Investments Investments consist of U.S. government and government agency obligations, debt and equity securities of corporate issuers, and bond mutual funds of Northern Trust Company. Under Statement No. 124, investments in equity securities with readily determinable fair values and all debt securities are measured at fair value with gains or losses included in the statement of operations and changes in net assets. For investments in mutual funds, the fair value is the value that is determined by the fund manager. The estimated fair value of the support and services provided is recorded in the Statement of Operations and Changes in Net Assets as donations of services and support, and as administrative expenses of the foundation in the period in which they are performed. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.
Estimates also affect the reported amounts of revenues and expenses during the reporting period.
Actual results may differ from those estimates. Statement No. 116 requires that contributions received and contributions made be recognized as revenue and as assets, decreases of liabilities or expenses in the period received. Statement No. 116 also contains provisions relating to the classification of revenue and support as either unrestricted, temporarily restricted, or permanently restricted, as appropriate, based upon donor-imposed restrictions. As a private foundation, the Foundation is subject to Federal excise taxes. This tax is reduced to 1 percent for foundations that meet certain distribution requirements.