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Annual Report ANNUAL 3116 REPORT OQS!QsftjefouÖt!Dpvodjm 3 Mfuufs!gspn!uif!DFP From the battlefields of Iraq to the political battles of Washington to the cultural and personal stories that fill our communities, the challenges of providing balanced, thoughtful and in-depth journalism have never been greater. In 2005, no event more sharply defined these challenges than Hurricane Katrina – a story that spanned the terrible human drama of the storm; broad issues of urbanization, class and race that punctuated the efforts to rebuild New Orleans; and questions of government and civic accountability. Throughout the storm and its aftermath, NPR ® journalists told this narrative through direct, strong and personal reporting. Since then, our commitment to chronicling this national tragedy has never wavered. NPR remains one of the few national news organizations to maintain a bureau in the Gulf region, and we have dedicated extensive resources to continue bringing the voices of local citizens to the national dialogue. The New Orleans Times-Picayune media columnist stated, “I’ve written this again and again: NPR is the go-to network for the best broadcast news coverage of our ongoing crisis.” The year was also marked by radical changes in the sources of news and information available to the public. Many media institutions reduced their investments in journalism or consolidated their assets. NPR rose to serve the public interest with the completion of a three-year strategic news expansion that added more journalists, beats, investigative reporting and bureaus worldwide. In 2005, NPR also extended its public service mission to reach new and more diverse listeners through new media and was recognized for its leadership, along with its Member stations, in such emerging media platforms as podcasting, on-demand and digital HD Radio. Now, NPR has joined with our Member stations and our other partners in public broadcasting in a series of collaborative initiatives to strengthen local stations’ news operations and create a comprehensive approach to news coverage that spans regional, national and international reporting. Through these efforts, NPR and the public radio system will seek to fill the void in the changing media landscape and answer the public demand for relevant, thoughtful journalism. Ultimately, our success is measured by our value to the public, our peers and our supporters. In 2005, NPR programming attracted a record 26 million listeners weekly – double our audience from only seven years ago. NPR’s work was recognized with such professional honors as the George Foster Peabody Award for our Iraq coverage, Alfred I. duPont-Columbia University Award, Sigma Delta Chi Award, InterAction Award for Reporting Excellence in Humanitarian Issues, Investigative Reporters and Editors Award, American Academy for the Advancement of Science Award and an Edward R. Murrow Award from the Radio and Television News Directors Association. These efforts and achievements were supported by contributions from countless foundations, corporations and individuals. Your faith in the value of in-depth, fact-based journalism and civil discourse, and in NPR and public radio, is recognized and valued every day. Ken Stern Chief Executive Officer 4 Boovbm!Sfqpsu!3116 PVS !NJTTJPO OQS !JT /// The mission of NPR is to work in Since its launch in 1970, NPR NPR News has been honored with partnership with member stations has evolved into a major media every major journalism award for to create a more informed public — organization, primary news provider its in-depth, objective reporting, one challenged and invigorated and dominant force in American life. investigations, special series and by a deeper understanding and features. Through a multi-year appreciation of events, ideas and In 2005, a record 26 million listeners expansion, NPR News has further cultures. To accomplish our mission, weekly tuned in to NPR programs. strengthened its resources and we produce, acquire, and distribute More than 800 public radio stations, increased staffing, added new programming that meets the highest throughout all 50 states, bring NPR beats and grew its domestic and standards of public service in to their local communities; more than foreign bureaus. In 2005, NPR had journalism and cultural expression; 99 percent of Americans live in an area correspondents in 36 cities worldwide; we represent our members in matters served by an NPR Member station. among NPR’s new bureaus are Cairo, of their mutual interest; and we provide Dakar and Hanoi. This year, NPR satellite interconnection for the entire NPR produces and/or distributes also launched an initiative to identify public radio system. more than 1300 hours of news, and develop the next generation of information, cultural and entertainment outstanding public radio journalists programming weekly. These include through the year-long Kroc Fellowship the flagship daily news magazines Program, one of the NPR News Morning Edition ® and All Things initiatives made possible by a Considered ®, which rank among the 2003 bequest from Joan B. Kroc, most listened to programs on U.S. philanthropist and widow of radio; the midday news magazine McDonald’s Corporation founder Day to Day SM ; News & Notes, the Ray A. Kroc. daily news and information program exploring African-American issues, NPR.org extends the organization’s and the news talk shows Talk of the journalism and public service mission Nation ®, Fresh Air ® and The Diane through hourly online newscasts, Rehm Show. NPR’s cultural and audio streaming and comprehensive entertainment slate includes the NPR archives. NPR.org also offers hit humor shows Car Talk ® and original-to-Internet programming, Wait Wait…Don’t Tell Me! ® as well as including online columns, the music such music programs as World Café ®, show All Songs Considered SM and From the Top and Sacred Classics . live streaming concerts featuring In 2005, NPR also offered a live top musical artists. In 2005, NPR broadcast of the American opera and public radio stations began Porgy & Bess and the “Higher Ground” podcasting, creating a variety of Hurricane Katrina relief concert, in on-demand content and a shared partnership with WBGO Jazz 88.3FM. directory for public radio fans to Sirius ® Satellite Radio features NPR Now SM find a wide range of quality titles. and NPR Talk SM , two 24/7 channels offering a variety of shows from NPR’s reach is global: The 24/7 NPR NPR and other public radio producers. Worldwide service offers NPR news, A leader in the research and information, cultural and entertainment development of the new digital shows to listeners in more than 150 HD Radio technology, NPR distributes countries through satellite and digital five 24/7 multicast music channels in radio, and also reaches members of jazz, folk, electronica, classical and the military and their families through AAA formats. American Forces Radio. 5 OQS!Gjobodjbmt Tubufnfou!pg!Bdujwjujft! sfwfovft Membership dues $ 2,197,733 SFWFOVF Station Programming Fees 60,648,575 Membership Dues : 1% Grants, Contributions & Sponsorships 1 57, 591,380 Distribution Services 18,189,821 Other Revenues 2 20,404,198 Total Revenues 159,031,707 Station Programming Fees : 39% fyqfotft News & Information 56,705,465 Distribution & Satellite System Replacement 19,430,612 Engineering 13,677,584 Programming 12,033,111 NPR Foundation : 3% Online 4,977,671 Distribution Services : 11% Consumer Products 2,077,713 Development 3 4,454,630 Member & Program Services 3,473,171 Support Services 24,491,523 Total Expenses 141,321,480 Grants, Contributions : 33% & Sponsorships Change in Net Assets From Operation 17,710,227 Unrealized gain on swap contracts 1,233,577 Change in Net Assets 18,943,804 Donated Goods & Services : 1% ofu!bttfut-!cfhjoojoh!pg!zfbs 318,373,174 Investment Income : 9% ofu!bttfut-!foe!pg!zfbs $337,316,978 Other Revenue : 3% 1 Includes $4.1M in gifts to the NPR Foundation and $1.2M in donated goods & services. 2 Includes investment income of $15.1M. 3 Includes expenses of $866K for the NPR Foundation. Tubufnfou!pg!Gjobodjbm!Qptjujpo dvssfou!bttfut Cash and cash equivalents $ 8,989,631 Investments 25,250,784 Receivables 13,942,730 FYQFOTFT Prepaid and Other Assets 3,921,608 Development : 2.5% Total Current Assets 52,104,753 Property and Equipment, NET 46,677,864 puifs!bttfut Long term investments 299,298,269 News & Information : 40.1% Long term receivables 9,125,438 Deferred financing costs 776,392 Total Other Assets 309,200,099 upubm!bttfut 407,982,716 Member & Program Services : 2.5% Engineering : 9.7% mjbcjmjujft!boe!ofu!bttfut Current Liabilities Online : 3.5% Accounts payable 4,111,985 Current portion of long term debt 1,200,000 Distribution Services : 13.7% Accrued Expenses 11,573,629 NPR Foundation : 0.6% Accrued interest payable 164,803 Programming : 8.5% Deferred revenues 4,910,412 Total Current Liabilities 21,960,829 Support Services : 18.8% Non-Current Liabilities Other accrued expenses, Long-term 3,473,404 Notes payable, Long-term 2,880,000 Bonds Payable, Long-Term 40,500,000 Interest Rate Swap Contracts 1,851,505 Total Non-Current Liabilities 48,704,909 Total Liabilities 70,665,738 Net Assets 337,316,978 ! upubm!mjbcjmjujft!boe!ofu!bttfut $407,982,716 6 OQS!Pggjdfst!'!Cpbse!pg!Ejsfdupst CPBSE !PG !EJSFDUPST Lyle Logan OPO .CPBSE 0! Senior Vice President DPNNJUUFF !NFNCFST ! Cephas Bowles Illinois Personal Financial Services General Manager, WBGO-FM The Northern Trust Company Dennis Hamilton Newark, NJ Chicago, IL Hamilton Consulting Roseville, MN Carol Cartwright Ellen Rocco President, Kent State University Station Manager, WSLU-FM Carol Pierson Kent, OH North Country Public Radio President and CEO, NFCB Canton, NY Oakland, CA Tim Eby Radio Manager, The WOSU Stations John Stark Steve Rowland Columbus, OH General Manager, KNAU-FM, Independent Producer, CultureWorks Arizona Public Radio Philadelphia, PA Rob Gordon Flagstaff, AZ President & General Manager Dale Spear Nashville Public Radio – WPLN-FM Howard H.
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