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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands)D. Lines of CreditThe University records the working capital lines of credit activity and outstanding balances as other liabilities in the consolidatedstatement of financial position. The two $100 million lines of credit have annual expiration dates of December31 and April 1. As of June 30, 2012 and 2011, the University did not borrow against the lines of credit.9. OPERATING LEASESAlthough the University generally purchases, rather than leases, machinery and equipment, the University does enteroperating lease agreements for the use of real property. Total lease expenses were $27,218 and $26,249 for the fiscal yearsending June 30, 2012 and 2011, respectively. The future annual minimum lease payments in the following table are paymentsunder operating leases expiring at various dates through September 1, 2043.ANNUAL MINIMUM OPERATING LEASE PAYMENTSYearPayments2013 $ 26,9992014 24,7132015 22,5202016 18,9742017 18,366Thereafter 130,817Total minimum operating lease payments $ 242,38910. FUNCTIONAL EXPENSES AND STUDENT AIDTotal expenses by functional categories for the fiscal years ending June 30 are as follows:FUNCTIONAL EXPENSES2012 2011Instruction $ 661,762 $ 652,651Research 561,727 593,005Public service 115,328 109,479Academic support 275,293 261,856Student services 140,295 126,104Medical services 761,708 649,746Institutional support 388,021 371,733Enterprises and subsidiaries 211,060 210,119Total expenses $ 3,115,194 $ 2,974,693The expenses for operations and maintenance of facilities, depreciation, and interest related to capital projects are allocatedto functional categories based on square footage. The amounts allocated for operations and maintenance were approximately$231,157 and $216,291 for the fiscal years ending June 30, 2012 and 2011, respectively.Student financial assistance is shown as a component of instruction expense unless the assistance is for tuition andmandatory fees. If the assistance is for tuition and mandatory fees, the amounts are recorded as scholarship allowance whichreduces tuition revenue. Total financial assistance amounts classified as instruction expense were $42,699 and $41,851 forthe fiscal years ending June 30, 2012 and 2011, respectively.34