The Henry J. Kaiser Family Foundation - … HENRY J. KAISER FAMILY FOUNDATION See accompanying notes. Page 3 STATEMENTS OF FINANCIAL POSITION December 31, 2014 and 2013 2014 2013 Cash

Report of Independent Auditors and

Financial Statements

The Henry J. Kaiser Family Foundation

December 31, 2014 and 2013

CONTENTS

PAGE

REPORTOFINDEPENDENTAUDITORS..........................................................................................................................................................................................1

FINANCIALSTATEMENTS

Statementsoffinancialposition....................................................................................................................................................................................................3

Statementsofactivitiesandchangesinnetassets................................................................................................................................................................4

Statementsofcashflows..................................................................................................................................................................................................................5

Notestofinancialstatements.........................................................................................................................................................................................................6

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REPORTOFINDEPENDENTAUDITORSTotheBoardofTrusteesTheHenryJ.KaiserFamilyFoundation

ReportonFinancialStatements

We have audited the accompanying financial statements of The Henry J.Kaiser Family Foundation (the“Foundation”),whichcomprisethestatementsoffinancialpositionasofDecember31,2014and2013,andtherelatedstatementsofactivitiesandchangesinnetassetsandcashflowsfortheyearsthenendedandtherelatednotestothefinancialstatements.

Management’sResponsibilityfortheFinancialStatements

Management is responsible for the preparation and fair presentation of these financial statements inaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludesthedesign, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free frommaterialmisstatement, whether due to fraud orerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudits.WeconductedourauditsinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of TheHenry J.Kaiser Family Foundation as of December31, 2014 and 2013, and thechanges in its net assets and its cash flows for the years then ended in accordance with accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

SanFrancisco,CaliforniaJune10,2015

FINANCIALSTATEMENTS

__________

THEHENRYJ.KAISERFAMILYFOUNDATION

Seeaccompanyingnotes.Page3

STATEMENTSOFFINANCIALPOSITIONDecember31,2014and2013

2014 2013

Cashandcashequivalents 7,086,188$ 14,700,996$Receivableforunsettledinvestmenttransactions 6,550,653 21,978,388Investmentincomereceivable 299,416 456,053Investments,atfairvalue 593,616,310 539,147,405Contributionsreceivable 8,139,027 10,159,094Accountsreceivable,prepaidemployeebenefits,andotherassets 2,495,078 3,695,982Propertyandequipment,net 32,047,585 32,466,686

Totalassets 650,234,257$ 622,604,604$

LIABILITIESAccountspayable,accruedbenefits,andotherliabilities 5,665,963$ 5,196,884$Derivativeliabilities 15,705,261 8,886,002Postretirementliability 32,658,485 19,529,759Deferredfederalexcisetaxes 4,510,180 2,369,189Bondspayable 42,000,000 42,000,000Notespayable 31,500,000 31,500,000

Totalliabilities 132,039,889 109,481,834

NETASSETSUnrestricted 506,963,707 499,372,588Temporarilyrestricted 11,230,661 13,750,182

Totalnetassets 518,194,368 513,122,770

Totalliabilitiesandnetassets 650,234,257$ 622,604,604$

ASSETS

LIABILITIESANDNETASSETS



STATEMENTSOFACTIVITIESANDCHANGESINNETASSETSYearsEndedDecember31,2014and2013

2014 2013

CHANGESINUNRESTRICTEDNETASSETSInvestmentincome

Interest 1,348,526$ 1,790,893$Dividends 2,546,414 158,217Netrealizedandunrealizedgainsoninvestments 62,954,891 78,476,985Netunrealizedgains(losses)onderivativeliabilities (6,819,259) 8,440,883Investmentexpense (2,731,993) (2,827,848)

Netinvestmentincome 57,298,579 86,039,130

Netassetsreleasedfromrestrictions 6,755,748 5,415,182

Totalinvestmentincomeandnetassetsreleasedfrom 64,054,327 91,454,312restrictions

EXPENSESProgramactivities

Directcharitableexpenses 34,301,680 34,766,429Interestexpenseincurredfromfinancingactivities 2,297,655 2,276,765Grantsauthorized‐net 697,693 749,905

Totalprogramactivities 37,297,028 37,793,099

Administrativeexpenses 5,723,972 6,209,590Federal,state,andlocaltaxexpense(benefit) 2,405,079 (213,950)

Totalexpenses 45,426,079 43,788,739

CHANGEINPOSTRETIREMENTLIABILITY (11,037,129) 8,026,327

Changeinunrestrictednetassets 7,591,119 55,691,900

Unrestrictednetassets,beginningofyear 499,372,588 443,680,688

Unrestrictednetassets,endofyear 506,963,707 499,372,588

CHANGESINTEMPORARILYRESTRICTEDNETASSETSContributions 4,236,227 11,867,338Netassetsreleasedfromrestrictions (6,755,748) (5,415,182)

Changeintemporarilyrestrictednetassets (2,519,521) 6,452,156

Temporarilyrestrictednetassets,beginningofyear 13,750,182 7,298,026

Temporarilynetassets,endofyear 11,230,661 13,750,182

Totalchangeinnetassets 5,071,598 62,144,056

Totalnetassets,beginningofyear 513,122,770 450,978,714

Totalnetassets,endofyear 518,194,368$ 513,122,770$



STATEMENTSOFCASHFLOWSYearsendedDecember31,2014and2013

2014 2013

CASHFLOWSFROMOPERATINGACTIVITIESChangeinnetassets 5,071,598$ 62,144,056$Adjustmentstoreconcilechangeinnetassetstonetcashusedin

operatingactivitiesNetrealizedandunrealizedgainsoninvestments (62,954,891) (78,476,985)Netunrealized(gains)lossesonderivativeliabilities 6,819,259 (8,440,883)Depreciation 1,135,785 1,124,513Amortizationoffinancingcosts 20,459 27,262Lossondisposaloffixedassets 10,462 1,064Changesinoperatingassetsandliabilities

Contributionsreceivable 2,020,067 (4,341,827)Accountsreceivable,prepaidemployeebenefits,andotherassets 1,200,904 (1,043,390)Accountspayable,accruedbenefits,andotherliabilities 469,079 (382,029)Derivativeliabilities 6,819,259 (8,440,883)Postretirementliability 13,128,726 (5,702,595)Grantspayable ‐ (114,420)Deferredfederalexcisetaxes 2,140,991 1,142,790

Netcashusedinoperatingactivities (24,118,302) (42,503,327)

CASHFLOWSFROMINVESTINGACTIVITIESPurchasesofinvestments (89,772,505) (92,002,105)Proceedsfromsalesandmaturitiesofinvestments 91,418,773 121,323,865Reductionininvestmentreceivable 15,427,735 6,757,989Changeininvestmentincomereceivable 156,637 (22,615)Purchasesofpropertyandequipment (727,146) (369,020)

Netcashprovidedbyinvestingactivities 16,503,494 35,688,114

CASHFLOWSFROMFINANCINGACTIVITIESProceedsfromlineofcredit 35,000,000 30,000,000Paymentsonlineofcredit (35,000,000) (30,000,000)

Netcashfromfinancingactivities ‐ ‐

Decreaseincashandequivalents (7,614,808) (6,815,213)

Cashandcashequivalents‐beginningofyear 14,700,996 21,516,209

Cashandcashequivalents‐endofyear 7,086,188$ 14,700,996$‐

SUPPLEMENTALDISCLOSURESOFCASHFLOWINFORMATIONCashpaidforinterest 2,751,505$ 2,759,928$

Cashpaidforfederalexcisetaxes 459,528$ 450,000$

THEHENRYJ.KAISERFAMILYFOUNDATIONNOTESTOFINANCIALSTATEMENTS

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NOTE1‐ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

Organization–TheHenryJ.KaiserFamilyFoundation(the“Foundation”)isahighlyspecializedhealthpolicyresearchandhealthcommunicationsorganizationthatprovidestimelyinformationonhealthissuestopolicymakers,themedia,andthepublicintheUnitedStatesandglobally.

Basis of presentation – The financial statements are presented on the basis of unrestricted, temporarily restricted, andpermanently restricted net assets in accordancewith accounting principles generally accepted in the United States of America(“U.S.GAAP”).AsofDecember31,2014and2013,therewerenopermanentlyrestrictednetassets.

Cash and cash equivalents – Cash and cash equivalents consist primarily of cash andmoneymarket funds. The Foundationconsidersinvestmentswithmaturitiesofthreemonthsorlessatthetimeofpurchasetobecashequivalents.

Estimated fairvalueof financial instruments – The carrying amounts of cash and cash equivalents, accounts receivable andotherassets,contributionsreceivable,accountspayable,andotherliabilitiesapproximatefairvaluebecauseoftheshortmaturityof these items. Investments and derivative financial instruments are reflected at estimated fair value as described below. Thecarryingamountsofthebondspayableandnotepayableapproximatefairvalueduetothevariableinterestratesandterms,whichareconsistentwiththosecurrentlyavailabletotheFoundation.

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)Topic820, Fair ValueMeasurement,defines fair value, establishes a framework for measuring fair value, and requires enhanced disclosures about fair valuemeasurements. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderlytransactionbetweenmarketparticipantsatthemeasurementdate(i.e.,theexitprice).Marketpriceobservabilityisimpactedbyanumberoffactors,includingthetypeofinstrument,thecharacteristicsspecifictotheinstrument,andthestateofthemarketplace(including the existence and transparency of transactions between market participants). Instruments with readily availableactivelyquotedpricesorforwhichfairvaluecanbemeasuredfromactivelyquotedpricesinanorderlymarketwillgenerallyhaveahigherdegreeofmarketpriceobservabilityandalesserdegreeofjudgmentusedinmeasuringfairvalue.

Instrumentsmeasuredandreportedatfairvalueareclassifiedanddisclosedinoneofthefollowingcategoriesbasedoninputs:

Level1– Quoted prices are available in active markets for identical instruments as of the reporting date. The type ofinstruments that would generally be included in LevelI include listed equity securities. As required by ASCTopic820,theFoundation,totheextentthatitholdssuchinstruments,doesnotadjustthequotedpricefortheseinstruments,eveninsituationswheretheFoundationholdsalargepositionandasalecouldreasonablyimpactthequotedprice.

Level2– Pricing inputsareobservable for the instruments,eitherdirectlyor indirectly,asof thereportingdate.SomearequotedpricesinmarketswithlimitedactivityandsomearenotthesameasthoseusedinLevel1.Inthecaseofthelatter, fair value is determined through the use of models or other valuation methodologies. The types ofinstrumentsthatwouldgenerallybeincludedinthiscategoryincludeunlistedderivativefinancialinstrumentsandcertain investment funds valued based upon net asset value or publicly traded securities with limited tradingactivity.

Level3– Pricing inputs are unobservable for the instrument and include situations where there is little, if any, marketactivity for the instrument. The inputs into the determination of fair value require significant judgment orestimationbytheFoundation.Thetypesof instrumentsthatwouldgenerallybe includedinthiscategoryincludeequitysecuritiesissuedbyprivateentities.

Incertaincases,theinputsusedtomeasurefairvaluemayfall intodifferentlevelsofthefairvaluehierarchy.Insuchcases,thedeterminationofwhich categorywithin the fairvaluehierarchy is appropriate foranygiven instrument isbasedon the lowestlevelofinputthatissignificanttothefairvaluemeasurement.TheFoundation’sassessmentofthesignificanceofaparticularinputtothefairvaluemeasurementinitsentiretyrequiresjudgmentandconsidersfactorsspecifictotheinstrument.

AValuationCommittee(the“Committee”), ledbytheChief InvestmentOfficerand includingtheChiefFinancialOfficerandVicePresident for Finance and Investment Staff, is responsible for establishing valuation policy, reviewing ongoing compliance, andoverseeingvaluationprocedures.TheCommitteemeetsatleastannuallytoreviewthevaluationpolicyandmakedecisionsonanyvaluationsrequiringtheCommittee’sattention.


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Investments–Investmentsarereflectedonthestatementsoffinancialpositionatfairvaluewithchangesinunrealizedgainsandlossesresulting fromchanges in fairvaluereflected in thestatementsofactivitiesandchanges innetassetsasnetrealizedandunrealizedgainsoninvestments.

EquityandfixedincomesecuritiesthatareclassifiedasLevel1arepubliclytradedinvestmentsinactivemarketsandarereportedatthemarketclosingpriceasdeterminedingoodfaithbytheFoundation.

Investmentsinequityandfixedincome,hedgefunds,privateequity, limitedpartnerships,andrealassets(the“InvesteeFunds”)arereportedatfairvalue.FairvalueisbasedontheinformationprovidedbytheInvesteeFunds,whichreflectstheFoundation’sshareofthefairvalueofthenetassetsoftheinvestmentfund.IftheFoundationdetermines,basedonitsownduediligenceandinvestmentvaluationprocedures,thatthevaluationforanyInvesteeFundbasedoninformationprovidedbythemanagementofsuchInvesteeFunddoesnotrepresentfairvalue,theFoundationwillestimatethefairvalueoftheInvesteeFundingoodfaithandinamannerthatitreasonablychooses.

Thevaluesassigned to investmentsarebaseduponavailable informationanddonotnecessarily representamounts thatmightultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until theindividualpositionsareliquidated.

Investmenttransactionsarerecordedonatrade‐datebasisforpubliclytradedinvestmentsoruponclosingofthetransactionforprivateinvestments.

Realassetsincludelimitedpartnershipsinvestedinrealassetsandarealestateinvestment(seeNote2).

TheFoundationoccupiesaportionofthepropertyrelatedtotherealestateinvestment.

Derivativefinancialinstruments–Derivativefinancial instrumentsarerecordedattheirestimatedfairmarketvalueineitherinvestments(equityoptions)orderivativeliabilities(interestrateswapagreements)intheaccompanyingstatementsoffinancialposition (see Note3). Changes in the underlying value of derivative financial instruments are recorded in net realized andunrealizedgainsoninvestments(equityoptions)ornetrealizedandunrealizedlossesonderivativeliabilities(interestrateswapagreements)intheaccompanyingstatementsofactivitiesandchangesinnetassets.

Contributionsreceivable –Contributions receivable consistofunconditionalpromises togive.Unconditionalpromises togivethatareexpectedtobecollectedinfutureyearsarerecordedatthepresentvalueoftheirestimatedfuturecashflows.Managementbelieves the contributions receivable as of December31, 2014 and 2013, approximate their net present value. Contributionsreceivable of approximately $8,139,000 as of December31, 2014, are expected to be received as follows: $4,593,000 in 2015,$1,917,000in2016,and$1,629,000in2017.

Propertyandequipment–Propertyandequipmentisrecordedatcost,lessanyaccumulateddepreciationandamortization.TheFoundation’spolicyistocapitalizeallpropertyandequipmentadditionsover$5,000.Depreciationandamortizationareprovidedon the straight‐linemethodover the estimateduseful livesof the assets,which range from3 to40years. Long‐livedassets arereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofsuchassetsmaynotberecoverable.Nosuchimpairmentwasrecordedduring2014or2013.

Bond issuancecosts–Bond issuancecostsresulting fromthe issuanceof theDistrictofColumbiaRevenueBonds(seeNote5)have been capitalized and are being amortized on a straight‐line method over the life of the bonds, which approximates theeffective interest method. The carrying value and accumulated amortization of these costs are approximately $491,000 and$250,000,and$509,000and$231,000asofDecember31,2014and2013,respectively,andare includedinaccountsreceivable,prepaidemployeebenefits,andotherassetsinthestatementsoffinancialposition.

Loan fundingcosts – Loan funding costs resulting fromsecuring a loanagreement (seeNote6)havebeen capitalizedandarebeingamortizedonastraight‐linemethodoverthelifeoftheloan,whichapproximatestheeffectiveinterestmethod.Thecarryingvalue and accumulated amortization of these costs are approximately $5,000 and $7,000, and $7,000 and $5,000 as ofDecember31,2014and2013,respectively,andareincludedinaccountsreceivable,prepaidemployeebenefits,andotherassetsinthestatementsoffinancialposition.

Grants–GrantsarerecognizedwhenunconditionallyapprovedbytheBoardofTrustees.Grantsareauthorizedsubjecttocertainrestrictions,and failureof therecipients tomeet theserestrictionsmayresult incancellationsor refunds.Suchcancellationsorrefundsarerecognizedintheyeartheyoccur.


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Unrestrictednetassets–TheFoundationreportsgiftsofcashandotherassetsasunrestrictedsupport,astheyarenotsubjecttodonorstipulationsthatlimittheuseofthedonatedassets.

Temporarilyrestrictednetassets–TemporarilyrestrictednetassetsrepresentcontributionswhoseusebytheFoundationislimited by donor‐imposed stipulations that can be fulfilled and removed by actions of the Foundation pursuant to thosestipulations(seeNote8).

Revenue recognition – Contributions are recognized as revenuewhen received or unconditionally promised. The Foundationreports contributions as restricted support if such contributions are receivedwith donor stipulations that limit the use of thedonatedassets.Whenadonorrestrictionendsorisaccomplished,temporarilyrestrictednetassetsarereclassifiedtounrestrictednetassetsandreportedasnetassetsreleasedfromrestrictions.Temporarilyrestrictedcontributionsarereportedastemporarilyrestrictedsupportandnetassetsreleasedfromrestrictionswhentherestrictionismetinthesameperiodasthecontributionisreceived.

Tax‐exempt status – The Foundation is a private operating foundation and is exempt from federal income taxes underSection501(c)(3) of the Internal Revenue Code and from California franchise and income taxes under Section23701d of theRevenueandTaxationCode.

Income taxes – The Foundation adoptedASCTopic740, IncomeTaxes, in 2007. As ofDecember31, 2014, the Foundation hadanalyzed the inventory of tax positions taken with respect to all applicable income tax issues for all open tax years (in eachrespectivejurisdiction),includingDecember31,2014and2013,andhadconcludedthatnoreserveforuncertaintaxpositionswasrequired.Theopentaxyearsthatremainsubjecttofederalandstateexaminationincludetaxyears2011to2014.

Concentrationsofcreditrisk–Financial instrumentsthatpotentiallysubjecttheFoundationtocreditriskconsistprimarilyofcashandcashequivalents,accountsreceivable,contributionsreceivable,andinvestments.TheFoundationmaintainscashandcashequivalentswithmajorfinancialinstitutions.Attimes,suchamountsmayexceedFederalDepositInsuranceCorporationlimits.TheFoundation’sinvestmentshavebeenplacedwithhigh‐qualitycounterparties.TheFoundationcloselymonitorstheseinvestmentsandhasnotexperiencedsignificantcreditlosses.TheFoundation’smanagementmonitorscreditlevelsandthefinancialconditionofitsaccountsreceivableandcontributionsreceivableandbelievesthatanadequateprovisionforcreditlosseshasbeenmadeintheaccompanyingfinancialstatements.

Functionalexpenseallocations–Expenses,suchassalariesandpayrolltaxes,travelandmeetingexpense,rent,andinterestareallocated among direct charitable expenses, administrative expenses, and investment expenses based on employee ratios andestimatesmadebytheFoundation’smanagement.

Useofestimates–ThepreparationoffinancialstatementsinconformitywithU.S.GAAPrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements,andthereportedamountsofrevenuesandexpensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.

Reclassifications –Certain reclassificationshavebeenmade to the2013 financial statements to conform to the2014 financialstatementpresentation.Thesereclassificationshadnoimpactonchangeinnetassetsornetassetbalances.


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NOTE2–INVESTMENTS

AsofDecember31,2014and2013,theFoundation’sinvestmentsconsistedofthefollowing:

2014 2013

Equitysecurities 139,002,367$ 146,561,540$Fixedincomesecurities 11,909,740 17,209,996Hedgefunds 106,033,785 99,600,913Privateequity 189,858,602 137,178,652Limitedpartnerships 33,847,178 31,636,280Realassets 112,964,638 106,960,024

593,616,310$ 539,147,405$

The Foundation had commitments under partnership agreements to make additional capital contributions to alternativeinvestmentsofapproximately$129,306,000and$93,544,000asofDecember31,2014and2013,respectively.

Total realized and unrealized gains recorded for Level3 investments are reported in net realized and unrealized gains frominvestmentsinthestatementsofactivitiesandchangesinnetassets.

CertainoftheFoundation’sinvestmentsaredenominatedinforeigncurrenciesthatmaybenegativelyaffectedbymovementsintherateofexchangebetweentheU.S.dollarandsuchforeigncurrencies.

Theremayalsoberiskassociatedwiththeconcentrationofinvestmentsinonegeographicregionorincertainindustries.

NOTE3–FAIRVALUEMEASUREMENTS

The levels in theASCTopic820 fair valuehierarchy intowhich theFoundation’s investments fall as ofDecember31, 2014and2013,areasfollows:

2014 2013Level1

Equitiesandfixedincomesecurities 34,062$ 28,020,039$

Level2Equitiesandfixedincomesecurities 132,789,320 118,446,372Hedgefunds 65,338,193 59,887,479Limitedpartnerships 33,847,178 31,636,280

TotalLevel2 231,974,691 209,970,131

Level3Equitiesandfixedincomesecurities 18,088,725 17,305,125Hedgefunds 40,695,592 39,713,434Privateequity 189,858,602 137,178,652Realassets 112,964,638 106,960,024

TotalLevel3 361,607,557 301,157,235

Totalinvestments 593,616,310$ 539,147,405$


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ThechangesininvestmentsclassifiedasLevel3fortheyearsendedDecember31,2014and2013areasfollows:

EquitiesandFixed LimitedIncomeSecurities HedgeFunds PrivateEquity Partnerships RealAssets TotalLevel3

Balance,January1,2013 ‐$ 34,880,512$ 114,978,167$ 10,140,595$ 100,047,965$ 260,047,239$

ReclasswithinLevel3 ‐ ‐ (2,237,967) ‐ 2,237,967 ‐Purchasesandotheracquisitions 15,000,000 ‐ 25,741,976 ‐ 10,944,129 51,686,105Salesandotherdispositions ‐ (3,000,000) (19,510,169) (11,338,546) (14,205,973) (48,054,688)Realized(depreciation)appreciation ‐ ‐ 3,982,528 1,771,854 ‐ 5,754,382Unrealized(depreciation)appreciation 2,305,125 7,832,922 14,224,117 (573,903) 7,935,936 31,724,197

Balance,December31,2013 17,305,125 39,713,434 137,178,652 ‐ 106,960,024 301,157,235

ReclasswithinLevel3 ‐ ‐ ‐ ‐ ‐ ‐Purchasesandotheracquisitions ‐ ‐ 60,061,238 ‐ 9,211,266 69,272,504Salesandotherdispositions ‐ ‐ (39,402,806) ‐ (19,927,361) (59,330,167)Realized(depreciation)appreciation ‐ ‐ 8,807,200 ‐ 8,066,667 16,873,867Unrealized(depreciation)appreciation 783,600 982,158 23,214,318 ‐ 8,654,042 33,634,118

Balance,December31,2014 18,088,725$ 40,695,592$ 189,858,602$ ‐$ 112,964,638$ 361,607,557$

Transfersof investmentsbetweendifferent levelsof the fairvaluehierarchyarerecordedasof theendof thereportingperiod.Changes intheunrealizedgains inthe investments includedonthestatementsofactivitiesandchanges innetassetsrelatingtoLevel3investmentsstillheldatDecember31,2014and2013,wereapproximately$37,435,000and$32,340,000,respectively.

Investmentstrategyandredemptioninformation–ThefollowingtablesummarizestheinvestmentstrategytypesandvariousfeaturesoftheinvestmentportfolioclassifiedasLevel2or3asofDecember31,2014.TheFoundationhascommitmentsundertheassociatedinvestmentagreementstomakeadditionalcapitalcontributionsasnoted.

FairValueUnfunded

Commitments

RedemptionFrequency(if

CurrentlyEligible)RedemptionNotice

Period

Level2

Equitiesandfixedincomesecurities 132,789,320$ 7,000,000$Quarterly,semi‐annually,annually 30‐180daysnotice

Hedgefunds 65,338,193 ‐ Quarterly 60‐180daysnoticeLimitedpartnerships 33,847,178 8,184,000 Quarterly 60daysnotice

Level3Equitiesandfixedincomesecurities 18,088,725 ‐ Biennially/Triennally 90daysnotice

Hedgefunds 40,695,592 ‐Quarterly,annually,triennially 60daysnotice

Privateequity 189,858,602 112,969,827 Illiquid ‐Realassets 112,964,638 1,151,724 Illiquid ‐

Theequitiesandfixedincomesecuritiescategoryrepresentsinvestmentswithmanagersinvestinginpubliclytraded,mediumtolargecapitalizationglobalequitiesand fixed incomesecurities.Managersmayoccasionallyemployacurrencyhedge tomanageforeigncurrencyexposure,butsuchinstrumentsgenerallydonotaffectportfolioliquidity.

Thehedgefundscategoryrepresentsinvestmentswithmanagersinvestingbothlongandshortinglobaldebtandequitysecurities.Managershavelatitudetoshiftinvestmentstrategiesandsecuritytypestoexploitmarketinefficiencies,aswellasemployleverage.Thefairvaluesofinvestmentsinthiscategoryhavebeendeterminedusingthenetassetvaluepershareoftheinvestmentfunds.

The limited partnerships category represents investments withmanagers that pursuemultiple strategies to diversify risk andreducevolatility,expectingtoexploitshort‐termmarketinefficienciesandgeneratepositivereturnsregardlessofmarketdirection.

Theprivateequitycategoryrepresents investmentswithmanagers investing inabroadrangeofprivatelyowned,domesticandforeign companies. Underlying strategies within this category include venture capital, leveraged buyouts and distressed debt.Managers work closely with portfolio companies to create fundamentally more valuable businesses, distributions generallyresultingfromthesaleorliquidationofassets.Investmentperiodsrangefromthreetosixyears,managersgenerallyattemptingtofullyliquidateaportfolioofinvestmentswithin10years,althoughmanagersmayextendtheirtimetoliquidateifnecessary.

The real assets category is comprised of the Foundation’s investments in real estate, forestland and energy‐related privatepartnerships. The fair values of investments in this category have been determined using the net asset value per share of theinvestmentfunds(“NAV”),orincaseswhereaNAVisnotavailable,recentappraisalinformation.


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ThelevelsintheASCTopic820fairvaluehierarchyintowhichtheFoundation’sreceivableforunsettledinvestmenttransactionsfellasofDecember31,2014and2013,areasfollows:

2014 2013Level1

Equitiesandfixedincomesecurities 7,472$ 5,516$

Level2Hedgefunds 2,500,000 ‐Limitedpartnerships 1,000,000 ‐

TotalLevel3 3,500,000 ‐

Level3Hedgefunds 1,207,761 21,972,872Privateequity 30,420 ‐RealAssets 1,805,000 ‐

TotalLevel3 3,043,181 21,972,872

Totalinvestments 6,550,653$ 21,978,388$

ReceivableforUnsettledInvestmentTransactions

TherewerenopayableforunsettledinvestmenttransactionsasofDecember31,2014and2013.

Derivatives–TheFoundationaccountsforderivativefinancialinstrumentsaseitherassetsorliabilitiesmeasuredatfairvalue.

TheFoundationusesderivativeinstrumentstomanageitsexposuretomarketrisks,includinginflation,forincomeenhancementandtoprovideequityexposurewithoutactualownershipoftheunderlyingasset.TheFoundation’smanagementbelievestheuseofsuchinstrumentsinitsinvestmentmanagementprogramisappropriateinprovidingforthelong‐termandshort‐termfinancialneedsof theFoundation.Thoughtheuseof these instrumentsreducescertain investmentrisksandgenerallyaddsvalue to theportfolio,theinstrumentsthemselvesdoinvolvesomeinvestmentandcounterpartyrisk.

In 2013, the Foundation entered into a series of equity option contracts. To date, the Foundation has used interest rate swapagreementstomitigatetheriskofchangesininterestratesassociatedwithvariableinterestrateindebtedness(seeNotes5and6).

AsofDecember31,2014and2013,thefairvaluesofderivativesconsistedofthefollowing:

2014 2013Asset

Equityoptions Investments 1,207,761$ 542,219$

LiabilityInterestrateswapagreements Derivativeliabilities 15,705,261$ 8,886,002$

StatementsofFinancialPosition

LocationFairValue

Theestimatedfairvalueoftheequityoptionsandtheinterestrateswapagreementsarebasedonquotesfromthemarketmakersforsimilarinstrumentsand,therefore,areclassifiedasLevel2undertheASCTopic820fairvaluehierarchy.


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Amounts reflected in net payments made to counterparts and net realized and unrealized (gains) losses pertaining to equityoptionsandinterestrateswapagreementsfortheyearsendedDecember31,2014and2013,areasfollows:

2014 2013 2014 2013

Equityoptions 1,005,684$ ‐$ 340,142$ (8,854,828)$Interestrateswapagreements 2,297,655 2,201,596 6,819,259 ‐

Total 3,303,339$ 2,201,596$ 7,159,401$ (8,854,828)$

NetPaymentsMadetoCounterparts

NetRealizedandUnrealized(Gains)Losses

NOTE4–PROPERTYANDEQUIPMENT

AsofDecember31,2014and2013,propertyandequipmentconsistedofthefollowing:

2014 2013

Land 7,463,063$ 7,463,063$Buildingsandimprovements 33,409,193 33,325,236Officefurnitureandequipment 7,464,704 7,715,637

48,336,960 48,503,936

Accumulateddepreciation (16,699,862) (16,037,250)

31,637,098 32,466,686

Constructioninprogress 410,487 ‐

Propertyandequipment‐net 32,047,585$ 32,466,686$

NOTE5–BONDSPAYABLE

InJune2001,theDistrictofColumbiaissued$42,000,000intax‐exemptrevenuebonds(DistrictofColumbiaRevenueBonds–TheHenryJ.KaiserFamilyFoundationIssue–Series2001)(the“Bonds”)onbehalfoftheFoundation.TheBondsbearinterest,payablemonthly,inarrears,atvariousweeklyrates,asdefined,whichrangedfrom0.06%to0.32%during2014andfrom0.05%to0.28%during2013,andwillmature,subjecttopriorredemption,onJuly1,2041.TheBondsrepresentanunsecuredgeneralobligationoftheFoundation.

AsofDecember31,2014and2013, theeffective interestrateof theBondswas0.07%and0.16%,respectively. Interestpaid in2014and2013amountedtoapproximately$56,000and$59,000,respectively,includingaccruedinterestof$3,000and$6,000asofDecember31,2014and2013.Inconjunctionwiththeagreement,theFoundationisrequiredtobeincompliancewithcertaincovenants.

TheBondsarecarriedatfacevalue,and,astheyarevariableratebondssupportedbyacreditfacility,thisalsorepresentstheirfairmarketvalue.TheyareclassifiedasLevel2intheASCTopic820fairvaluehierarchy.

Interestrateswapagreements– InterestrateswapagreementsareusedbytheFoundationtomitigatetheriskofchanges ininterest rates associated with variable interest rate indebtedness. Under such arrangements, variable rate indebtedness isconvertedtofixedratesbasedonanotionalprincipalamount.TheinterestrateswapagreementsrelatedtotheBondseffectivelyfixtheinterestrateonanotionalamountof$42,000,000at3.46%fortheremainingtermoftheBonds(seeNote3).

NOTE6–NOTEPAYABLE

InFebruary2011, theFoundation secureda $35,000,000, six‐year, variable rate, interest‐only loanwith its custodial bank,TheNorthernTrustCompany(the“NorthernTrustLoan”),ofwhich$31,500,000hasbeendrawnasofDecember31,2014and2013.TheNorthernTrustLoanissecuredbytheFoundation’sLevel1equityandfixedincomesecuritiesandcashandcashequivalents.


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TheNorthernTrustLoanbearsinterest,payablemonthly,inarrears,atavariablerateof0.70%perannuminexcessoftheone‐monthBBALIBOR.TheNorthernTrustLoaninterestratepaidrangedfrom0.85%to0.87%during2014andfrom0.87%to0.91%during 2013. Interest paid in 2014 and 2013 amounted to $297,000 and $304,000, respectively, including accrued interest of$37,000 and $24,000, as ofDecember31, 2014 and2013.As ofDecember31, 2014 and2013, the effective interest rate of theNorthernTrustLoanwas0.86%and0.87%,respectively.

The loan is carried at face value, which, as a variable rate, interest only obligation, also approximates fair market value. It isclassifiedasLevel2intheASCTopic820fairvaluehierarchy.

In conjunction with the borrowing, the Foundation also entered into an interest rate swap agreement with Northern Trusteffectivelyfixingtheinterestrateofthe$31,500,000loanat2.94%(seeNote3).

Lineof credit – In 2013, the Foundation secured a $40,000,000 revolving line of credit agreementwith Bank of America foroperationalpurposes.TheoutstandingbalanceaccruesinterestattheannualrateofBBALIBORDailyFloatingrateplusfifty(50)basis points and is paid on amonthly basis in arrears on amounts drawn. Additionally, all undrawn amounts are subject to acommitmentfeeoften(10)basispointsannually,alsopaidonamonthlybasisinarrears.TheFoundationrepaidalloutstandingprincipalandinterestinDecember2013,priortotheexpirationdateoftheagreement,January2,2014.

InJanuary2014,theFoundationreneweda$35,000,000revolvinglineofcreditagreementwithBankofAmericaforoperationalpurposes.TheoutstandingbalanceaccruesinterestattheannualrateofLIBORDailyFloatingrateplusfifty(50)basispointsandispaidonamonthlybasisinarrearsonamountsdrawn.Additionally,allundrawnamountsaresubjecttoacommitmentfeeoften(10)basispointsannually,alsopaidonamonthlybasisinarrears.TheFoundationrepaidalloutstandingprincipalandinterestinDecember2014,priortotheexpirationdateoftheagreement,January2,2015.

NOTE7–FEDERAL,STATE,ANDLOCALTAXES

TheprovisionforcurrentanddeferredtaxesfortheyearsendedDecember31,2014and2013,wasasfollows:

2014 2013Provisionforfederalexcisetaxes

Current 461,057$ (154,192)$Deferred 2,005,492 (181,764)

2,466,549 (335,956)

Otherfederal,stateandlocaltaxes (61,470) 122,006

2,405,079$ (213,950)$

TheFoundation isaprivateoperating foundationexempt fromincometaxunder InternalRevenueCode§501(c)(3)andassuchsubject to a federal excise tax on net investment income at a rate of 2%, or 1% if certain distribution criteria are met. TheFoundationreceivedadvancerulingfromtheIRSofpubliccharitystatusfora60‐monthperiodbeginningJanuary1,2014.IftheFoundationsatisfiestherequirementsofsection507(b)(1)(B)oftheCode,theFoundationwillnolongerbesubjecttothefederalexcisetaxonnetinvestmentincome.FortheyearendedDecember31,2013,theFoundation’sexcisetaxratewas2%.Inaddition,theFoundationrecordsdeferredexcisetaxes,whichariseprimarilyfromunrealizedtax‐basisgainsoninvestments.FortheyearendedDecember31,2014,deferredtaxeshavebeencalculatedataneffectiverateof2%,whichisthemaximumratepossibletobepaidbytheFoundationonsuchamounts.


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NOTE8–TEMPORARILYRESTRICTEDNETASSETSANDNETASSETSRELEASEDFROMRESTRICTIONS

AsofDecember31,2014and2013,temporarilyrestrictednetassetsconsistedofthefollowing:

2014 2013

U.S.roleinglobalhealth 3,538,408$ 5,946,358$U.S.healthpolicyanalysisandreporting 6,416,838 7,242,879Publiceducationpartnerships 1,275,415 560,945

11,230,661$ 13,750,182$

NetassetsreleasedfromrestrictionsfortheyearsendedDecember31,2014and2013,wereasfollows:

2014 2013

U.S.roleinglobalhealth 2,408,124$ 2,241,152$U.S.healthpolicyanalysisandreporting 2,906,876 1,255,735Publiceducationpartnerships 1,440,748 1,918,295

6,755,748$ 5,415,182$

NOTE9–EMPLOYEERETIREMENTANDOTHERACCRUEDBENEFITS

TheFoundationsponsorsaqualifieddefinedbenefitpensionplanforsubstantiallyallofitsemployees,basedonyearsofserviceandaveragecompensation(compensationofaparticipantaveragedoverthethreeconsecutiveplanyearsthatproducethehighestyearlyaverage).Employeesvest in theirbenefitsunderthe followingschedule:20%after threeyearsofservice,40%after fouryearsofservice,and100%afterfiveyearsofservice.

ThedefinedbenefitpensionplanwasamendedonJanuary7,2013,toceaseallfuturebenefitaccrualseffectiveFebruary28,2013,and to fullyvestallactiveemployeeswithservice throughDecember31,2012.Asa result, thepensionbenefit formulawillnotreflectfuturesalaryincreasesorbenefitserviceafterFebruary28,2013.

Inaddition,theFoundationprovidescertainpostretirementhealthcarebenefitstoeligibleemployees.Estimatedcostisaccruedover periods of employee service on an actuarially determined basis. The Foundation has determined that prescription drugbenefits included in its postretirement health care plan is actuarially equivalent to PartD of the Medicare Prescription DrugImprovementandModernizationActof2003.However,astheamountofsubsidytheFoundationiseligibleforisnotmaterial,noreductionhasbeenmadetothepostretirementobligationsincludedintheaccompanyingfinancialstatements.

TheFoundationusedaDecember31measurementdateforitsdefinedbenefitpensionplananditsotherpostretirementbenefitplan.

TheFoundationalsosponsorsaqualifieddefinedcontributionplancoveringsubstantiallyallofitsemployees.Theplanisfundedbyemployeeandemployercontributions.TheFoundationcontributesanamountbaseduponeligiblecompensationasdefinedintheplan.Pensionexpenserelated to thisplanwasapproximately$2,454,000and$2,376,000 for theyearsendedDecember31,2014and2013,respectively.

Inaddition,accountspayable,accruedbenefits,andotherliabilitiesonthestatementsoffinancialpositionincludedapproximately$608,000 and $506,000 of accrued employee benefits associated with certain unfunded executive compensation plans, whichprovided for life insuranceandcertainotherbenefitsandapproximately$3,408,000and$3,211,000ofaccrued flexible timeoffandsabbaticalleaveasofDecember31,2014and2013,respectively.


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Obligationsand funded status – For the years ended December31, 2014 and 2013, the benefit obligations, the fair value ofassets,andthefundedstatusforthedefinedbenefit,includinganonqualifieddefinedpensionplanforaformerexecutive,andthepostretirementbenefitplansareasfollows:

2014 2013 2014 2013

ProjectedbenefitobligationasofJanuary1 17,581,800$ 20,940,166$ 20,821,476$ 20,380,248$

Servicecost ‐ 183,781 1,234,689 1,422,917Interestcost 801,666 775,827 1,023,250 841,667Benefitspaid (1,617,993) (967,804) (307,237) (271,854)Actuarial(gain)loss 3,410,275 (3,350,170) 7,517,123 (1,551,502)

ProjectedbenefitobligationasofDecember31 20,175,748 17,581,800 30,289,301 20,821,476

FairvalueofplanassetsasofDecember31 13,151,301 14,434,846 4,655,263 4,438,671

Fundedstatus (7,024,447)$ (3,146,954)$ (25,634,038)$ (16,382,805)$

OtherPostretirementBenefitsPensionBenefits

The costs, contributions, and benefits paid for the years ended December31, 2014 and 2013, for the defined benefit and thepostretirementbenefitplansareasfollows:

2014 2013 2014 2013

Benefitcost 285,502$ 73,282$ 2,056,095$ 2,385,450$Employercontribution ‐ 135,000 250,000 ‐Expensespaid (154,933) ‐ ‐ ‐Benefitspaid (1,617,993) (967,804) (307,237) (271,854)

PensionBenefits OtherPostretirementBenefits

Amountsnot yet reflected innetperiodicbenefit cost, included in the change innet assets asofDecember31, 2014and2013,consistedofthefollowing:

2014 2013 2014 2013

Priorservicecost ‐$ ‐$ (554,816)$ (618,464)$Accumulatedloss (4,911,802) (1,319,811) (11,183,844) (3,675,058)

Accumulatedothercomprehensiveincome (4,911,802) (1,319,811) (11,738,660) (4,293,522)

Cumulativeemployercontributionsinexcessofnetperiodicbenefitcost (2,112,645) (1,827,143) (13,895,378) (12,089,283)

Netamountrecognizedinstatementsoffinancialposition (7,024,447)$ (3,146,954)$ (25,634,038)$ (16,382,805)$


ThecomponentsofthepensionbenefitandotherpostretirementbenefitrelatedchangesotherthannetperiodiccostreflectedinthestatementsofactivitiesandchangesinnetassetsfortheyearsendedDecember31,2014and2013,areasfollows:

2014 2013 2014 2013

Amortizationofpriorservicecost ‐$ ‐$ (63,648)$ (63,648)$Amortizationofnet(gain)/loss (393,666) (98,336) (89,602) (325,234)Net(gain)/loss 3,985,657 (5,046,268) 7,598,388 (2,492,841)

3,591,991$ (5,144,604)$ 7,445,138$ (2,881,723)$


Amountstobereflectedin2015areasfollows:

PensionBenefits

OtherPostretirement

Benefits

Priorservicecost ‐$ 63,648$Accumulatedloss 60,071 584,163

Accumulatedothercomprehensiveincome 60,071$ 647,811$


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Theaccumulatedbenefitobligation for thedefinedbenefitpensionplanswasapproximately$20,176,000and$17,582,000asofDecember31,2014and2013,respectively.

Assumptions–Theweighted‐averageassumptionsusedincomputingtheprojectedbenefitobligationsasofDecember31,2014and2013,areasfollows:

2014 2013 2014 2013

Discountrate 3.90% 4.75% 4.05% 5.05%


Theweighted‐averageassumptionsusedincomputingthenetperiodicpensioncostfortheyearsendedDecember31,2014and2013,areasfollows:

2014 2013 2014 2013

Discountrate 4.75% 3.80% 5.05% 4.10%Expectedreturnonplanassets 8.00% 8.00% 8.00% 8.00%


Todeveloptheexpectedlong‐termrateofreturnonassetsassumption,theFoundationconsideredthehistoricalreturnsandthefutureexpectationsforreturnsforeachassetclass inthequalifieddefinedbenefitpensionplan’s investmentfund,aswellas itstargetassetallocation.

The trendrate forhealthcarebenefits for2014and2013,was7.75%and8.50%,respectively. Insubsequentyears, therateofincreaseisassumedtodeclineuntilanultimaterateof5.00%isattainedin2021and2019for2014and2013,respectively.

The fundingpolicy for theFoundation’splans is tocontributeamountssufficient tomeetminimumfundingrequirementsassetforth in employeebenefit and tax lawsplus suchadditional amounts asmaybedetermined tobe appropriate.TheFoundationcontributed$0and$135,000toitsdefinedbenefitpensionplanin2014and2013,respectively.

Planassets–ThereconciliationofthechangesintheplanassetsoftheFoundation’sdefinedbenefitpensionfundandretirementmedicalfundasofDecember31,2014and2013,wasasfollows:

2014 2013 2014 2013

FairvalueasofJanuary1 14,434,846$ 12,586,890$ 4,438,671$ 3,501,170$Actualgainonplanassets 489,381 2,680,760 273,829 1,209,355Employercontributions ‐ 135,000 250,000 ‐Expensespaid (154,933) ‐ ‐ ‐Benefitspaid (1,617,993) (967,804) (307,237) (271,854)

FairvalueasofDecember31 13,151,301$ 14,434,846$ 4,655,263$ 4,438,671$

DefinedBenefitPensionFund RetirementMedicalFund

TheassetallocationoftheFoundation’sdefinedbenefitpensionfundandretirementmedical fundasofDecember31,2014and2013,wasasfollows:

2014 2013 2014 2013AssetClasses

Level1Cashandcashequivalents 2,104,208$ 639,771$ 651,737$ 262,722$Marketableequitysecurities 7,496,242 11,035,173 3,212,132 3,417,840Fixedincomesecurities 3,419,338 2,725,601 698,289 751,840Other 131,513 34,301 93,105 6,269

TotalLevel1 13,151,301$ 14,434,846$ 4,655,263$ 4,438,671$

DefinedBenefitPensionFund RetirementMedicalFund

The plans invest inmutual funds that seek a high total return by investing in a portfolio of cash, common stocks, treasuries,corporatebonds,mortgage‐backedinternationalfixedincomesecurities,andmoneymarketinstruments.


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Allocationofplan assetsmay changeover timebasedupon investmentmanagerdeterminationof the relative attractivenessofeach security type. The Foundation periodically assesses allocation of plan assets by investment type and evaluates externalsources of information regarding the long term historical returns and expected future returns for each investment type. TheFoundation’stargetandactualassetallocationatDecember31,2014and2013,areasfollows:

DefinedBenefitPensionFund TargetAllocation ActualAllocation TargetAllocation ActualAllocation

Cashandcashequivalents 9.00% 16.00% 9.00% 4.43%Marketableequitysecurities 79.00% 57.00% 79.00% 76.45%Fixedincomesecurities 12.00% 26.00% 12.00% 18.88%Other 0.00% 1.00% 0.00% 0.24%

100.00% 100.00% 100.00% 100.00%

2014 2013

RetirementMedicalFund TargetAllocation ActualAllocation TargetAllocation ActualAllocation

Cashandcashequivalents 3.00% 14.00% 3.00% 5.92%Marketableequitysecurities 80.00% 69.00% 80.00% 77.00%Fixedincomesecurities 15.00% 15.00% 15.00% 16.94%Other 2.00% 2.00% 2.00% 0.14%

100.00% 100.00% 100.00% 100.00%

2014 2013

CashFlows –Contributions – The Foundation’s funding policy is to fund both its defined benefit pension plan and retirementmedical fundwith at least theminimumrequired contribution.TheFoundation contributed$250,000 to its retirementmedicalplanin2014and$135,000toitsdefinedbenefitpensionplanin2013.TheFoundationexpectstocontributeadditionalamountsinfutureyearsasnecessary.

EstimatedFutureBenefitPayments – Anticipated future benefit payments,which reflect future services, to be paid either fromfuturecontributionstotheplanordirectlyfromplanassets,areasfollows:

YearEndingDecember31, PensionBenefits

OtherPostretirement

Benefits

2015 2,331,000$ 383,000$2016 2,561,000 435,0002017 520,000 473,0002018 740,000 545,0002019 404,000 624,0002020‐2023 3,562,000 4,430,000

NOTE10–SUBSEQUENTEVENTS

InJanuary2015,theFoundationreneweda$35,000,000revolvinglineofcreditagreementwithBankofAmericaforoperationalpurposes,ofwhich$35,000,000wasdrawninJanuary2015.TheoutstandingbalanceaccruesinterestattheannualrateofLIBORDaily Floating rate plus fifty (50) basis points and is paid on a monthly basis in arrears on amounts drawn. Additionally, allundrawnamountsaresubjecttoacommitmentfeeoften(10)basispointsannually,alsopaidonamonthlybasisinarrears.TheFoundationmustrepayalloutstandingprincipalandinterestattheexpirationdateoftheagreement,currentlyJanuary2,2016.

AsofJune10,2015,theFoundationisintheprocessofoffering$100,000,000oftaxablebonds,theproceedsofwhichwillbeusedtorepaythe$42,000,000of2001DistrictofColumbiaRevenueBondsandthe$35,000,000loanwithNorthernTrust.

ASCTopic855,SubsequentEvents,requiresaccountingforanddisclosuresofeventsthatoccurafterthedateofthestatementsoffinancial position, but before the financial statements are issued or are available to be issued. The Foundation evaluatedsubsequenteventsthroughJune10,2015,thedatethefinancialstatementswereavailabletobe issued,anddeterminedthatnoadditionaldisclosureswerenecessary.

Documents

The Henry J. Kaiser Family Foundation - … HENRY J. KAISER FAMILY FOUNDATION See accompanying notes. Page 3 STATEMENTS OF FINANCIAL POSITION December 31, 2014 and 2013 2014 2013 Cash