Financials
Consolidated Balance Sheets
May 31, 2016 and 2015
ASSETS
| Current assets: | 2016 | 2015 | ||
|---|---|---|---|---|
| Cash and cash equivalents | $ | 201615,487,000 | 201525,115,000 | |
| Investments | 2016291,563,000 | 2015300,675,000 | ||
| Trade receivables, net | 20166,087,000 | 20156,055,000 | ||
| Inventories | 20161,188,000 | 20151,504,000 | ||
| Auto test inventory | 20162,090,000 | 20152,014,000 | ||
| Grants and other receivables | 20163,732,000 | 20152,845,000 | ||
| Deferred promotion cost | 201615,876,000 | 201516,114,000 | ||
| Prepaid expenses and other current assets | 20167,394,000 | 20158,822,000 | ||
| Total current assets | 2016343,417,000 | 2015363,144,000 | ||
| Property and equipment, net | 201658,294,000 | 201557,607,000 | ||
| Deferred promotion cost – long term | 20161,962,000 | 20152,152,000 | ||
| Other assets | 20162,975,000 | 20153,291,000 | ||
| Grants receivable – long term | 2016764,000 | 20151,724,000 | ||
| Total assets | $ | 2016407,412,000 | 2015427,918,000 |
Liabilities and Net Assets
| Current liabilities: | 2016 | 2015 | ||
|---|---|---|---|---|
| Accounts payable and accrued liabilities | $ | 201612,805,000 | 201514,076,000 | |
| Accrued compensation | 201615,245,000 | 20159,792,000 | ||
| Unearned subscription revenue | 2016101,605,000 | 2015110,413,000 | ||
| Current portion of long-term debt | 20161,350,000 | 20151,300,000 | ||
| Total current liabilities | 2016131,005,000 | 2015135,581,000 | ||
| Unearned subscription revenue – long term | 201635,939,000 | 201535,166,000 | ||
| Liability under derivative instrument | 20167,381,000 | 20156,691,000 | ||
| Long-term debt | 201639,900,000 | 201541,250,000 | ||
| Pension Obligation | 201633,871,000 | 201524,275,000 | ||
| Other liabilities | 201616,332,000 | 201514,671,000 | ||
| Total liabilities | 2016264,428,000 | 2015257,634,000 | ||
| Net assets: | ||||
| Unrestricted | 2016135,327,000 | 2015161,419,000 | ||
| Temporarily restricted | 20167,657,000 | 20158,865,000 | ||
| Total net assets | 2016142,984,000 | 2015170,284,000 | ||
| Total liabilities and net assets | $ | 2016407,412,000 | 2015427,918,000 |
Consolidated Statements of Activities
Years ended May 31, 2016 and 2015
Change in unrestricted net assets:
| Operating: | 2016 | 2015 | ||
|---|---|---|---|---|
| Revenue and support: | ||||
| Subscriptions, newsstand, and other sales | $ | 2016214,397,000 | 2015230,198,000 | |
| Contributions | 201628,874,000 | 201527,278,000 | ||
| Net assets released from restrictions | 20163,830,000 | 20155,017,000 | ||
| Other | 2016566,000 | 2015539,000 | ||
| Total revenue and support | 2016247,667,000 | 2015263,032,000 | ||
| Operating expenses: | ||||
| Publication, promotion, and marketing expenses: | ||||
| Content development | 201687,713,000 | 201590,662,000 | ||
| Production and distribution | 201645,077,000 | 201546,165,000 | ||
| Promotion and marketing | 201662,147,000 | 201567,959,000 | ||
| 2016194,937,000 | 2015204,786,000 | |||
| Consumer advocacy and education | 201615,890,000 | 201516,368,000 | ||
| General and administrative | 201632,869,000 | 201523,829,000 | ||
| Fundraising | 20169,915,000 | 20159,805,000 | ||
| Total operating and other expenses | 2016253,611,000 | 2015254,788,000 | ||
| Total operating (loss) income | 2016(5,944,000) | 20158,244,000 | ||
Nonoperating: |
||||
| Investment (loss) return, net | 2016(8,895,000) | 20157,248,000 | ||
| Unrealized loss on interest rate swap | 2016(690,000) | 2015(973,000) | ||
| Change in value of split-interest agreements | 2016(501,000) | 2015(2,917,000) | ||
| Pension-related changes other than net periodic pension cost | 2016(10,062,000) | 2015(7,241,000) | ||
| Total nonoperating loss | 2016(20,148,000) | 2015(3,883,000) | ||
| (Decrease) increase in unrestricted net assets | 2016(26,092,000) | 20154,361,000 | ||
Change in temporarily restricted net assets: |
||||
| Grants received | 20162,513,000 | 20153,958,000 | ||
| Net assets released from restrictions | 2016(3,830,000) | 2015(5,017,000) | ||
| Contribution revenue – other | 2016105,000 | 2015126,000 | ||
| Change in value of split-interest agreements | 20164,000 | 2015(5,000) | ||
| Decrease in temporarily restricted net assets | 2016(1,208,000) | 2015(938,000) | ||
| (Decrease) increase in net assets | 2016(27,300,000) | 20153,423,000 | ||
| Net assets at beginning of year | 2016170,284,000 | 2015166,861,000 | ||
| Net assets at end of year | $ | 2016142,984,000 | 2015170,284,000 | |