Cornell University 2011-2012 Annual Report - DFA Home - Cornell ...

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands)REDEMPTION INFORMATION FOR ALTERNATIVE INVESTMENTS MEASURED USING NET ASSET VALUEAsset class Redemption terms Redemption restrictions*Private equity n/a ** n/aReal assets n/a ** n/aFixed incomeRanges between quarterly redemption with 45 days notice, to annualredemption with 90 days notice***No lock up provisionsForeign equityRanges between monthly redemption with 30 days notice, to triennialredemption with 30 days notice36% of NAV has remaining lock upprovisions of 15 monthsHedged equityRanges between monthly redemption with 10 days notice, to triennialredemption with 45 days notice13% of NAV has remaining lock upprovisions ranging from 15 months to 21monthsMarketablealternativesRanges between quarterly redemption with 30 days notice, to triennialredemption with 90 days notice11% of NAV has remaining lock upprovisions ranging from 15 months to 18monthsDomestic equity Daily redemption with 2 days notice No lock up provisions* Represents initial investment lock up restriction. No other material redemption restrictions, such as redemption gates, were in place at year end.**These funds are in private equity structure, with no ability to be redeemed.***97% of NAV is in private equity structure, with no ability to be redeemed. Redemption provisions for the remaining 3% are shown above.4. LAND, BUILDINGS, AND EQUIPMENTLand, buildings, and equipment are detailed as follows:LAND, BUILDINGS, AND EQUIPMENTBook value at Disposals and Book value atJune 30, 2011 Additions closed projects June 30, 2012Land, buildings, and equipment $ 3,725,231 $ 156,781 $ (43,020) $ 3,838,992Furniture, equipment, books, and collections 1,134,666 59,590 (20,581) 1,173,675Construction in progress 394,630 357,024 (173,591) 578,063Total before accumulated depreciation $ 5,254,527 $ 573,395 $ (237,192) $ 5,590,730Accumulated depreciation (2,107,516) (2,268,832)Net land, buildings, and equipment $ 3,147,011$ 3,321,898Certain properties to which the University does not have title are included in physical assets at net book values, as follows:(1) land, buildings, and equipment of the Contract Colleges aggregating $607,441 and $558,410 at June 30, 2012 and 2011,respectively, the acquisition cost of which was borne primarily by New York State and (2) land, buildings, and equipmentfor which titles rest with government and corporate agencies aggregating $384 and $13,422 at June 30, 2012 and 2011respectively. The $13M reduction is due to the transfer of the operation of the federally-owned National Astronomy andIonosphere Center (NAIC) on September 30, 2011.The future commitments on capital projects in progress, excluding projects funded by New York State, for the fiscal yearsending June 30, 2012 and 2011, are $139,118 and $94,441, respectively.24
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands)5. OBLIGATIONS UNDER SPLIT-INTEREST AGREEMENTS AND FUNDS HELD IN TRUST BY OTHERSThe University reports its obligations under split-interest agreements at fair value. The fair value of the obligation is calculatedannually and considered Level 3 in the fair-value hierarchy. The discount rate is based on average return of investmentgrade corporate bonds, weighted using a schedule of actuarial estimates of the lives of the income beneficiaries andthe relative value of the agreements.The University’s interest in funds held in trust by others is considered Level 3, based on unobservable inputs, in the fair-valuehierarchy. Trusts in which the University has an income interest are valued annually using estimated cash flows based onaverage actual income over three years. Remainder interests are based on annual valuation reports received from the funds’trustees. The discount rates used to estimate present value are based on the average return of investment grade corporatebonds, weighted according to a schedule of actuarial estimates.The tables below summarize the fair values and activity of funds held in trust by others and obligations under split-interestagreements.SPLIT INTEREST AGREEMENTS AT FAIR VALUELevel 1fair valueLevel 2fair valueLevel 3fair valueFunds held in trust by othersRemainder $ - $ - $ 57,097 $ 57,097 $ 70,966Lead and perpetual - - 48,460 48,460 41,069Total funds held in trust by others $ - $ - $ 105,557 $ 105,557 $ 112,0352012Total2011TotalObligations under split interest agreements $ - $ - $ 115,063 $ 115,063 $ 114,077SUMMARY OF LEVEL 3 SPLIT INTEREST AGREEMENT ACTIVITYFair value atJune 30,2011Realizedgain/(loss)Unrealizedgain/(loss) Purchases SalesTransfersin/(out) ofLevel 3Fair value atJune 30,2012Funds held in trust by othersRemainder $ 70,966 $ 500 $ (14,369) $ - $ - $ - $ 57,097Lead and perpetual 41,069 7,525 (134) - - - 48,460Total funds held in trust by others $ 112,035 $ 8,025 $ (14,503) $ - $ - $ - $ 105,557Obligations under split interest agreements $ 114,077 $ - $ 986 $ - $ - $ - $ 115,0636. DEFERRED BENEFITSA. General InformationAccrued employee benefit obligations as of June 30 include:SUMMARY OF DEFERRED BENEFITS2012 2011Postemployment benefits $ 28,417 $ 24,027Pension and other postretirement benefits 235,359 231,854Other deferred benefits 179,863 175,683Total deferred benefits $ 443,639 $ 431,564Other deferred benefits include primarily vacation accruals, deferred compensation, and medical benefit claims incurredbut not yet reported. Accrued postemployment benefits include workers’ compensation and medical continuationbenefits for those on long-term disability. The University also provides various benefits to former or inactive employeesafter employment, but before retirement, that are recognized when they are earned.25
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CORNELL UNIVERSITY HIGHLIGHTS2011-1
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8Annual Report 2011-2012
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FROM TOP TO BOTTOM: Taio Cruz perfo
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Cornell Administration:FY12 Updates
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18Annual Report 2011-2012
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Page 34: nearly three years early, according
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