Annual Report 2011

Statement of Activity & Cash Flows

In millions
for the fiscal year (FY) ended JUNE 30,
20112010 2009
Revenues
MBA Tuition & Fees $ 96 $ 92 $ 84
Executive Education Tuition 132 113 107
Publishing 152 135 137
Endowment Distribution 100 101 113
Unrestricted Current Use Gifts 17 13 12
Housing, Rents, & Other 11 11 13
Interest Income 1 2 6
TOTAL REVENUES $ 509 $ 467 $ 472
Expenses
Salaries & Benefits $ 219 $ 203 $ 212
Publishing & Printing 55 51 52
Space & Occupancy 44 41 42
Supplies & Equipment 10 9 12
Professional Services 31 22 31
Fellowships 36 35 33
University Assessments 15 15 13
Debt Service 7 7 6
Other Expenses 39 32 37
TOTAL EXPENSES $ 456 $ 415 $ 438
Cash from Operations $ 53 $ 52 $ 34
Use of Endowment Gifts or Appreciation 18 13 11
Cash Before Capital Activities $ 71 $ 65 $ 45
Capital Expenses $ (34) $ (14) $ (19)
Use of Gifts for Capital Projects 3 3 0
Net Capital Expenses $ (31) $ (11) $ (19)
New Borrowings $ 0 $ 0 $ 3
Debt Principal Payments (9) (7) (5)
Other Activity (51) (44) (7)
Net Debt & Other $ (60) $ (51) $ (9)
Change in Unrestricted Reserves $ (20) $ 3 $ 17
Beginning Balance, Unrestricted Reserves $ 99 $ 96 $ 79
Ending Balance, Unrestricted Reserves $ 79 $ 99 $ 96
* 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 $49 million in fiscal 2011. Cash flows, however, would be equivalent under GAAP.