7. Unpaid Grants
At December 31, 2008, the unpaid grant liability is expected to be paid in future years as follows (in thousands):
| 2009 | $ 188,869 |
|---|---|
| 2010 | 187,846 |
| 2011 | 101,163 |
| 2012 | 73,916 |
| 2013 & thereafter | 34,323 |
| 586,117 | |
| Less amounts representing interest | (40,812) |
| $545,305 |
For grants issued after January 1, 2008, SFAS 157 requires the unpaid portion of future grant payments to be recorded at fair value. For grants issued prior to December 31, 2007 the liability is recorded at the present value of estimated future cash flows. The Foundation discounted the amount of unpaid grant liability by applying interest rate factors ranging from 1.6% to 5.5% and an estimated cancellation rate of 3%. The risk-free rate of return required under SFAS 157 is not materially different from the interest rate factors used. At December 31, 2008, the unpaid grant liability was discounted to present value by approximately $41 million.