SAE Annual Report 2009 - 41

PRI (Continued) SAE has a consulting and office space agreement with PRI for the services of a consultant to contribute to the successful fulfillment of SAE carrying out standards development and marketing activities with customers in Europe. The agreement extends through November 30, 2011. Costs associated with this agreement approximated $382,972 for the year ended December 31, 2009 and $356,000 for theINTERNATIONAL SAE year ended December 31, 2008.

SAE International

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 12 - In-kind Contributions In-kind contributions consist of donated services and expertise related to developing, reviewing, revising, and updating technical standards for the ground vehicle and aerospace industries. The value of these services was approximately $4,083,000 at December 31, 2009 and $4,287,000 at December 31, 2008. In addition, a substantial number of SAE members have made significant contributions of their time to the Foundation’s various programs. The value of this contributed time is not reflected in the accompanying financial statements since it does not meet the criteria for recognition under accounting principles generally accepted in the United States of America. Note 13 - Self Insurance SAE self-insures the medical and prescription drug benefits provided to all of its current and retired employees and their families. This plan is administered by a third party that processes, adjudicates and pays claims on behalf of SAE. SAE maintains stop-loss coverage based on a $110,000 deductible per participant and an annual aggregate deductible of approximately $2,600,000 to limit its liability for large specific and aggregate losses. SAE has recorded a liability for estimated future costs of incurred claims of approximately $205,000 at December 31, 2009 and $460,000 at December 31, 2008. The liability is included in accrued expenses in the statements of financial position. SAE accrues for its self-insured unemployment compensation based on actual claims outstanding at year end. At December 31, 2009, SAE had accrued approximately $740,000 in claims related to a reduction in workforce. SAE recognized unemployment compensation expense of approximately $1,162,000 in 2009. At December 31, 2008, SAE had accrued approximately $200,000 in claims and incurred claims of approximately $268,000. Note 14 - Related Party Transactions PRI PRI leases office space from SAE INTERNATIONAL SAE currently on a month-to-month basis. Annual rental income received from PRI approximated $185,000 for the years ended December 31, 2009 and 2008. Notes to the Financial Statements (Continued) Employees of PRI are eligible to participate in the defined benefit pension plan sponsored by SAE. In - Related Party Transactions (Continued) Note 14 return, PRI reimburses SAE for pension costs associated with its employees. Pension expense reimbursed to SAE approximated $624,000 for the year ended December 31, 2009 and $232,000 for the PRI (Continued) year ended December 31, 2008. SAE has a consulting and office space agreement with PRI for the services of a consultant to contribute to the successful fulfillment of SAE carrying out standards development and marketing activities with customers in Europe. The agreement extends through November 30, Page 28 2011. Costs associated with this agreement approximated $382,972 for the year ended December 31, 2009 and $356,000 for the year ended December 31, 2008. SAE also maintains a contracted services agreement with PRI whereby SAE provides PRI with basic administrative services such as information technology and financial services for a set fee. Annual revenue recognized by SAE related to this contract approximated $148,000 for the years ended December 31, 2009 and 2008. SAE Institute SAE had receivables due from SAE Institute of approximately $476,205 at December 31, 2009 and $428,000 at December 31, 2008. On December 20, 2007, SAE entered into a five-year line-of-credit (LOC) agreement with

SAE also maintains Notes to the Financial Statements (Continued) a contracted services agreement with PRI whereby SAE provides PRI with basic administrative services such as information technology and financial services for a set fee. Annual revenue recognized by SAE related to this contract approximated $148,000 for the years ended December 31, 2009 and (Continued) Note 14 - Related Party Transactions2008. SAE Institute PRI (Continued) SAE has a consulting due from SAE Institute of approximately $476,205 atof a consultant had receivables and office space agreement with PRI for the services December 31, 2009 and $428,000 December fulfillment to contribute to theatsuccessful 31, 2008. of SAE carrying out standards development and marketing activities with customers in Europe. The agreement extends through November 30, On December 20, with this agreement a five-year line-of-credit for agreement with 2011. Costs associated2007, SAE entered into approximated $382,972 (LOC) the year ended SAE Institute, 2009 and $356,000 for the year ended December 31, not to December 31, whereby SAE Institute may borrow a principal amount 2008. exceed $1,000,000. In 2009, SAE forgave the outstanding principal and accrued interest of approximately $967,000. The balance due from SAE Institute services agreement with PRI DecemberSAE provides The SAE also maintains a contracted approximated $858,000 at whereby 31, 2008. PRI receivable administrative services such as information technology and financial services accrued with basic was included in the accompanying statements of financial position as part of for a set interest and revenue recognized by SAE fee. Annual other receivables in 2008. related to this contract approximated $148,000 for the years ended December 31, 2009 and 2008. During 2008, SAE decided to transfer the operation of the International Aerospace Quality Group (IAQG), SAE Institute the basis of which is development, management and maintenance of the Online Aerospace Supplier Information System (OASIS) database, to SAE Institute. However, at December had receivables due from SAE Institute of approximately $476,205the December 31, SAE 31, 2008, SAE still had in its possession cash associated with at project in the amount of $920,502 December 31, a liability to SAE Institute in an equal amount has been 2009 and $428,000 atand, as such, 2008. recorded and is included in accrued expenses at December 31, 2008. The transfer of the operations was completed in 2009. entered into a five-year line-of-credit (LOC) agreement with On December 20, 2007, SAE SAE INTERNATIONAL SAE Institute, whereby SAE Institute may borrow a principal amount not to exceed $1,000,000. SAE Foundation Canada outstanding principal In 2009, SAE forgave theNotes to the Financial and accrued(Continued) approximately $967,000. Statements interest of The balance due from SAE Institute approximated $858,000 at December 31, 2008. The SAE had included in the from SAE Foundation Canada of approximately part of accrued receivable was receivables due accompanying statements of financial position as$428,000 as of December 31, 2008. The balance was paid in full interest andRelated Party Transactions (Continued) in 2009. Note 14 - other receivables in 2008. During SAE Sections2008, SAE decided to transfer the operation of the International Aerospace Quality Group (IAQG), the basis of which is development, management and maintenance of the Online Aerospace Supplier Information by SAE members is accrued by SAE for reimbursement to the A portion of the dues paid System (OASIS) database, to SAE Institute. However, at December 31, 2008, to each section’s submission of its cash associated with the project in the SAE Sections subject SAE still had in its possession required documentation. amount of $920,502 and, as such, a liability to SAE Institute in an equal amount has been recorded2009, is included inreviewed the liability at December SAE’s2008. The transfer of the Page reflected on 31, balance sheet for amounts In and management accrued expenses 29 operations was completed in 2009. accrued for reimbursement to SAE Sections. Through its review, management determined that certain sections had not submitted the required documentation and, as such, were not eligible to SAE Foundation Canada receive the designated dues. Therefore, the dues are considered forfeited and SAE adjusted the related liability to reflect the actual amount that may be paid to SAE Sections. This adjustment SAE a gain of approximately $464,000, which reflected approximately activities as of resulted in had receivables due from SAE FoundationisCanada of in nonoperating $428,000on the December 31, 2008. The balance was paid in full in 2009. statement of activities.

Notes to the Financial Statements

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2009 Annual Report

41



SAE Annual Report 2009

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

SAE Annual Report 2009
Defining our Future
Strong
Changing for the Future
Responding to Industry Needs
Technology
Technically Relevant
Knowledge
Inspiration
Diverse
You
SAE International Financials
The Financial Message
Independent Auditors’ Report
Statements of Financial Position
Statement of Activities and Changes in Net Assets
Statements of Cash Flows
Notes to the Financial Statements
SAE International Supplemental Information
Statement of Activities and Changes in Net Assets
Board of Directors
Executive Management Council
Affiliates and Sections
SAE International Business Partners
SAE Annual Report 2009 - SAE Annual Report 2009
SAE Annual Report 2009 - Defining our Future
SAE Annual Report 2009 - 2
SAE Annual Report 2009 - 3
SAE Annual Report 2009 - Strong
SAE Annual Report 2009 - Changing for the Future
SAE Annual Report 2009 - Responding to Industry Needs
SAE Annual Report 2009 - 7
SAE Annual Report 2009 - 8
SAE Annual Report 2009 - Technology
SAE Annual Report 2009 - 10
SAE Annual Report 2009 - Technically Relevant
SAE Annual Report 2009 - 12
SAE Annual Report 2009 - 13
SAE Annual Report 2009 - Knowledge
SAE Annual Report 2009 - 15
SAE Annual Report 2009 - 16
SAE Annual Report 2009 - Inspiration
SAE Annual Report 2009 - 18
SAE Annual Report 2009 - 19
SAE Annual Report 2009 - Diverse
SAE Annual Report 2009 - 21
SAE Annual Report 2009 - You
SAE Annual Report 2009 - 23
SAE Annual Report 2009 - SAE International Financials
SAE Annual Report 2009 - The Financial Message
SAE Annual Report 2009 - 27
SAE Annual Report 2009 - Independent Auditors’ Report
SAE Annual Report 2009 - Statements of Financial Position
SAE Annual Report 2009 - Statement of Activities and Changes in Net Assets
SAE Annual Report 2009 - 31
SAE Annual Report 2009 - Statements of Cash Flows
SAE Annual Report 2009 - Notes to the Financial Statements
SAE Annual Report 2009 - 34
SAE Annual Report 2009 - 35
SAE Annual Report 2009 - 36
SAE Annual Report 2009 - 37
SAE Annual Report 2009 - 38
SAE Annual Report 2009 - 39
SAE Annual Report 2009 - 40
SAE Annual Report 2009 - 41
SAE Annual Report 2009 - SAE International Supplemental Information
SAE Annual Report 2009 - Statement of Activities and Changes in Net Assets
SAE Annual Report 2009 - Board of Directors
SAE Annual Report 2009 - 45
SAE Annual Report 2009 - Executive Management Council
SAE Annual Report 2009 - Affiliates and Sections
SAE Annual Report 2009 - SAE International Business Partners
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