Vanderbilt University 2015
Endowment net assets as of June 30, 2014 Endowment investment return: Investment loss, net of fees Net appreciation (realized and unrealized) Total endowment investment return Gifts and additions to endowment, net Endowment distributions Transfers for internal management costs Other Endowment net assets as of June 30, 2015
Unrestricted $ 1,605,501
Temporarily Restricted $ 1,360,306
(2,097) 56,383 54,286
(3,651) 98,152 94,501
27,291 (60,139) (3,604) (1,013) $ 1,622,322
5,134 (104,692) (6,273) (1,762) $ 1,347,214
Permanently Restricted $ 1,080,443 43,409 $ 1,123,852
Total $ 4,046,250 (5,748) 154,535 148,787 75,834 (164,831) (9,877) (2,775) $ 4,093,388
9. Property, Plant, and Equipment Vanderbilt reports property, plant, and equipment at cost or, if a gift, at fair value as of the date of the gift, net of accumulated depreciation. Vanderbilt computes depreciation using the straight-line method over the estimated useful lives of the assets.
Vanderbilt did not capitalize interest in either fiscal 2016 or fiscal 2015 due to immateriality. Vanderbilt capitalized internal-use software development costs of $0.6 million in fiscal 2015. Vanderbilt reviews property, plant, and equipment for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The university recognizes an impairment loss only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Vanderbilt booked impairment losses of $5.0 million in fiscal 2015, related to property, plant, and equipment.
Property, plant, and equipment as of June 30 were as follows (in thousands):
Land Buildings and improvements Moveable equipment Construction in progress Property, plant, and equipment Less: Accumulated depreciation Property, plant, and equipment, net
2016 80,443 1,406,725 287,352 121,831 1,896,351 952,367 $ 943,984
$
2015 72,226 1,364,838 274,859 65,360 1,777,283 895,796 $ 881,487
$
Vanderbilt identified conditional asset retirement obligations, primarily for the costs of asbestos removal and disposal, resulting in liabilities of $3.2 million and $4.2 million as of June 30, 2016 and 2015, respectively. These liability estimates, included in accounts payable and accrued liabilities in the consolidated statements of financial position, use an inflation rate of 4.0% and a discount rate of 5.0% based on relevant factors at origination.
Purchases for the library collection are not included in the amounts above since Vanderbilt expenses them at the time of purchase. As of June 30, 2016, the estimated replacement cost for library collections, including processing costs to properly identify, catalog, and shelve materials, totaled $398 million.
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