SUMMARY OF FINANCIAL HIGHLIGHTS YEARS ENDED DECEMBER 31, 2003 AND 2002 Download financial report RTF or PDF. Consolidated Statement of Financial Position Consolidated Statement of Activities Change in Net Asset Balances Notes to the Summary of Financial Highlights Consolidated Statements of Financial Position Assets 2003 2002 Cash and cash equivalents Contributions receivable, net Accounts receivable Other receivables Inventories Prepaid expenses Deferred costs Investments Property, equipment and leasehold improvements, net Art collection TOTAL ASSETS 9,274,259 11,684,629 1,554,450 2,035,621 2,608,609 1,441,646 345,876 41,160,777 64,872,770 1 134,978,638 3,587,172 14,689,068 1,349,686 2,051,126 4,681,425 2,346,016 374,899 38,011,353 65,985,342 1 133,076,088 Liabilities and Net Assets 2003 2002 Liabilities Accounts payable and accrued expenses Deferred income Loan payable to Trust for Cultural Resources Other loans payable Total Liabilities Net Assets Unrestricted Temporarily restricted Permanently restricted Total Net Assets TOTAL LIABILITIES AND NET ASSETS 12,221,878 859,396 24,900,000 4,432,920 42,414,194 28,027,252 19,686,350 44,850,842 92,564,444 134,978,638 12,218,458 1,839,567 26,300,000 2,877,397 43,235,422 32,695,679 13,129,545 44,015,442 89,840,666 133,076,088 Consolidated Statement of Activities Operating Support and Revenue 2003 2002 Contributions, grants and bequests Membership income In-kind contributions Benefit and special event income, net of direct expenses Admissions Traveling exhibition fees, royalties and other Investment return (including spending amount for operations) Short-term investment income Auxiliary revenues Total Operating Support and Revenue Operating Expenses Museum Programs Exhibition and projects Traveling exhibitions Curatorial and collection maintenance Visitor services Education Auxiliary expenses, including cost of sales Total Museum Program Expenses Supporting Services Management and general Fundraising Total Supporting Services Expenses TOTAL OPERATING EXPENSES TOTAL OPERATING SUPPORT AND REVENUE (UNDER) OVER OPERATING EXPENSES 14,468,927 1,870,092 504,090 399,560 13,581,362 6,270,677 1,137,559 20,949 9,036,904 47,290,120 12,189,714 2,849,116 4,912,342 4,676,921 2,078,271 10,022,785 36,729,149 8,512,141 2,399,035 10,911,176 47,640,325 (350,205) 20,590,649 1,860,095 940,426 710,611 15,862,549 5,100,489 1,126,778 71,663 8,849,671 55,112,931 8,002,652 815,169 7,685,397 6,063,768 1,917,323 9,295,825 33,780,134 9,411,261 2,393,906 11,805,167 45,585,301 9,527,630 Nonoperating Activity 2003 2002 Contributions Write-off of contributions receivable Gain on forgiveness of notes payable and accrued interest Investment return (including spending amount of purchases of art) Realized and unrealized gains on investments Depreciation and amortization Interest and fees related debt Net loss on disposal of fixed assets Loss on write-off of Museum expansion costs Foreign currency translation Change in Net Assets Before Other Changes Change in Net Assets Related to Collection Items Purchased Contributions Proceeds from the sale of art Investment return (including spending amount for purchases of art) Collection items purchased Change in Net Assets NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR 4,852,791 0 0 0 1,801,139 (3,831,662) (1,158,062) (82,605) 0 512,666 1,744,062 801,436 900,000 73,788 (795,508) 2,723,778 89,840,666 92,564,444 5,762,237 (6,617,439) 4,183,227 (3,153,573) 0 (4,090,658) (1,093,945) (742,380) (1,403,243) 319,994 2,691,850 1,821,264 0 256,544 (1,203,269) 3,566,389 86,274,277 89,840,666 Change in Net Asset Balances 2003 2002 Net assets, beginning of year Change in unrestricted net assets Change in temporarily restricted net assets Change in permanently restricted net assets TOTAL CHANGE IN NET ASSETS NET ASSETS, END OF YEAR 89,840,666 (4,668,427) 6,556,805 835,400 2,723,778 92,564,444 86,274,277 10,537,875 (12,090,583) 5,119,097 3,566,389 89,840,666 Notes to the Summary of Financial Highlights Note 1: This summary was prepared by the Solomon R. Guggenheim Foundation ("the Foundation") from its financial statements, which were audited by PricewaterhouseCoopers, LLP. The completed financial statements, including the related notes and auditor's report, are available upon written request. Note 2: The Financial Highlights include the Foundation's accounts in New York City related to the Solomon R. Guggenheim Museum, the accounts maintained in Venice, Italy, for the Peggy Guggenheim Collection, and the accounts maintained in Las Vegas for the Guggenheim Hermitage Museum. Note 3: All debt and equity securities are recorded at fair value determined on the basis of quoted market values. Realized gains and losses arising from the sale or other disposition of investments are determined by the first-in, first-out method. Note 4: Land, building, building improvements and renovations, leasehold improvements and equipment purchases by the Foundation are recorded at cost. Normal repairs and maintenance are expensed as incurred. Depreciation, and amortization of assets under capital leases, is calculated by the straight line method over the estimated useful lives, ranging from 5–50 years, of the related assets. Note 5: In accordance with industry practice, art objects purchased, donated and bequeathed are included in permanently restricted net assets at a value of $1. Note 6: In 1990, the Foundation entered into a loan agreement with the Trust for Cultural Resources ("the Trust") primarily to provide long-term financing of the cost of construction, renovation and equipping of certain of the Foundation's capital facilities. The Trust issued $13,500,000 of 1990 Series A revenue bonds and $41,400,000 of 1990 Series B revenue bonds. The Trust loaned the proceeds of the issuance of the bonds to the Foundation. In 2000, the Foundation's Series A revenue bonds were redeemed. While the bonds are not the debt of the Foundation, the agreement between the Foundation and the Trust obligates the Foundation to make payments equal to the debt service and sinking fund requirements, including any premium on redemption on the bonds. Payment of the principal and interest on the bonds is collateralized by an irrevocable letter of credit issued by a bank. As of December 31, 2003 and 2002 the Foundation was in compliance with the financial covenants of the letter of credit agreement.