The Robert Wood Johnson Foundation | Annual Report 2004

6. Property and Equipment

At December 31, 2004 and 2003, property and equipment, a component of other assets, consisted of (in thousands):

	2004	2003	Depreciable Life in Yrs.
Land and land improvements	$2,761	$2,761	15
Buildings	49,901	49,866	40
Furniture and equipment	21,374	17,519	3-5
Total	74,036	70,146
Less, Accumulated depreciation and amortization	(18,342)	(12,324)
Property and equipment, net	$55,694	$57,822

7. Unpaid Grants

At December 31, 2004, the unpaid grant liability is expected to be paid in future years as follows (in thousands):

2005	$254,387
2006	133,286
2007	60,649
2008	22,859
2009 and thereafter	9,367
	480,548
Less, discounted to present value	(36,038)
	$444,510

Generally accepted accounting principles require contributions made (“unpaid grants”) to be recorded at the present value of estimated future cash flows. As of December 31, 2004, the Foundation has discounted the amount of unpaid grant liability by applying interest rate factors ranging from 4.75 percent to 6.5 percent and an estimated cancellation rate of 3 percent. At December 31, 2003, the unpaid grant liability was discounted to present value by $52,154.

6. Property and Equipment

Total

Less, Accumulated depreciation and amortization

7. Unpaid Grants

Less, discounted to present value