(10) Retirement Plans
Under a contributory retirement plan providing for purchase of annuity contracts with Teachers Insurance and Annuity Association-College Retirement Equities Fund, retirement benefits are provided for all eligible employees. Employees are eligible to participate in the plan after one year of service. All plan participants are vested in the contributions made. In addition, PBS had a nonqualified supplemental retirement plan for certain members of management. The plan was terminated and funds were disbursed as of June 30, 2000. Pension expense related to the plans amounted to approximately $2.8 million in 2001 and $2.5 million in 2000.

(11) Commitments
(a)Leases
Effective July 1, 1992, PBS renegotiated the lease on its office space, resulting in an extension of the lease term, a reduction in the lease rate and a rent inducement payment to PBS of $1.6 million. PBS also entered into new leases in fiscal 1993 and 1997 for additional office space, resulting in additional lease incentives. These incentives are accounted for as deferred lease benefits in the accompanying consolidated statements of financial position and are amortized as necessary to recognize lease expense on a straight-line basis over the life of the lease.

PBS is obligated under various noncancelable operating leases for office space, automobiles, and storage and technical facilities in approximate annual amounts, excluding renewal options available after 2001, as follows (in thousands):

2002		3,161
2003		3,180
2004		3,335
2005		3,079
2006		$ 2,053
		$14,808

Rent expense amounted to approximately $4.2 million and $3.9 million in 2001 and 2000, respectively.

(b)Programming
PBS has current unpaid program commitments of $34 million that have not yet been made available for broadcast. These commitments will be funded primarily from the designated National Program Service net assets.

PBS has made future-year program commitments to producers of approximately $45 million. PBS's member stations and the Corporation for Public Broadcasting are obligated to fund these program commitments.

(12)Contingencies
PBS is a party to various claims, legal actions and complaints arising from its distribution of programming to member stations and from its video marketing and other operations in the ordinary course of business. PBS is generally indemnified contractually by program producers and is also covered by insurance, subject to a deductible amount, for any claims that might be payable by PBS as a result of its distribution of programs to stations. Management believes, based upon advice of counsel, that the disposition of these matters will not have a material adverse effect on the consolidated financial position of PBS.

PBS receives a portion of its revenue from contracts and grants which are subject to audit by the granting agencies. The ultimate determination of amounts received under these contracts and grants generally is based upon allowable costs required to be reported to and audited by the grantor. Until such audits have been completed and final settlement reached, there exists a contingent liability to refund any amounts received in excess of allowable costs. Management is of the opinion that no significant liability will result from audit adjustments, if any.

END

There are five parts to the financial statements.
Click on a link below to go to that section.

1. Independent Auditors’ Report
2. Consolidated Statements of Financial Position
3. Consolidated Statements of Activities
4. Consolidated Statements of Cash Flows
5. Notes to Consolidated Financial Statements
   (6 pages, page 6 of 6 above)

2001
PRIMETIME
EMMYS
Also honored were American High, which found a home on PBS after FOX canceled the series, and "Photo Booth" an image spot produced for PBS by @radical.media and Fallon Minneapolis.

"Photo Booth"
image spot