Uses of Cash 152 152 231 211 137 143 127 1,154 Net Change in Cash 73 79 (60) (92) (10) 32 (22) (1) Ending Cash 195$ 274$ 214$ 122$ 112$ 144$ 122$ 122$ Bond Funds 65 124 114 58$ 62 91 56$ Unrestricted Cash 130$ 150$ 100$ 65$ 50$ 53$ 66$

DFW Capital Account - Sources and Uses

Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total Beginning Cash (79)$ (134)$ (99)$ 9$ 38$ 52$ 95$ (79)$ Sources of Cash

DFW Cost Center 1 3 3 1 1 3 - 12 Debt Financing 137 (23) 73 24 27 69 - 307 Transfer in from JCA - - - - - - - -Misc Sources - - - - - - - -Grants (1) (3) - 3 5 7 4 15 Interest Income - - - - - - 1 1

Total Sources of Cash 137 (24) 76 28 34 79 5 335 Uses of Cash

Capital Projects (39) (40) (21) 79 24 28 16 47 Capitalized Interest - (1) 1 - 2 2 - 4 Debt Reserves 3 - 2 2 2 - - 9 Transfer to JCA/Operations - (5) - - (2) (2) (2) (12) Cash Flow Adjustment 134 (13) (14) (81) (6) 8 4 31

Total Uses of Cash 98 (60) (32) - 19 36 18 79 Net Change in Cash 39 36 108 28 15 43 (13) 256 Ending Cash (134)$ (99)$ 9$ 38$ 52$ 95$ 83$ 178$ Bond Funds (83) (91) 9 24$ 40 81 56$ Unrestricted Cash (51)$ (8)$ 1$ 14$ 12$ 14$ 27$

DFW Capital Account and Related Bond ProceedsIncrease (Decrease) FY 2015 Plan Compared to FY 2014 Plan



Debt Service/Debt Outstanding Total debt outstanding is projected to reach $7.5 billion in FY 2019 then begin to decline. The Plan includes the assumption that DFW will issue an additional $1.7 billion of debt between FY2016 and FY2019. The timing of the issues may change if DFW believes interest rates will rise substantially. The FY2015 plan does not assume any additional refundings through FY 2020. There were refundings done in FY 2014 as part of the debt restructuring plan. Existing debt service is projected to be relatively flat after FY 2017 until existing debt is retired in FY 2035. The increase in debt service compared to the FY 2011 Plan is due to the addition of more than $1.9 billion of new projects, offset by lower interest rates. Debt Service Coverage Ratios DFW’s Bond Ordinance requires two debt service coverage ratios: gross revenues and current gross revenue. The gross revenue ratio requires DFW to establish rates and charges sufficient to generate revenues that are 1.25x debt service after operating expenses. The current gross revenues requires DFW to set rates and charges such that it achieves a minimum of 1.0x excluding transfers from capital accounts (i.e., rolling coverage and the annual capital transfer from the joint capital account to the terminal cost center). With respect to the gross revenue ratio, rolling coverage makes-up the first 0.25 of the

1.521.49 1.47 1.46 1.46 1.45

1.23 1.22 1.21 1.21 1.21 1.20

1.621.59 1.58 1.58 1.57 1.55

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80


Debt Service Coverage Ratios

Gross Revenues Current Gross Revenues All Sources

$0

$100

$200

$300

$400

$500

$600

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049

Debt Service (millions)

Debt Service Paid by PFC's (Existing) RFC Debt Service (Existing)TRIP/NonTRIP/DFW Capital Debt Service Other New Debt Service2011Financial Plan

2011 Financial Plan

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049

Debt Outstanding (billions)

Pre-TRIP Debt Outstanding TRIP/NonTRIP/DFW Capital Debt Outstanding Other New Debt Outstanding

Maximum Principal Balance $7.5 billion

FY14 Financial Plan peaked at $6.9 billion in FY 2017



ratio with the remainder coming from the net revenues generated from the DFW cost center. The all sources ratio shown on the chart includes other recurring revenue streams that are not defined as gross revenues in the bond ordinance (i.e., PFIC net revenues and natural gas). Note that this rate excludes available unrestricted cash which exceeds $618 million in each year of the Plan which would take coverage in excess of 2.5x in each fiscal year. Debt Service/Debt Outstanding per Enplanement Debt service per enplanement is a standard industry measure. This KPI increases through FY 2020 due to the addition of debt to finance DFW’s capital programs. The red line reflects debt service per enplanement, net of PFC revenues. The FY 2015 Plan includes the assumption that PFCs will remain at the $4.50 level through FY 2020. The latest FAA reauthorization signed into law in 2012 retains PFCs at $4.50 through FY 2015. DFW committed (in the Use Agreement) to use PFCs up to $7.50 (if approved by Congress) for debt service.

Debt outstanding per enplanement peaks with DFW’s maximum debt in FY 2019 then begins to decline as debt outstanding is reduced and enplanements increase. Although this ratio is somewhat higher than the industry average, the impact is offset by DFW’s strong liquidity and low cost per enplanement. The increase over the FY 2014 Plan is due to the addition of capital projects as referenced on page 32. Restricted and Unrestricted Cash The chart includes the projections for DFW’s restricted and unrestricted cash accounts. Unrestricted cash includes available operating funds, the 90 day operating reserve, rolling coverage, and cash available in the joint capital account and DFW capital account, and the PFIC. Restricted cash accounts include bond funds, interest and sinking fund reserves, and debt service reserves. DFW’s goal is to keep a minimum of approximately $500 million of unrestricted cash available at all times.

10.29

11.79

12.9113.60

14.58 14.84

7.02

8.71

9.7110.29

11.36 11.45

$4

$6

$8

$10

$12

$14

$16

$18


Debt and Net Debt Service per EPAX

Debt Service/EPAX Net Debt Service/EPAX

$187 $174

$153

$206 $199

$175

$219 $221 $207

$-

$50

$100

$150

$200

$250

FY15 FY17 FY20

Debt Outstanding per Enplaned Passenger


$0.6 $0.6 $0.7

$1.5 $1.5$0.8

$2.2 $2.1

$1.6

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

FY15 FY17 FY20

Cash Balances (Billions)

Unrestricted Restricted



Days Cash On Hand Based on comments from rating agencies and investors, DFW elected to increase its liquidity in FY 2012 Plan versus the FY 2011 Plan. DFW’s goal is to maintain a minimum of 450 days cash on hand for financial planning purposes. The increase over the FY 2011 Plan was achieved primarily by increasing cash retained in the joint capital account. Also, the FY 2014 and FY 2015 Plans include PFIC cash which is available for other purposes. Pension Plans and OPEB DFW has a defined contribution plan for all general employees hired after January 1, 2010. The Airport continues to provide a defined benefit plan for its Department of Public Safety employees. DFW closed its defined benefit plan for general employees on December 31, 2009. The General employee and DPS plans are 77.1% and 72.4% funded as of January 1, 2014. DFW’s investment rate assumption is 7.25% (no change from last year). The total unfunded actuarial accrued liability (UAAL) was $156.5 million at January 1, 2014. DFW is using a fixed amount amortization period with 21 years remaining as of January 1, 2014. DFW contributed more than the actuarial required contribution (ARC) in the past and has a pension asset of $56.3 million as of September 30, 2014. The ARC for FY 2014 was $27.9 million, 4.3% of the operating budget. DFW has an Other Post-Employment Benefits (OPEB) plan that provides an insurance premium subsidy not to exceed $400 per month for eligible employees from the date of retirement until they reach age 65. The unfunded UAAL was $10.6 million at January 1, 2014. The ARC is $1.8 million. DFW has significant pension and OPEB disclosures in its CAFR and Official Statement. Readers are encouraged to find more details there.

350 389

439

614

521 524 604

523 571

-

150

300

450

600

750

FY15 FY17 FY20

Days Cash on Hand*


FY 2015 Financial Plan Operating Fund


OPERATING REVENUE AND EXPENSE FUND The Operating Revenue Expense Fund (the “Operating Fund”) is divided into three direct cost centers: airfield, terminal, and DFW; and three indirect cost centers: department of public safety (DPS), indirect, and debt service. Indirect costs are allocated based on direct costs. DPS costs, net of ancillary DPS revenues, are allocated on usage. “Existing debt service” (i.e., debt issued prior to new Use Agreement), net of PFCs, is charged to cost centers based on percentages agreed upon in the Use Agreement. “Future debt service” (i.e., new-money bonds), net of all future incremental PFCs if any, is allocated to the projects for which the debt service is incurred based on a formula defined in the Use Agreement. All non-airline revenues are retained in the DFW cost center. A flow chart of DFW’s Use Agreement model is included in the Introduction. The following table highlights revenues and expenses for the Operating Fund for the period FY 2015 through FY 2020.

Airfield and Terminal Cost Centers As discussed in the Executive Summary, total Airline Cost and terminal rentals are projected to increase significantly over the next ten years primarily due to incremental debt service for the TRIP.

Millions FY15 FY16 FY17 FY18 FY19 FY20 Revenues

Airfield Cost Center 147$ 157$ 166$ 170$ 175$ 178$ Terminal Cost Center 234 288 319 346 387 401 DFW Cost Center 334 354 398 428 453 478 PFCs for Debt Service 114 116 119 121 124 126

Total Revenues 828 915 1,002 1,065 1,138 1,183 Expenses

Operating Expenses 391 412 432 448 461 471 Debt Service

Existing Debt Service 230 243 250 252 254 257 PFIC Debt Service 18 18 18 19 19 19 New Debt Service 86 139 175 202 247 259

Total Debt Service 333 401 443 473 521 535 Total Expenses 725 812 875 921 982 1,006

Net Revenues Generated 103 103 127 144 156 177 Transfer to Airfield Cost Center (29) (27) (43) (55) (62) (76)

Revs to DFW Capital Acct 75$ 76$ 83$ 89$ 94$ 101$

DFW Airport Financial Plan - Operating Fund



The following table highlights the primary revenues and expenses of the Airfield and Terminal Cost Centers for the period FY 2015 through FY 2020. Note that landing fees are projected to decline over time due to the increased transfer from the DFW Cost Center, and that terminal rents increase primarily due to TRIP debt service.

The following table compares the FY 2014 and FY 2015 Plans for the period FY 2015 through FY 2020. The most significant change is the increase in net debt service associated with the terminal cost center which results from TRIP scheduling changes.

Millions FY15 FY16 FY17 FY18 FY19 FY20 Airfield Expenses

Operating Expenses 75$ 78$ 82$ 85$ 88$ 91$ Debt Service 71 79 84 86 87 87

Total Expenses 147 157 166 170 175 178 Less:

Misc. Airfield Revenues 6 8 8 8 8 8 Upper Threshold Adjustment 29 27 43 55 62 76 Landing Fees 112$ 122$ 115$ 108$ 104$ 94$

Terminal ExpensesOperating Expenses 204$ 218$ 228$ 236$ 245$ 254$ Debt Service 75 119 141 160 197 204


Misc. Terminal Revenues 52 57 62 66 68 69 Annual Capital Transfer 12 8 4 - - -DFW Terminal Contribution 6 8 8 8 11 12

Terminal Rentals 208$ 263$ 294$ 323$ 363$ 376$

Calculation of Landing Fees and Terminal Rentals

Millions FY15 FY16 FY17 FY18 FY19 FY20 Airfield Expenses

Operating Expenses (1)$ (1)$ - - - -Debt Service, net of PFCs (4) - - - 2 2

Total Expenses (4) (1) - - 2 2 Less:

Misc. Airfield Revenues (2) - - - - -Upper Threshold Adjustment 12 8 8 13 5 7 Landing Fees (14)$ (10)$ (8)$ (13)$ (3)$ (5)$

Terminal ExpensesOperating Expenses 5$ 18$ 20$ 22$ 22$ 24$ Debt Service, net of PFCs 1 13 2 5 35 44


Misc. Terminal Revenues 5 6 7 8 8 9 DFW Terminal Contribution - - - - - -

Terminal Rentals (3)$ 6$ (5)$ (3)$ 27$ 35$

Calculation of Landing Fees and Terminal RentalsIncrease (Decrease) FY 2015 Plan Compared to FY 2014 Plan



The nearby charts highlight projected landing fees and average terminal rentals for the period FY 2015, FY 2017, and FY 2020 and the differences between the FY 2011, FY 2014, and FY 2015 Plans. Landed weights are projected to grow at 2% per year on average. Landing fee rates are significantly lower in FY 2020 due to increased transfers from the DFW Cost Center. Terminal rentals increase over time due to debt service for the TRIP, and the reduction in the “annual capital transfer.” The increase in terminal rentals compared to the FY 2014 Plan for FY 2020 is due to increases in customer service related contract costs (i.e. custodial) and TRIP debt service costs. The Plan assumes that leased space remains constant. American Airlines has preferential leases for Terminals A and C and about two-thirds of Terminal D. The remainder of Terminal D is managed by DFW as common use for international flights. American Eagle has preferential leases for Terminal B. The other domestic passenger carriers lease space in Terminal E on a preferential and common use basis. DFW charges an equalized terminal rental at each of the five terminals and provides the airlines certain credits/transfers to the terminal cost center as described below:

Annual Capital Transfer – The current Use Agreement provides for a capital transfer from the joint capital account to the terminal cost center each year through 2017. The transfer is $12 million in FY 2015 and will be reduced by $4 million each year until it is phased out.

DFW Terminal Contribution - DFW pays for the allocable cost of common use gates and unused and leasable space in Terminals D and E. This transfer is approximately $6.4 million in FY 2015 and is funded from the DFW cost center.

American Airlines (AA) Maintenance Credit – DFW provides AA a credit to reimburse it for maintenance that AA provides in Terminals A and C. This credit ($39.0 million for FY 2015) is added to the terminal cost for the purpose of calculating equalized terminal rental rates then subtracted from AA’s rent. The credit increases with CPI each year.

$3.56

$3.26 $3.37 $3.23

$2.99

$2.24

$2.69 $2.72

$2.07

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

FY15 FY17 FY20

Landing Fee Rate


$183

$241$272

$179

$243

$280

$185

$262

$335

$50

$100

$150

$200

$250

$300

$350

$400

FY15 FY17 FY20

Terminal Rent Rate per Square Foot




Passenger Forecast Table Following is a table of DFW’s forecasted passenger information through FY 2020.

DFW Cost Center The Use Agreement allows DFW to retain the net revenues (i.e., profit) from non-airline sources up to specified limits. Net revenues from the DFW cost center are transferred to the DFW Capital Account. The DFW cost center consists of four business units (parking, concessions, rental car, and commercial development) that are operated to generate positive cash flow; and other services such as employee transportation and ground transportation that are operated at break-even. The following table highlights the computation of net revenues for the DFW cost center for FY 2015 through FY 2020. The DFW cost center also pays for the cost of the Skylink people mover system ($39.3 million in FY 2015).

See page 40 for a discussion of Payments from Other Sources.

YearTotal Pax Enpl. Total O&D Conn Pax Orig Pax Dest Pax

Local Orig%

Local Dest% Local % Conn % Dom Intl

Dom% of Total

Intl % of Total

09 56.0 28.0 22.9 33.1 11.9 11.0 21.3% 19.7% 40.9% 59.1% 50.95 5.09 90.9% 9.1%10 56.4 28.2 23.1 33.3 11.9 11.1 21.1% 19.8% 40.9% 59.1% 51.02 5.38 90.5% 9.5%11 57.8 28.9 24.4 33.4 12.7 11.7 21.9% 20.2% 42.2% 57.8% 52.23 5.53 90.4% 9.6%12 58.3 29.1 25.0 33.3 13.0 12.0 21.9% 20.1% 42.0% 58.0% 52.06 5.87 89.9% 10.1%13 60.3 30.1 25.6 34.7 13.3 12.3 22.1% 20.4% 42.5% 57.5% 53.67 6.61 89.0% 11.0%14 62.9 31.4 27.0 36.0 14.0 13.0 22.2% 20.6% 42.8% 57.2% 55.93 7.02 88.9% 11.1%

15 62.6 31.3 26.5 36.0 13.8 12.7 22.1% 20.3% 42.4% 57.6% 55.08 7.50 88.0% 12.0%16 65.3 32.6 27.6 37.7 14.3 13.3 21.9% 20.4% 42.3% 57.7% 57.47 7.81 88.0% 12.0%17 66.8 33.4 28.4 38.4 14.7 13.7 22.1% 20.5% 42.5% 57.5% 58.62 8.20 87.7% 12.3%18 68.3 34.2 29.3 39.0 15.2 14.1 22.2% 20.6% 42.9% 57.1% 59.79 8.53 87.5% 12.5%19 69.9 34.9 30.2 39.7 15.6 14.5 22.4% 20.8% 43.2% 56.8% 60.99 8.87 87.3% 12.7%20 71.4 35.7 31.1 40.4 16.1 15.0 22.5% 20.9% 43.5% 56.5% 62.21 9.22 87.1% 12.9%

DFW Passenger Forecast (Millions)

Millions FY15 FY16 FY17 FY18 FY19 FY20Revenues

Parking 136$ 142$ 154$ 160$ 167$ 179$ Concessions 73 75 82 90 94 98 Rental Car Center 32 34 35 37 39 41 Commercial Development 38 39 44 48 53 59

Total Rev. Mgmt Revenues 278 290 315 335 353 377 Other Services 32 32 32 34 35 36 Payments from Other Sources 22 25 36 36 36 36 Interest Income 3 7 14 23 28 29

Total Revenues 334 354 398 428 453 478 Expenses

Operating Expenses 151 157 163 170 172 171 Debt Service, Net of PFCs 73 86 100 106 113 118 DFW Terminal Contribution 6 8 8 8 11 12

Total Expenses 231 251 271 283 296 301 Net Revenues 103 103 127 144 156 177

Transfer to Airfield Cost Center (29) (27) (43) (55) (62) (76) Net Revenues to DFW Capital 75$ 76$ 83$ 89$ 94$ 101$

DFW Cost Center Revenues



The following table compares the FY 2014 and FY 2015 Plans for the period FY 2015 through FY 2020.

Concessions revenues are lower through FY 2017 due to a lower base year in FY 2015, primarily due to lower advertising revenues. Commercial development is lower through FY 2020 due to timing differences of development projects. Debt Service is lower due to delayed capital projects. Increase in interest income is due to increase in cash balance. The following chart compares total revenue management revenues for the four business units.

$127 $152 $168

$59$73

$83$28

$32$37

$45

$47$51

$136 $154 $179

$75$84

$98$32$35

$40

$36

$45

$60

$136 $154$179

$73$82

$98$32$35

$41

$38$44

$59

$258 $279 $278

$305 $318 $315

$339 $376 $377

$0

$50

$100

$150

$200

$250

$300

$350

$400

FY15 FY17 FY20

Revenue Management Revenues (Millions)

Parking 2011 Plan Concessions 2011 Plan Rental Car Center 2011 PlanCommercial Development 2011 Plan Parking 2014 Plan Concessions 2014 PlanRental Car Center 2014 Plan Commercial Development 2014 Plan Parking 2015 PlanConcessions 2015 Plan Rental Car Center 2015 Plan Commercial Development 2015 Plan

Millions FY15 FY16 FY17 FY18 FY19 FY20Revenues

Parking - - 1$ 1$ - -Concessions (2) (4) (3) 2 1 -Rental Car Center - 1 1 1 1 1 Commercial Development 1 (1) (1) (1) (1) -

Total Rev. Mgmt Revenues (1) (5) (2) 2 1 1 Other Services 1 1 1 1 1 1 Payments from Other Sources (4) (3) 5 4 (1) (1) Interest Income - - 1 2 4 3

Total Revenues (4) (7) 5 10 4 5 Expenses

Operating Expenses (1) (1) 6 10 7 -Debt Service, net of PFCs (13) (11) (4) (10) (5) 1 DFW Terminal Contribution (4) (4) (6) (6) (4) (3)

Total Expenses (19) (16) (4) (6) (1) (2) Net Revenues 15 9 9 16 5 7

Transfer to Landing Fees (12) (8) (8) (13) (5) (7) Net Revenues to DFW Capital 3$ 1$ 1$ 3$ (0)$ 0$

DFW Cost Center RevenuesIncrease (Decrease) FY15 Plan compared to FY14 Plan



Parking The Parking Business Unit is DFW’s most significant source of non-airline revenue. DFW manages its own parking operations. The primary drivers of parking revenues are originating passengers, parking prices, and average length of stay. DFW’s goal is to maximize revenue per originating passenger. The Airport has a total of over 40,000 public parking spaces and four different parking options: terminal ($20-$22 per day), uncovered and covered express lots ($11-$13 per day); uncovered remote lots ($9 per day), and DFW valet through a contractor ($27 per day plus tax). The Airport is unique from an airport parking perspective because the Airport has parking plazas on the north and south ends of International Parkway (i.e., the entrances to the Airport), so that all customers and visitors must go through the plazas to access the Airport. Patrons who pass through both plazas pay $1-$2 per trip. The Airport also charges for drop-offs and has incremental rates up to six hours. DFW plans to make several major capital improvements for its parking business unit over the next five years including a refresh of all parking garages as part of the TRIP, a new 7,700 space parking garage in Terminal A, a new 5,600 space parking garage in Terminal E, and the expansion of the Express North covered parking lot (to 5,791 spaces). In total, DFW plans to add 4,133 spaces over the next six years. The Plan assumes productivity improvements thru FY 2020 resulting from expanded terminal and express parking facilities, parking guidance systems, a new parking control system, and targeted marketing initiatives. Parking revenues are projected to increase $43 million from FY 2015 to FY 2020. 63% of revenue increase is contributed to originating passenger growth, while 37% is contributed to rate increase. The revenue per originating passenger stays flat in the FY 2015 Plan over the FY 2014 Plan is due to conservative productivity improvements. If productivity expectations are not met, management can consider increasing parking rates to achieve the revenue per originating passenger targets. Alternatively, if higher productivity can be achieved, management may not increase rates as much as planned. There is a large off-airport parking market at DFW that can be tapped. Ten off-airport parking providers (eight self-park and three dedicated valets) pay a 10% privilege fee to the Airport for access to the Airport. Off-airport self-parking competes against the Airport’s remote and express parking products. Off-airport parking represents approximately 39% of the surface facilities market that requires customer busing. Total off-airport sales volume, including valet providers, was approximately $31.1 million in FY 2014. Drop-offs and meeters/greeters (i.e., less than six hours) represent 53% and 23% of total parking transactions.

$9.36

$10.50 $11.04

$9.80 $10.43

$11.11

$9.82 $10.47

$11.13

$-

$2

$4

$6

$8

$10

$12

$14

FY15 FY17 FY20

Parking Revenue per OPAX




Concessions Terminal concessions primarily consist of food and beverage (F&B), retail, duty free, advertising, and customer services/ amenities. Concessions’ goal is to achieve higher customer satisfaction and increase net revenues per enplanement by right-sizing locations and optimizing retail, F&B and services options. In addition, Concessions will continue to grow new non-passenger driven revenue streams such as sponsorships, communications and advertising. Revenues are 72% enplaned passenger (EPAX) based and 28% non-passenger based (i.e., advertising). Concessions agreements generally are for a term of 3 to 10 years and include a minimum annual guarantee and percentage rent. The Airport previously combined multiple concessions locations into one concessions package, however, the airport is moving to individual leases per location. As of September 30, 2014, the Airport had 225 total locations and 153 packages. Approximately 89% of packages are currently paying percentage rent. Concessions strategy is to implement a customer desired mix of food, beverage, retail, and advertising options as part of TRIP and Terminal D revitalization program; initiate DFW-to-customer marketing strategies; and enhance passenger way-finding options, resulting in better customer experience and an increase of net revenues per enplanement (EPAX). During TRIP, DFW will rebid nearly all of its concessions contracts, and then group the majority of concessions in highly trafficked areas near the Skylink stations and entrances to the secure side. Renovations of the four original terminals over the next five years will allow DFW to implement a new concessions program that will provide customers new options for dining, shopping, and other amenities. The Terminal D revitalization program will elevate the Food & Beverage, Retails service offerings to meet the needs of our customers and compete with the top Asian and European airports. Concessions is also initiating DFW-to-consumer marketing strategies to identify and communicate directly with its customers. This includes leveraging technology to help passengers find the concessions they’re seeking and, in the future, an order from the gate area. The chart shows the impact of the above mention strategies on projected concessions revenue (i.e., income to DFW) per enplanement for the FY 2015, FY 2017, and FY 2020 periods. The decrease of concessions revenues from FY 2014 plan is due to a lower base year in FY 2015, primarily due to lower advertising revenues.

$1.93

$2.31 $2.46$2.41$2.61

$2.83

$2.32 $2.44 $2.75

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

FY15 FY17 FY20

Concessions Revenue per EPAX




Rental Car Center (RAC) The Airport opened its Consolidated Rent-a-Car Facility ("RAC") in 2000. The RAC covers 164 acres and includes a common rental building with individual counters and back office space for each rental car company, a parking garage for ready and return car spaces, a bus maintenance facility, maintenance bays and fueling systems. The Airport collects ground lease, 10% percentage rent, and O&M expenses from the rental car companies, all of which have historically exceeded the operating costs of the RAC. There are six rental car companies with eleven brands operating from the RAC, with a total available inventory of approximately 25,000 cars. The largest three rental car companies and their market share are Hertz (35%), Vanguard (31%), and Avis (30%). There are no major off-airport rental car companies competing with the Airport. DFW management has little control over rental car company activities. It assists the RAC companies where possible and maintains the RAC facility to high standards. The drivers of RAC revenue include daily rental rates, length of stay, and the percent of destination passengers renting cars (i.e., passengers who originate from another location with their destination at DFW). Most RAC patrons are business travelers. The chart shows the projected changes in RAC revenues (to DFW) per destination passenger. Rental car transactions are projected to grow at the same rate as destination passengers; while average rates are projected to grow 2% reflecting the strong competition and price pressures in the rental car industry. Ground rents increase 3% per year as stated in the contract. RAC revenue per destination passenger is higher in the FY 2015 Plan than FY 2014 Plan due to a higher base daily rate. The 102 Operating Fund does not include customer facility charges (CFC) or customer transportation charges (CTC) that are levied per transaction day and are collected by the PFIC.

$1.92 $2.00 $2.12

$0.39 $0.37$0.36

$2.10 $2.18 $2.31

$0.38 $0.38$0.38

$2.12 $2.20 $2.33

$0.39 $0.38$0.38$2.31

$2.48 $2.51 $2.37

$2.56 $2.58 $2.49 $2.70 $2.72

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

FY15 FY17 FY20

RAC Revenue per DPAX

Percent Rent 2011 Plan Ground Rent 2011 Plan Percent Rent 2014 PlanGround Rent 2014 Plan Percent Rent 2015 Plan Ground Rent 2015 Plan



Commercial Development The Airport has a total landmass of 17,207 acres. As of September 30, 2014, 1,917 acres have been commercially developed. DFW has revenue producing ground leases with 70 tenants on 1,274 acres of land. Management estimates that approximately 4,193 acres of additional land is available for future development. A commercial development land use plan has been completed and approved by the Board. Management has also had a consultant prepare a detailed feasibility study of the full cost and benefits of the different development areas identified in the land use plan. The Airport focuses primarily on developing land that has airport synergy such as logistics, warehousing, and cargo facilities. Any land lease over 40 years requires the approvals of the Cities of Dallas and Fort Worth. Commercial Development revenues include ground leases, foreign trade zone tariffs and facility rents generated from non-terminal Airport facilities, and property and surface use fees resulting from natural gas drilling. Multi-year lease agreements are negotiated with tenants on a square foot or acre basis. Approximately 70% of this land is leased under negotiated terms with the remainder being leased at the “airport services rate” which increases with inflation through FY 2020 per the terms of the Use Agreement. Some ground leases, such as the Hyatt Regency Hotel, include percentage rents based on revenues. The largest three Airport tenants from a revenue perspective are American Airlines (27%), Prologis, L.P. (12%), and Dex Media (6%).

The Plan includes the assumption that the Airport will invest in ten different commercial development projects over the next six years totaling approximately $86 million. See Capital Accounts section for a detailed list. It is assumed that the majority of these projects will be developer financed; however, DFW may finance initial road, infrastructure and utility work as necessary. DFW has received airline preapproval to issue bonds to finance commercial development projects up to

a specified limit.



Expense Budget The Plan assumes that operating expenses will increase with CPI plus or minus the incremental operating cost or benefit of new capital projects when they become operational. Personnel costs are projected to increase by approximately 3.3 – 3.7% per year. The following table highlights the increase in the total Operating Revenue and Expense Fund for FY 2015, FY 2017, and FY 2020 between the FY 2011 Plan, FY 2014 Plan, and FY 2015 Plan. FY 2015 Plan is less than FY 2014 Plan in the early years primarily due to a lower debt expenses and is higher in later years due to additional capital projects. The FY2014 and FY2015 Plans include PFIC Debt Service. Existing debt service is scheduled to increase steadily through FY 2020 as negotiated as part of the Use Agreement. Net debt service results from debt issued to finance the TRIP and additional capital projects. Operating expenses increase primarily due to the new Parking Control System (PCS), new custodial contracts, and new ITS initiatives in Disaster Recovery, Security, and Payment Card Industry (PCI) Compliance.

$403 $435 $485

$232 $250

$276

$127 $173

$187

$391 $432 $471

$248 $268

$276 $86

$175

$259

$387 $405 $446

$253 $268 $276

$97 $177

$213 $762 $736 $725

$859 $849 $875 $948 $935

$1,006

$0

$200

$400

$600

$800

$1,000

$1,200

102 Fund Budget (Millions)

O&M Expenses 2011 Plan Existing Debt Service 2011 Plan New Debt Service 2011 PlanO&M Expenses 2015 Plan Existing Debt Service 2015 Plan New Debt Service 2015 PlanO&M Expenses 2014 Plan Existing Debt Service 2014 Plan New Debt Service 2014 Plan

FY 2015 Financial Plan Capital Projects


CAPITAL PROJECTS The Use Agreement includes three capital funds: the Joint Capital Account (JCA), the DFW Capital Account (DFWCA), and the Rolling Coverage Account (in addition to funds required to be established by DFW’s bond ordinances). Capital Project Overview – Sources and Uses of Cash DFW plans to spend approximately $3.7 billion on capital projects for the period FY 2015 though FY 2020. The following chart highlights the Sources and Uses of Cash for DFW’s capital programs for that six years period in millions. The charts show that approximately 80% of total uses are financed. The rest is paid from cash or other sources.

Over the past year, $673 million of new capital projects have been added to the Plan including $494 million for TRIP, and $179 million of other Non-TRIP projects. A total of $159 million (24%) of the incremental JCA projects require airline approval. These are discussed in more detail in this section.

Debt Previously

Issued $1,514

Cash $512

Debt to be Issued $1,745

Other Sources

$292

Capital Sources of CashFY 2015 to FY 2020

TRIP $1,679

Joint Capital $948

DFW Capital $974

Cap-I & Debt

Reserve $462

Capital Uses of CashFY 2015 to FY 2020

30

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The following table highlights a summary of the TRIP program budget from inception.

Project Name TotalOriginal TRIP budget approved in Use Agreement $1,922.0

Terminal B BHS Increased Scope $17.5Terminal A, B, C, & E Window Replacement 40.0Natural Gas Lines (Term B, C, & E) * 3.9Terminal Electric Vault Replacement 9.2TRIP Transition 14.0Concession Loading Docks (Term A) 4.0Interior Finishes Revisions 11.2AA Branding/Cust Service (A, B, & C) 14.0AA Reimb for TRIP Self-Perform Work 5.5Terminal A Concessions Storage 2.3Terminal Information Centers 1.2Re-Baseline Budget Increase ** 652.0Terminal A Passenger Tunnel 21.0

Total TRIP Additions To Base $795.8Current Approved TRIP Budget $2,717.8

Other TRIP Additions in Financial Plan, Subject to MIIConcession Loading Docks (Term E) 5.3

$5.3TRIP Budget in FY15 Financial Plan $2,723.1

* Excludes Terminal A natural gas which is funded in DFW Capital Acct

** Includes $4.7M of curbside lighting and signage improvements subject to MII approval

TRIP Base Scope + Additional Projects (Millions)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Enabling

Phase 1 Section A

Phase 2 Section B

Phase 3 Section C

Phase 1 Section C

Phase 2 Section A

Phase 3 Section B

Phase 1 Section A

Phase 2 Section B

Phase 3 Section C

Phase 4 High Gate Build

Phase 1 Satell ite

Phase 1 B/C Infi l l

Phase 2 Section C

Phase 3 Section B

Phase 4 Section A

12/18 ‐ 4/20

Base Schedule: 8/18 ‐ 12/19

4/19 ‐ 2/21


9/11 ‐ 10/12

TRIP Construction Schedule ‐ Terminals (March 2015 Board Meeting)

Terminal B

Terminal C

Terminal E

9/11 ‐ 3/13

3/13 ‐ 11/14

11/14‐7/16


5/14 ‐ 3/16


20202015 20172016

11/17 ‐ 1/19

Base Schedule7/17 ‐ 9/17

11/12 ‐ 10/14

3/16 ‐ 8/17

Base Schedule: 3/16 ‐8/17

2/16 ‐ 1/18


3/16 ‐ 3/17

Base Schedule: 10/15 ‐

10/16

9/11 ‐ 9/13

9/13 ‐11/14

11/14 ‐ 2/16

Base Schedule: 10/14 ‐

10/15

20212018 2019

Terminal A

2/11 ‐ 8/11

2011 2012 2013 2014



Joint Capital Account – Non-TRIP As part of the Use Agreement, DFW and the airlines negotiated $220 million of capitalized projects to be funded with debt. These projects were bundled into categories. DFW cannot exceed category totals without approval of the airlines. In addition to the $220 million, there are $923 million of other non-TRIP JCA projects in the plan.

The following table shows the new Non-TRIP projects added in the last year.

Due to the length of time it takes to plan, design, construct and open new facilities and projects, DFW is constantly evaluating potential expansion and replacement projects for addition to the Plan. It is likely that new projects will be added to the Financial Plan especially in the later years.

Major Project Description (in millions)Incremental

Cost

Deicing Equipment and Infrastructure * 45

"T" Rail Station at Terminal B * 40

D/F Ramp Expansion * 42

D-South Expansion: Relocate Allied Fuel Rack * 10

Terminal C Integrated Hold Room* 14

N.Airfield Bridge Reconstruction 8

D5 Bus Gate * 3

East/West Connector Rd (20% local match only) 6

Less: Right-of-Way Offset (6)

D-South Stinger Gates (4) (7)Other Projects < $5M, net 10 Commercial Development & Other (DFW)** 15

Total Incremental Project Costs 179$

* Subject to airline Majority-in-Interest (MII) approval

Category (in Millions) Prior Yrs FY15 FY16 FY17 FY18 FY19 FY20 Total

Budget Preapproved Projects

Airfield $6 $23 $30 $6 $2 $0 - $67 Roads Bridges, Rail 46 14 5 9 4 0 - 78 Utilities 8 9 11 10 2 1 1 42 Parking 44 4 - - - - - 48 Other Preapproved Projects 26 6 7 1 1 - - 40

Total Preapproved 131 56 52 25 8 2 1 274 Less: Preapproved Grants (22) (16) (16) (0) - - - (54)

Net Amount Preapproved $109 $40 $36 $25 $8 $2 $1 $220

Other JCA ProjectsAirfield 0 - - 0 7 7 - 14 Terminals 57 25 146 133 62 21 5 449 Parking 157 76 10 58 24 74 13 416 Other 7 30 39 26 6 3 - 117 JCA Projects-Gross 222 131 196 218 94 101 13 982 Less: Other JCA-Grants (0) - - (1) (7) (7) - (14) Other JCA Projects-Net 221 131 196 217 88 94 13 968

Total Projects, Net $330 $172 $231 $242 $96 $96 $14 $1,188



Detailed Capital Project Listing The following pages include the major capital project listing for the joint capital account, excluding the TRIP.

Project Description (Millions) Prior Yrs FY15 FY16 FY17 FY18 FY19 FY20

Total Budget

Airfield

T/W "Lima" Reconstruct Airfield Taxiway [AIP 75% 5.8 22.6 22.4 0.3 - - - 51.1

T/W "Lima" Less: AIP Grant Reimbursement (75% (4.1) (15.9) (15.7) (0.2) - - - (35.8)

Reconfigure Southeast Holding Pad Deicing Infras - 0.4 1.8 3.1 1.8 0.5 - 7.6

Rehabilitate Spent Aircraft Deicing Fluid System - 0.3 3.0 - - - - 3.3

NE/NW Cargo VCP Remediation 0.0 0.2 2.5 2.4 - - - 5.0

Total Airfield, Net of Grants 1.8 7.6 14.0 5.6 1.8 0.5 - 31.2

Total Airfield, Gross 5.8 23.5 29.7 5.8 1.8 0.5 - 67.0

Roads, Bridges, Rail

Rehabilitate Landside Roads & Bridges (Ph. 2-5) 4.0 8.2 4.7 8.8 3.7 0.4 - 29.7

W Airfield Dr & Mid-Cities Rd (road construction o 13.0 4.9 - - - - - 17.9

DART Rail Station @ Term A* (excludes "T" platfo 29.3 1.0 - - - - - 30.3

Total Roads, Bridges, Rail 46.3 14.1 4.7 8.8 3.7 0.4 - 77.9

Utilities

Elevated Water Tower (2.5 MG) $220M) 6.5 5.1 - - - - - 11.6

Rehab Open Storm Channels - 1.1 1.6 2.1 1.9 1.0 1.0 8.7

Rehabilitate and Reconfigure Water Pump Station - 2.5 3.1 2.6 - - - 8.2

Replace E. Airfield Dr Sanitary Sewer Lift Station ( 1.4 0.8 - - - - - 2.1

Install Electrical Distribution System Duct Bank (c - - 2.4 2.5 - - - 4.9

Rehabilitate AOA Storm Sewers ($220M pre-appro - - 1.5 1.5 - - - 3.0

Rehabilitate ESP Thermal System (Install Two 300 T - - 1.9 1.5 - - - 3.4

Total Utilities 7.9 9.4 10.5 10.1 1.9 1.0 1.0 41.9

Parking

Parking Control System (PCS)* 11.4 3.6 - - - - - 15.0

North/South Toll Plaza & Parking Admin Bldg ($22 32.9 - - - - - - 32.9

Total Parking 44.3 3.6 - - - - - 47.9

Other

Fire Training Center Rehab ($220M pre-approved) 25.1 - - - - - - 25.1

Fire Training Center Rehab : Less: AIP Grant ($22 (18.0) - - - - - - (18.0)

ITS Radio System Expansion ($220M Pre-Approve 1.2 5.6 5.6 - - - - 12.4

Rehab Stations 2, 3, 4 - - 1.0 0.5 0.5 - - 2.0

Total Other, Net of Grants 8.3 5.6 6.6 0.5 0.5 - - 21.5

Total Other, Gross 26.3 5.6 6.6 0.5 0.5 - - 39.5

Total Pre-approved Projects 130.6 56.1 51.5 25.2 7.9 1.8 1.0 274.2

Less: Grants (22.1) (15.9) (15.7) (0.2) - - - (53.8)

Total Pre-approved Projects Net 108.5 40.3 35.8 25.0 7.9 1.8 1.0 220.4

*Total current PCS budget is $24.4M and DART Rail is partially offset by I-2/I-3 easement funding

FY 2015 Financial Plan

Joint Capital Account Projects - Excluding TRIP



Project Description (Millions) Prior Yrs FY15 FY16 FY17 FY18 FY19 FY20

Total Budget

Other Programmed Expenditures

A Garage Reconstruction 145.1 53.5 - - - - - 198.6

Employee Parking Garage (Term B & E Infield) - - - 47.8 21.3 72.5 4.9 146.5

Term D South: Gate expansion/Hardstanding 0.1 4.5 46.6 86.7 53.1 16.3 - 207.3

Term D South: D5 Bus Gate - 1.7 1.7 1.7 - - - 5.0

Term D South: International Bag Claim Expansion - 0.4 7.7 4.6 - - - 12.7

Term D South: Relocate Allied Fuel Rack - 0.3 6.0 3.6 - - - 9.9

Term D South: Term D Bag Makeup Unit - 0.2 3.7 2.2 - - - 6.0

Term D South: A-380 Jetbridge @ D11/12 0.1 3.4 2.6 - - - - 6.0

Term D South: Term D ATO Optimization - 0.2 3.1 1.8 - - - 5.0

Term D South: D/F Ramp Expansion (0.0) 2.1 27.0 12.5 - - - 41.6

Term B North Stinger 37.6 2.4 - - - - - 40.0

"T" Rail Station @ Terminal B - 0.8 10.8 20.0 3.5 - - 40.0

Term B/D Connector 19.3 1.7 - - - - - 21.0

Term E Garage Roadway (section B/C) 2.5 21.2 9.8 - - - - 33.4

Deicing Infrastructure Expansion - 7.0 44.0 20.4 4.1 - - 75.5

DPS Station #1 Reconstruction/Expansion 0.4 4.3 17.1 4.0 - - - 25.8

ADG VI T/W "Y" Bridges: to carry ADG VI (747-80 0.2 - - 0.2 6.9 7.1 - 14.4

ADG VI T/W "Y" Less: AIP Reimb (0.1) - - (0.1) (4.1) (4.3) - (8.6)

N. Express (1W)Expansion (center section) - - - - - 2.0 8.5 13.4

N. Express (1W)Expansion (North end) - - - 10.2 2.9 - - 13.1

N. Express (1W)Expansion (South end) 9.7 1.5 - - - - - 11.1

Terminal C Integrated Holdroom Concept - - - - 4.6 4.6 4.6 13.7

N.Airfield Bridge Reconstruction - 3.5 4.0 - - - - 7.5

East/West Connector Rd - - - 0.6 2.6 2.7 - 5.8

Less: Right-of-Way Offset (TXDOT) - - - (0.6) (2.6) (2.7) - (5.8)

Concessions Loading Dock at Terminal E - 1.2 4.1 - - - - 5.2

Projects <$5M 6.6 21.7 7.4 1.9 - - - 37.5

Other Programmed Expenditures 221.5 131.2 195.5 218.0 94.3 100.6 13.4 982.5

Other Programmed Expenditures-Grants (0.1) - - (0.7) (6.7) (6.9) - (14.4)

Total Other Programmed Expenditures-Net 221.4 131.2 195.5 217.3 87.6 93.7 13.4 968.0

DFW Capital Account The capital projects included in the first five years of the Plan consist mostly of identified individual projects rather than the planning level reserves that are included later in the Plan based on projected asset lifecycles. Projects already underway are generally in design or construction and at a high level of budget accuracy. The amounts for new projects, which have not gone through design yet, represent planning level estimates. DFW actively manages these projects to identify savings and free-up cash for other projects as needed and to remove projects when assumptions change.

Category (in Millions) Prior Yrs FY15 FY16 FY17 FY18 FY19 FY20 Total

Budget DFW Capital Projects

Airfield 54 32 28 24 19 19 7 182

Terminal 35 22 22 22 15 15 14 144

Roads, Bridges, Rail, Skylink 10 13 9 6 6 6 7 56

Utilities 15 3 4 6 3 1 - 32

Parking 36 80 99 20 16 19 24 292

Environmental - - - 1 - - - 1

Information Technology 12 20 27 24 17 11 13 125 Safety & Security 16 5 4 2 5 5 4 42

Commercial Development 73 67 19 127 30 62 56 435

ASIP/Other Projects 42 42 34 22 29 20 18 207

Total DFW Capital Account, Gross 293 284 247 252 139 158 143 1,516

Less DFW Capital Grants (11) (19) (17) (8) (9) (10) (4) (78)

Total DFW Capital Account, Net 282 265 230 244 130 148 139 1,438

DFW Capital Account - Summary by Project Category



Detailed Capital Project Listing The following pages include the major capital project listing the DFW Capital Account.

Project Description (Millions) Prior Yrs FY15 FY16 FY17 FY18 FY19 FY20 Total

Budget

Airfield

Rehabilitate Airfield Lighting Systems FY16 - FY20 8.0 - 3.0 3.0 1.5 4.5 1.0 21.0 Less: AIP Reimb (4.8) - (1.8) (1.8) (0.9) (2.7) (0.6) (12.6) Rehab Airfield Pavements FY12 9.0 5.4 - - - - - 14.4 Less: AIP Reimb (5.4) (3.2) - - - - - (8.6)

Rehabilitate Airfield Pavements FY13 1.2 9.3 5.5 - - - - 16.0

Less: AIP Reimb (0.7) (5.6) (3.3) - - - - (9.6)

Rehabilitate Airfield Pavements FY15 - 1.9 8.0 4.0 2.0 - - 15.4

Less: AIP Reimb - (1.1) (4.8) (2.4) - - - (9.2)

Rehabilitate Airfield Pavements FY17 0.2 - 1.2 7.8 5.0 - - 14.2

Less: AIP Reimb - - (0.7) (4.7) (3.0) - - (8.4)

Rehabilitate Airfield Pavements FY19 - - - - 1.3 8.0 5.0 14.2

Less: AIP Reimb - - - - (0.8) (4.8) (3.0) (8.5)

Rehabilitate Spent Aircraft Deicing Fluid System 1.9 - - 1.8 - 1.8 - 5.5 Automated Access Control System (AACS) - - - 5.3 1.1 - - 6.4

Other Airfield Projects < $5M 33.3 15.4 10.7 7.1 9.0 4.8 1.2 81.6 Other Airfield Projects < $5M Grants - (9.3) (6.4) (4.3) (5.4) (2.9) (0.7) (41.0)

Total Airfield, Net of Grants 42.7 12.7 11.4 15.9 9.8 8.7 2.9 104.0

Total Airfield, Gross 53.6 32.0 28.4 23.7 18.8 19.0 7.2 182.1

Terminals

TSA Checked Bag Resolution Area (CBRA) 4.5 - 4.5 4.5 4.5 4.5 4.5 27.0

Less: TSA LOI Reimbursement (100%) (4.5) - (4.5) (4.5) (4.5) (4.5) (4.5) (27.0) Terminal "D" Annual Capital Renewal 25.6 5.6 5.8 6.1 6.3 6.6 6.8 62.8

Terminal D Enhanced Experience - 0.2 2.0 2.0 0.8 - - 5.0 Other Terminal Projects < $5M 9.2 16.0 14.3 14.1 8.0 8.3 6.8 76.7

Total Terminal 34.8 21.8 22.1 22.2 15.1 14.9 13.6 144.5

Roads, Bridges, Rail, Skylink

Renewal Skylink Systems, Facilities, & Guideways

5.2 4.7 3.4 2.6 1.8 1.8 2.4 21.8

Rehabilitate Landside Roads & Bridges 4.5 - - - 1.5 1.5 1.5 9.0 Roads, Bridges, Rail, Skylink < $5M 0.7 8.2 5.6 3.0 2.6 2.5 3.1 25.5

Total Roads, Bridges, Rail and Skylink 10.3 12.9 9.0 5.5 5.9 5.8 7.0 56.3

Utilities

Rehabilitate Storm Water Treatment Plant 0.1 0.3 1.5 2.6 1.5 0.4 - 6.5

Other Utilities < $5M 14.9 3.2 2.3 2.9 1.5 0.6 - 25.5

Total Utilities 15.0 3.5 3.9 5.5 3.1 1.0 - 32.0

Parking

Terminal E Parking Garage (Section B and C) 1.3 42.1 71.5 12.8 - - - 127.7 Replace Remote Buses 7.2 5.0 4.4 - - 6.2 6.9 29.7 Replace Employee Buses 2.0 4.8 3.6 - - - - 10.4 Replace Express Vans (45 total fleet) 7.2 1.4 3.5 1.4 3.7 1.5 3.9 22.8

Replace Terminal Link Vans 5.4 2.6 0.3 - 2.8 - 0.3 11.3 Other Parking Projects < $5M 12.7 23.9 15.3 5.6 9.1 10.8 12.7 90.1

Total Parking 35.8 79.7 98.7 19.9 15.5 18.5 24.0 292.1

FY 2015 Financial PlanDFW Capital Account - Projects



Project Description (Millions) Prior Yrs FY15 FY16 FY17 FY18 FY19 FY20 Total

Budget

Commercial Development

North Entertainment (Ph I ) DD #7 - - - 6.5 6.8 - - 13.3

North Entertainment (Ph 2) DD #7 - - - - - 8.3 7.6 15.8

West Grapevine (Ph I) DD #11 - - - - 6.2 5.7 - 11.9

West Grapevine (Ph II) DD #11 6.2 - - - - - 6.0 12.3

Coppell Freeway Commercial DD#3 - - 3.3 3.3 - - - 6.5

Bear Creek - DFW (Ph II) DD#12 - - - - - 9.6 9.9 19.5

Passport Park - DFW (Ph I) DD#10 - - - - - 8.2 8.4 16.6

Passport Park - DFW (Ph II) DD#10 9.2 - - - - - - 9.2

NW Logistics (Ph II) DD#4 - 3.1 2.0 - - - - 5.1

Walnut Hill Industrial (Ph I) DD#13 - 1.5 2.0 0.5 - 2.5 - 6.5

Southgate: Infrastructure - all phases DD#1 13.3 2.3 - - - - - 15.6

Southgate: DFW Consolidated HQ 30.8 23.6 - - - - - 54.3

AA Training & Conf Center - - - 50.0 - - - 50.0

West Side Cargo Redevelopment - - 0.5 5.0 4.5 - - 10.0

Taxiway Extension into Spirit Airlines Hanger - - - - 4.5 2.0 - 6.5

Facility Renewal 4.5 - 1.5 1.5 1.5 1.5 1.5 12.0

Other Commercial Development Projects < $5M 9.2 36.8 10.0 60.2 6.9 24.2 22.2 169.6

Total Commercial Development 73.2 67.3 19.3 127.0 30.4 62.0 55.6 434.7

Environmental

Other Environmental Projects < $5M - - - 0.5 - - - 0.5

Total Environmental - - - 0.5 - - - 0.5

Information Technology

IT Terminal Sys: EVIDS Monitors Replacements 1.0 0.6 1.0 0.2 0.7 0.3 1.1 5.0

IT Terminal Sys: EVIDS Head-End Replacement 0.9 - 1.4 2.8 2.8 - - 7.9

IT Terminal Sys: CCTV head-end replacement 1.0 - - 1.0 1.0 1.0 1.0 5.0

IT Terminal Sys: Term D BHS Refresh/Upgrade 0.9 0.3 1.3 1.3 1.3 1.3 - 6.3

Other Information Technology Projects < $5M 8.2 18.6 23.7 18.9 11.2 8.7 11.0 100.4

Total Information Technology 12.1 19.5 27.4 24.2 17.0 11.3 13.2 124.6

Safety/Security

ARFF Truck Replacement 9.2 3.6 - - - - - 12.8

Structural Fire Truck Replacement 4.4 - - - 2.0 2.2 2.2 10.8

Other Safety/Security Projects < $5M 2.2 1.6 4.4 1.9 3.0 3.2 2.2 18.6

Total Safety/Security 15.8 5.2 4.4 1.9 5.0 5.4 4.4 42.2

ASIP/Other

Air Service Incentive Program (ASIP) 25.0 16.3 12.4 3.3 4.5 4.5 4.9 70.8

Roofing/Waterproofing for Occupied Board Bldgs 5.0 - - 4.5 6.7 3.0 2.0 21.2

Replace Heavy Equipment 3.6 1.6 1.5 - 1.7 - 1.8 10.3

Replace General Purpose Vehicles - 2.3 1.6 1.3 - 1.5 - 7.8

Other ASIP/Other Projects < $5M 8.5 21.7 18.2 12.6 15.7 11.2 9.2 97.1

Total ASIP/Other 42.1 41.9 33.7 21.7 28.5 20.1 17.9 207.2

Total DFW Projects, Net 281.7 264.5 229.8 244.3 130.3 147.7 138.5 1,438.0

FY 2015 Financial Plan Debt and Cash


$115 $124 $129 $130 $130 $130

$114$116

$119 $121 $124 $126

$228$240

$248 $251 $254 $256

$0

$50

$100

$150

$200

$250

$300

Current Plan - Existing Debt Service Profile (millions)

Rates Fees & Charges Passenger Facility Charges

DEBT AND CASH RESERVES Existing Debt As of September 30, 2014, DFW has $6.2 billion of fixed rate bonds outstanding. DFW currently has no SWAPs or variable rate debt. Approximately $3.1 billion of this debt existed before the TRIP (i.e., “existing debt”) and $3.1 billion of new money bonds have been issued for the TRIP and other capital projects (i.e., “new debt”). During the financial crisis of FY 2008 and FY 2009 when AMR was having significant financial difficulties, DFW created a debt restructuring plan to reduce debt service to provide financial relief to the airlines. Overall, the program was scheduled to defer approximately $166 million of principal over a ten year period into 2036 and 2037, with most of the savings front-loaded. Due to favorable interest rates however, DFW has achieved sufficient savings so that it has not had to extend maturities past the original date of 2035. In fact, the realized saving has been so significant (approximately $0.5 billion) that the restructuring plan has only added approximately two months to the average maturity of the bonds that were refunded. The agreed-upon restructuring plan gradually increases debt service by $6.5 million per year, with the amount paid through rates, fees, and charges (RFCs) increasing by approximately $5.2 million per year (excluding coverage) through FY 2020. However, due to interest savings on refundings, debt service paid by the rate base only increases through FY 2017. Passenger facility charges (PFCs) are used to pay the remaining debt service. The following chart shows existing debt service after completing the restructuring plan in FY 2014.



Passenger Facility Charges DFW collects a $4.50 PFC from eligible revenue passengers. DFW has agreed with the airlines to use these collections for the payment of eligible debt service on existing debt, or for TRIP pay-as-go projects. DFW estimates that it will collect approximately $124 million in FY 2015. As of December 31, 2014, DFW had $32.1 million of PFC’s in a reserve fund. DFW is considering filing a new PFC application for any excess future collections. DFW and the airlines have agreed to use any increase in PFCs up to an additional $3.00, if approved by congress, to pay debt service on debt issued for the TRIP, or pay-as-go for TRIP. PFC eligibility for existing debt service expires in FY 2035 when existing debt service ends. DFW could reapply for continuation of the $4.50 PFC to pay for debt service on new money bonds beyond 2035. Bond Issuances (TRIP and Other Capital Projects)

DFW plans to issue approximately $1.7 billion of fixed rate bonds during FY 2016 to FY 2019. The following table provides the construction funding for debt issuance previously issued and planned for the Financial Plan, along with the required funding of the debt service reserve fund, capitalized interest fund, and cost of issuance. The assumed interest rates for the debt service fund and the capitalized interest reserve funds are based on the forward Treasury curve as of December 8, 2014 for planned issues. The plan assumes that DFW will issue fixed rate bonds for future issuances.

DeliveryJoint

CapitalDFW

Capital Debt CapRefunding

IssueNew Money

Issue Joint Capital DFW Capital

Series Date AMT? AIC Funds Funds Res Interest Escrow Expenses Prem Size Size Proceeds Proceeds2010A 11/17/2010 No 5.08% 278$ -$ -$ 25$ -$ 3$ 1$ -$ 304$ 302$ -$

2011A 6/30/2011 No 3.76% -$ -$ -$ -$ 110$ 1$ -$ 111$ -$ -$ -$

2011C 8/2/2011 Taxable 4.48% -$ -$ -$ -$ 158$ 2$ 7$ 152$ -$ -$ -$ 2011D 8/31/2011 No 4.09% -$ -$ -$ -$ 234$ 2$ 14$ 222$ -$ -$ -$ 2011E 11/9/2011 Taxable 2.79% -$ -$ -$ -$ 105$ 1$ -$ 106$ -$ -$ -$ 2012A 3/1/2012 No 4.00% 1$ -$ -$ -$ -$ $ $ -$ 1$ 1$ -$ 2012B 3/1/2012 No 4.05% -$ -$ -$ -$ 481$ 4$ 50$ 434$ -$ -$ -$ 2012C 5/10/2012 No 4.54% 215$ -$ 64$ 13$ 3$ 3$ 22$ 3$ 272$ 292$ -$ 2012D 8/9/2012 Yes 4.54% 467$ -$ -$ 41$ -$ 4$ 37$ -$ 475$ 509$ -$ 2012E 8/30/2012 Yes 4.32% -$ -$ -$ -$ 317$ 3$ 19$ 300$ -$ -$ -$ 2012F 9/27/2012 Yes 4.06% -$ -$ -$ -$ 297$ 2$ 29$ 271$ -$ -$ -$ 2012G 10/31/2012 No 3.97% -$ -$ 26$ -$ 305$ 2$ 39$ 268$ 26$ 26$ -$ 2012H 12/5/2012 Yes 4.24% 453$ -$ 30$ 40$ -$ 4$ 47$ -$ 480$ 524$ -$ 2013A 5/2/2013 Yes 4.64% 328$ -$ 22$ 42$ -$ 3$ 23$ -$ 372$ 392$ -$ 2013B 6/4/2013 No 4.33% 422$ -$ 26$ 33$ -$ 3$ 34$ -$ 450$ 481$ -$ 2013C 7/2/2013 Yes 5.14% 161$ -$ 14$ 63$ -$ 2$ 2)($ -$ 242$ 237$ -$ 2013D 8/6/2013 No 4.49% -$ -$ -$ -$ 443$ 3$ 30$ 416$ -$ -$ -$ 2013E 8/29/2013 Yes 3.88% -$ -$ -$ -$ 243$ 2$ 20$ 225$ -$ -$ -$ 2013F 9/27/2013 No 4.37% -$ -$ -$ -$ 270$ 2$ 20$ 252$ -$ -$ -$ 2013G 11/5/2013 No 4.73% 16$ 87$ 5$ 5$ -$ 1$ 5$ -$ 109$ 17$ 96$ 2014A 3/18/2014 Yes 4.70% -$ -$ -$ -$ 212$ 2$ 12$ 202$ -$ -$ -$ 2014B 6/5/2014 Yes 4.38% 217$ -$ 9$ 10$ -$ 2$ 14$ -$ 223$ 235$ -$ 2014C 7/15/2014 No 4.16% 80$ 20$ 6$ 26$ -$ 1$ 8$ -$ 124$ 105$ 26$ 2014D 8/7/2014 Yes 2.50% -$ -$ -$ -$ 89$ 1$ 11$ 78$ -$ -$ -$

2014E 9/18/2014 No 2.60% -$ -$ 18$ -$ 95$ 1$ 17$ 79$ 18$ -$ -$ Previously Issued Bonds Grand Total 2,638$ 107$ 219$ 298$ 3,362$ 52$ 458$ 3,120$ 3,097$ 3,121$ 122$

2015A 11/1/2015 Yes 5.58% 535$ -$ 42$ 61$ -$ 6$ -$ -$ 644$ 638$ -$ 2015B 11/1/2015 No 4.82% 19$ 18$ 2$ 1$ -$ $ -$ -$ 41$ 21$ 20$

2016A 8/1/2016 Taxable 6.18% -$ 50$ 2$ -$ -$ 1$ -$ -$ 53$ -$ 52$ 2017A 8/1/2017 Yes 6.58% 474$ -$ 41$ 49$ -$ 6$ -$ -$ 569$ 564$ -$

2017B 8/1/2017 No 5.83% 84$ 21$ 8$ 9$ -$ 1$ -$ -$ 122$ 97$ 24$ 2018A 8/1/2018 No 5.84% 96$ 23$ 9$ 11$ -$ 1$ -$ -$ 140$ 112$ 27$

2019A 5/1/2019 Yes 6.59% 74$ -$ 21$ 25$ -$ 3$ -$ -$ 124$ 121$ -$

Planned Issues Grand Total 1,281$ 111$ 126$ 156$ -$ 19$ -$ -$ 1,694$ 1,552$ 123$

(Amounts in Millions)

Bond Issuances-FY2015 Financial Plan



$0

$100

$200

$300

$400

$500

$600

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049

Debt Service (millions)

Debt Service Paid by PFC's (Existing) RFC Debt Service (Existing)TRIP/NonTRIP/DFW Capital Debt Service Other New Debt Service2011Financial Plan

2011 Financial Plan

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049

Debt Outstanding (billions)

Pre-TRIP Debt Outstanding TRIP/NonTRIP/DFW Capital Debt Outstanding Other New Debt Outstanding

Maximum Principal Balance $7.5 billion

FY14 Financial Plan peaked at $6.9 billion in FY 2017

The following chart shows DFW’s projected debt service through FY 2050 including “existing debt service” (blue), “new money debt service” (green), and debt service paid from other sources; PFIC, DFW Capital and American Airlines (yellow). The chart also highlights the original debt service profile from the original Plan (black line). The increase in debt service compared to the FY 2011 Plan is due to the addition of more than $1.9 billion of new projects, offset by lower interest rates.

Total Debt Outstanding

With the issuance of an additional $1.7 billion bonds from FY 2016 to FY 2019, DFW projects that total debt outstanding will peak at $7.5 billion in FY 2019 as shown in the following chart.



Debt Paid By Other Sources

The debt service highlighted in yellow is paid from sources other than the rate base. Specifically it is paid from the PFIC (for the Grand Hyatt Hotel and the Rental Car Center) and from American Airlines (for improvements to an AA training center located on DFW property) and DFW Capital (for the DFW Headquarters and the Terminal E Garage). See the PFIC section for a more detailed discussion of the PFIC debt. With respect to the training center, DFW expects to issue $50 million of taxable bonds during FY 2016 for the training center, subject to confirmation from AA that they want to proceed with this project. AA has agreed to repay this debt beginning in 2017 through the end of the lease term (2039). This was negotiated to as part of American’s acceptance of the leases on the airport including the Use Agreement. Debt Service Coverage Calculations

DFW utilizes three coverage calculations (the first two are required by bond covenants) as shown in the following table.

The Gross Revenue calculation from DFW’s bond ordinance requires the Airport to maintain a 1.25x debt service coverage ratio including all gross revenues as defined in the bond ordinance. The bond ordinance also requires a Current Gross Revenue calculation, whereby DFW must establish rates and charges sufficient to achieve a minimum of 1.0x debt service excluding rolling coverage and other transfers from capital accounts. The Gross Revenue Plus Other Sources calculation is an internal metric. It adds other recurring revenue sources that are available for debt service should the unforeseen need arise, including incremental PFIC revenues and natural gas.

In Millions FY15 FY16 FY17 FY18 FY19 FY20Gross Revenue Calculation

Total 102 Fund Revenues 799.3$ 888.2$ 958.4$ 1,010.0$ 1,075.5$ 1,107.1$ Add: Rolling coverage 80.4 96.2 107.9 116.1 127.3 132.5 Less: Operating expenses (391.4) (411.7) (431.9) (448.0) (461.1) (471.2)

Gross Revenues available for debt service 488.3 572.8 634.4 678.1 741.8 768.4 Debt Service 321.7 384.9 431.5 464.5 509.4 530.0

Coverage ratio - Gross Revenues 1.52 1.49 1.47 1.46 1.46 1.45

Current Gross Revenues CalculationGross Revenues available for debt service 488.3$ 572.8$ 634.4$ 678.1$ 741.8$ 768.4$ Less: Rolling coverage (80.4) (96.2) (107.9) (116.1) (127.3) (132.5) Less: Other transfers from capital accounts (12.0) (8.0) (4.0) - - -

Current Gross Revenues avail for debt service 395.9 468.6 522.5 562.0 614.4 635.9 Debt Service 321.7 384.9 431.5 464.5 509.4 530.0

Coverage ratio - Current Gross Revenues 1.23 1.22 1.21 1.21 1.21 1.20

Gross Revenues Plus Other Sources CalculationGross Revenues available for debt service 488.3$ 572.8$ 634.4$ 678.1$ 741.8$ 768.4$

Add: Other Sources of CashNatural Gas 10.3 12.5 20.3 28.3 27.9 21.9 Incremental PFIC net revenues 23.4 26.4 27.6 28.1 29.3 30.5 Total Gross Revenues avail. for debt service 521.9 611.7 682.2 734.5 799.0 820.8

Debt Service 321.7 384.9 431.5 464.5 509.4 530.0 Coverage ratio - Gross Plus Other Sources 1.62 1.59 1.58 1.58 1.57 1.55

Coverage Calculations



604556

523 531 545571

0

100

200

300

400

500

600

700

800


Days Cash On Hand

Cash and Cash Reserves

The following table highlights restricted and unrestricted cash by account type. Restricted cash accounts are restricted by Bond Ordinance or Federal law (e.g., PFCs) and may only be used for its stated purposes. Unrestricted cash includes available cash in the Operating Fund, Rolling Coverage, the Joint Capital Account, DFW Capital Account, and PFIC. These funds may be used for any lawful purpose including payment of debt service or ongoing operating expenses if necessary. Rolling Coverage is considered unrestricted because it is defined as part of Gross Revenues and available during the year for operating expenses.

The following chart shows the projected days of operating expenditures that can be covered with unrestricted cash for the life of the Financial Plan.

Cash Accounts (Millions) FY15 FY16 FY17 FY18 FY19 FY20 Restricted

Debt Service Reserves 299$ 342$ 389$ 397$ 418$ 418$ Interest & Sinking Funds 161 192 216 232 255 265 JCA Bond Funds 905 843 851 574 332 68 DFWCA Bond Funds 124 114 58 62 91 56 Passenger Facility Charges 11 25 40 57 74 92

PFIC 3 3 3 3 3 3 Other 12 12 12 12 12 12

Total Restricted 1,514$ 1,531$ 1,568$ 1,336$ 1,185$ 914$

UnrestrictedOperating Fund 161 166 173 184 194 201 Rolling Coverage 80 96 108 116 127 132 Joint Capital Account 208 206 214 227 243 259

DFW Capital Account 150 100 65 50 53 66 PFIC 49 58 59 75 72 79

Total Unrestricted 648$ 627$ 618$ 652$ 688$ 737$ Total Cash 2,162$ 2,158$ 2,186$ 1,988$ 1,873$ 1,651$

Restricted and Unrestricted Cash Summary



Debt Reserves

DFW’s bond ordinances require DFW to maintain debt reserves equal to the average annual debt service. DFW currently has $324.5 million of cash and investments in its debt reserves. Total debt reserve requirements are $324.5 million as of the December 1, 2014. DFW will continue to fund debt reserves with future bond issuances as necessary.

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The following table highlights the net revenues for the Grand Hyatt through FY 2020.

Rental Car Facility (RAC) In 1998 and 1999, DFW’s Facility Improvement Corporation (FIC) issued approximately $160 million of taxable bonds (the “FIC Bonds”) to construct a consolidated rental car facility, referred to as the RAC. The FIC Bonds were secured by the collection of a Customer Facility Charges (CFC) by the rental car companies. The FIC Bonds were refunded with the proceeds of the Dallas/Fort Worth International Airport Joint Revenue Improvement Bonds, Series 2011A. In consideration for the Board issuing the Series 2011A Bonds, the FIC entered into a Facility Agreement whereby the FIC will deposit, to the extent available, an amount sufficient to pay that portion of the debt service and Coverage attributable to the 2011A Bonds. The CFC rate is currently $4.00 per transaction day and may be changed at any time as necessary to ensure the payment of debt service. The CFC is also used to make capital facility improvements to the RAC and to purchase buses. Although under consideration, there is currently not a required reserve structure for the RAC facilities. The rental car companies also collect a Customer Transportation Charge (“CTC”) from rental car customers. The CTC was initiated in FY 2008 and is used to pay a third party contractor that operates and maintains the buses for the RAC. The CTC is currently $2.20 per transaction day and may be changed at any time based on the projected transaction days and expenses required to operate and maintain the buses. During FY 2012, the Cities authorized the assignment of the FIC’s assets, obligations and responsibilities, with respect to the RAC to the PFIC. Although the net revenues from the CFC and the CTC are not Gross Revenues of the Airport and are not available for, or pledged to the payment of debt service on the Bonds, the PFIC’s deposits to pay for debt service and coverage on the 2011A Bonds, once received by the Board, are considered Gross Revenues of the Airport. The debt on the RAC will be retired in FY 2020.

FY14 FY15 FY16 FY17 FY18 FY19 FY20 TotalRevenues 35$ 36$ 37$ 37$ 38$ 39$ 40$ 262$ Expenses

Operating Expenses 24 24 25 26 26 27 27 178 Debt Service 4 4 4 4 5 5 5 31 Reserves 2 3 3 3 3 3 3 18

Total expenses 30 31 32 32 34 34 35 227 Net Revenue Generated 5$ 5$ 5$ 5$ 5$ 5$ 5$ 35$

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International Premium Lounge The International Premium Lounge is a world-class lounge product offering for participating airlines that provide nonstop service from DFW to international destinations. Currently in design development, the lounge will be located in Terminal D. Approval of this project is expected from the Cities around May 2015. The following table highlights the anticipated revenues for the International Premium Lounge through FY 2020.

PFIC Cash Flow Projection As of September 30, 2014 the PFIC had unrestricted available cash and investments of approximately $78 million. The following table summarizes the primary sources and uses of cash for the PFIC through FY 2020.

There is a planned re-life of the Grand Hyatt in FY 2018. RAC is under a phased re-life thru FY 2019 with bus replacement in FY 2020. Hyatt Place is currently under construction from FY 2015 to FY 2016.

FY14 FY15 FY16 FY17 FY18 FY19 FY20 TotalRevenues - - - 5$ 6$ 6$ 6$ 24$ Expenses

Operating Expenses - - - 4 5 5 5 18 Debt Service - - - - - - - -Reserves - - - - - - - -

Total expenses - - - 4 5 5 5 18 Net Revenue Generated - - - 1$ 2$ 2$ 2$ 6$

International Premium Lounge

Millions FY14 FY15 FY16 FY17 FY18 FY19 FY20 TotalBeginning Cash 66$ 78$ 60$ 52$ 61$ 63$ 79$ 66$ Cash Flow from Operations

Grand Hyatt 5 5 5 5 5 5 5 35 RAC 7 6 8 8 9 10 11 58 Hyatt Place - - 1 2 2 2 2 8 Premium Lounge - - - 1 2 2 2 6 Net Cash Flow from Ops 12 11 14 16 17 18 18 107

Capital Projects * Grand Hyatt - - - - 11 - - 11 RAC 1 6 9 7 4 2 21 51 Hyatt Place - 11 10 - - - - 21 Premium Lounge - 12 3 - - - - 15 Total Capital Projects 1 29 22 7 15 2 21 97

Net Change in Cash 11 (18) (8) 9 2 15 (3) 10 Ending Cash 78$ 60$ 52$ 61$ 63$ 79$ 76$ 76$

* Excludes Reserves

PFIC Capital Account - Sources and Uses

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