SAE Annual Report 2009 - 38

2009 Land Building and building improvements Furniture and equipment 685,913 $ 14,167,117 19,700,832 34,553,862 26,358,995 $ 8,194,867 Note 6 - Notes Payable

2008 $ 685,913 13,616,177 20,546,489 34,848,579 25,336,241 $ 9,512,338

SAE International

Notes to the Financial Statements
Notes to the Financial Statements (Continued) Note 4 - Pledges Receivable Pledges receivable consist of the following at December 31: 2009 Unrestricted pledges Temporarily restricted pledges Gross receivables Less: Unamortized discount Less: Allowance for doubtful accounts Net pledges receivable Amounts due in Less than one year One to five years $ 549,283 3,114,354 3,663,637 50,921 159,610 $3,453,106 $2,033,146 1,419,960 $3,453,106 2008 $ 353,750 4,643,986 4,997,736 71,519 160,489 $4,765,728 $2,043,666 2,722,062 $4,765,728

SAE INTERNATIONAL

Less: Accumulated depreciation

SAE entered into a term note with SunTrust Bank in March 2009. The loan bears interest at 3.6% and is to be repaid in 59 equal installments of $119,048 plus interest beginning in April 2009. A final payment of $2,976,168 plus unpaid and accrued interest is due in March 2014. SAE may prepay the loan at any time subject to prepayment penalty. The loan contains various financial covenants and is collateralized by marketable securities held in custody at SunTrust Bank, which are valued at approximately $17,000,000 at December 31, 2009. The future annual principal payments on long-term debt are approximately: Year Ending December 31 2010 2011 2012 2013 2014 Amount $ 1,429,000 1,429,000 1,429,000 1,429,000 3,213,000

Unconditional promises to give due in more than one year are reflected at the present value of estimated future cash flows using a discount rate of approximately 1.7% at December 31, 2009. Conditional pledges receivable consist of the following at December 31: 2009 Conditioned upon Matching funds SAE Annual review and approval INTERNATIONAL $ 52,050 50,000 2008 $ 353,050 50,000 $ 403,050

SAE INTERNATIONAL

$ 8,929,000

Costs associated with the debt financing, including interest expense of $261,929, are Notes to the Financial Statements (Continued) included in loan activities within nonoperating activities on the statement of activities. Note 7 - Employee Benefit Plans Page 22 SAE maintains a noncontributory defined benefit pension plan covering certain employees of SAE and PRI. SAE’s policy is to fund the pension costs as determined by actuarial valuation. SAE is then reimbursed by PRI for PRI’s portion of the net periodic pension expense. Effective January 1, 2008, SAE froze its defined benefit pension plan. Employees hired prior to January 1, 2008 will continue to earn benefits under the plan. Employees hired on or after January 1, 2008 will not be eligible to participate in the plan. Defined Benefit Pension Plan

Notes to the Financial Statements (Continued) $ 102,050 Note 5 - Property and Equipment Property and equipment consists of the following at December 31: 2009 Land Building and building improvements Furniture and equipment Page 21 Less: Accumulated depreciation 685,913 $ 14,167,117 19,700,832 34,553,862 26,358,995 $ 8,194,867 Note 6 - Notes Payable

2008 $ 685,913 13,616,177 20,546,489 34,848,579 25,336,241 $ 9,512,338

The following table sets forth the funded status and obligations of the plan at December 31: 2009 Projected benefit obligation Fair value of pension plan assets Funded status at end of year ($46,701,041) 33,980,623 ($12,720,418) 2008 ($45,452,084) 25,352,040 ($20,100,044)

The funded status of the plan was measured as of December 31. The following are the weighted-average assumptions used to determine benefit obligations at December 31: 2009 Discount rate 6% 2008 6%

38 SAE entered into a term note with SunTrust Bank in March 2009. The loan bears interest at 2009 Annual Report 3.6% and is to be repaid in 59 equal installments of $119,048 plus interest beginning in April 2009. A final payment of $2,976,168 plus unpaid and accrued interest is due in March 2014. SAE may prepay the loan at any time subject to prepayment penalty.
SAE Annual Report 2009

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