Sample Sheet Term Definitions

Assets - the economic resources owned by the company. These can be tangible items like land, buildings, and equipment, or they can be in the form of payments or money owed to the company.

Current assets - "current" signifies assets that can be exchanged into cash within a year. The specific assets vary for each corporation and are explained in further detail in the "notes" section at the end of the report.

Cash and cash equivalents - cash on hand, demand deposits, and investments in money market funds that can be easily turned into cash in several months or less.

Accounts receivable - money that is owed to the company.

Income tax refund receivable - money that will be refunded from income taxes from the previous year.

Investment in Subsidiary - the native corporations have joint ventures, partnerships, limited liability companies, and minority interest in other corporations. These affiliates are commonly involved in oil field services, food services, mineral exploration drilling, developments, government contracting, construction, transportation, and engineering services. Ventures with these affiliates serve as a primary source of the corporations' income.

Goodwill - this refers to the momentum and reputation acquired by the corporation. It represents the profit that the corporation makes when people are satisfied with its service and elect to use it again. Goodwill is an example of an intangible asset.

Marketable securities - short-term investments in stock and bonds.

Property and equipment at cost - this is the current worth of the property and equipment owned by the corporation. The native corporations use the straight-line method of depreciation and adjust the value of the assets as the equipment becomes aged or replaced.

Current liabilities - debts that are due within one year of the date on the balance sheet

Accounts payable - amount the corporation owes due to the cost of doing business.

Accrued expenses - dues for electricity, gas, telephone service, and other items that build up or "accrue" over a period of time.

Short-term notes payable - payments the corporation must make in short time

Current portion of long-term debt - the amount the corporation will pay this year for debts lasting more than one year

Income taxes payable - yearly federal income tax

Unearned income and deposits - income acquired before the corporation has carried out the service - revenue received but not earned

Line of credit - prearranged bank loans

Total Liabilities - total obligations or debts that the corporation must pay sometime in the future.

Long-term debt, excluding current portion - debts that are not due after one year.

Deferred income taxes payable - money that the corporation owes the federal government but does not have to pay immediately.

Capital lease obligation, excluding current portion - capital lease is a lease that transfers to the lessee all the benefits and risks related to the ownership of the property.

Minority interest - the portion of a business enterprise owned by a partner of the corporation (and owning less than 50%).

Non-current notes payable - all other notes not due within the year.

Stockholders' equity - the resources or assets of the shareholders, often called "net worth". This is what is left after the liabilities have been subtracted from the assets

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Common stock - the stock in the native corporations has no par value, meaning they cannot be purchased or sold. The value, however, can be found on the Statement of Income. Individual corporations will list the amount of stock issued and the amount of stock withheld by the company on the balance sheet or in the "notes" section in the back of the report.

Contributed or "paid-in" capital - the amount of cash the corporation received from the Alaska Native Fund after ANCSA in 1971. Different amounts were distributed based on a formula of the land loss and population of the corporations. Some corporations have distributed part of this original lump sum to shareholders.

Retained earnings - the money left in the corporation after paying the shareholders.

Unrealized gain on marketable securities - the gain or loss the company would acquire if it presently sold its stock. Some corporations do not include this figure in the balance sheet depending on how the stock is doing. This figure can always be found in the Statement of Stockholders' Equity as "Change in unrealized gain on marketable securities."

Commitments - Contractual obligations by the company to provide goods or services in the future.

Contingencies - Financial obligations the company may incur in the future as a direct result of its current situation.

Total Stockholders' Equity - current net worth of the corporation

Revenues - amounts received by the corporation.

Operating income - income from the services or goods the corporation provides. This often includes figures from sales and cost of goods sold. Expenses are subtracted from the operating income to find the "Gross profit from sales".

Investment income - amount of money from investments in the stock market.

Earnings from affiliates - money from investments in the corporation's subsidiary companies. The financial statements of the individual subsidiaries are sometimes included in the "notes" section at the end of the report.

Natural resources or 7(i) Funds - shared money from natural resources between corporations. Click here for a more detailed description.

Expenses operating - the cost of running the corporation, both general and administrative

Other (income) expenses - these vary from corporation to corporation and may include social and cultural programs, interest expenses from loans, minority interest, timber harvesting contracts, environmental cleanup, or gain on sale of property or stock.

Net income - profit made by the corporation in the given year after the expenses have been subtracted

Net income per share of common stock - value of one share of the corporation's stock.

Change in valuation adjustment on marketable securities - the gain or loss in the value of unsold assets (such as stock or tangible objects).

Dividends paid - money paid to shareholders. This money comes from "retained equity", the accumulated amount of each year's profit.

"Consolidated" Statement - the 12 regional corporations own subsidiary companies and corporations which are usually listed and described in the individual reports. The financial data from these companies are compiled with the corporation's finances in the report. This "consolidation" combines the profits of the subsidiaries causing the inter-company transactions to be eliminated from the Annual Report.

Class A and B Shares - in 1971, ANCSA provided 100 shares of common stock to all eligible Alaska Natives in two different forms. Class A shares went to those who were shareholders in a village corporation, and Class B shares went to those who were not. Class A shareholders are eligible for corporation dividends but not for 7(j) distributions. Class B shareholders are "at-large" shareholders and do receive 7(j) distributions.

Clause 7(i) - clause 7(i) of ANCSA distributes money from the natural resources of one regional corporation to the other regional corporations. Seventy percent of their resource revenues from their ANCSA lands must be shared among the corporations. Under Section 7(j), half of the money each region receives is then shared with their villages and at-large shareholders on a per capita basis. This is so that resource-rich corporations will share with those who are resource-poor simply by accident of location. The income from clause 7(i) appears in the "revenue" section of the Statement of Income. To view clauses 7(i) and 7(j) in the actual ANCSA document, click here.

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