SAE Annual Report 2009 - 36

SAE International

Notes to the Financial Statements
Notes to the Financial Statements (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) P. Recently Issued Accounting Standards (Continued)

SAE INTERNATIONAL

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 2 - Acquisition (Continued) The assets purchased include various intangible assets for which no value was assigned. Goodwill in the amount of $2,000,000 was recognized as a result of the acquisition. Additionally, CTEA contributed approximately $120,000 to SAE Foundation. In accordance with the acquisition agreement, this donation is restricted to the Trevor Jones Best Paper Award which is given at the bi-annual conference. The contribution is reflected in temporarily restricted contributions on the statement of activities. The Conference is a bi-annual event and 2009 was not an event year. Therefore, no revenues or expenses were recognized in the 2009 statement of activities as a result of the acquisition. Note 3 - Investments Investments consist of the following at December 31: Cost Money market funds Certificates of deposit Mortgage and asset backed securities Corporate bonds International bonds U.S. Government and agency bonds Common stocks Exchange traded and closed-end funds Total investments $ 585,352 29,000 7,815,632 323,545 1,623,448 8,711,402 16,103,155 $35,191,534 2009 Fair Value 585,352 29,000 8,475,669 439,775 1,395,129 9,754,713 21,287,050 $41,966,688 $ Cost 625,978 29,000 2,263,659 7,975,863 359,641 125,625 10,153,307 22,163,269 $43,696,342 2008 Fair Value 625,978 29,000 2,205,012 7,307,977 385,970 125,079 7,768,245 17,811,513 $36,258,774

SAE adopted an update to existing accounting standards during 2009 that amends the requirements for employers’ disclosures about plan assets for defined benefit pension and other postretirement plans. The objectives of this update are to provide users of financial statements an understanding of how investment allocation decisions are made, the major categories of assets held by the plans, the inputs and valuation techniques used to measure the fair value of plan assets, significant concentration of risk within the company’s plan assets and, for fair value measurements determined using significant unobservable inputs, a reconciliation of changes between the beginning and ending balances. In May 2009, the FASB issued a new accounting standard that provides guidance on accounting for a combination of not-for-profit entities, which is a transaction or other event that results in a not-for-profit entity initially recognizing another not-for-profit entity, a business, or a nonprofit activity in its financial statements. The standard is effective for SAE in 2010. Q. Consideration of Subsequent Events

The Financial Audit Committee of the Board of Directors evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through March 16, 2010, the day the financial statements were approved and authorized for issue. R. Reclassifications

Certain reclassifications were made to the 2008 financial statements to conform with the 2009 presentation. Note 2 - Acquisition On August 10, 2009, SAE purchased the assets of the bi-annual Convergence Conference (the Conference) from Convergence Transportation Electronics Association (CTEA). Accordingly, the results of operations for the Conference will be included in the accompanying financial statements from that date forward. The acquisition was made based on the belief that the Conference promotes dissemination of knowledge of mobility techniques for the purpose of advancement of the mobility field and its practitioners, which is a key component of SAE’s defined mission. Consideration for the acquisition was approximately $2,000,000 and consisted entirely of cash.

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2009 Annual Report

SAE Annual Report 2009

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