Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 10 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 and 2015 - 10 - 2015 Compared to 2014 Total non-current liabilities increased by $274.2 million to $341.5 million at the end of 2015. The significant area of increase was the result of recording Net Pension Liability totaling $271.8 million due to the implementation of GASB Statement No. 68 concerning pensions. Compensated absences increased by $2.7 million to $19.4 million primarily due to additional days off negotiated by union contracts that restore to affected employees the value of unpaid furlough days taken in 2010. The balance net decrease of $0.3 million to $50.3 million was for minimal changes within environmental liabilities, risk management liabilities, and other. Environmental liabilities decreased by $0.4 million to $33.6 million at the end of 2015. Current Liabilities 2016 Compared to 2015 Current liabilities decreased by $4.9 million for a total of $266.5 million at the end of 2016. Current liability decreases of $8.3 million were for vouchers payable for normal operations, payment of $7.8 million for Terminal 117 and Cedar Falls Bridge remediation environmental projects, lower interest due for bonds of $2.6 million, and lower estimate for current compensated absences of $1.1 million due in part to transfer of information technology staff to Seattle Information Technology Department in April 2016. These were offset by higher liabilities for principal on bonds of $5.3 million, reclassification of customer overpayments to a liability at implementation of the new billing system of $4.8 million, inventory payables of $2.0 million, retainage of $1.6 million, and other net of $1.2 million for ongoing operations. 2015 Compared to 2014 Current liabilities increased by $13.1 million for a total of $271.4 million at the end of 2015. Current liability increases of $24.4 million were for vouchers payable for ongoing operations, debt service, furlough days restored, taxes, power, and other. These were offset by decreases of $11.3 million in part due to payment for Terminal 117 and Cedar Falls Bridge remediation environmental projects during the year. In addition, current environmental liabilities were adjusted downward from the 2014 estimate that was inadvertently recorded. Other Liabilities 2016 Compared to 2015 Other liabilities increased by $7.5 million to $37.2 million in 2016. The major increase was for unearned revenue for large service connections in progress due to the strong local economy. 2015 Compared to 2014 Other liabilities increased by $3.0 million to $29.7 million in 2015. The major increase was for unearned revenue for large service connections in progress due in part to the improving local economy.