Financial Statements
Statement of Activity and Cash Flows *
| In millions | |||
|---|---|---|---|
| For the year ended June 30, | 2006 | 2005 | 2004 |
| Revenues | |||
| MBA Tuition and Fees | $73 | $68 | $65 |
| Executive Education Tuition | 81 | 76 | 71 |
| Publishing | 119 | 106 | 98 |
| Endowment Distribution | 71 | 62 | 56 |
| Unrestricted Current-Use Gifts | 12 | 8 | 8 |
| Housing, Rents, and Other | 9 | 9 | 8 |
| Interest Income | 3 | 2 | 3 |
| Total Revenues | $368 | $331 | $309 |
| Expenses | |||
| Salaries and Benefits | $167 | $153 | $139 |
| Publishing and Printing | 42 | 35 | 35 |
| Space and Occupancy | 38 | 35 | 31 |
| Supplies and Equipment | 15 | 15 | 24 |
| Professional Services | 22 | 16 | 14 |
| Fellowships | 19 | 17 | 15 |
| University Assessments | 10 | 10 | 10 |
| Debt Service | 4 | 4 | 4 |
| Other Expense | 28 | 22 | 22 |
| Total Expenses | $345 | $307 | $294 |
Cash From Operations |
$23 |
$24 |
$15 |
| Use of Endowment Gifts or Appreciation | 14 | 13 | 13 |
| Cash Before Capital Activities | $37 | $37 | $28 |
Capital Expenses |
$(49) |
$(79) |
$(54) |
| Use of Gifts for Capital Projects | 12 | 49 | 28 |
| Net Capital Expenses | $(37) | $(30) | $(26) |
New Borrowings |
$38 |
$7 |
$7 |
| Debt Principal Payments | (4) | (3) | (8) |
| Other Activity | (26) | (15) | (1) |
| Net Debt and Other | $8 | $(11) | $(2) |
| Change in Unrestricted Reserves | $8 | $(4) | $0 |
| Beginning Balance, Unrestricted Reserves | $52 | $56 | $56 |
| Ending Balance, Unrestricted Reserves | $60 | $52 | $56 |
* This statement presents a managerial view of Harvard Business School operations focused primarily on cash available for use. It is not intended to present the financial results in accordance with generally accepted accounting principles (GAAP). A presentation in accordance with GAAP would report higher operating revenues for gifts and endowment distribution and would include depreciation expense, yielding income from operations of $12 million in fiscal 2006. Cash flows, however, would be equivalent under GAAP.
Consolidated Balance Sheet
| In millions | |||
|---|---|---|---|
| For the fiscal year ended June 30, | 2006 | 2005 | 2004 |
| Assets | |||
| Cash | $25 | $21 | $14 |
| Unrestricted Reserves | 60 | 52 | 56 |
| Receivables, Loans, and Other Assets | 178 | 165 | 195 |
| Invested Funds: | |||
| Endowment Investments | 2,190 | 1,924 | 1,603 |
| Current Fund Investments | 18 | 17 | 43 |
| Interest in Trust Held by Others | 132 | 124 | 120 |
| Facilities, Net of Accumulated Depreciation | 415 | 390 | 336 |
| Total Assets | $3,018 | $2,693 | $2,367 |
| Liabilities | |||
| Deposits, Advances, and Other | $39 | $30 | $30 |
| Deferred Revenue | 36 | 34 | 32 |
| Other Debt Owed to University | 25 | - | - |
| Building Debt | 108 | 74 | 70 |
| Total Liabilities | $208 | $138 | $132 |
| Composition of Net Assets | |||
| Unrestricted Reserves | $60 | $52 | $56 |
| Undistributed Income and Other | 36 | 28 | 14 |
| Pledge Balances | 56 | 83 | 122 |
| Student Loan Funds | 11 | 11 | 11 |
| Investment in Facilities | 307 | 316 | 266 |
| Endowment and Other Invested Funds | 2,340 | 2,065 | 1,766 |
| Total Assets Net of Liabilities | $2,810 | $2,555 | $2,235 |