PEPPERDINE UNIVERSITY

Consolidated Statements of Financial Position

At July 31, 2013 and 2012 (in thousands)

2013 2012
ASSETS
Cash and cash equivalents $       68,941 $       73,625
Student receivables, less allowance for doubtful accounts of $1,343 and $1,410, respectively 1,295 1,183
Other accounts receivable 4,062 3,119
Prepaid expenses, inventories and other assets 5,512 4,903
Student loans, less allowance for loan losses of $1,599 and $1,707, respectively 22,749 23,812
Contributions receivable, net 30,597 28,905
Investments 830,726 767,261
Assets held as trustee or agent 123,843 124,459
Property, facilities and equipment, net 362,409 341,180
      Total assets $ 1,450,134 $ 1,368,447

LIABILITIES AND NET ASSETS
Liabilities:
   Accounts payable and accrued liabilities $      28,855 $      15,730
   Accrued salaries and wages 3,579 3,364
   Student deposits, advance payments, and deferred revenue 9,977 10,012
   Asset retirement obligations 5,912 5,720
   U.S. government-funded student loans 15,340 15,006
   Trust and agency obligations 70,754 74,951
   Long-term obligations 238,750 239,422
      Total liabilities 373,167 364,205
Net assets:
   Unrestricted 630,777 595,418
   Temporarily restricted 118,605 103,043
   Permanently restricted 327,585 305,781
      Total net assets 1,076,697 1,004,242
      Total liabilities and net assets $ 1,450,134 $ 1,368,447

PEPPERDINE UNIVERSITY

Consolidated Statements of Activities

For the year ended July 31, 2013 (in thousands)

 
Unrestricted
Temporarily
Restricted
Permanently
Restricted

Total
REVENUES
Student tuition and fees $    280,531 $              - $              - $    280,531
   Less student aid (88,797) - - (88,797)
      Net student tuition and fees 191,734 - - 191,734
Room and board 34,675 - - 34,675
Private gifts and grants 12,098 5,171 4,265 21,534
Endowment support 32,855 - 365 33,220
Government grants 3,546 - - 3,546
Sales and services 7,032 - - 7,032
Other revenue 5,455 4,621 614 10,690
Net assets released from restriction 8,890 (8,890) - -
      Total revenues 296,285 902 5,244 302,431

EXPENSES
Instruction and research 86,348 - - 86,348
Academic support 51,670 - - 51,670
Student services 48,381 - - 48,381
Public service 14,168 - - 14,168
Auxiliary enterprises 26,331 - - 26,331
Management and general 52,609 - - 52,609
Membership development 2,036 - - 2,036
Fundraising 7,431 - - 7,431
      Total expenses 288,974 - - 288,974
      Change in net assets before nonoperating revenues and expenses 7,311 902 5,244 13,457

NONOPERATING REVENUES AND EXPENSES
Actuarial adjustment - 4,090 (76) 4,014
Investment income:
   Dividends 6,773 2,016 7 8,796
   Interest 299 8 83 390
   Other 6,731 - 3 6,734
Investment expenses (3,018) (965) - (3,983)
Net realized and unrealized investment losses 17,806 7,526 14,424 39,756
Foreign currency translation 1,362 - - 1,362
Other (1,905) 1,985 2,119 2,199
      Total nonoperating revenues and expenses 28,048 14,660 16,560 59,268
Change in net assets 35,359 15,562 21,804 72,725
      Net assets at beginning of year $    595,418 $    103,043 $    305,781 $ 1,004,242
      Net assets at end of year $    630,777 $    118,605 $    327,585 $ 1,076,967