New York Society for the Relief of the Ruptured and Crippled, Maintaining

the Hospital for Special Surgery

FINAN IAL STATEMENT (unaudited)

December 1

Other

York Society for the Relief of the Ruptured and Crippled, Maintaining

the Hospital for Special Surgery

Statements of Financial Position

(Unaudited) December 31

2015

(Audited) December 31

2014

$

(In Thousands)

89,867

94,286 17,138 18,413

129,837

391,631 8,157 5,812

13,589

$ 72,926

86,147 21,555 17,633

125,335

353,699 7,133

12,129

Liabilities and net assets Current liabilities:

(Unaudited) December 31

2015

$ 64,271 38,808 39,852

3,125 17,138 23,030

186,224

278,411

(Audited) December 31

2014

$ 60,328 33,130 31,557

3,649 21,555 24,692

174,911

279,268 59,507

$

$

(Unaudited) (Audited) Year Ended December 31 2015 2014

(In Thousand.\~

820,689 145,138

16,343 982,170

387,836 120,132 325,973

8,201 54,417

8,821 905,380

76,790

31,813

39,006 (7,193)

8,091 6,748

84,436

807 85,243

$

$

759,497 129,554

17,374 906,425

358,290 111,849 310,909

9,697 53,696

8,517 852,958

53,467

29,348

34,385 (5,037)

2,671 33,445

84,546

84,546

$ 419,720 $

85,243

subsidiary

3,363

Quasi-

New York Society for the Relief of the Ruptured and

the Hospital for

Statement

Year Ended December 3 I, 2015

Interest in Total

3,719 $ $ 423,439 $

85,243

2,572 2,572

(807) (807)

3,363

Total Temporarily Permanently

53,103 $ 43,974 $ 66,595 $ 163,672 $ 114,567 $ 701,678 85,243

2,572

(807)

3,363

at December Operating Income

assets released from restrictions for capital

New York for the Relief of the Ruptured and Crippled, Maintaining

the Hospital for Special Surgery

Statement of Changes in Net Assets

Year Ended December 3 1 , 2 0 14

Unrestricted Temporarily Restricted Total Temporarily

Restricted Unrestricted Endowment Total

Unrestricted

$ 376,479 $

84,546

6,605

1,889

- $ 376,479 $

84,546

6,605

1,889

Specific Purpose

48,378 $

Plant

42,260 $

7,169

Research

60,390 $

Permanently Restricted

151,028 $ 102,346 $

57,605

Total

629,853 84,546

6,605

1,889

69,826

Year Ended December 31 2015 2014

Thousands)

100,856 $ 71,825

(8,091) (2,671) 383

57,603 55,724 (329) (360)

4,319 46,799

(6,931) (7,641) (6,241) (9,311) (12,221)

~net (10,768) (7,169) (22,000) (30,790)

(8,919) (13,848) 1,074

(2,311) 5,465 accrued salaries

9,621 27,415 (524) 1,272

27,887 21,774 (4,266) (1,644)

133,182 149,473

(136,721) (71,046) (43,133) (66,437) 35,767 (59,137)

(144,087) (196,620)

(36,769) (26,635) 44,536 90,393

net 10,768 7,169 9,311 12,221

27,846 83,148

16,941 36,001 72,926 36,925

$ 89,867 $ 72,926

for the R,elief of Crippled, Maintaining

Special

5

Presentation and Significant Accounting Policies

New York Society for the Relief uuvvu.u Surgery (the "Hospital") and

but do not include the Hospital's Corporation ("Properties"), The Hospital for

Ventures, Inc. and

have read or have access to the additional disclosures needed for

management to be of

seasonal variations caused by a climate and weather conditions,

0lvHUl0 and other factors relating to the Monthly operating results are not necessarily

reasons, including levels of occupancy and items and other seasonal

6

for the of Crippled, Maintaining

Special

5

""',:,"",.."'"uvu and Significant Accounting Policies (continued)

U.S. generally accepted estimates and assumptions that affect the

uncollectibles for accounts receivable for to third-party payors, and the

financial statements. Estimates during the reporting period. The

to third-party payors, among results could differ from those

on estimates and assumptions are should not have a material impact

rsu~u.suuvu exempt ft01n Federal income tax under Section exempt from New York state and local income taxes.

months ended December 31, 2015 percentage of the non-controlling

an1ount is reflected in unrestricted net

6, which is the date the financial require disclosure in or

for the Relief Crippled, Maintaining

Special Surgery

Statements

15

actions opinion

effect on

out of the normal course of its ultimate liability, if any, with

financial position,

defined benefit pension plan for Pension expense pertaining to the

and $20.3 million, respectively,

value, the Hospital measures fair value an asset or paid to transfer a liability in an

at the measurement date. Fair value

prioritizes observable are described

on not

perspective.

level at which the other accounting

unobservable inputs

at the measurement highest priority to

active markets, but

is available. The fair

for the Crippled,

Special

Statements

5

the valuation hierarchy is based upon the lowest measurernfnt. In determining fair value, the

LLLUAlHHL"-" the use of observable inputs and minimize the

benefit below

Levell

$ 124,329 22,539

181,060 121,914 109,134 42,635 25,824

$ 627,435

9

Level2

$ -

-

--

13,815 12,157

33,644 22,646

$ 82,262

nonperformance risk in its

$

$

at fair value as of categories described

Level3 Total

·- $ 124,329 22,539

·- 181,060 121,914 109,134 42,635 25,824

- 13,815 -- 12,157

33,644 - 22,646

3,086 3,086 3,086 $ 712,783

for the Relief

'UVUUV'"" benefit below

$

$ 631

carried at fair value as of the three categories described

$

Total

$ 145,615 15,926

204,365 129,206 112,670 23,773

13,405 12,978 20,353 16,651

domiciled in the United

'"on-term debt securities, deposit.

unvuH.HJ.V.lHU equity mutual fhnds and exchange

10

for the Relief Crippled, Maintaining

Special

Statements (continued)

5

HHHllLU..lU.:> a diverse portfolio of short­mortgage backed security, U.S.

credit quality (average Aa2/ AA-) fixed income mortgage and asset backed

with u.u5 .tur, frmn three months to

trust common of corporations

domiciled outside of the United

traded equity holdings with both

returns largely independent of ..., .. U.UV.lh~ to domestic stock and bond markets.

relative value and various

L'ti"DC'C'e>rl debt 1"'\<:lrlr\Ai"C'htr"\C'

alternative investlnents in the defined benefit therefore, are not included in the

valuation methodologies for assets measured at fair market prices. Fair value for Level 2 is based

markets, quoted prices for identical or similar techniques for which all

11

for the of Crippled, Maintaining

Special

market or can be corroborated by observable

+1Y\.Flftf"'>1r:tl

2

are obtained from various sources, assets consist of private equity

which is described in the table that tnay not be indicative of net

Hospital believes its market participants, the use of

of certain financial reporting date.

hierarchy defined

Fair Value Measurements Using Significant

Unobservable Inputs (Level3) Alternative

InvestJnents Total 12/31/15 12/31/14

Thousands)

$ $ 3,250 244 329

(687) (50)

$ 244 $ 329

., for the Relief of Crippled, Maintaining

Special Surgery

uu.uu.n. ... u Statements

5

"""'"''L''-''llL>J, including alternative investments reported using the on the Hospital's ability to redeem its investments at

commitments and investments strategies of the UCV.LUAVUo benefit

Unfunded Redemption Fair Value Commitments Notice Period Funds Availability

18 n/a 0-30 davs 1 month to 3 years

14-120 davs 1 week to 1.5 years

11.762 45-180 days 3 months to 3 years

60-120 davs 6 months to 2 years

n/a 0-45 days 3 months to 7 months

9 months to 9.5 years --

14

3

5

are not required

12/31/15 12/31/14

Value Carryi~g

Value

$ 318,263

lS V_1,\.4o...7>J.lA.J..V"---

$

Fair Value

Carrying Value

$ 310,825

flow analysis, using 2 within the valuation

certain donors (the . receive distributions from the

probate administration process is finalized. As ,.,,H .... UJcALH .• ...., ...... a reserve for potential liabilities against the

reserve is contingent upon the resolution of any

14

revenue from the ended Decen1ber 31, 2015 and

Relief of

Manhattan, LLC (The ASC). early 2017.

5