SAE Annual Report 2009 - 40

SAE International

Notes to the Financial Statements
Notes to the Financial Statements (Continued) Note 7 - Employee Benefit Plans (Continued) Group Tax Deferred Annuity Plan SAE has a group tax deferred annuity plan under Section 403(b) of the IRC which covers substantially all employees. SAE matches up to 100% of employees’ voluntary contributions up to 6% of their annual salary based on the individual employee’s years of service. SAE’s contribution to the plan was $644,000 for December 31, 2009 and $709,000 for December 31, 2008. Beneficiary Association SAE also has a 501(c)(9) beneficiary association which provides certain welfare plan benefits including benefits after retirement. Contributions are based on insurance premiums and estimated costs determined by the plan actuary. SAE’s contribution to the beneficiary association was $31,000 for December 31, 2009 and $32,000 for December 31, 2008. Supplemental Executive Retirement Plan SAE has a 457(b) supplemental executive retirement plan which allows members of the executive team to defer a percentage of compensation until retirement. SAE’s contributions to this plan approximated $20,000 during 2009. Note 8 - Net Assets Temporarily restricted net assets are available for the following purposes as of December 31: 2009 Program support funds Award funds Scholarship funds Total $ 6,342,626 2,241,914 709,495 $ 9,294,035 2008 $ 8,012,179 2,239,500 777,053 $11,028,732

SAE INTERNATIONAL

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 9 - Discontinued Operations During 2009, SAE closed the Automotive Resources Institute (ARi), a component of SAE. The decision to close the component was based on restructuring efforts during the year to address the economic downturn and ensure the ongoing sustainability of SAE. The results of ARi’s operations for 2009 and 2008 have been reflected as discontinued operations on the statement of activities. In addition, leasehold improvements related to ARi were disposed of at December 31, 2009. SAE recognized a loss on disposal of these assets of approximately $14,000, which is included in the loss from discontinued operations. Note 10 - Expenses Expenses by functional classifications were as follows: 2009 Program service General and administrative Fundraising Total expenses Note 11 - Operating Leases SAE leases off-site office space through noncancelable operating leases that expire at various dates through July 2017. Rental expenses aggregated approximately $742,000 for 2009 and $730,000 for 2008. Future minimum lease payments as of December 31, 2009 are approximately: Year Ending December 31 2010 2011 2012 2013 2014 Thereafter $ Amount 411,000 350,000 324,000 312,000 312,000 805,000 $36,620,131 9,963,579 268,822 $46,852,532 2008 $50,567,725 11,662,161 278,866 $62,508,752

Permanently restricted net assets are available for the following purposes as of December 31: 2009 Award funds Scholarship funds Engineering activity support Total Page 26 $ 1,012,804 391,832 104,118 $ 1,508,754 2008 $ 1,012,804 391,832 104,118 $ 1,508,754

$ 2,514,000 SAE also leases office space to tenants in its Thornhill Road property. At December 31, 2009, future minimum payments to be received under noncancelable operating leases aggregate $755,000 (approximately $66,000 in 2010 and $138,000 annually through December 2015). Page 27

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2009 Annual Report
SAE Annual Report 2009

Table of Contents for the Digital Edition of SAE Annual Report 2009
