Financials
Consolidated Balance Sheets
May 31, 2017 and 2016
Assets
Current Assets
2017
2016
Cash and cash equivalents
10,443,000
15,487,000
Investments
305,063,000
291,563,000
Trade receivables, net
6,125,000
6,087,000
Inventories
1,458,000
1,188,000
Auto test inventory
2,010,000
2,090,000
Grants and other receivables
2,896,000
3,732,000
Deferred promotion cost
15,580,000
15,876,000
Prepaid expenses and other current assets
7,474,000
7,394,000
Total current assets
351,049,000
343,417,000
Property and equipment, net
61,487,000
58,294,000
Deferred promotion cost – long term
1,808,000
1,962,000
Other assets
2,753,000
2,975,000
 
Grants receivable – long term
300,000
764,000
Total assets
417,397,000
407,412,000
Liabilities and Net Assets
Current liabilities
2017
2016
Accounts payable and accrued liabilities
14,558,000
12,805,000
Accrued compensation
10,220,000
15,245,000
Unearned subscription revenue
99,315,000
101,605,000
Current portion of long-term debt
1,400,000
1,350,000
Total current liabilities
125,493,000
131,005,000
Unearned subscription revenue – long term
30,068,000
35,939,000
Liability under derivative instrument
5,823,000
7,381,000
Long-term debt
38,500,000
39,900,000
Pension obligation
28,950,000
33,871,000
Other liabilities
14,120,000
16,332,000
Total liabilities
242,954,000
264,428,000
Net assets: Unrestricted
167,062,000
135,327,000
Net assets: Temporarily restricted
7,381,000
7,657,000
Total net assets
174,443,000
142,984,000
Total liabilities and net assets
417,397,000
407,412,000
Consolidated Statements of Activities
Years ended May 31, 2017 and 2016
Change in unrestricted net assets
Operating
2017
2016
Revenue and support:
Subscriptions, newsstand, and other sales
205,477,000
214,397,000
Contributions
31,841,000
28,874,000
Net assets released from restrictions
3,911,000
3,830,000
Other
515,000
566,000
Total revenue and support
241,744,000
247,667,000
Publication, promotion, and marketing expenses
Content development
83,138,000
87,713,000
Production and distribution
46,036,000
45,077,000
Promotion and marketing
68,047,000
62,147,000
Total Publishing Promotion and Marketing
197,221,000
194,937,000
Consumer advocacy and education
14,796,000
15,890,000
General and administrative
25,235,000
32,869,000
Fundraising
9,917,000
9,915,000
Total operating and other expenses
247,169,000
253,611,000
Total operating loss
(5,425,000)
(5,944,000)
Non-Operating
2017
2016
Investment return (loss), net
29,212,000
(8,895,000)
Unrealized gain (loss) on interest rate swap
1,558,000
(690,000)
Change in value of split-interest agreements
713,000
(501,000)
Pension-related changes other than net periodic pension cost
5,677,000
(10,062,000)
Total nonoperating gain (loss)
37,160,000
(20,148,000)
Increase (decrease) in unrestricted net assets
31,735,000
(26,092,000)
Change in temporarily restricted net assets
2017
2016
Grants received
3,475,000
2,513,000
Net assets released from restrictions
(3,911,000)
(3,830,000)
Contribution revenue – other
100,000
105,000
Change in value of split-interest agreements
60,000
4,000
Decrease in temporarily restricted net assets
(276,000)
(1,208,000)
Increase (decrease) in net assets
31,459,000
(27,300,000)
Net assets at beginning of year
142,984,000
170,284,000
Net assets at end of year
174,443,000
142,984,000