SAE Annual Report 2011 - 47

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 4 - Property and Equipment Property and equipment consists of the following at December 31: 2011 Land Building and building improvements Furniture and equipment Less: Accumulated depreciation $ 685,913 15,840,064 16,064,675 32,590,652 24,494,706 $ 8,095,946 Note 5 - Notes Payable SAE has a term note with SunTrust Bank. The loan bears interest at 3.6% and is to be repaid in 59 equal installments of $119,048 plus interest with a final balloon payment of $2,976,168 due at maturity in March 2014. SAE may prepay the loan at any time subject to a 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 $9,000,000 at December 31, 2011 and are included in investments on the statement of financial position. The future annual principal payments on long-term debt are approximately: Year Ending December 31 2012 2013 2014 Amount $ 1,429,000 1,429,000 3,213,000 $ 6,071,000 SAE entered into a line of credit with Morgan Stanley Smith Barney LLC (MSSB) in December 2011. Outstanding borrowings bear interest at LIBOR plus .90%. The line of credit is collateralized by certain investments held with the lender. The maximum borrowings cannot exceed the value of the eligible securities held in SAE’s MSSB accounts. There was no outstanding balance on the line of credit at December 31, 2011. Costs associated with the debt financing, including interest expense of $249,821 at December 31, 2011 and $301,964 at December 31, 2010, are included in loan activities within nonoperating activities on the statement of activities. Page 21 2010 $ 685,913 14,535,481 17,458,045 32,679,439 24,486,361 $ 8,193,078

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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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