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News Release

December 18, 2009


Lisa Lapin, University Communications: (650) 725-8396,

Stanford University reports FY2009 financial results

Stanford University reported its financial results for fiscal year 2009 (FY2009), which ended Aug. 31, 2009. Consolidated net assets decreased $4.9 billion, or 20%, to end the year at $19.9 billion. The decrease in net assets was due to a decline in the value of Stanford's investments. Consolidated results include the university, Stanford Hospital and Clinics and Lucile Packard Children's Hospital. Net assets include the value of the endowment, expendable funds, plant facilities and other assets, less debt and other liabilities.

Net assets of the university, excluding the hospitals, decreased $4.7 billion, or 21%, to $18 billion. The university's endowment declined by $4.6 billion, or 27%, ending at $12.6 billion as of Aug. 31. Payout from the endowment in support of operations increased 9 percent to $957 million. Endowment payout supported approximately 31 percent of operating expenses in FY2009, compared to 28 percent in FY2008.

Due to a number of factors, including early budget cuts, the university ended the year with a surplus from operations of $362 million on revenues of $3.5 billion.

"As the financial downturn unfolded, expenses were reduced in anticipation of lower revenues in fiscal year 2010 and thereafter," said Randy Livingston, vice president for business affairs and chief financial officer. "While expenses declined during the year, the endowment payout had been fixed before the financial downturn. The operating surplus will likely decrease in the next few years, as the endowment payout is reduced, budget reductions are implemented and the effects of the market decline on the University's operations are felt more fully."

The net assets of the hospitals, which are each separate legal entities, decreased $289 million to $1.9 billion in FY2009. The hospitals had a combined operating surplus of $147 million.

FY2009 results were reported to the university's Board of Trustees on Dec. 7. The results will be summarized on the Stanford bondholder web pages ( and distributed through Stanford's annual report, which is scheduled to be published online in January.

Information in this press release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements." In this respect, the words "estimate," "project," "anticipate," "expect," "intend," "believe" and similar expressions are intended to identify forward-looking statements. A number of important factors affecting the university's business and financial results could cause actual results to differ materially from those stated in the forward-looking statements.


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