Annual Report 2010

Statement of Activity & Cash Flows

In millions
for the fiscal year (FY) ended JUNE 30,
2010 2009 2008
Revenues
MBA Tuition & Fees $ 92 $ 84 $ 82
Executive Education Tuition 113 107 106
Publishing 135 137 139
Endowment Distribution 101 113 94
Unrestricted Current Use Gifts 13 12 14
Housing, Rents, & Other 11 13 9
Interest Income 2 6 7
TOTAL REVENUES $ 467 $ 472 $ 451
Expenses
Salaries & Benefits $ 203 $ 212 $ 206
Publishing & Printing 51 52 53
Space & Occupancy 41 42 42
Supplies & Equipment 9 12 11
Professional Services 22 31 29
Fellowships 35 33 26
University Assessments 15 13 12
Debt Service 7 6 7
Other Expenses 32 3737
TOTAL EXPENSES $ 415 $ 438 $ 423
Cash from Operations $ 52 $ 34 $ 28
Use of Endowment Gifts or Appreciation 13 11 41
Cash Before Capital Activities $ 65 $ 45 $ 69
Capital Expenses $ (14) $ (19) $ (40)
Use of Gifts for Capital Projects 3 0 5
Net Capital Expenses $ (11) $ (19) $ (35)
New Borrowings $ 0 $ 3 $ 22
Debt Principal Payments (7) (5) (9)
Other Activity (44) (7) (33)
Net Debt & Other $ (51) $ (9) $ (20)
Change in Unrestricted Reserves $ 3 $ 17 $ 14
Beginning Balance, Unrestricted Reserves $ 96 $ 79 $ 65
Ending Balance, Unrestricted Reserves $ 99 $ 96 $ 79
* The Statement of Activity & Cash Flows 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 $46 million in fiscal 2010. Cash flows, however, would be equivalent under GAAP.