national public radio, inc. consolidated … · 2013-12-19 · (parent company only) 33 statement...

NATIONAL PUBLIC RADIO, INC.

CONSOLIDATED FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

YEAR ENDED SEPTEMBER 30, 2013

(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012)


TABLE OF CONTENTS

INDEPENDENT AUDITORS' REPORT 1

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 3

CONSOLIDATED STATEMENT OF ACTIVITIES 4

CONSOLIDATED STATEMENT OF CASH FLOWS 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6

SUPPLEMENTARY INFORMATION

INDEPENDENT AUDITORS’ REPORT ON SUPPLEMENTARY INFORMATION 31

STATEMENT OF FINANCIAL POSITION – NATIONAL PUBLIC RADIO, INC.

(PARENT COMPANY ONLY) 32

STATEMENT OF ACTIVITIES – NATIONAL PUBLIC RADIO, INC.


STATEMENT OF CASH FLOWS – NATIONAL PUBLIC RADIO, INC.


[1]

CliftonLarsonAllen LLP

CLAconnect.com

An independent member of Nexia International

INDEPENDENT AUDITORS’ REPORT Board of Directors National Public Radio, Inc. Washington, DC Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of National Public Radio, Inc., which comprise the consolidated statement of financial position as of as of September 30, 2013 and the related consolidated statements of activities and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of National Public Radio, Inc. as of September 30, 2013, and the consolidated change in their net assets and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Board of Directors National Public Radio, Inc.

[2]

Report on Summarized Comparative Information

We have previously audited National Public Radio, Inc.’s 2012 consolidated financial statements, and our report dated December 20, 2012, expressed an unmodified opinion on those consolidated financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2012, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

CliftonLarsonAllen LLP Arlington, Virginia December 19, 2013


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

SEPTEMBER 30, 2013

(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012)

2013 2012

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 18,340,637$ 29,072,457$

Restricted Cash and Investments 3,641,848 9,876,497

Investments 23,511,501 60,197,674

Receivables, Net 31,517,578 36,642,408

Prepaid and Other Assets 4,273,110 3,975,537

Total Current Assets 81,284,674 139,764,573

PROPERTY AND EQUIPMENT, NET 236,885,563 206,639,118

NON-CURRENT ASSETS

Investments 372,812,443 346,793,701

Receivables, Net 4,427,892 3,795,533

Prepaid and Other Assets 313,137 287,582

Deferred Financing Costs, Net 3,244,513 3,185,398

Intangible Assets, Net 1,822,832 1,944,864

Total Non-current Assets 382,620,817 356,007,078

Total Assets 700,791,054$ 702,410,769$

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts Payable and Accrued Expenses 24,392,422$ 33,963,249$

Note Payable 250,000 1,000,000

Accrued Interest Payable 3,482,752 3,995,923

Deferred Revenues 31,489,344 27,433,405

Total Current Liabilities 59,614,518 66,392,577

NON-CURRENT LIABILITIES

Accrued Expenses and Other Liabilities 1,114,093 5,017,866

Note Payable 713,175 1,012,671

Bonds Payable 171,750,549 165,751,323

Total Non-current Liabilities 173,577,817 171,781,860

Total Liabilities 233,192,335 238,174,437

NONCONTROLLING INTEREST 1,421,860 1,434,646

NET ASSETS

Unrestricted 178,346,575 192,804,698

Temporarily Restricted 90,712,663 74,389,574

Permanently Restricted 197,117,621 195,607,414

Total Net Assets 466,176,859 462,801,686

Total Liabilities and Net Assets 700,791,054$ 702,410,769$

See accompanying Notes to Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF ACTIVITIES



2013 2012

Temporarily Permanently

Unrestricted Restricted Restricted Total Total

REVENUES

Membership Dues 3,204,000$ -$ -$ 3,204,000$ 3,187,425$

Station Programming Fees 69,791,713 - - 69,791,713 68,637,139

Corporate Sponsorships 43,991,377 - - 43,991,377 45,671,379

Grants and Contributions 14,579,500 16,709,873 - 31,289,373 23,884,452

Endowment Distribution for Operations, Net 11,135,076 - - 11,135,076 9,430,826

Return on Long-term Investments Designated for

Current Operations 4,018,845 - - 4,018,845 5,970,308

Return on Working Capital Investments 31,121 - - 31,121 76,041

Commissions 4,797,731 - - 4,797,731 5,738,826

Distribution Services 14,348,595 - - 14,348,595 16,231,658

Digital Services 4,471,142 - - 4,471,142 1,691,097

Other Revenues 8,758,572 307,398 - 9,065,970 7,461,823

Donated Goods and Services 1,042,136 - - 1,042,136 2,385,055

Net Assets Released from Restriction 13,842,084 (13,842,084) - - -

Total Revenues 194,011,892 3,175,187 - 197,187,079 190,366,029

EXPENSES

Program Services:

News and Information 77,675,147 - - 77,675,147 75,066,288

Digital Media 10,882,779 - - 10,882,779 10,105,500

Content Strategy and Operations 7,988,858 - - 7,988,858 7,005,129

NPR Music 3,420,432 - - 3,420,432 3,188,355

Distribution and Satellite Interconnection 16,823,751 - - 16,823,751 17,735,582

Programming 17,259,907 - - 17,259,907 15,256,296

Engineering 7,334,161 - - 7,334,161 7,618,193

Digital Services 6,818,324 - - 6,818,324 5,866,823

Member Partnership 2,962,198 - - 2,962,198 2,358,791

Consumer Products 1,196,805 - - 1,196,805 1,119,829

Total Program Services 152,362,362 - - 152,362,362 145,320,786

Support Services 48,869,108 - - 48,869,108 47,183,156

Total Expenses 201,231,470 - - 201,231,470 192,503,942

CHANGE IN NET ASSETS FROM OPERATIONS (7,219,578) 3,175,187 - (4,044,391) (2,137,913)

Return on Long-term Investments, Net 19,174,618 18,403,991 10,207 37,588,816 35,446,004


Current Operations (4,018,845) - - (4,018,845) (5,970,308)

Interest Expense, Net (3,499,502) - - (3,499,502) (83,487)

Endowment Distribution for Operations, Net (11,135,076) - - (11,135,076) (9,430,826)

Amortization of Intangible Assets (122,032) - - (122,032) (464,572)

Gain on Sale of Intangible Assets - - - - 718,044

New HQ Building Fundraising Expenses (256,042) - - (256,042) (577,939)

New HQ Building Fundraising Revenues 201,055 573,312 - 774,367 7,713,223

HQ Gifts Released from Restriction 4,329,401 (4,329,401) - - -

One-time New HQ Expenses (1,378,740) - - (1,378,740) (126,282)

Reorganization Costs - - - - 26,579

Loss on Early Termination of Lease (483,922) - - (483,922) -

Loss on Disposal of Property and Equipment (424,695) - - (424,695) -

Loss on Extinguishment of Debt (9,637,551) - - (9,637,551) - - - - -

CHANGE IN NET ASSETS BEFORE

NONCONTROLLING INTEREST (14,470,909) 17,823,089 10,207 3,362,387 25,112,523

Noncontrolling Interest 12,786 - - 12,786 (184,806)

CHANGE IN NET ASSETS (14,458,123) 17,823,089 10,207 3,375,173 24,927,717

Net Asset Reclassification

Due to Donor Re-designation - (1,500,000) 1,500,000 - -

CHANGE IN NET ASSETS AFTER

RECLASSIFICATION (14,458,123) 16,323,089 1,510,207 3,375,173 24,927,717

Net Assets - Beginning of Year 192,804,698 74,389,574 195,607,414 462,801,686 437,873,969

NET ASSETS - END OF YEAR 178,346,575$ 90,712,663$ 197,117,621$ 466,176,859$ 462,801,686$

See accompanying Notes to Consolidated Financial Statements. [4]


CONSOLIDATED STATEMENT OF CASH FLOWS



2013 2012CASH FLOWS FROM OPERATING ACTIVITIES

Change in Net Assets $ 3,375,173 $ 24,927,717 Adjustments to Reconcile Change in Net Assets to Net Cash Flows

(Used in) Provided by Operating Activities:

Unrealized/Realized Gain on Investments (35,737,409) (33,218,439)Amortization of Deferred Financing Costs 106,407 104,439 Amortization of Intangible Assets 122,032 464,572 Amortization of Note Discount (49,496) 41,556 Amortization of Bond Premium (41,157) (33,668)Depreciation of Property and Equipment 8,323,056 6,450,908 Proceeds from Sale of Intangible Assets - 1,208,478 Gain on Sale of Intangible Assets - (718,044)Decrease (Increase) in Receivables 4,492,471 (4,838,261)(Increase) Decrease in Prepaid and Other Assets (323,128) 525,620 Increase in Deferred Financing Costs (1,762,690) - (Decrease) Increase in Accounts Payable and Accrued Expenses

and Other Liabilities (13,474,600) 10,518,173 Decrease in Accrued Interest Payable (513,171) (8)Increase (Decrease) in Deferred Revenues 4,055,939 (257,121)(Decrease) Increase in Noncontrolling Interest (12,786) 44,808 Loss on Disposal of Property and Equipment 424,695 - Loss on Extinguishment of Debt 9,637,551 - Investment Return Restricted for Endowment Purposes (10,207) (13,343)

Net Cash Flows (Used in) Provided by Operating Activities (21,387,320) 5,207,387

CASH FLOWS FROM INVESTING ACTIVITIES

Investments:

Purchases (85,101,070) (83,992,043)Sales and Maturities 137,740,559 183,883,144

Property and Equipment:

New Headquarters Building Purchases (35,749,691) (81,960,076)

Other Purchases (3,244,505) (11,534,734)Net Cash Flows Provided by Investing Activities 13,645,293 6,396,291

CASH FLOWS FROM FINANCING ACTIVITIES

Draw on Line of Credit 7,000,000 - Repayment of Line of Credit (7,000,000) - Repayment of Note (1,000,000) - Extinguishment of Debt (2,000,000) -

Investment Return Restricted for Endowment Purposes 10,207 13,343

Net Cash Flows (Used In) Provided by Financing Activities (2,989,793) 13,343

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (10,731,820) 11,617,021

Cash and Cash Equivalents - Beginning of Year 29,072,457 17,455,436

CASH AND CASH EQUIVALENTS - END OF YEAR $ 18,340,637 $ 29,072,457

SUPPLEMENTAL DISCLOSURES

Donated Securities $ 7,906,184 $ 1,619,454

Cash Payments for Interest $ 8,005,316 $ 8,011,844

Cash Payments for Income Taxes $ 56,840 $ 43,535

See accompanying Notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

[6]

NOTE 1 ORGANIZATION

National Public Radio, Inc. (NPR, Inc.) is a Section 501(c)(3) not-for-profit corporation whose purposes are to produce, acquire, and distribute non-commercial educational programming substantially via the nation's public broadcasting stations and by other means as appropriate, represent its member public radio stations in matters of national interest, and assist and support these stations pursuant to the Public Broadcasting Act of 1967. Operating funds are provided in large part by dues and programming fees from member stations. NPR, Inc. has a supporting foundation, NPR Foundation (the Foundation), which is a Section 501(c)(3) not-for-profit organization founded in 1992 with the purpose of raising charitable contributions for the benefit of NPR, Inc., disbursing funds only to NPR, Inc. for the operation, promotion, development, capital expansion, and other valid purposes of NPR, Inc., and conducting fundraising efforts and engaging in related activities for the benefit of NPR, Inc. NPR, Inc. is the sole member of the Foundation. In April 2006, NPR, Inc. formed NPR Media Berlin gGmbH (NPR Media Berlin) to broadcast non-commercial educational radio programming, including news, talk and cultural programming in Berlin, Germany. The programming consists primarily of the English-language programming produced by NPR, Inc. The Media Authority of Berlin Brandenburg (MABB) issued NPR Media Berlin an FM radio station license for the period April 1, 2006 through March 31, 2013. In September 2012, the MABB decided to extend NPR Media Berlin’s license for an additional seven years, through March 31, 2020. NPR, Inc. is the sole shareholder of NPR Media Berlin. NPR Media Berlin’s activities are included in the accompanying consolidated financial statements. In October 2007, NPR, Inc., along with another public broadcasting entity, formed National Public Media, LLC (NPM) for the purpose of securing public broadcasting sponsorship for public radio and television entities. Upon NPM’s formation, NPR, Inc. held an 80% ownership interest. In October 2007, NPM acquired the assets and liabilities of National Public Broadcasting (NPB), retaining the former NPB staff and hiring the staff from NPR, Inc.’s Corporate Sponsorship division to form the new organization. As a result of the admission of an additional owner in 2009, NPR, Inc.’s ownership interest was reduced to 72%. In November 2007, NPR, Inc. entered into an agreement with seven partners to form Broadcaster Traffic Consortium, LLC (BTC). BTC was formed for the purpose of creating and operating a radio broadcast data system and high definition radio distribution network for content providers. Upon BTC’s formation, each partner held a 12.5% ownership interest. NPR, Inc. made an initial capital contribution in January 2008. No additional capital contributions have been made.



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NOTE 1 ORGANIZATION (CONTINUED)

In August 2008, NPR, Inc. acquired the assets and selected liabilities of Public Interactive (PI), a Section 501(c)(3) not-for-profit organization, as well as the operations and personnel for the purpose of developing a digital distribution infrastructure to serve stations, producers, networks, and their partners in the communities NPR, Inc. serves. PI is now an operating unit of NPR, Inc. and its revenues and expenses are reflected as “Digital Services” in the consolidated statement of activities.

The accompanying consolidated financial statements include the accounts of NPR, Inc., the

Foundation, NPM, and NPR Media Berlin. Consolidated financial statements are presented because of the common control of NPR, Inc., the Foundation, NPM, and NPR Media Berlin, hereinafter collectively referred to as “NPR.” The Parent Company Only financial statements presented in the supplementary information include solely the accounts of NPR, Inc.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

The accompanying consolidated financial statements are presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (US GAAP) and do not include the member radio stations because NPR does not own or control these entities. The consolidated financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with US GAAP. Accordingly, such information should be read in conjunction with the audited consolidated financial statements for the year ended September 30, 2012, from which the summarized information was derived. B. Classification of Net Assets

Net assets are reported separately by class as follows:

Unrestricted Net Assets – Net assets not limited by donor-imposed restrictions.

Temporarily Restricted Net Assets – Net assets limited by donor-imposed stipulations that will expire by the passage of time or actions of NPR.

Permanently Restricted Net Assets – Net assets limited by donor-imposed stipulations that the resources must be maintained permanently.

C. Cash and Cash Equivalents

Cash and cash equivalents include balances in operating checking accounts, interest and non-interest-bearing liquid investment accounts, sweep accounts, money market accounts, and assets with short maturities which have not been designated as working capital investment assets. For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value.



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NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. Restricted Cash and Investments

As of September 30, 2013, restricted cash and investments consisted of amounts deposited to satisfy interest expense obligations and a deposit held as collateral for a standby letter of credit on NPM’s New York office lease agreement. The prior year balance included the deposit held as collateral for a standby letter of credit on NPM’s New York office lease agreement and unspent bond proceeds, held with the bond trustee, which was used for costs associated with NPR, Inc.’s new headquarters building in the District of Columbia in 2013.

E. Investments

Investment balances and return on investments, net of fees, including net appreciation and depreciation, and income and losses, are reported as either restricted or unrestricted, in accordance with donor specifications. Unrestricted, temporarily restricted, and permanently restricted funds are invested in a commingled (pooled) manner. NPR employs a time-weighted dollar value accounting method for pooled investments. Income, gains, losses, net appreciation or depreciation, and investment fees are distributed to each fund. Investments are presented at fair value as determined by methodologies relevant to each asset class with any related gain or loss reported in the consolidated statement of activities. The fair value of the investment funds is based on available information and does not necessarily represent amounts that might ultimately be realized. The fair value may differ significantly from the values which would have been used had a ready market for the funds existed. Global equities, real estate and other fixed income securities listed or traded on a securities exchange or active market, are valued using closing sale, bid, or ask prices from the primary exchange or from brokers where the security is traded depending upon location convention or regulation. Money market accounts are valued by the bank or money market manager. Marketable securities held by a custodian, either in NPR’s name or held for NPR’s account in a street name, are valued by the custodian using a valuation methodology similar to the above. Marketable securities held by mutual funds, pooled investment funds and hedge funds are valued by the fund manager using a valuation methodology similar to the above. Global equities, multi-strategy hedge funds, private equity, real estate and other holdings not listed or traded on a securities exchange are valued using the most recent valuation available by the respective external fund manager. The fair value of certain investments, such as private equity interests, is estimated based on valuations provided by external investment managers as of a prior period, adjusted for cash receipts, cash disbursements and securities distributions through September 30th. Typically, private equity and real estate and other assets are valued at the lower of cost or fair value until external events substantiate a change in value or a reasonable methodology exists to capture and quantify changes in value.



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E. Investments (Continued)

The asset allocation of NPR’s portfolio is intended to provide exposure to a diverse set of markets. These markets are subject to various risks such as interest rate, market, sovereign, liquidity, event, and credit risks. NPR anticipates that the value of its investments may, from time to time, fluctuate as a result of these risks. NPR believes the carrying amount of these financial instruments is a reasonable estimate of fair value. Investments are managed in accordance with investment and spending policies that have been approved by the NPR, Inc. Board of Directors (NPR, Inc. Board). F. Fair Value Measurements

In accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, NPR accounts for its financial instruments as well as certain assets and liabilities at fair value. Fair value is defined as the price that would be paid in an orderly transaction, or exit price, between market participants to sell the asset or transfer the liability in the principal or most advantageous market for the asset or liability. Fair value is a market based measurement, not an entity-specific measurement. Therefore, NPR uses assumptions that market participants would use in pricing the asset or liability. NPR is required by US GAAP to categorize its financial instruments based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value of the instrument. Financial instruments recorded on the consolidated statement of financial position are categorized based on the inputs to the valuation techniques as follows:

Level 1 – Financial assets and liabilities whose values are based on quoted prices for identical assets or liabilities in an active market that NPR has the ability to access (examples include active exchange-traded equity securities, listed derivatives, and most US government, agency, and fixed income securities).



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F. Fair Value Measurements (Continued)

Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or use model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in non-active markets (examples may include corporate and municipal bonds); pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and pricing models whose inputs are derived principally from or corroborated by observable market data. Level 2 assets also include investment funds that do not have a readily determinable fair value but meet other criteria and a net asset value per share, or its equivalent, is provided by the fund manager at the measurement date.

Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 assets may not permit redemptions at net asset value, or its equivalent, at the measurement date. Management uses inputs that reflect assumptions a market participant would use in pricing the asset or liability (examples include certain private equity investments and split-interest agreements).

G. Inventory

Equipment purchased for resale to participants of the Public Radio Satellite System (PRSS) and inventory held for sale, primarily for the online shop, are carried at the lower of cost or market. Inventory costs are determined using the first-in, first-out method. Inventory was $1,154,952 and $848,507 as of September 30, 2013 and 2012, respectively, and is reported in prepaid and other assets in the consolidated statement of financial position. H. Property and Equipment

NPR capitalizes all property and equipment with a useful life of more than one year and a unit value of $1,000 or greater. The valuation of property and equipment, whether purchased or constructed, is based on the asset cost. The asset cost includes all direct costs required to acquire and ready the asset for service. If the property and equipment is acquired by gift, the valuation is the fair value of the asset at the date of the gift, if determinable. Otherwise, an appraised value is used. Repairs and maintenance costs are expensed as incurred. Property and equipment is depreciated on the straight-line method over the estimated useful lives of the respective assets. NPR, Inc. calculates depreciation expense using the mid-month convention. NPM begins depreciating assets in the month the assets are placed in service.



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H. Property and Equipment (Continued)

Estimated useful lives of property and equipment are as follows:

Asset Category Useful Lives

Land Non Depreciable

Building and Improvements:

1111 No. Capitol Building NPR building in California

50 years 32 years

Building Improvements Shorter of the Remaining Useful Life of the Building or the Life of the Improvement

Leasehold Improvements 1111 No. Capitol HVAC 1111 No. Capitol Carpeting

Shorter of the Remainder of the Lease Term or the Life of the Improvement

25 years 10 years

Technical Equipment and Software:

1111 No. Capitol Technical Equipment Content Production System

15 years 5 years

Audio 3 years

Computer 3 years

Software Greater of 5 years or the Percentage of the Product's Current Year Revenues to its Anticipated Future Revenues

Telecommunications 5 years

Office Furniture 8 years (NPR, Inc.)/5 years (NPM)

Vehicles 5 years

Construction in Progress Non Depreciable

NPR capitalizes software developed internally for external marketing in excess of $500,000. Project spending below this threshold is expensed as incurred. In accordance with ASC 985, Costs of Software to Be Sold, Leased, or Marketed, costs incurred to create computer software are charged to expense until technological feasibility has been established for the product. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. After technological feasibility is established, the costs of coding and testing and other costs of producing product masters are capitalized. Cost capitalization ceases when the product is available for general release to customers. Capitalized software costs are amortized on a product-by-product basis, starting when the product is available for general release to customers. I. Deferred Financing Costs

In fiscal year 2010, NPR deferred financing costs associated with the issuance of the District of Columbia Revenue Bonds (National Public Radio, Inc. issue) Series 2010 (Series 2010 Bonds). NPR is amortizing these costs over the term of the bonds using the straight-line method.



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I. Deferred Financing Costs (Continued)

On May 2, 2013, NPR completed an advance refunding of a portion of the Series 2010 Bonds when the District of Columbia issued District of Columbia Refunding Revenue Bonds (National Public Radio, Inc. issue) Series 2013 (Series 2013 Bonds). The advance refunding resulted in the partial defeasance of the Series 2010 Bonds. Accordingly, NPR wrote off $1,597,168 of the deferred financing costs that were associated with the defeased bonds during 2013. For the years ended September 30, 2013 and 2012, deferred financing costs amortization expense for the Series 2010 Bonds was $82,195 and $104,439, respectively. The unamortized balance of deferred financing costs from the Series 2010 Bonds was $1,506,035 and $3,185,398 as of September 30, 2013 and 2012, respectively. In fiscal year 2013, NPR deferred financing costs associated with the Series 2013 Bonds totaling $1,762,690. NPR is amortizing these costs over the term of the bonds using the straight-line method as required by ASC 835, Interest. For the year ended September 30, 2013, deferred financing costs amortization expense for the Series 2013 Bonds was $24,212. The unamortized balance of deferred financing costs from the Series 2013 Bonds was $1,738,478 as of September 30, 2013.

J. Grants, Contributions and Corporate Sponsorships

NPR recognizes grant and contribution revenue in accordance with ASC 958, Not-For-Profit Entities and corporate sponsorship revenue in accordance with ASC 605, Revenue Recognition. Grant revenue is recognized as expenses are incurred. Contribution revenue is recognized when assets or commitments of unconditional promises to give are received. Contributions of assets other than cash are recorded at fair value at the date of donation. Contributions restricted in perpetuity are classified as permanently restricted. Contributions that are restricted by the donor for a specific time or purpose are reported as temporarily restricted contributions, except those contributions whose restrictions are met in the current fiscal year, which are recognized as unrestricted revenue. When a donor-stipulated time restriction ends, or a purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from restriction. Donor-restricted contributions for the new headquarters building construction or to pay for debt associated with the new headquarters building are reported as temporarily restricted until used for the specified purpose. Unconditional promises to give, which are expected to be received beyond one year, are discounted to their net present value using the risk-free daily Treasury yield curve rate obtained from the United States Treasury. The discount is calculated based on the date and amount of the original award, number of years over which payments are pledged, and any payments received. The discount is amortized and recorded to revenue based on the payments and duration of the contribution. Contributions receivable are reported net of any discount and estimated uncollectible amounts. Corporate sponsorships are considered exchange transactions and are recognized as revenue when credits are aired or delivered digitally (e.g., online, mobile devices, podcasts, etc.). Sponsorships paid in advance of credits aired or delivered digitally are reflected as deferred revenue until the credits are aired or delivered.



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NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Commissions

Commission revenue represents NPM’s charges to non-NPR, Inc. customers for sponsorship placements.

L. Donated Goods and Services

NPR records contributions of goods and services at fair value, when received, as revenue with an offsetting expense. Expenses are reflected in the appropriate functional area that received the benefits of the good or service provided.

M. All Other Revenues

Membership dues, station programming fees, and distribution interconnection fees for use of the PRSS are recognized ratably over the membership or service period, which is generally the fiscal year. Revenues from affiliate fees, non-programming services, investments, and distribution services, other than distribution interconnection fees, are recognized when earned. Deferred revenues reflected in the consolidated statement of financial position consist primarily of advance funding of PRSS grants, programming fees, and membership dues, which will be recognized in future years.

N. Functional Expenses

Support services are comprised of both general and administrative expenses and fundraising expenses. Total fundraising expenses, including those reported as non-operating, totaled $4,371,358 and $4,994,536 for fiscal years ended September 30, 2013 and 2012, respectively. All other support services expense, including those reported as non-operating, represent general and administrative expenses.

O. Concentration of Business Activity

Items which potentially subject NPR to concentrations of credit risk and other types of financial risk consist primarily of cash, cash equivalents, receivables, and investments. NPR maintains cash, cash equivalents and investments with multiple institutions. As of September 30, 2013 and 2012, there were certain balances in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit or held in investment or custody accounts that do not carry insurance. Although these funds were in excess of the standard FDIC insurance limits, NPR believes there is minimal risk to the account balance. NPR has established guidelines relative to the diversification of its investments to limit the amount placed with any single multi-strategy investment manager.

Membership dues and station programming fees, representing 37% and 38% of total operating revenues for fiscal years ended September 30, 2013 and 2012, respectively, are derived from non-commercial US radio stations. Funding of these stations is derived primarily from corporate, foundation, individual, and governmental support.

In accordance with the disclosure requirements of ASC 275, Risks and Uncertainties, regarding concentrations of labor subject to collective bargaining agreements, NPR, Inc. is party to two such agreements, which expire in March 2015 and June 2015. As of September 30, 2013, NPR, Inc. had a total of 942 employees. Of this total, 549 are hourly workers and 393 are salaried.



[14]


O. Concentration of Business Activity (Continued)

Approximately 80% of NPR, Inc.’s hourly employees and none of its salaried employees are represented by a union.

P. Income Taxes

Under the provisions of Section 501(c)(3) of the Internal Revenue Code, NPR, Inc. and the Foundation are exempt from taxes on income, except for unrelated business income. No provision for income taxes is required for fiscal year 2013 or 2012 since any unrelated business income will be offset by existing net operating loss (NOL) carryforwards. As of September 30, 2013, NPR, Inc. had federal NOL carryforwards in the amount of $12,850,451. As of September 30, 2013, Foundation had federal NOL carryforwards in the amount of $542,572. The NOL carryforwards begin to expire as early as fiscal year 2014 and as late as fiscal year 2032. As of September 30, 2013 and 2012, neither organization had recorded a deferred tax asset for the NOLs since their realization is uncertain. NPM is treated as a partnership for federal income tax purposes. The members are required to report respective shares of income or loss in their income tax returns and are liable for any related taxes thereon. Accordingly, no provision for federal income tax has been made. NPM is subject to income tax in certain state and local jurisdictions where NPM operates. For the years ended September 30, 2013 and 2012, NPM accrued $10,000 and $51,100, respectively, for state and local income taxes. In accordance with ASC 740, Income Taxes, NPR evaluated its tax positions and determined that all are more-likely-than-not to be sustained upon examination. Accordingly, NPR believes there are no unrecognized benefits or applicable interest and penalties that should be recorded.

NPR’s tax returns for the fiscal years ended September 30, 2010, 2011, and 2012 are subject to examination by federal, state and local authorities. Q. Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions based on available information that affects the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Such estimates include allowance for doubtful accounts, discount rates used on long-term receivables, useful lives of depreciable and amortizable assets, allocation of functional expenses, valuation of intangible assets, and accrued expenses.

The accounting policy concerning investment valuations relies on data from fund managers that cannot be entirely substantiated by third parties as of the consolidated financial statement date, and it is considered to have the largest potential for significant financial impact. Valuations for investments, principally alternative investments, are subjective and require judgment regarding significant matters such as the comparability to similar investments, liquidity, interest rates, and the determination of external events adequate to quantify changes in value. Changes in assumptions could have a significant effect on the fair value of these instruments.



[15]


R. Guarantees and Indemnifications

From time to time, NPR enters into various agreements for the acquisition or sale (including licensing) of goods or services. In some of those agreements, NPR agrees to indemnify the other party against certain losses arising from the transaction under the agreement. NPR is not aware of any material liability arising from such indemnification obligations as of September 30, 2013. S. Reclassifications

Certain items in the fiscal year 2012 consolidated financial statements have been reclassified to conform to the fiscal year 2013 presentation. These reclassifications have no impact on the previously reported change in net assets. T. Subsequent Events

In preparing the consolidated financial statements in accordance to ASC 855, Subsequent Events, NPR has evaluated events and transactions for potential recognition or disclosure through December 19, 2013, the date the consolidated financial statements were issued. On September 13, 2013, the NPR, Inc. Board approved an organization wide Voluntary Buyout Program (VBP) beginning on September 20, 2013. Employees were required to submit an application by October 15, 2013, to be considered for participation in the VBP. Management then had the ability to either accept or reject applications based upon corporate needs and other factors. Given the contingent application and acceptance process, NPR could not estimate the liability associated with the VBP as of the end of the fiscal year. Based on the applications accepted subsequent to September 30, 2013, NPR estimates that the VBP liability totals approximately $10 million.

NOTE 3 RELATED PARTIES

NPR discloses its related party transactions in accordance with ASC 850, Related Party Disclosures. Members of the NPR, Inc. Board and the Foundation’s Board of Trustees (Foundation Trustees) are significant contributors to the funding of the new headquarters building. New headquarters building contributions from the NPR, Inc. Board and the Foundation Trustees totaled $543,500 and $2,740,000 for the years ended September 30, 2013 and 2012, respectively, with $211,800 and $4,164,563 remaining in contributions receivable as of September 30, 2013 and 2012, respectively. Members of the Foundation’s Board of Trustees and NPR, Inc.’s Board are also significant contributors to the Foundation’s general fundraising efforts. Their contributions amounted to $3,457,238 and $2,376,838 for the years ended September 30, 2013 and 2012, respectively, with $2,636,541 and $2,189,000 remaining in contributions receivable as of September 30, 2013 and 2012, respectively.



[16]

NOTE 4 INVESTMENTS

NPR’s investments, stated at fair value, are comprised of the following as of September 30:

2013

2012

Short-term Investments: Limited Duration Fixed Income & Cash $ 23,511,501 $ 60,197,674

Long-term Investments: Global Equities 54,500,000 54,226,501 Global Multi-asset Strategy Investments 37,817,074 31,381,336 Multi-strategy Hedge Funds 127,060,033 104,128,651 Private Equity 39,774,971 37,625,956 Real Estate & Other 20,085,790 25,815,706 Fixed Income 30,312,878 33,947,738 Limited Duration Fixed Income & Cash 63,261,697 59,667,813

Total Long-term Investments 372,812,443 346,793,701

$ 396,323,944 $ 406,991,375

NPR had outstanding investment commitments of $15,553,856 and $23,292,395 as of September 30, 2013 and 2012, respectively. These commitments represent amounts expected to be drawn by investment fund managers in the multi-strategy hedge funds, private equity, real estate and other investment categories of the portfolio. The commitments will be funded either by available cash or liquidating other investments.

NOTE 5 FAIR VALUE MEASUREMENTS

NPR uses fair value measurements to record fair value adjustments to certain assets and liabilities to determine fair value disclosures. The following table presents a summary of the levels within the fair value hierarchy for NPR’s investments as of September 30, 2013:

Level 1

Level 2 Level 3 Total

Global Equities $ 17,626,720 $ 36,873,280 $ - $ 54,500,000 Global Multi-asset Strategy

Investments

37,817,074

- - 37,817,074 Multi-strategy Hedge Funds - 18,753,881 108,306,152 127,060,033 Private Equity - - 39,774,971 39,774,971 Real Estate & Other - - 20,085,790 20,085,790 Fixed Income 30,312,878 - - 30,312,878 Limited Duration Fixed

Income & Cash

86,773,198

- - 86,773,198

$ 172,529,870 $ 55,627,161 $ 168,166,913 $ 396,323,944



[17]

NOTE 5 FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents a summary of the levels within the fair value hierarchy for NPR’s investments as of September 30, 2012:

As of September 30, 2013 and 2012, there were no assets or liabilities measured on a non-recurring basis.

The following tables provide a summary of changes in fair value of NPR’s Level 3 financial assets for the years ended September 30:

Level 1

Level 2 Level 3 Total

Global Equities $ 23,196,150 $ 31,030,351 $ - $ 54,226,501 Global Multi-asset Strategy

Investments

31,381,336

- - 31,381,336

Multi-strategy Hedge Funds - 17,579,495 86,549,156 104,128,651

Private Equity - - 37,625,956 37,625,956

Real Estate & Other 6,555,803 - 19,259,903 25,815,706

Fixed Income 33,947,738 - - 33,947,738

Limited Duration Fixed Income & Cash

119,865,487

- - 119,865,487

$ 214,946,514 $ 48,609,846 $ 143,435,015 $ 406,991,375

2013

Multi-strategy Hedge Funds Private Equity Real Estate Total

Beginning Balance October 1, 2012

$ 86,549,156 $ 37,625,956 $ 19,259,903 $ 143,435,015

Transfers to Level 3 4,084,477 - - 4,084,477 Net Realized and Unrealized

Gain on Investments 19,103,759 4,420,640 1,269,822 24,794,221

Purchase of Investments 9,368,418 6,667,428 2,336,345 18,372,191 Sale of Investments (10,799,658) (8,939,053) (2,780,280) (22,518,991)

Balance as of September 30, 2013

$ 108,306,152 $ 39,774,971 $ 20,085,790 $ 168,166,913

2012

Multi-strategy

Hedge Funds Private Equity Real Estate Total

Beginning Balance October 1, 2011

$ 80,832,112 $ 31,963,471 $ 16,016,486 $ 128,812,069

Net Realized and Unrealized Gain on Investments

12,353,437

2,010,241 736,158 15,099,836

Purchase of Investments 7,982,985 6,464,351 4,390,874 18,838,210 Sale of Investments (14,619,378) (2,812,107) (1,883,615) (19,315,100)

Balance as of September 30, 2012

$ 86,549,156 $ 37,625,956 $ 19,259,903 $ 143,435,015



[18]

NOTE 5 FAIR VALUE MEASUREMENTS (CONTINUED)

The unfunded commitments, redemption frequency and redemption notice periods for Level 2 and Level 3 investments by major category are as follows:

Fair Value

Unfunded Commitments

Redemption Frequency (If

Currently Eligible) Redemption

Notice Period

Global Equities $ 36,873,280 $ - Monthly 5-30 days Multi-strategy Hedge Funds $ 127,060,033 $ - Quarterly/Bi-annually 30-90 days Private Equity $ 39,774,971 $ 9,229,001 Not Eligible N/A Real Estate & Other $ 20,085,790 $ 6,324,855 Not Eligible N/A

Global equities may invest in varying industries of public and non-public equity securities, funds, partnerships, derivatives, and may also hold short-term investments such as cash, foreign currencies and cash equivalents. The geographic areas include the United States and developed and emerging markets. The fair value of global equities has been estimated using the net asset value provided by the investment manager.

Multi-strategy hedge funds use a wide range of global strategies, including long/short equity, event driven, distressed securities, long/short credit, merger/risk arbitrage, capital structure arbitrage, convertible arbitrage, mortgage backed securities, and global macro. Hedge funds generally employ leverage and short selling and can invest in a wide variety of both public and private securities including equities, fixed income, commodities, private placements, currencies, real estate, loans, derivatives, and special situation investments. The fair value of multi-strategy hedge funds has been estimated using either the net asset value or its equivalent as provided by the investment manager.

Private equity includes domestic and international investments in venture capital, buy outs, mezzanine, and funds-of-funds investments. The fair value of private equity has been estimated using either the net asset value or its equivalent as provided by the investment manager. Real estate and other may include investments in public real estate equity investment trusts, private real estate, direct investments in properties, land mortgages, loans, public natural resource equities, and commodities, as well as private and public investments in energy, oil and gas, timber, industrial and precious metals, or other hard assets. The fair value of real estate and other investments has been estimated using either the net asset value or its equivalent as provided by the investment manager. The carrying amount of accounts payable and accrued expenses approximates fair value because of the short maturity of these obligations.



[19]

NOTE 6 RETURN ON INVESTMENTS

NPR’s return on investments was comprised of the following for the years ended September 30:

2013 2012

Working Capital Investments: Dividends and Interest $ 47,840 $ 74,471 Realized (Loss) Gain (41,309) 59,591 Unrealized Gain (Loss) 24,590 (58,021)

Total Return on Working Capital Investments 31,121 76,041 Long-term Investments: Dividends and Interest 2,766,420 2,781,527 Realized Gain 7,693,762 7,536,209 Unrealized Gain 28,060,366 25,680,660 Direct Investment Services Fees (931,732) (552,392)

Total Return on Long-term Investments 37,588,816 35,446,004

$ 37,619,937 $ 35,522,045

NOTE 7 RECEIVABLES

Receivables consist of the following as of September 30: 2013 2012

Receivables, Short-term (Less than one year): Grants and Contributions $ 9,870,356 $ 11,525,877 Corporate Sponsorships 14,897,270 15,712,623 Station Fees 3,785,046 5,358,331 Distribution and PRSS Services 1,028,533 1,019,602 Public Radio Fund - 2,500,000 Digital Services 268,051 217,416 License Fees 125,000 187,500 Commissions 127,827 100,896 Other 2,145,387 786,935

Total Receivables, Short-term 32,247,470 37,409,180 Allowance for Doubtful Accounts (729,892) (641,772) Loan Loss Reserve - (125,000)

Total Receivables, Short-term, Net 31,517,578 36,642,408

Receivables, Long-term: One to Five Years: Contributions 4,467,906 3,884,428 Discount to Present Value (40,014) (88,895)

Total Receivables, Long-term, Net 4,427,892 3,795,533

$ 35,945,470 $ 40,437,941



[20]

NOTE 7 RECEIVABLES (CONTINUED)

During fiscal year 2007, NPR agreed to support the Public Radio Fund (the Fund), established by Public Radio Capital, by making a loan of $2,500,000 to the Fund. The Fund, in which NPR was a senior investor, is a revolving loan fund that offers public broadcasting station licensees the opportunity to obtain short-term financing for the acquisition and expansion of their public broadcasting capital assets, which secure the loan. During fiscal year 2010, NPR fully satisfied its commitments to the Fund, having made cumulative loan deposits of $2,500,000. The loan earned 3% interest per annum and was repaid in January 2013. As of September 30, 2012, NPR recorded a loan loss reserve of $125,000 in connection with this loan.

The carrying amount of receivables approximates fair value because of the short maturity of these instruments.

NOTE 8 PROPERTY AND EQUIPMENT

Property and equipment consists of the following as of September 30:

2013 2012

Buildings and Improvements $ 150,155,181 $ 16,029,603 Land 55,754,168 54,084,828 Technical Equipment and Software 60,471,578 49,202,939 Office Furniture 7,663,600 3,719,748 Construction in Progress 1,072,688 134,495,556 Vehicles 123,309 91,250

275,240,524 257,623,924 Accumulated Depreciation (38,354,961) (50,984,806)

$ 236,885,563 $ 206,639,118

Depreciation expense for the years ended September 30, 2013 and 2012 totaled $8,323,056 and $6,450,908, respectively. In April 2013, construction of the new headquarters building was substantially completed and the headquarters was placed into service. After the new headquarters building was occupied, most assets remained at the previous leased offices and were not taken to the new facility. As a result NPR recorded fixed asset write-offs totaling $21,509,802 with associated accumulated depreciation expense of $20,952,900 for the year ended September 30, 2013. Construction in progress consists of costs associated with the construction of the new headquarters building and operational capital assets. As assets are placed into service, NPR transfers these costs to the appropriate property and equipment categories and depreciation begins. In accordance with ASC 835, Interest, NPR capitalized interest incurred during development and construction of the new headquarters building. As of September 30, 2013 and 2012, interest capitalized as property and equipment totaled $24,764,318 and $20,785,230, respectively.



[21]

NOTE 8 INTANGIBLE ASSETS

Intangible assets include goodwill, contracts in force, workforce in place, covenants not to compete and intellectual property.

A. Goodwill Goodwill represents the excess of the purchase price over the net amount assigned to identifiable assets acquired and liabilities assumed in the purchase and formation of NPM. In October 2007, goodwill was recorded in the amount of $1,822,832. In accordance with Financial Accounting Standards Board Accounting Standards Update ASU 2011-08, Intangibles - Goodwill and Other, NPM performs a qualitative assessment test annually as of September 30th or more frequently if indicators of impairment exist. NPM’s assessments of goodwill as of September 30, 2013 and 2012 concluded that no goodwill impairment had occurred. The carrying value for goodwill as of September 30, 2013 and 2012 was $1,822,832. B. Intangible Assets Other Than Goodwill In accordance with ASC 350, Intangibles – Goodwill and Other, certain other intangible assets are initially recorded at fair value and, subsequent to initial measurement, are amortized on a straight-line basis over the estimated useful life of the assets. These assets are comprised of covenants not to compete, contracts in force, workforce in place, and intellectual property. The estimated lives of these assets is as follows: covenants not to compete – 60 months; contracts in force – 36 months; workforce in place – 24 months; and intellectual property with a finite useful life – 36 months. In July 2008, NPR purchased land for its development of its new headquarters building. Included in the purchase of the land were 109,229 square feet of Transferable Development Rights (TDR), which permit the construction of buildings of larger size than would otherwise be permissible under applicable District of Columbia zoning laws. Prior to fiscal year 2011, the TDR were classified as property and equipment. During fiscal year 2011, management reclassified the TDR, at their estimated fair value of $6 per TDR square foot on the purchase date, to intangible assets. During fiscal year 2012, NPR sold the TDR and realized a gain of $718,044.

Intangible assets were comprised of the following as of September 30, 2013:

Gross Carrying

Amount Accumulated Amortization Impairment

Net Carrying Amount

Amortizable Intangible Assets: Covenants Not to Compete $ 2,314,499 $ (2,314,499) $ - $ - Contracts in Force 1,822,832 (1,822,832) - - Workforce in Place 1,822,832 (1,822,832) - - Intellectual Property 604,082 (604,082) - -

Total Amortizable Intangible Assets 6,564,245 (6,564,245) - - Unamortizable Intangible Assets:

Goodwill 1,822,832 - - 1,822,832

$ 8,387,077 $ (6,564,245) $ - $ 1,822,832



[22]

NOTE 9 INTANGIBLE ASSETS (CONTINUED)

B. Intangible Assets Other Than Goodwill (Continued) Intangible assets were comprised of the following as of September 30, 2012:

Gross Carrying Amount

Accumulated Amortization Impairment

Net Carrying Amount

Amortizable Intangible Assets: Covenants Not to Compete $ 2,314,499 $ (2,192,467) $ - $ 122,032 Contracts in Force 1,822,832 (1,822,832) - - Workforce in Place 1,822,832 (1,822,832) - - Intellectual Property 604,082 (604,082) - -

Total Amortizable Intangible Assets 6,564,245 (6,442,213) - 122,032 Unamortizable Intangible Assets:

Goodwill 1,822,832 - - 1,822,832

$ 8,387,077 $ (6,442,213) $ - $ 1,944,864

NOTE 10 DEBT

A. Note Payable In fiscal year 2008, through the acquisition of PI, NPR assumed a term note with the Ford Foundation for $2,000,000. The original note called for principal payments in February 2011, 2012 and 2013. During 2011, the note was amended. Under the amended note, principal payments are due each February from 2013 through 2017. In February 2013 NPR made a principal payment of $1,000,000. As of September 30, 2013, the outstanding principal was $1,000,000. The interest rate for the outstanding principal on this note is 1% per annum with interest payable quarterly, in arrears, and no escrow requirements. Based upon the imputed rate of 3.09% on this note, the principal balance has been adjusted to $963,175 and $2,012,671 as of September 30, 2013 and 2012, respectively. Interest expense for the years ended September 30, 2013 and 2012 was $36,024 and $61,547, respectively.

B. Bonds Payable NPR financed the construction of its new headquarters building using revenue bonds issued by the District of Columbia in 2010. The Series 2010 Bonds originally totaled $162,125,000. However, on May 2, 2013, NPR completed an advance refunding of a portion of the Series 2010 Bonds when the District of Columbia issued the Series 2013 Bonds bonds totaling $87,430,000. The Series 2013 Bonds were deposited in an irrevocable trust account to provide for all future debt service on the refunded portion of the Series 2010 Bonds, which will be complete on the optional redemption date of April 1, 2015. Accordingly, the refunded portion of the Series 2010 Bonds is considered to be defeased and NPR has reduced its liability on the Series 2010 Bonds. NPR wrote off $198,910 of the unamortized net discount on the Series 2010 Bonds as a result of the defeasance. Additionally, NPR incurred a loss of $9,637,551 on the early extinguishment of debt. The unrefunded Series 2010 Bonds bear interest at fixed rates ranging from 4% to 5%. Interest is payable semi-annually and is due each October 1st and April 1st. Interest expense on the Series 2010 Bonds totaled $1,938,828 in 2013.



[23]

NOTE 10 DEBT (CONTINUED)

B. Bonds Payable (Continued) As of September 30, 2013 and 2012, interest in the amount of $3,979,088 and $7,958,176, respectively, has been capitalized as part of the new headquarters building. The unamortized balance of the Series 2010 Bonds premium was $3,781,901 and $3,626,323 as of September 30, 2013 and 2012, respectively. The serial and term portions of the Series 2010 Bonds have maturities ranging from April 1, 2017, through April 1, 2022, and April 1, 2023, through April 1, 2035, respectively. The portion of the unrefunded Series 2010 Bonds that have maturities ranging from April 1, 2021, through April 1, 2035, are subject to an optional redemption in whole or in part at the discretion of the issuer equal to 100% of the principal amount plus accrued interest beginning on April 1, 2020. All outstanding Series 2010 Bonds, in whole or in part, as of April 1, 2020 are subject to option redemption equal to 100% of the principal amount plus accrued interest. Series 2010 Bonds with a maturity date either on or after April 1, 2025, are subject to a mandatory sinking fund redemption prior to the April 1st maturities equal to 100% of the principal amount plus accrued interest. The Series 2013 Bonds were issued as fixed rate debt and have annual interest rates ranging from 3% to 5%. Interest is payable semi-annually and is due each October 1st and April 1st. Interest expense on the Series 2013 Bonds totaled $1,514,623 in 2013. The unamortized balance of the Series 2013 Bonds premium was $1,288,648 as of September 30, 2013. The serial and term portions of the Series 2013 Bonds have maturities ranging from April 1, 2017, through April 1, 2026, and April 1, 2027, through April 1, 2042, respectively. The Series 2013 Bonds may be subject to redemption prior to maturity either in whole or in part through either optional or mandatory redemptions. Series 2013 Bonds with a maturity date either on or after April 1, 2024, are subject to an optional redemption beginning on April 1, 2023, at the discretion of the issuer, either in whole or in part, equal to 100% of the principal amount plus accrued interest. Series 2013 Bonds with a maturity date either on or after April 1, 2034, are subject to a mandatory sinking fund redemption prior to the April 1st maturities equal to 100% of the principal amount plus accrued interest. The outstanding principal balances on the Series 2010 Bonds and Series 2013 Bonds as of September 30 were:

2013 2012

Series 2010 Bonds $ 79,250,000 $ 162,125,000 Series 2013 Bonds 87,430,000 -

$ 166,680,000 $ 162,125,000



[24]

NOTE 10 DEBT (CONTINUED) B. Bonds Payable (Continued) The fair value of the Series 2010 Bonds and Series 2013 Bonds as of September 30 was:

2013 2012

Series 2010 Bonds $ 84,801,990 $ 177,361,544 Series 2013 Bonds 79,868,395 -

$ 164,670,385 $ 177,361,544

The fair value of the Series 2010 Bonds and Series 2013 Bonds was based on quoted market prices and yields for either the same or similar issues which represent Level 2 inputs on the fair value hierarchy. C. Line of Credit In November 2012, NPR established an unsecured revolving line of credit with SunTrust Bank with a maximum loan amount of $25 million, and any amounts borrowed are payable on November 30, 2014. There was no balance outstanding on this credit facility on September 30, 2013. The line of credit accrues interest at a rate equal to LIBOR plus 0.99%. The line of credit supports either working capital or general corporate uses and contains nonfinancial covenants that NPR must comply with in order to obtain additional advances and avoid default. During fiscal year 2013, NPR made draws under the line of credit and, as a result, had interest expense of $16,474. D. Aggregate Maturities on NPR’s Debt Obligations The aggregate maturities on NPR’s debt obligations as of September 30, 2013, were as follows:

Fiscal Year

2010 DC

Revenue Bonds

2013 DC

Revenue Bonds

Ford Foundation

Note

Total

2014 $ - $ - $ 250,000 $ 250,000

2015 - - 250,000 250,000

2016 - - 250,000 250,000

2017 2,855,000 85,000 250,000 3,190,000

2018 2,970,000 90,000 - 3,060,000

Thereafter 73,425,000 87,255,000 - 160,680,000

$ 79,250,000 $ 87,430,000 $ 1,000,000 $167,680,000



[25]

NOTE 11 TEMPORARILY RESTRICTED NET ASSETS

Temporarily restricted net assets are restricted for the following items as of September 30:

2013 2012

News and Information $ 20,053,905 $ 12,864,172 Music and Entertainment 348,333 64,166 New Headquarters Building 884,754 11,280,460 Unappropriated Earnings 67,797,202 49,393,652 Time Restricted 1,628,469 787,124

$ 90,712,663 $ 74,389,574

NOTE 12 PERMANENTLY RESTRICTED NET ASSETS

In 1999, NPR received contributions totaling $1,000,000 with donor stipulations that NPR establish a permanently restricted fund. The return on investments from the fund is to be used for the support of cultural programming. Further, one contribution required a portion of the return on investments be added to the principal annually in order to preserve the purchasing power of the fund. In fiscal years 2013 and 2012, $10,207 and $13,343, respectively, were added for this purpose. The remaining return on investments is permitted to be used to support current operations.

In 2004, NPR received a contribution from a single donor of cash and investments totaling $194,259,782. The contribution and smaller subsequent gifts established a permanently restricted endowment for the support of NPR operations. In 2013, a donor re-designated a portion of his contribution to establish a permanently restricted fund which is shown as “Net Asset Reclassification Due to Donor Re-designation” on the consolidated statement of activities. The return on investments from the fund is to be used to support digital innovations or new technologies. Permanently restricted gifts are combined with other unrestricted gifts and invested consistent with NPR investment policies.

NOTE 13 BOARD DESIGNATED AND DONOR RESTRICTED ENDOWMENTS

The NPR, Inc. Board has interpreted the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds, absent explicit donor stipulations to the contrary. As a result of this interpretation, NPR classifies (a) the original value of gifts donated to a permanent endowment, (b) the original value of subsequent gifts to a permanent endowment and (c) accumulations to a permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund as permanently restricted net assets. The remaining portion of the donor-restricted endowment fund is classified as temporarily restricted net assets.



[26]

NOTE 13 BOARD DESIGNATED AND DONOR RESTRICTED ENDOWMENTS (CONTINUED)

NPR utilizes the total return concept (income yield and appreciation) in the management of its endowment. NPR’s spending policy is designed to stabilize the annual spending levels and preserve the real value of the endowment over time. In accordance with NPR, Inc. Board’s investment and spending policies, a predetermined endowment-distribution rate consistent with NPR’s total return objective has been established and approved by the NPR, Inc. Board. The distribution rate is calculated at 4% of the investment portfolio’s twelve-quarter rolling average fair value ending on March 31st, preceding each fiscal year end. This amount is reported as “Endowment Distribution for Operations, Net” in the consolidated statement of activities. Under the policy approved by the NPR, Inc. Board, NPR invests its endowment assets in a manner that is intended to produce an average real rate of return that exceeds the 4% distribution rate over the long term and provides a predictable stream of funding to programs supported by the endowment assets. Actual returns in any given year may vary from this amount. Should the portfolio’s returns prove to be insufficient to support the annual spending policy, the balance may be provided from prior years’ total return subject to donor limitations or unrestricted funds. Should the portfolio’s returns exceed the amounts necessary to maintain this objective, the excess is reinvested in the portfolio. In 1998, the NPR, Inc. Board approved the creation of a quasi-endowment with the operating reserves of its Distribution division (Distribution Quasi-endowment Fund) for the purpose of generating revenue for the long-term support of the PRSS. The NPR, Inc. Board retains the authority to alter or eliminate quasi-endowment funds; therefore, the Distribution Quasi-endowment Fund is classified as a component of unrestricted net assets. The composition of the endowment funds is as follows as of September 30: 2013

Temporarily Permanently Unrestricted Restricted Restricted Total

Donor Restricted Endowment

$ - $ 67,797,202 $ 197,117,621 $ 264,914,823 Distribution Quasi-endowment Fund 13,276,938 - - 13,276,938

$ 13,276,938 $ 67,797,202 $ 197,117,621 $ 278,191,761

2012


Donor Restricted Endowment $ - $ 49,393,652 $ 195,607,414 $ 245,001,066 Distribution Quasi-endowment Fund 11,306,638 - - 11,306,638

$ 11,306,638

$ 49,393,652

$ 195,607,414

$ 256,307,704



[27]

NOTE 13 BOARD DESIGNATED AND DONOR RESTRICTED ENDOWMENTS (CONTINUED)

The summary of changes in endowment net assets is as follows:

2013


Endowment Fund Balance, October 1, 2012 $ 11,306,638 $ 49,393,652 $ 195,607,414 $ 256,307,704

Investment Return: Investment Income 1,498,781 1,854,912 - 3,353,693 Net Realized and Unrealized Gain 986,306 29,191,999 - 30,178,305

Total Investment Return 2,485,087 31,046,911 - 33,531,998 Fees (72,335) (637,406) - (709,741) Donor Re-designation - - 1,500,0000 1,500,000 Distributions (442,452) (12,005,955) - (12,448,407) Purchasing Power Addition - - 10,207 10,207

Endowment Fund Balance, September 30, 2013 $ 13,276,938 $ 67,797,202 $ 197,117,621 $ 278,191,761

2012


Endowment Fund Balance, October 1, 2011 $ 10,323,448 $ 31,544,689 $ 195,594,071 $ 237,462,208

Investment Return: Investment Income 415,549 1,893,113 - 2,308,662 Net Realized and Unrealized Gain 1,320,172 26,061,312 - 27,381,484

Total Investment Return 1,735,721 27,954,425 - 29,690,146 Fees (54,034) (324,276) - (378,310) Distributions (698,497) (9,781,186) - (10,479,683) Purchasing Power Addition - - 13,343 13,343

Endowment Fund Balance, September 30, 2012 $ 11,306,638 $ 49,393,652 $ 195,607,414 $ 256,307,704

NOTE 14 RETIREMENT PLANS

NPR, Inc. maintains a defined contribution retirement plan in accordance with Section 403(b) of the Internal Revenue Code. Under the plan, NPR, Inc. contributes a percentage of the base salary of each employee who has completed two years of qualified service with NPR, Inc. and has submitted prescribed enrollment forms. Employer contributions, together with voluntary employee contributions, are vested in the employees' accounts. Retirement plan expense for the years ended September 30, 2013 and 2012 was $5,187,587 and $4,612,879, respectively.

In fiscal year 2003, NPR, Inc. established two deferred compensation plans to provide certain highly compensated employees the ability to defer a portion of their compensation to provide supplemental retirement benefits under Section 457(b) of the Internal Revenue Code. The assets of the plans are held by NPR, Inc. until disbursed to the participant. The plans are funded entirely from the compensation of the participants and vest with the employee either immediately or based upon specific future events. As of September 30, 2013 and 2012, former and present participants in the 457(b) plan had accrued and vested balances, including interest of $112,169 and $68,235, respectively.



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NOTE 14 RETIREMENT PLANS (CONTINUED)

NPM sponsors a savings plan under Section 401(k) of the Internal Revenue Code for its employees. Participants may voluntarily contribute and defer a portion of their wages, up to a maximum amount provided by the plan, and NPM, at the discretion of NPM’s Board of Directors, may make contributions. For the years ended September 30, 2013 and 2012, NPM made contributions of $531,043 and $514,797, respectively, to the plan.

NOTE 15 COMMITMENTS AND LONG-TERM CONTRACTS

In accordance with ASC 440, Commitments, NPR has made agreements that grant specified future rights and/or obligations to unrelated parties. The aggregate commitments under these agreements for future fiscal years are:

Thereafter

2014 2015 2016 2017 2018 Total

2010 DC

Revenue Bonds Principal and Interest

$3,925,044 $3,925,044 $3,925,044 $6,780,844 $6,780,844 $108,502,450 $133,839,270

2013 DC

Revenue Bonds Principal and Interest

3,345,702 3,660,950 3,660,950 3,745,950 3,748,400 155,599,900 173,761,852

Ford Foundation

Note Principal and Interest

258,479 255,944 253,375 250,875 - - 1,018,673

Office Lease Obligations

1,387,673 1,169,643 958,396 908,211 895,589 3,083,625 8,403,137

Acquired Programming Agreements

8,944,608 4,962,416 595,500 286,000 - - 14,788,524

Personal Service Contracts

5,983,560 1,943,438 361,068 - - - 8,288,066

$23,845,066 $15,917,435 $9,754,333 $11,971,880 $11,424,833 $267,185,975 $340,099,522

NPR leases office space, equipment, and distribution facilities under noncancelable leases expiring on various dates. Certain lease agreements call for escalation of rental payments based upon increases in operating costs of the lessor and increases in consumer price indices. Additionally, some of these leases include renewal options ranging from one to ten years. Total lease expense for the years ended September 30, 2013 and 2012 was $7,753,397 and $11,568,688, respectively. Rental income from the sublease of excess office space was $374,035 and $507,550 for the years ended September 30, 2013 and 2012, respectively. NPR has commitments for acquired programming rights that are aired by member stations. NPR recognizes these acquired rights at the commencement of the licensing period when the cost of the station programming is known or reasonably determinable, the program material has been accepted and the programming is available to air.



[29]

NOTE 15 COMMITMENTS AND LONG-TERM CONTRACTS (CONTINUED)

Personal service contracts are agreements between NPR and contributors, freelancers, and news analysts and hosts that extend to 2016. In May 2006, NPR entered into a letter of credit agreement with SunTrust Bank, in the amount of $149,804, to comply with the New York Bureau office lease. As of September 30, 2013, there has been no activity on this letter of credit since the issuance date.

NOTE 16 PUBLIC RADIO SATELLITE SYSTEM (PRSS)

A. Ownership and Operation

PRSS consists of a lease of satellite transponders and related purchased ground equipment, through which public radio programming is distributed to interconnected public radio stations. The leasehold rights for the satellite transponders and “national-level” ground equipment (i.e., ground equipment not owned by individual interconnected stations) are owned by the Public Radio Satellite Interconnection System Charitable Trust (commonly called “the SuperTrust”). The SuperTrust was created on July 16, 1990 (as amended and restated on October 27, 2000), replacing previous trust arrangements, which had been established beginning in 1983. The SuperTrust is a qualified tax-exempt, charitable trust and holds title to the leased and purchased satellite equipment and transponders in trust for the benefit of interconnected public radio stations. The power and duties to administer the SuperTrust are vested in three trustees duly elected by the participating interconnected public radio stations. Certain fundamental actions contemplated by the SuperTrust agreement, however, require a majority vote of the participating interconnected public radio stations.

Over time, the SuperTrust has executed various agreements with NPR to lease or sublease its assets to NPR. These leases, including a transponder lease and a separate lease covering other national-level interconnection equipment, currently require no payments from NPR to the SuperTrust and describe the arrangements under which NPR operates the PRSS.

NPR's responsibilities under these leases include, among other things, maintenance and repair of the equipment. On October 27, 2000, the parties executed a new transponder sublease agreement covering the satellite transponders on the Galaxy IVR satellite (since replaced by Galaxy 16). The term of the transponder sublease parallels the term of the transponder lease with the satellite provider, Intelsat. In October 2008, a fourth C-band transponder was secured from Intelsat to add to the three already under lease and a contract was completed with Intelsat to extend these four transponders for use by the PRSS until June 25, 2018. The SuperTrust lease covering other equipment automatically renews each year for another year beyond its then-current term. The leases may be terminated by a majority vote of the participating public radio stations at any time on 24 months' notice without cause, and at any time with cause upon notice.



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NOTE 16 PUBLIC RADIO SATELLITE SYSTEM (CONTINUED)

B. Satellite System Replacement

Starting in 1988 and on several occasions since then, Congress has authorized funds to replace, refurbish and upgrade the public radio and television satellite interconnection systems. Typically, the authorizing legislation established a special fund administered by the Corporation for Public Broadcasting (CPB) which, in turn, contracted with NPR as the entity to carry out the public radio portion of the project. The most recent of these Congressional funding arrangements for public radio occurred in 2008, and was appropriated over a three-year period, totaling $77,925,000. The annual appropriation amounts for fiscal years 2008, 2009 and 2010 were $26,283,000, $26,642,000 and $25,000,000, respectively.

In May 2008, NPR and CPB entered into an agreement to utilize these funds for procurement of the next satellite lease agreement including an expansion of transponders on the satellite. This agreement also provides funding for the upgrades to the ContentDepot® System for PRSS, stations and producers within PRSS, ground equipment replacement and business continuity. In fiscal years 2013 and 2012, CPB disbursed $2,369,653 and $5,328,000, respectively, to NPR for these purposes.

[31]

CliftonLarsonAllen LLP

CLAconnect.com

An independent member of Nexia International

INDEPENDENT AUDITORS’ REPORT ON SUPPLEMENTARY INFORMATION

Board of Directors National Public Radio, Inc. Washington, DC

We have audited the consolidated financial statements of National Public Radio, Inc. as of and for the year ended September 30, 2013, and have issued our report thereon dated December 19, 2013, which contained an unmodified opinion on those consolidated financial statements. Our audit was performed for the purpose of forming an opinion on the consolidated financial statements as a whole. The Statement of Financial Position - National Public Radio, Inc. (Parent Company Only), the Statement of Activities - National Public Radio, Inc. (Parent Company Only), and the Statement of Cash Flows - National Public Radio, Inc (Parent Company Only) are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

CliftonLarsonAllen LLP Arlington, Virginia December 19, 2013


(PARENT COMPANY ONLY)

STATEMENT OF FINANCIAL POSITION

SEPTEMBER 30, 2013

(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012)

(SEE INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION)

2013 2012

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 12,545,486$ 15,106,029$

Restricted Cash and Investments 3,477,748 9,713,051

Investments 23,511,501 60,197,674

Receivables, Net 25,617,854 30,148,571

Prepaid and Other Assets 4,222,739 3,931,318

Total Current Assets 69,375,328 119,096,643

PROPERTY AND EQUIPMENT, NET 236,624,428 206,334,270

NON-CURRENT ASSETS

Investments 77,721,076 75,101,800

Receivables, Net 3,119,733 1,153,612

Investment in Subsidiaries 3,116,336 3,149,221

Prepaid and Other Assets 247,352 221,797

Deferred Financing Costs, Net 3,244,513 3,185,398

Intangible Assets, Net - 91,667

Total Non-current Assets 87,449,010 82,903,495

Total Assets 393,448,766$ 408,334,408$

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts Payable and Accrued Expenses 25,387,410$ 28,919,468$

Note Payable 250,000 1,000,000

Accrued Interest Payable 3,482,752 3,995,923

Deferred Revenues 31,451,844 27,433,405

Total Current Liabilities 60,572,006 61,348,796

NON-CURRENT LIABILITIES

Accrued Expenses 918,427 4,822,550

Note Payable 713,175 1,012,671

Bonds Payable 171,750,549 165,751,323

Total Non-current Liabilities 173,382,151 171,586,544

Total Liabilities 233,954,157 232,935,340

NET ASSETS

Unrestricted 146,388,727 164,967,274

Temporarily Restricted 13,105,882 10,431,794

Total Net Assets 159,494,609 175,399,068

Total Liabilities and Net Assets 393,448,766$ 408,334,408$

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STATEMENT OF ACTIVITIES




2013 2012

Temporarily

Unrestricted Restricted Total Total

REVENUES

Membership Dues 3,204,000$ -$ 3,204,000$ 3,187,425$

Station Programming Fees 69,791,713 - 69,791,713 68,637,139

Corporate Sponsorships 43,991,377 - 43,991,377 45,671,379

Grants and Contributions 20,526,512 10,214,383 30,740,895 25,643,201

NPR Foundation Endowment Distribution 11,135,076 - 11,135,076 9,466,733


Current Operations 4,018,845 - 4,018,845 5,970,308

Return on Working Capital Investments 26,637 - 26,637 71,128

Distribution Services 14,348,595 - 14,348,595 16,231,658

Digital Services 4,471,142 - 4,471,142 1,691,097

Other Revenues 8,635,845 307,398 8,943,243 7,873,546

Donated Goods and Services 1,042,136 - 1,042,136 2,385,055

Net Assets Released from Restriction 7,847,693 (7,847,693) - -

Total Revenues 189,039,571 2,674,088 191,713,659 186,828,669

EXPENSES

Program Services:

News and Information 77,675,147 - 77,675,147 75,066,288

Digital Media 10,882,779 - 10,882,779 10,105,500

Content Strategy and Operations 7,988,858 - 7,988,858 7,005,129

NPR Music 3,420,432 - 3,420,432 3,188,355

Distribution and Satellite Interconnection 16,823,751 - 16,823,751 17,735,582

Programming 17,259,907 - 17,259,907 15,256,296

Engineering 7,334,161 - 7,334,161 7,618,193

Digital Services 6,818,324 - 6,818,324 5,866,823

Member Partnership 2,962,198 - 2,962,198 2,358,791

Consumer Products 1,196,805 - 1,196,805 1,119,829

Total Program Services 152,362,362 - 152,362,362 145,320,786

Support Services 43,636,505 - 43,636,505 42,012,561

Total Expenses 195,998,867 - 195,998,867 187,333,347

CHANGE IN NET ASSETS FROM OPERATIONS (6,959,296) 2,674,088 (4,285,208) (504,678)

Return on Long-term Investments, Net 3,641,257 - 3,641,257 4,929,497


Current Operations (4,018,845) - (4,018,845) (5,970,308)

Interest Expense, Net (3,499,502) - (3,499,502) (83,487)

Amortization of Intangible Assets (91,667) - (91,667) (100,000)

Gain on Sale of Intangible Assets - - - 718,044

New HQ Building Fundraising Expenses (256,042) - (256,042) (577,939)

New HQ Building Fundraising Revenues 201,055 - 201,055 4,907,660

HQ Gifts Released from NPR Foundation 4,329,401 - 4,329,401 -

One-time New HQ Expenses (1,378,740) - (1,378,740) (126,282)

Reorganization Costs - - - 26,579

Loss on Early Termination of Lease (483,922) - (483,922) -

Loss on Disposal of Property and Equipment (424,695) - (424,695) -

Loss on Extinguishment of Debt (9,637,551) - (9,637,551) -

CHANGE IN NET ASSETS (18,578,547) 2,674,088 (15,904,459) 3,219,086

Net Assets - Beginning of Year 164,967,274 10,431,794 175,399,068 172,179,982

NET ASSETS - END OF YEAR 146,388,727$ 13,105,882$ 159,494,609$ 175,399,068$

[33]



STATEMENT OF CASH FLOWS




2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES

Change in Net Assets $ (15,904,459) $ 3,219,086

Adjustments to Reconcile Change in Net Assets to Net Cash Flows

(Used in) Provided by Operating Activities:

Unrealized/Realized Gain on Investments (3,118,156) (4,372,795)

Amortization of Deferred Financing Costs 106,407 104,439

Amortization of Intangible Assets 91,667 100,000

Amortization of Note Discount (49,496) 41,556

Amortization of Bond Premium (41,157) (33,668)

Depreciation of Property and Equipment 8,276,886 6,410,198

Proceeds from Sale of Intangible Assets - 1,208,478

Gain on Sale of Intangible Assets - (718,044)

Decrease (Increase) in Receivables 2,564,596 (9,885,510)

(Increase) Decrease in Prepaid and Other Assets (284,091) 19,039

Increase in Deferred Financing Costs (1,762,690) -

(Decrease) Increase in Accounts Payable and Accrued Expenses (7,436,181) 10,677,944 Decrease in Accrued Interest Payable (513,171) (8)Increase (Decrease) in Deferred Revenues 4,018,439 (257,121)Loss on Disposal of Property and Equipment 424,695 - Loss on Extinguishment of Debt 9,637,551 -

Net Cash Flows (Used in) Provided by Operating Activities (3,989,160) 6,513,594

CASH FLOWS FROM INVESTING ACTIVITIES

Investments:

Purchases (41,575,165) (17,085,636)Sales and Maturities 84,995,521 108,870,991 Distribution from Subsidiary - 360,000

Property and Equipment:

New Headquarters Building Purchases (35,749,691) (81,960,076)

Other Purchases (3,242,048) (11,527,393)

Net Cash Flows Provided by (Used in) Investing Activities 4,428,617 (1,342,114)

CASH FLOWS FROM FINANCING ACTIVITIES

Draw on Line of Credit 7,000,000 - Repayment of Line of Credit (7,000,000) - Repayment of Note (1,000,000) - Extinguishment of Debt (2,000,000) -

Net Cash Flows Used in Financing Activities (3,000,000) -

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,560,543) 5,171,480

Cash and Cash Equivalents - Beginning of Year 15,106,029 9,934,549

CASH AND CASH EQUIVALENTS - END OF YEAR $ 12,545,486 $ 15,106,029

SUPPLEMENTAL DISCLOSURES

Cash Payments for Interest $ 8,005,316 $ 8,011,844

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national public radio, inc. consolidated … · 2013-12-19 · (parent company only) 33 statement...

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