SAE Annual Report 2011 - 39

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) G. Investments

Investments are presented at fair value as measured by quoted market prices. Those investments received as gifts or donations are recorded at their fair value on the date received. Investment activity includes unrealized and realized gains and losses on investments (net appreciation/depreciation), interest and dividends. The Finance Committee of the Board of Directors of SAE has documented an Investment Policy. Under the policy, the investments are held in three separate pools. The liquidity investment pool is held in short-term investments with the primary goal of safety of principal and liquidity and is primarily utilized to meet the operating cash needs of SAE. The general investment pool is held for longer term objectives of SAE and, accordingly, the investments are managed to optimize return over a ten-year period. The funds in this pool are held for general purposes such as financial support for new projects, additions and replacement of property and equipment, and any other expected or unexpected events that require financial support. The Foundation investment pool is held to provide resources needed to help support SAE programs, and its objective is to provide modest growth of the fund after spending and inflation. Investment vehicles used to achieve the investment goals over time are:   Liquidity pool - cash and cash equivalents (100%). General and Foundation pools - equities and fixed income. The strategic allocation is 60% equities, 30% fixed income, and 10% alternative investments.

SAE’s investments are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with these investments and the level of uncertainty related to changes in the value of these investments, it is at least reasonably possible that changes in the near term could materially affect the amounts reported in the financial statements. SAE records returns on its liquidity investment fund in operating activities. These returns are included in the accompanying statements of activities as part of other products and services. All other investment activity is reflected as a component of nonoperating activities. H. Inventories

Inventories and supplies are stated at the lower of cost (determined on the first-in, firstout or average cost method) or market.

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SAE Annual Report 2011

Table of Contents for the Digital Edition of SAE Annual Report 2011

SAE Annual Report 2011
Contents
Executive Message
Sectors – Aerospace, Automotive and Commercial Vehicle
Membership
Aerospace Standards
Ground Vehicle Standards
Publishing
Magazines and Books
Engineering Events and Meetings
Pre-professional Education
SAE Foundation
Professional Development
Performance Review Institute
Financial Information
Board of Directors
Affiliates and Sections
International Business Partners
SAE Annual Report 2011 - SAE Annual Report 2011
SAE Annual Report 2011 - Cover2
SAE Annual Report 2011 - Contents
SAE Annual Report 2011 - Executive Message
SAE Annual Report 2011 - 3
SAE Annual Report 2011 - Sectors – Aerospace, Automotive and Commercial Vehicle
SAE Annual Report 2011 - 5
SAE Annual Report 2011 - 6
SAE Annual Report 2011 - 7
SAE Annual Report 2011 - Membership
SAE Annual Report 2011 - 9
SAE Annual Report 2011 - Aerospace Standards
SAE Annual Report 2011 - Ground Vehicle Standards
SAE Annual Report 2011 - Publishing
SAE Annual Report 2011 - Magazines and Books
SAE Annual Report 2011 - 14
SAE Annual Report 2011 - Engineering Events and Meetings
SAE Annual Report 2011 - Pre-professional Education
SAE Annual Report 2011 - SAE Foundation
SAE Annual Report 2011 - 18
SAE Annual Report 2011 - Professional Development
SAE Annual Report 2011 - Performance Review Institute
SAE Annual Report 2011 - Financial Information
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SAE Annual Report 2011 - Board of Directors
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SAE Annual Report 2011 - Affiliates and Sections
SAE Annual Report 2011 - International Business Partners
SAE Annual Report 2011 - Cover4
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