Management’s Discussion and Analysis June 30, 2024 and 2023 Capital Projects The university invested $63.0 million in capital projects during fiscal 2024. As previously described, such additions are offset by annual depreciation, disposals, and reclassifications of properties held for sale in deriving the net change in land, buildings, and equipment year over year of $8.0 million. In addition to projects already mentioned, fiscal 2024 included the renewal and expansion of the university’s chiller plants and associated infrastructure; improvements to fields and other athletic amenities; and renovations of certain administrative, clinical, and regional campus facilities. Debt and Other Liabilities Total liabilities increased $2.3 million or 0.3 percent to $877.8 million as of June 30, 2024, from $875.5 million as of June 30, 2023, with increases in various categories partially offset by a decrease in long-term debt. The university’s debt portfolio is comprised of all fixed rate bonds, with no variable-rate debt outstanding. Total debt at par value decreased by $13.9 million to $557.7 million as of June 30, 2024, from $571.6 million as of June 30, 2023, due to regularly scheduled principal payments. Operating lease liabilities increased $10.0 million or 13.0 percent from the prior year, totaling $87.1 million as of June 30, 2024, mainly associated with regional campus and student housing lease extensions completed during the fiscal 2024. Other categories that increased, to a lesser extent, include deferred revenue, accounts payable and accrued expenses. Cash and Investments Lease Assets* Plant Assets, Net All Other Assets Debt All Other Liabilities Lease Liabilities* ASSETS AND LIABILITIES (in millions, June 30) FY 2024 COMPOSITION * Includes finance and operating leases (beginning FY 2021 upon adoption of new accounting standard) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 TOTAL ASSETS TOTAL LIABILITES 46% 43% 4% 7% 66% 10% 24% LIABILITIES ASSETS – 500 1,000 1,500 2,000 2,250 1,750 1,250 750 250 $ $ $ $ $ $ $ $ $ $ 7
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