Financial Results for Fiscal Year 2016


The University of Chicago ended fiscal year 2016 with an excess of operating revenue over expenses of $43.3 million. The University’s consolidated net assets decreased by $603.3 million to a total of $7.4 billion.

Balance Sheet

The balance sheet of the University as of June 30, 2016, declined when compared to the end of the previous fiscal year, with total assets decreasing by $47.6 million to $14.0 billion. The largest asset category, investments (primarily the endowment), achieved an annual return of –1.9 percent. Land, buildings, equipment, and books, the second largest asset category, increased by $265.3 million. This increase represents funds invested in new construction and capital renewal projects.

Total liabilities increased by $555.7 million to $6.6 billion. The largest increase was in notes and bonds payable—also related to capital activity—which grew by $327 million to $4.5 billion. Balance sheet categories are shown in figure 1.

Net assets decreased by $603.3 million, from $8.0 billion to $7.4 billion, during fiscal year 2016. The major driver of this decline was investment returns, generated primarily from the endowment, which were insufficient to support the endowment payout. Other factors included an increase in the pension and post-retirement benefit obligation, primarily driven by a sharp decrease in the discount rate, offset by an increase in non-operating gifts and gift pledges.

Results of Operations

The $43.3 million excess of operating revenue over expenses was driven by operating revenue and by expenses of approximately $3.8 billion. Increases in operating revenue over the previous year were primarily attributable to increases in patient services revenue, endowment payout, and the one-time sale of local real estate assets. Growth in expenses was primarily due to increases in interest and depreciation, and higher compensation expenses. The components of operating revenue and expenses are shown in figures 2 and 3.

Audited Financial Statements

The University’s fiscal year 2016 financial statements were audited by KPMG LLP. The complete audited financial statements for fiscal year 2016 are available online at or by writing to Financial Services, The University of Chicago, 6054 South Drexel Avenue, Chicago, Illinois 60637.

The balance sheet, summary, and components of operating revenue and expenses have been excerpted from the audited financial statements.

Consolidated Statements of Activities (PDF)
Consolidated Balance Sheets (PDF)