2011 Annual Report - National Gallery of Art

5. INVESTMENTS
As of September 30, 2011 and 2010, the fair value of investments consisted of the following:
2011 2010
Loan to the U.S. Treasury $ 5,000 $ 5,000
Common and preferred stocks 71,813 78,480
Mutual funds 116,050 147,330
Alternative investments 417,599 399,678
Total $ 610,462 $ 630,488
In 1942, the Gallery, under authority of an Act of Congress, made a $5,000 permanent loan to the U.S. Treasury. This loan bears
interest at the higher of 4.00% or 0.25% below the average monthly rate for long-term funds paid by the U.S. Treasury (4.00% during
fiscal year 2011). Interest income on this loan was $203 and $204 for the fiscal years ended September 30, 2011 and 2010, respectively.
Investments in common and preferred stocks and mutual funds, limited partnerships and limited liability companies consist of the
Gallery’s ownership interest in externally managed investment funds, which invest in market-traded equity and fixed income securities.
Alternative investments also include the Gallery’s ownership interest in externally managed private equity, venture capital, multiasset
class, and hedge funds which are organized as limited partnerships.
The following schedule summarizes the investment return and its classification in the statement of activities for the years ended
September 30, 2011 and 2010:
TEMPORARILY PERMANENTLY 2011 2010
UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL
Dividends and interest (net of expenses of
$3,540 and $3,127, respectively) $ 166 $ 3,939 $ – $ 4,105 $ 3,205
Net investment appreciation 266 (262) – 4 55,965
432 3,677 4,109 59,170
Appropriated for operations (2,654) (11,714) – (14,368) (14,283)
Investment return in excess of amount designated for operations $ (2,222) $ (8,037) $ – $ (10,259) $ 44,887
6. INVENTORY AND OTHER ASSETS
NATIONAL GALLERY OF ART 57
As of September 30, 2011 and 2010, net publications inventory consisted of the following:
2011 2010
Retail $ 1,558 $ 1,229
Work-in-process 175 141
Consignment 248 228
Subtotal 1,981 1,598
Less: allowance for obsolescence (382) (384)
Subtotal Inventory 1,599 1,214
Other Assets 3,441 3,551
Total $ 5,040 $ 4,765
Other assets include real and personal property with an estimated fair value of $2,820 net of estimated selling costs in accordance
with ASC Topic 360 “Property, Plant and Equipment.”