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