NOTE 3: STATEMENT OF NET POSITION DETAILS

a. Accounts receivable: The composition of accounts receivable at June 30, 2015, is summarized as follows:

ACCOUNTS RECEIVABLE (in thousands)
Patient care $581,778
Grants and contracts 29,059
Student payments 22,691
Pledges 3,160
Institutional loans 709
Build America Bonds rebate 895
Bond requisitions 2,502
Equipment Trust Fund reimbursement 12,869
Auxiliary 1,663
Related foundations 25,482
Service concession arrangements 7,600
Other 44,451
Less: Allowance for doubtful accounts (413,883)
TOTAL ACCOUNTS RECEIVABLE $318,976

b. Notes receivable: The principal repayment and interest rate terms of federal and University loans vary considerably. The allowance for doubtful accounts only applies to University-funded notes and the University portion of federal student loans, as the University is not obligated to fund the federal portion of uncollected student loans. Federal loan programs are funded principally with federal advances to the University under the Perkins and various other loan programs. The composition of notes receivable at June 30, 2015, is summarized as follows:
NOTES RECEIVABLE (in thousands)
Perkins $19,221
Nursing 1,074
Institutional 20,510
Fraternity loan 1,868
House Staff loan 4
Less: Allowance for doubtful accounts (1,468)
Total notes receivable, net 41,209
   Less: Current portion, net of allowance (7,007)
TOTAL NONCURRENT NOTES RECEIVABLE $34,202

c. Pledges and other receivables: As discussed in Note 1, permanent endowment pledges do not meet eligibility requirements, as defined by GASB requirements, until the related gift is received. Accordingly, permanent endowment pledges totaling $13.9 million and $16.2 million at June 30, 2015, and June 30, 2014, respectively, are not recognized as assets in the accompanying financial statements. In addition, bequest intentions and other conditional promises are not recognized as assets until the specified conditions are met because of uncertainties with regard to their realizability and valuation. The composition of pledges and other receivables at June 30, 2015, is summarized as follows:
PLEDGES AND OTHER RECEIVABLES (in thousands)
PLEDGES AND OTHER RECEIVABLES OUTSTANDING  
  Gift pledges - Operations $4,571
  Gift pledges - Capital 3,896
  Service concession arrangements 23,050
TOTAL PLEDGES AND OTHER RECEIVABLES 31,517
Less:  
  Allowance for uncollectible amounts (981)
  Unamortized discount to present value (3,909)
Total pledges and other receivables, net 26,627
Less: Current portion, net of allowance (10,294)
TOTAL NONCURRENT PLEDGES RECEIVABLE $16,333

d. Capital assets: The capital assets activity for the year ended June 30, 2015, is summarized as follows:

CAPITAL ASSETS (in thousands)
BEGINNING BALANCE
JULY 1, 2014
INCREASES DECEASES ENDING BALANCE
JUNE 30, 2015
NONDEPRECIABLE CAPITAL ASSETS        
Land $54,863 $1,490 $- $56,353
Construction in progress 285,657 161,676 (297,428) 149,905
Software in development 724 243 (570) 397
TOTAL NONDEPRECIABLE CAPITAL ASSETS 341,244 163,409 (297,998) 206,655
DEPRECIABLE CAPITAL ASSETS        
Buildings 3,404,216 261,082 (1,921) 3,663,377
Equipment 761,152 197,889 (25,775) 933,266
Infrastructure 445,766 17,827 - 463,593
Improvements other than buildings 159,083 154 (524) 158,713
Capitalized software 164,750 10,180 (2) 174,928
Library books 120,521 4,006 (1,103) 123,424
Total depreciable capital assets 5,055,488 491,138 (29,325) 5,517,301
Less: Accumulated depreciation for:        
Buildings (1,177,686) (108,445) 1,333 (1,284,798)
Equipment (522,469) (128,676) 29,884 (621,261)
Infrastructure (181,071) (13,151) - (194,222)
Improvements other than buildings (110,788) (6,379) 25 (117,142)
Capitalized software (114,359) (14,585) - (128,944)
Library books (100,387) (4,423) 1,103 (103,707)
Total accumulated depreciation (2,206,760) (275,659) 32,345 (2,450,074)
TOTAL DEPRECIABLE CAPITAL ASSETS, NET 2,848,728 215,479 3,020 3,067,227
TOTAL CAPITAL ASSETS, NET $3,189,972 $378,888 $(294,978) $3,273,882

e. Goodwill: In July 2004, the Medical Center purchased Virginia Ambulatory Surgery Center, now known as Virginia Outpatient Surgery Center. As a result of the purchase, the Medical Center recorded $6.9 million of goodwill to be amortized over a period of forty years.

In November 2004, the Medical Center purchased Amherst and Lynchburg renal facilities. As a result of the purchase, the Medical Center recorded goodwill of $3.4 million and $4.0 million, respectively. The goodwill is to be amortized over a period of twenty years.

f. Deferred outflows of resources: The composition of deferred outflows of resources on June 30, 2015, is summarized as follows:

DEFERRED OUTFLOWS OF RESOURCES (in thousands)
Interest rate swap derivative $648
Deferred loss on early retirement of debt 48,979
Pension 38,546
TOTAL DEFERRED OUTFLOWS OF RESOURCES $88,173

g. Accounts payable and accrued liabilities: The composition of accounts payable on June 30, 2015, is summarized as follows:
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (in thousands)
Accounts payable $73,347
Accrued salaries and wages payable 84,300
Due to related foundations 30,999
Other payables 134,581
TOTAL ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $323,227

During the year ended June 30, 2015, the University offered an early retirement incentive program for Academic Division and College at Wise staff employees who met certain age and state service requirements. Program benefits included cash severance and health care subsidy payments for retirements occurring through October 1, 2015. One hundred seventy-seven employees elected to participate in the program. The cost of the termination benefits was approximately $10.3 million which is included in accrued salaries and wages payable.

h. Unearned revenue: The composition of unearned revenue on June 30, 2015, is summarized as follows:
UNEARNED REVENUE (in thousands)
Grants and contracts $45,691
Student payments 14,945
Medical Center unearned revenues 3,291
Other unearned revenues 22,130
TOTAL UNEARNED REVENUE $86,057

i. Deferred inflows of resources: The composition of deferred inflows of resources on June 30, 2015, is summarized as follows:

DEFERRED INFLOWS OF RESOURCES (in thousands)
Service concession arrangements $72,970
Pension 87,665
TOTAL DEFERRED INFLOWS OF RESOURCES $160,635

During the year ended June 30, 2015, the University entered into an agreement with Aramark Educational Services, LLC (Aramark) for Aramark to provide dining services to the University. In return for use of University facilities, Aramark is required to make certain payments to the University and the University is required to provide certain repair and maintenance services related to the facilities during the term of the agreement. In accordance with GASB requirements, as of June 30, 2015, the University has accrued a $19.9 million receivable, a $13.5 million liability and a $73.0 million deferred inflow of resources related to the service concession arrangement.