Financials

Consolidated Balance Sheets

May 31, 2015 and 2014

ASSETS

Current assets: 2015 2014
Cash and cash equivalents $ 201525,115,000 201423,870,000
Investments 2015300,675,000 2014293,633,000
Trade receivables, net 20156,055,000 20145,789,000
Inventories 20151,504,000 20142,206,000
Auto test inventory 20152,014,000 20142,145,000
Grants and other receivables 20152,845,000 20142 ,431,000
Deferred promotion cost 201516,114,000 201415,831,000
Prepaid expenses and other current assets 20158,822,000 20148,211,000
Total current assets 2015363,144,000 2014354,116,000
Property and equipment, net 201557,607,000 201457,651,000
Deferred promotion cost – long term 20152,152,000 20141,925,000
Other assets 20153,291,000 20143,714,000
Grants receivable – long term 20151,724,000 20142,736,000
Total assets $ 2015427,918,000 2014420,142,000

Liabilities and Net Assets

Current liabilities: 2015 2014
Accounts payable and accrued liabilities $ 201514,076,000 201412,001,000
Accrued compensation 20159,792,000 20149,910,000
Unearned subscription revenue 2015110,413,000 2014116,728,000
Current portion of long-term debt 20151,300,000 20141,250,000
Total current liabilities 2015135,581,000 2014139,889,000
Unearned subscription revenue – long term 201535,166,000 201433,742,000
Liability under derivative instrument 20156,691,000 20145,718,000
Long-term debt 201541,250,000 201442,550,000
Other liabilities 201538,946,000 201431,382,000
Total liabilities 2015257,634,000 2014253,281,000
Net assets:
Unrestricted 2015161,419,000 2014157,058,000
Temporarily restricted 20158,865,000 20149,803,000
Total net assets 2015170,284,000 2014166,861,000
Total liabilities and net assets $ 2015427,918,000 2014420,142,000

Consolidated Statements of Activities

Years ended May 31, 2015 and 2014

Operating:

Change in unrestricted net assets: 2015 2014
Revenue and support:
Subscriptions, newsstand, and other sales $ 2015230,198,000 2014237,280,000
Contributions 201527,278,000 201422,184,000
Net assets released from restrictions 20155,017,000 20144,923,000
Other 2015539,000 2014622,000
Total revenue and support 2015263,032,000 2014265,009,000
Operating expenses:
Publication, promotion, and marketing expenses:
Content development 201590,662,000 201488,827,000
Production and distribution 201546,165,000 201444,917,000
Promotion and marketing 201567,959,000 201474,478,000
2015204,786,000 2014208,222,000
Consumer advocacy and education 201516,368,000 201416,417,000
General and administrative 201523,829,000 201424,368,000
Fundraising 20159,805,000 20149,406,000
Total operating and other expenses 2015254,788,000 2014258,413,000
Total operating income 20158,244,000 20146,596,000

Nonoperating:

Investment return, net 20157,248,000 201426,330,000
Unrealized (loss) gain on interest rate swap 2015(973,000) 2014702,000
Change in value of split-interest agreements 2015(2,917,000) 2014782,000
Pension-related changes other than net periodic pension cost 2015(7,241,000) 20149,642,000
Total nonoperating (loss) gain 2015(3,883,000) 201437,456,000
Increase in unrestricted net assets 20154,361,000 201444,052,000

Change in temporarily restricted net assets:

Grants received 20153,958,000 20147,135,000
Net assets released from restrictions 2015(5,017,000) 2014(4,923,000)
Contribution revenue – other 2015126,000 2014407,000
Change in value of split-interest agreements 2015(5,000) 2014121,000
(Decrease) increase in temporarily restricted net assets 2015(938,000) 20142,740,000
Increase in net assets 20153,423,000 201446,792,000
Net assets at beginning of year 2015166,861,000 2014120,069,000
Net assets at end of year $ 2015170,284,000 2014166,861,000