Pmi-2020-Financial-Statements 09 - 24 - 2021

Project Management Institute
and Subsidiaries
Consolidated
Financial
Statements
31 DECEMBER 2020 & 2019

Table of Contents
3 Consolidated Statement of Financial Position
4 Consolidated Statement of Activities
5 Consolidated Statement of Cash Flows
7 Notes to Consolidated Financial Statement
7 Note 1. Nature of Activities and Significant Accounting
Policies
15 Note 2. Investments
16 Note 3. Fair Value Measurements
19 Note 4. Property and Equipment and Capitalized

Implementation Costs
20 Note 5. Business Combination
22 Note 6. Goodwill and Other Intangible Assets
23 Note 7. Chapter Dues Payable
23 Note 8. Unearned Revenue
23 Note 9. Grants Payble
24 Note 10. Net Assets
26 Note 11. Endowment Fund
28 Note 12. Liquidity and Availability of Financial Asset
29 Note 13. Concentration of Credit Risk
29 Note 14. Non-U.S. Operations and Assets
29 Note 15. Income Taxes
30 Note 16. Foreign Currency Translation Adjustments
31 Note 17. Commitments and Contingencies
31 Note 18. Retirement Plans
31 Note 19. Adoption of ASU 2014-09, Revenue from Contracts

with customer (Topic 606)
33 Note 20. Subsequent Events
Project Management Institute and Subsidiaries

Consolidated Financial Statements | 2020 & 2019 2
Consolidated Statement Years Ended 31 December
of Financial Position 2020 2019
Assets
CURRENT ASSETS:
Cash and cash equivalents $ 29,045,113 $ 19,718,123
Investments (Notes 2 and 3) 558,107,085 520,396,795
Accounts and other receivables, net 25,893,648 18,565,578
Prepaid expenses and other current assets 6,877,853 6,710,783
Inventory, net 971,451 1,403,231
Total current assets 620,895,150 566,794,510
Property and equipment, net (Note 4) 11,558,113 8,395,995
LONG-TERM ASSETS:
Deposits and other assets $ 400,787 $ 1,292,546
Investments – long-term (Notes 2 and 3) 21,546,438 21,043,041
Capitalized implementation costs, net (Note 4) 8,865,417 -
Intangible assets, net (Notes 3 and 6) 3,544,990 3,971,595
Goodwill (Notes 3 and 6) 10,041,278 11,203,621
Deferred tax asset – long-term (Note 15) 395,429 414,586
Total long-term assets 44,794,339 37,925,389
Total assets 677,247,602 613,115,894
Liabilities and Net Assets

CURRENT LIABILITIES:
Accounts payable (Note 7) $ 15,731,275 $ 21,338,697
Unearned revenue (Note 8) 69,165,575 55,341,769
Accrued expenses 36,446,789 38,201,045
Accrued salaries and payroll taxes – current 12,093,380 7,020,963
Grants payable – current (Note 9) 1,562,839 1,067,434
Total current liabilities 134,999,858 122,969,908
LONG-TERM LIABILITIES:
Grants payable – long-term (Note 9) $ 639,590 $ 1,582,354
Accrued payroll taxes - long-term 935,805 -
Deferred rent liability 325,353 520,804
Total long-term liabilities 1,900,748 2,103,158
Total liabilities 136,900,606 125,073,066
Commitments and contingencies (Notes 17)
NET ASSETS (NOTE 10):

Without donor restrictions $ 537,508,615 $ 485,475,338
With donor restrictions 2,838,381 2,567,490
Total net assets 540,346,996 488,042,828
Total liabilities and net assets 677,247,602 613,115,894
See notes to consolidated financial statements.

3 Consolidated Financial Statements | 2020 & 2019
of Activities 2020 2019
Changes in Net Assets Without Donor Restrictions

REVENUE AND SUPPORT:
Dues and professional examination fees $ 241,292,570 $ 225,276,657
Conferences, seminars and professional development 16,854,072 22,156,217
Book sales and advertising 8,907,818 13,822,168
Other 1,143,006 607,282
Net investment (loss) return 49,540,861 67,521,447
Contributions 411,421 455,346
Net assets released from restrictions 221,993 251,050
Total revenue and support 318,371,741 330,090,167
EXPENSES AND LOSSES:

PROGRAM EXPENSES:
Certification 92,576,880 80,559,520
Membership 21,362,146 14,857,240
Other programs 75,662,424 108,252,530
PMI Educational Foundation 3,741,290 6,609,215
Total program expenses 193,342,740 210,278,505
SUPPORTING EXPENSES:
Management and general 56,119,999 38,548,700
Transformation 16,875,725 58,330,093
Total supporting expenses 72,995,724 96,878,793
Total expenses 266,338,464 307,157,298
Change in net assets without donor restrictions 52,033,277 22,932,869
Changes in Net Assets With Donor Restrictions

Contributions 56,900 57,400
Net assets released from restrictions (221,993) (251,050)
Net investment return 435,984 498,395
Change in net assets with donor restrictions 270,891 304,745

Change in net assets 52,304,168 23,237,614
Net Assets
Beginning 488,042,828 471,831,020
(7,025,806)
Ending $ 540,346,996 $ 488,042,828
See notes to consolidated financial statements.

of Cash Flows 2020 2019
Cash Flows from Operating Activities

Change in net assets $ 52,304,168 $ 23,237,614
ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
- (7,025,806)
Depreciation and amortization 4,030,534 3,562,604
Amortization of goodwill and intangible assets 1,588,948 655,887
Amortization of capitalized implementation costs 1,429,906 -
Realized and unrealized gain on investments (33,645,160) (42,552,353)
Loss on abandonment of property and equipment 1,434,736 -
Loss on abandonment of software development - 745
Provision for uncollectible accounts 455,769 649
Provision for inventory obsolescence 76,053 69,814
Deferred rent liability (195,667) (23,889)
Deferred tax benefit 18,419 206,261
(Gain) loss on translation adjustments (209,873) 52,989
CHANGES IN ASSETS AND LIABILITIES:
(Increase) Decrease in Assets:
Accounts and other receivables (7,785,238) (13,884,213)
Inventory 355,727 (423,344)
Prepaid expenses and other current assets (149,641) (2,685,882)
Deposits and other assets 891,637 (897,534)
Increase (Decrease) in Liabilities:
Accounts payable (5,607,200) 18,068,829
Unearned revenue 13,821,083 12,189,855
Accrued expenses (1,773,080) 8,513,071
Accrued salaries and payroll taxes 5,982,024 (231,346)
Grants payable (447,359) 1,637,887
Net cash provided by operating activities 32,575,786 471,838
Cash Flows from Investing Activities

Purchase of investments (140,762,615) (118,999,770)
Proceeds from sale of investments 136,185,258 133,531,210
Acquisition of Discpilined Agile, Inc. and Net Objectives, Inc. - (14,993,578)
Purchase of capitalized implementation costs (10,295,323)
Purchase of property and equipment (8,626,985) (4,549,871)
Net cash used in investing activities (23,499,665) (5,012,009)

of Cash Flows (continued) 2020 2019
Cash Flows from Financing Activities

Effect on unrealized exchange rate changes on cash and cash equivalents $ 250,869 $ (48,509)
Net increase (decrease) in cash and cash equivalents 9,326,990 (4,588,680)
Cash and Cash Equivalents

Beginning 19,718,123 24,306,803
Ending $ 29,045,113 $ 19,718,123
Supplemental Disclosure of Cash Flow Information

Cash paid for income taxes $ 202,071 $ 9,449
Supplemental disclosure of noncash investing activity:

Property and equipment written off $ 39,947,810 -
Accumulated depreciation written off (38,513,074) -
29,045,113 19,718,123
See notes to consolidated financial statements.

Notes to Consolidated Financial
Statements
NOTE 1. Nature of Activities Basis of presentation: The Institute reports
information regarding its financial position and
and Significant Accounting activities according to two classes of net assets:
Policies net assets without donor restrictions and net
assets with donor restrictions.
Nature of activities: Project Management Institute,
Inc. (the Institute) is the world’s leading not-for-profit All contributions are available for use without donor
membership association for the project management restrictions unless specifically restricted by the
profession, with more than 652,000 members and donor. Donor restricted support is reported as an
1,225,000 credential holders in over 200 countries. increase in net assets with donor restriction. When
The Institute’s worldwide advocacy for project a restriction expires (that is, when a stipulated time
management is supported by its globally recognized restriction ends, or purpose restriction is
standards and credentials, its extensive research accomplished) net assets with donor restrictions are
program, and its professional development reclassified to net assets without donor restrictions
opportunities. Its products and services are the basis and reported in the statements of activities as net
of greater recognition and acceptance of project assets released from restrictions.
management’s successful role in governments,
organizations, academia and industries. Primary Principles of consolidation: The consolidated financial
sources of revenue include dues, professional statements include accounts of Project Management
examination fees, conferences and seminars, and Institute Educational Foundation (PMI Educational
book sales and advertising. The Institute’s Foundation or the Foundation), PMI Organization
headquarters are located in Newtown Square, Centre Private Ltd, a majority-owned subsidiary in
Pennsylvania. In addition, the Institute operates Mumbai, Republic of India (PMI India); PMI (Beijing)
internationally through contract service centers Project Management Technology Co., Ltd, a wholly
located in Dundalk, Ireland, New Delhi, India and owned foreign enterprise in Beijing, People’s Republic
Singapore that provide local customer care services, of China (PMI China), which has a limited contractual
as well as through subsidiaries located in Beijing, obligation of 20 years; Project Management Institute
Brussels, Dubai, London, Mumbai and Singapore that Australasia PTY LTD (PMI Australasia), a proprietary
provide local marketing services, conduct advocacy limited company in Sydney, Australia and subsidiary,
programs with regional organizations and academia Project Management Institute Khaleeji FZ-LLC (PMI
and foster regional chapter development activities. Khaleeji), in Dubai, United Arab Emirates; PMI Europe
The Institute is affiliated with domestic and Limited and subsidiaries (PEL), a wholly owned
international chapters. Chapters are separate, subsidiary in the United Kingdom with subsidiaries in
independent operating entities and, therefore, the the United Kingdom and Australia; PMI Management
consolidated financial statements do not include the Singapore Pte.Ltd, (PMI Singapore), a wholly owned
accounts of these operating entities. subsidiary in Singapore; PMI Management Europe
(PMI Belgium), a wholly owned subsidiary in Brussels,
A summary of significant accounting policies follows: Belgium; and PMI Canada, a wholly owned subsidiary
in Vancouver, Canada. All significant intercompany
Basis of accounting: The accompanying consolidated
transactions and balances have been eliminated in
financial statements are presented in accordance
consolidation.
with the accrual basis of accounting, whereby
unconditional support is recognized when notification Foreign currency translation: The functional
of the contribution is received; revenue is recognized currencies of the Institute’s foreign subsidiaries are
when earned and expenses recognized when their local currencies, Indian Rupees, Chinese
incurred. Renminbi, British Pounds, United Arab Emirates

Note 1. Nature of Activities and Significant Accounting Policie 7 Consolidated Financial Statements | 2020 & 2019
Dirham, Australian Dollars, Singapore Dollars,
Canadian Dollars and the Euro. All statements of
financial position accounts have been translated
using the exchange rate in effect at the statements
of financial position dates. Statements of activities
amounts have been translated using a monthly
average exchange rate prevailing during the
respective period.
Use of estimates: The preparation of financial

statements in conformity with accounting principles
generally accepted in the United States of America
(U.S. GAAP) requires management to make estimates
and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial
statements and the reported amounts of revenues
and expenses during the reporting period. Actual
results could differ from those estimates.
Cash and cash equivalents: For the purpose of the

statements of cash flows, cash equivalents include all an estimate is made of 50% of outstanding balances
highly liquid investments with an initial maturity of between 91 to 120 days and 100% of outstanding
three months or less that are not held in a brokerage balances over 120 days of the balance that will not
account for reinvestment. be collected. The allowance for uncollectible accounts
was $367,623 and $121,084 at 31 December 2020 and
Investments: The Institute carries all investments in
2019, respectively.
marketable securities at fair value measured as more
fully described in Note 3. The Institute measures one Inventory: Inventory consists of Institute and
of its mutual funds and its alternative investments Foundation publications and commercial publications
using net asset value (NAV) per share (or its held for sale, and paper stock for future production
equivalent) as a practical expedient for fair value. Net of Institute publications. Inventory is stated at the
investment return consists of interest and dividend lower of cost or net realizable value, with cost being
income, realized and unrealized gains and losses, less determined by the average cost method. The
investment expenses. Net investment return is carrying amount of inventory is reduced by a reserve
reported in the statements of activities as increases for obsolescence that reflects management’s best
or decreases in net assets without restrictions unless estimate of inventory that may be obsolete and may
their use is restricted by explicit donor stipulation or not be sold. Based on management’s reserve policy,
law. All marketable securities at 31 December 2020 an estimate is recorded at varying percentages of
and 2019, are managed by an investment advisor. the value of inventory on hand in excess of one year’s
sales based on the age of the inventory and historical
Accounts and other receivables: Accounts and other
obsolescence percentages. The reserve for inventory
receivables are stated at the amount management
obsolescence was $167,647 and $333,055 at 31
expects to collect from balances outstanding at
December 2020 and 2019, respectively.
year-end. The carrying amount of accounts
receivable is reduced by an allowance for credit Property and equipment: Property and equipment
losses that reflects management’s best estimate of are stated at cost less accumulated depreciation.
the amounts that will not be collected. Each The Institute capitalizes all expenditures for property
customer balance is individually reviewed when all or in excess of $25,000 with useful lives greater than
a portion of the balance exceeds 90 days from the one year. The Institute capitalizes all expenditures for
invoice date. Based on management’s reserve policy, equipment in excess of $5,000 with useful lives

Consolidated Financial Statements | 2020 & 2019 8 Note 1. Nature of Activities and Significant Accounting Policie
greater than one year. Maintenance, repairs and issued as ASU 2014-18, but excluded Not-for-Profit
minor improvements are charged to operations as companies. ASU 2019-06 extended the original
incurred. Depreciation is provided over the estimated guidance to not-for-profit entities and provides
useful lives of the assets by the straight-line method. additional clarification. All Goodwill is amortized
The estimated useful lives are as follows: buildings over 10 years. See Note 6.
and improvements five to 40 years; office furniture
Intangible assets with finite lives are amortized on a
and equipment five years; computer equipment three
straight-line basis over the estimated residual life of
to five years and leasehold improvements to the
the asset. Estimated asset lives are as follows:
lesser of five to ten years or over the term of the
advertiser relationships – 7 years; and trademarks
lease.
and tradenames – 20 years to indefinite. The
Capitalized implementation costs: Capitalized estimated useful lives of intangible assets are
implementation costs are stated at cost less reviewed annually to determine if events or
accumulated amortization. The Institute capitalizes circumstances warrant a change in the remaining
expenditures related to cloud computing useful life of an asset. In addition, intangible assets
arrangements, which are hosting arrangements that are reviewed for impairment when events or
include internet access to software on a subscription circumstances indicate their carrying amount may
basis. Such costs include costs to develop or obtain not be recoverable. During 2020 and 2019, the
software for a cloud computing arrangement, coding Institute recognized no losses related to the
and testing activities in the application development impairment of goodwill and intangible assets.
stage, external direct costs of materials and services
to configure the solution, travel expense incurred by Impairments of long-lived assets: If facts and
third parties involved with the implementation and circumstances indicate that the carrying value of
payroll and related compensation costs for property and equipment or other noncurrent assets
employees associated with implementation based may be impaired, an evaluation of recoverability is
on actual rates. Capitalized implementation costs performed in order to determine if impairment exists.
are amortized over the estimated useful life of If an evaluation is required, the Institute estimates
three years. future undiscounted cash flows associated with the
asset. If the total expected future undiscounted cash
Software development costs: The Institute expenses flows are less than the carrying value for the asset,
costs associated with the planning phase as well as an impairment loss would be recognized. The
costs related to the operating phase that do not impairment loss would be measured by the amount
significantly enhance the software. Costs incurred that the carrying value of the asset exceeds its
during the development stage are capitalized and are fair value.
included in property and equipment. The costs are
Grants payable: Unconditional grants are recorded
amortized over three years. Computer software
as expense in the year of approval. Conditional
and equipment includes capitalized software
grants are those with a measurable performance or
development costs which were $2,730,918 and
barrier, and a right of return, are not recognized as
$3,200,964 at 31 December 2020 and 2019,
grant expense and grant payable until the conditions
respectively. Software development in process
on which they depend have been substantially met.
includes capitalized software development costs
Grants payable within one year are recorded at fair
not yet placed into service.
value. Grants payable in more than one year are
Goodwill and intangible assets: As of 1 January 2019, recorded at the present value of the future cash
the Institute elected to make the Private Company outflows using a risk-free rate of return.
Counsel (PCC) election and adopt the accounting
Unearned revenue: Unearned revenue represents
alternatives for not-for-profit Companies for Topic
gross membership and other fees less the amount
350 and Topic 805. The Institute adopted the PCC
earned by the Institute under normal revenue
election as described in Accounting Standards
recognition procedures.
Update (ASU) 2019-06. This election was originally

Revenue recognition: In 2019, the Institute adopted respectively, which represent the amount of 1
Accounting Standards Codification (ASC) 606, January 2019 under the New Revenue Standard.
Revenue from Contracts with Customers (ASC 606 See Note 19.
or the New Revenue Standard) in accordance with
Dues and professional exam fees on the statement
U.S. GAAP and elected to implement a modified
of activities include memberships and certifications.
retrospective approach transition method. The core
Membership dues and application fees generally have
principle of the new revenue standard is that an
a term of one year and provides various instructional
entity recognizes revenue to depict the transfer of
tools, such as PMBOK guides, events and webinars to
promised goods or services to clients in an amount
members. These are generally satisfied over the
that reflects the consideration the entity expects to
membership term and considered one performance
be entitled in exchange for those goods or services.
obligation. Application fees are non-refundable. Both
The new standard recognizes revenue according to
membership dues and application fees are
the following five-step model: (1) identify the contract
recognized ratably over time on the input method
with the customer, (2) identify the separate
based on the applicable membership period as the
performance obligations in the contract, (3)
benefits are typically provided evenly over the term
determine the transaction price, (4) allocate the
of the membership. Payment is due upon purchase.
transaction price to the performance obligations in
the contract, and (5) recognize revenue when the Certification revenues include fees for applying for
performance obligation is satisfied. eligibility to sit for a certification exam. Application
processing fees are non-refundable. Certification
The Institute performed an impact assessment to
exam fees are charged for taking the certification
identify the effects of adopting the New Revenue
exams. Both certification application and exam fees
Standard. This impact assessment included holding
are considered one performance obligation and
discussions with key stakeholders within the Institute,
revenue is recognized at a point in time when the
performing detailed contract reviews and identifying
applicant sits for the exam or if a no-show for the
potential impacts within the Institute’s core revenue
exam after 12 months from the date of the
streams. The analysis included determining any
application. Payment is due upon the customer’s
changes to the timing of revenue recognition, policies
registration for the certification exam. Revenues for
and processes, and annual financial statement
continuing certification requirement are recognized
disclosure requirements. The culmination of this
at a point in time when the applicant renews its
assessment allowed the Institute to determine an
certification.
overall approach to appropriately adopt ASC 606
effective as of 1 January 2019. Dues and professional examination fees includes
certification revenue (new and renewals) recognized
The analysis identified new application fees in two
at a point in time, whereas memberships are
areas that were impacted, (new certification exam
recognized over time. Total revenue recognized at a
applications of $205/each and new membership
point in time and over time was as follows for the
applications of $10/each) that had previously been
years ended 31 December:
recognized immediately at the time of application.
Under the New Revenue Standard, new certification
application fees are being recognized when the exam 2020 2019
is taken or if a no show for the exam after 12 Revenue recognized
$ 166,746,612 $ 151,945,852
months from the date of application. New at a point in time
membership application fee revenue is being Revenue recognized
74,545,958 73,330,805
over time
recognized ratably over the one-year membership
period. As a result, the Institute recorded transition $ 241,292,570 $ 225,276,657
adjustments of $6,194,680 and $831,126 for

certification and membership application fees, Book sales and advertising include any hardcopy
publications and advertising related to any entity
requesting to reach the Institute’s diverse global

audience for print or digital avenues. Book sales and Income, which is not related to exempt purposes, less
advertising are recognized at the point in time when applicable deductions is subject to federal and state
a customer takes delivery of the publication or corporate income taxes. The Foundation had no net
service. Revenue is recorded net of sales tax. unrelated business income for the years ended 31
December 2020 and 2019.
Conferences, seminars and professional development
include registrations for various events or access to Management evaluated the Institute’s and
the Institute’s eLearning website. Performance Foundation’s tax positions and concluded that the
obligations are generally satisfied for these revenue Institute and Foundation had taken no uncertain tax
streams at a point in time when such events occur or positions that require adjustment to the financial
services provided. Payment is due upon registration statements. Consequently, no accrual for interest
or application acceptance. and penalties was deemed necessary for the years
ended 31 December 2020 and 2019. The Institute and
Advertising: The Institute uses advertising to Foundation file tax returns in the U.S. federal
promote its programs among the audiences it jurisdiction. Generally, the Institute and Foundation
serves. Advertising costs are expensed as incurred. are no longer subject to income tax examination by
Advertising expense for the years ended 31 the U.S. federal or state tax authorities for years
December 2020 and 2019, was $5,969,411 and before 2017.
$3,797,671, respectively.
The Institute’s for-profit subsidiaries that are subject
Hedging activity: The Institute entered into an to income taxes include provisions for income tax
agreement with Wells Fargo National Association expense and deferred tax assets and liabilities which
dated 2 October 2019, with the intent to hedge risk are calculated using management’s best assessment
and/or minimize the Institute’s financial exposure due of estimated future taxes to be paid. As part of the
to any Chinese foreign currency fluctuations (CNY) process of preparing the consolidated financial
related to accounts receivable. As of 30 September statements, the Institute is required to estimate
2019, the stated notional amount of the accounts income taxes in each of the tax jurisdictions in which
receivable was $4.4 million at a rate of 7.140306 CNY it operates. This process involves estimating the
per United States Dollar (USD) or 31,621,500 Chinese actual current tax obligations together with
Renminbi (CNY) with a contract settlement date of 5 assessing temporary differences resulting from
November 2019. U.S. GAAP considers this a non- differing treatment of certain items for tax and
deliverable forward contract with short term accounting purposes. These temporary differences
duration (about 35 days) ending on 5 November 2019. result in noncurrent deferred tax assets and
On contract settlement date of 5 November 2019, liabilities, which are included within the consolidated
the final rate was 7.0437 CNY/USD resulting in a statements of financial position. The Institute then
realized loss of $60,739 for the year ended 31 assesses the likelihood that the deferred tax assets
December 2019. There were no hedging activities for will be recovered from future taxable income. The
the year ended 31 December 2020. Institute recognizes deferred tax assets to the
Income taxes: The Institute is exempt from U.S. extent that the Institute believes these assets are
federal income taxes under Section 501(c)(6) Internal more likely than not to be realized. In making such a
Revenue Code (IRC) and exempt from Pennsylvania determination, the Institute considers all available
income taxes. Revenue generated from the Institute’s positive and negative evidence, including future
advertising and sales of membership mailing lists are reversals of existing taxable temporary differences,
not considered program activity revenue by the projected future taxable income, tax planning
Internal Revenue Service. This type of income is strategies and results of recent operations. Actual
classified as unrelated business income and may be results could differ from this assessment if adequate
subject to income tax. taxable income is not generated in future periods.
The Foundation is exempt from federal income taxes Changes in tax laws and rates could also affect
under the provisions of Section 501(c)(3) of the IRC recorded deferred tax assets and liabilities in the
and generally exempt from federal and state taxes. future. Management is not aware of any such

changes that would have a material effect on the body of knowledge; and to conduct worldwide
Institute’s results of operations, cash flows or outreach programs to promote the academic value
financial position. of project management.
The Institute considers the earnings of certain Membership: Membership management costs
non-U.S. subsidiaries to be indefinitely invested include the core operating cost to maintain existing
outside the United States based on estimates that members and add new members to the Institute.
future domestic cash generation will be sufficient to
Other Program Cost: Other program costs include:
meet future domestic cash needs and the Institute’s
those for development of global standards for
specific plans for reinvestment of those subsidiary
project, program and portfolio management; for
earnings. Should the Institute decide to repatriate
publication of monthly periodicals for the members
the foreign earnings, the Institute would need to
of the Institute related to the practice; bookstore
adjust the income tax provision in the period that it
publications, eLearning, advertising, event
was determined that the earnings will no longer be
registration and advancement of project
indefinitely invested outside the United States.
management and current developments in the
Accrued payroll taxes – long-term: The Institute project management community for Institute-
has deferred payroll taxes until 2022. published and other project management titles
offered through the Institute’s online marketplace;
Functional classification of expenses: Costs of and for providing comprehensive access to
providing the Institute’s various programs and other knowledge resources, tools, networks, and broader
activities have been summarized on a functional basis. perspectives to project, program, and portfolio
Accordingly, the expenses directly related to the managers worldwide through thought leadership
programs are combined with certain common costs publications, the Institute’s PMI.org and
of the Institute which have been allocated based on ProjectManagement.com websites and authorized
estimates made by management. Rent and utilities training centers. Additionally, this element of cost
and other expenses are allocated to program and includes coalition building cost and events to conduct
supporting services benefited based on headcount. professional and academic research and strategy
Allocated information technology expenses, cost that related to the Institute’s elite community of
consulting and other professional services and government project directors and thought leaders
software and technology and depreciation and who influence and advance the project and program
amortization are allocated to program and management professions; and to conduct worldwide
supporting services benefited based on headcount advocacy programs that promote the strategic
and the related revenue. Business value added taxes organizational value of project management.
are considered program expenses based on related
revenue. Activities include the following major PMI Educational Foundation: PMI Educational
program areas: Foundation costs include those related to carrying
out the charitable purposes of the Institute and
Certification: Certification costs include those fostering project management research, education
supporting delivery of examinations for the eight and application throughout society on a global basis
credentials offered by the Institute that recognize by providing educational resources, grants,
knowledge and competency for delivery of a wide scholarships and awards.
range of professional development offerings; for
global accreditation programs for organizations that Recent accounting pronouncements – adopted: On 1
offer training in project management and issue January 2020, the Institute adopted the portion of
professional development units (PDUs) needed by the ASU 2018-08, Not-for-Profit Entities (Topic 958):
Institute’s credential holders to meeting continuing Clarifying the Scope and the Accounting Guidance
education requirements; for the most extensive for Contributions Received and Contributions Made,
research program in the field that advances the which clarifies and improves the scope and the
science, practice and profession of project accounting guidance for contributions made to assist
management and expands project management’s entities in: (1) evaluating whether transactions should

be accounted for as contributions (nonreciprocal financed purchase by the lessee. A lessee is also
transactions) or as exchange (reciprocal) required to record a right-of-use asset and a lease
transactions; and (2) determining whether a liability for all leases with a term of greater than 12
contribution is conditional. The Institute applied a months regardless of classification. Leases with a
modified prospective approach to agreements term of 12 months or less will be accounted for
entered into after 1 January 2020. Under the new similar to existing guidance for operating leases.
standard, the Institute does not recognize grants Lessor accounting is mostly unchanged from the
expense and grants payable when barriers are current model but updated to align with certain
present and there is a right of return. See Note 9. changes to the lessee accounting model and the new
revenue recognition standard. The ASU is effective
On 1 January 2020, the Institute adopted ASU 2018- for annual reporting periods beginning after 15
13, Fair Value Measurement (Topic 820). This ASU is December 2021, with early adoption permitted. The
part of the disclosure framework project, which impact of adopting ASU on the Institute’s
focuses on improving the effectiveness of disclosures consolidated financial statements for subsequent
for fair value measurements. periods has not yet been determined.
On 1 January 2020, the Institute adopted ASU 2018- In June 2016, the FASB issued ASU 2016-13, Financial
15, Intangibles-Goodwill and Other – Internal-Use Instruments—Credit Losses (Topic 326): Measurement
Software, Customer’s Accounting for Implementation of Credit Losses on Financial Instruments, which
Costs Incurred in a Cloud Computing Arrangement creates a new credit impairment standard for
That Is a Service Contract. This ASU aligns the financial assets measured at amortized cost. The
requirements for capitalizing implementation costs ASU requires financial assets measured at amortized
incurred in a hosting arrangement that is a service cost (including trade receivables) to be presented at
contract with the requirements for capitalizing the net amount expected to be collected, through an
implementation costs incurred to develop or obtain allowance for credit losses that are expected to
internal-use software. The Institute applied a occur over the remaining life of the asset, rather
prospective transition approach to costs for than incurred losses. The measurement of credit
activities performed after 1 January 2020. Under the losses for newly recognized financial assets (other
new standard, the Institute has capitalized than certain purchased assets) and subsequent
implementation costs less accumulated amortization. changes in the allowance for credit losses are
See Note 4. recorded in the statement of income as the amounts
On 1 January 2020, the Institute adopted ASU 2021- expected to be collected change. The ASU is effective
03, Intangibles-Goodwill and Other (Topic 350), for fiscal years beginning after 15 December 2022.
Accounting Alternatives for Evaluating Triggering The Institute is currently evaluating the impact of
Events, which allows an entity to elect the accounting adopting this new guidance on its consolidated
alternative for a goodwill impairment triggering event financial statements.
evaluation only as of the end of each reporting In January 2017, the FASB issued ASU 2017-04,
period. See Note 6. Intangibles - Goodwill and Other (Topic 350): Simplifying
Recent accounting pronouncements – not yet the Test for Goodwill Impairment. The ASU simplifies
adopted: In February 2016, the Financial Accounting the measurement of goodwill impairment by
Standards Board (FASB) issued ASU 2016-02, Leases eliminating the requirement that an entity compute
(Topic 842), provides principles for the recognition, the implied fair value of goodwill based on the fair
measurement, presentation and disclosure of leases values of its assets and liabilities to measure
for both lessees and lessors. The new standard impairment. Instead, goodwill impairment will be
requires lessees to apply a dual approach, classifying measured as the difference between the fair value
leases as either finance or operating leases based on of the reporting unit and the carrying value of the
the principle of whether the lease is effectively a

reporting unit. The ASU also clarifies the treatment of
the income tax effect of tax deductible goodwill when
measuring goodwill impairment loss.
ASU 2017-04 will be effective for the Institute
beginning on 1 January 2023. ASU 2017-04 must be
applied prospectively with early adoption permitted.
The Institute is currently evaluating the impact of the
adoption of this guidance on its consolidated financial
statements.

NOTE 2. Investments
At 31 December 2020, investments consist
of the following:
FAIR VALUE/
COSTS
NET ASSET VALUE
Certificates of deposit $ 1,571,772 $ 1,571,772
U.S. common stocks 41,389,260 43,307,557
Mutual funds 378,500,961 404,704,452
Investment fund at NAV 48,796,991 49,044,012
Alternative investments (a) 73,257,048 81,025,730
Total $ 543,516,032 $ 579,653,523
Investments $ 519,803,989 $ 558,107,085

Investments – long-term 23,712,043 21,546,438
Total $ 543,516,032 $ 579,653,523
Domestic equities $ 39,266,964 $ 41,131,234

International equities 2,122,296 2,176,323
Total $ 41,389,260 $ 43,307,557
(a) Alternative investments are measured using net asset value as a practical expedient to fair value.
The following schedule summarizes the asset classes

of investments as of 31 December 2020:
U.S. equities mutual funds 15%
International equities mutual funds 11%
U.S. common stocks 8%
Fixed income mutual funds and certificates of deposit 44%
Investment fund at NAV 8%
Alternative investments 14%

At 31 December 2019, investments consist
of the following:
FAIR VALUE/
COSTS
NET ASSET VALUE
Certificates of deposit $ 1,191,649 $ 1,191,649
Mutual funds 466,489,176 463,154,032
Alternative investments (a) 72,400,000 77,094,155
Total $ 540,080,825 $ 541,439,836
Investments $ 517,438,804 $ 520,396,795

Investments – long-term 22,642,021 21,043,041
Total $ 540,080,825 $ 541,439,836
The following schedule summarizes the asset classes

of investments as of 31 December 2019:
U.S. equities mutual funds 23%
International equities mutual funds 11%
Fixed income mutual funds and certificates of deposit 52%
Alternative investments 14%
Investment securities are exposed to various risks Level 1: Unadjusted quoted prices in active markets
such as interest rate, market and credit risks. Due to for identical assets or liabilities.
the level of risk associated with certain investment
Level 2:Observable inputs other than Level 1 prices
securities, it is at least reasonably possible that
changes in the values of investment securities will such as quoted prices for similar assets or
occur in the near term and that such changes could liabilities, quoted prices in markets that are
materially affect the amounts reported in the not active, or inputs (interest rates, currency
consolidated statements of financial position. exchange rates, commodity rates and yield
curves) that are observable or corroborated
by observable market data for substantially
NOTE 3. Fair Value Measurements the full term of the assets or liabilities.
Valuation of investments: The fair value of each Level 3: Unobservable inputs that are supported by
investment is determined at the statement of little or no market activity and that are
financial position date in accordance with FASB ASC significant to the fair value of the assets or
Topic 820, Fair Value Measurements. Accordingly, liabilities. Level 3 assets and liabilities include
fair value refers to the price that would be received financial instruments whose value is
to sell an asset or paid to transfer a liability in an determined using pricing models, discounted
orderly transaction between market participants in cash flow methodologies, or other valuation
the market in which the reporting entity transacts techniques, as well as instruments for which
and fair value measurements are separately the determination of fair value requires
disclosed by level within the fair value hierarchy. significant management judgment or
Investments measured and reported at fair value estimation.
are classified and disclosed in one of the following
categories:

Investments measured at net asset value: Investments: The fair value of securities is the market
The Institute measures one investment fund and its value based on quoted market prices, when available,
alternative investments using NAV per share (or its or market prices provided by recognized broker
equivalent) as a practical expedient for fair value, dealers (Level 1). When listed prices or quotes are not
and as such, the alternative investments have been available, fair value is based upon quoted market
excluded from the fair value hierarchy. prices for similar or identical assets or other
observable inputs (Level 2) or significant management
The following is a description of the valuation judgment or estimation based upon unobservable
methodologies used for instruments measured at inputs due to limited or no market activity of the
fair value. These valuation methodologies were instrument (Level 3).
applied to all the Institute’s financial assets that
are carried at fair value as of 31 December 2020 Fair value on a recurring basis: The tables below
and 2019. present the balance of assets measured at fair value
on a recurring basis as of 31 December:
2020 TOTAL LEVEL 1 LEVEL 2 LEVEL 3

INVESTMENTS
VALUED AT NAV
ASSETS:
Certificates
$ 1,571,772 -
of deposit 1,571,772 -
Common stocks 43,307,557 43,307,557 558,107,085 520,396,795
Mutual funds 404,704,452 - - - 49,044,012
Investment fund
49,044,012 - - - 49,044,012
at NAV*
Alternative
81,025,730 - - - 81,025,730
investments
Total investments $ 579,653,523 $ 448,012,009 $ 1,571,772 - $ 130,069,742
* Investment fund valued at NAV represents an it is not reasonably practical for the Fund’s
investment in a fixed income strategy fund that Investment Manager to fairly determine the value of
invests in global and U.S. investment grade, high the Fund’s net assets. There were no unfunded
yield and emerging market bonds, while addressing committements as of 31 December 2020.
environmental, social and governance objectives.
The Insitute owns all the shares of the Fund’s
Class B shares, which represents approximately
57% of the Fund. An unaffiliated shareholder owns
the remaining Fund’s Class A shares. The redemption
frequency is daily; however, the Fund may hold back
up to 10% of the withdrawal proceeds pending the
completion of the Fund’s audit for any withdrawals
in excess of 90%. Redemption is allowable with
redemption notice of 10 days. The Fund’s Investment
Manager may temporarily suspend the determination
of the net asset value of the Fund and issuance and
redemption of the Fund’s shares, and may postpone
the date of payment of redemption proceeds when

2019 INVESTMENTS
TOTAL LEVEL 1 LEVEL 2 LEVEL 3
VALUED AT NAV
ASSETS:
Certificates
$ 1,191,649 -
of deposi 1,191,649 - -
Mutual funds 463,154,032 463,154,032 - - -
Alternative
77,094,155 - - -
investments 77,094,155
Total investments $ 541,439,836 $ 463,154,032 $ 1,191,649 - $ 77,094,155
There was no change in the valuation techniques used to measure fair value of
investments in the years ended 31 December 2020 and 2019.
Alternative investments represent the following as of 31 December 2020 and 2019:
REDEMPTION FREQUENCY REDEMPTION

2020 2020 UNFUNDED
(IF CURRENTLY NOTICE
NET ASSET VALUE NET ASSET VALUE COMMITMENTS
ELIGIBLE) PERIOD
ALTERNATIVE INVESTMENTS
Offshore Opportunity
$ 28,024,806 $ 25,683,906 $ - Quarterly 95 days
Fund (a)
Energy Debt Fund (b) - Semi-annual 95 days

16,602,875 17,510,321
Structured Credit
- Quarterly 65 days
Segregated Fund (c) 17,864,741 16,706,449
Core Property Fund
Quarterly 95 days
(c) 17,609,070 17,193,479
Global Private Assets
- - n/a n/a
(e) 924,238
Total $ 81,025,730 $ 77,094,155 $ -
(a) Investment fund investing in a fund of hedge funds (c) Investment fund investing primarily in equity and
that invest in equity hedge, global macro, relative debt securities of collateralized debt obligations
value, and event-driven strategies. There are no and other structured credit investments. There are
restrictions on redemption of the investment as of no restrictions on redemption of the investment as
31 December 2020 or 2019; however, if the of 31 December 2020 or 2019; however, if the
Institute were to redeem its investment, 10% of Institute were to redeem its investment, 10% of
the value of the redemption may be held in escrow the value of the redemption may be held in escrow
until the completion of the fund’s audit. until the completion of the fund’s audit.
(b) A U.S. limited partnership that invests in bonds and (d) A U.S. limited partnership that invests in real estate
debt securities of U.S. and international energy funds of U.S. commercial real estate, including the
companies. The investments in this class cannot be office, multi-family, retail and industrial sectors.
redeemed because the investments include There are no restrictions on redemption of the
restrictions that do not allow for redemptions to investment as of 31 December 2020 and 2019;
start until June 2022; therefore, the investment is however, if the Institute were to redeem its
reflected as long-term as of 31 December 2020
and 2019.

investment, 10% of the value of the redemption
may be held in escrow until the completion of the
fund’s audit.
(e) A U.S. limited partnership that invests in privately

held companies in venture capital, buyouts, debt,
real estate, and real estate/infrastructure
strategies. The Institute cannot request
redemption. The Institute did not hold this
alternative investment as of 31 December 2019.
NOTE 4. Property and Equipment

and Capitalized Implementation Costs
Property and equipment at 31 December

2020 2019
are as follows:
PROPERTY AND EQUIPMENT

Leasehold improvements $ 837,441 $ 7,369,041
Office furniture and equipment 548,122 5,572,850
Computer software and equipment 13,220,792 32,516,379
Software development in process 2,730,918 3,200,964
17,337,273 48,659,234
Less accumulated depreciation and amortization (5,779,160) (40,263,239)
Net property and equipment $ 11,558,113 $ 8,395,995
In 2020, the Institute recorded a loss of $1,434,736 from abandonment of property and
equipment, which is included in management and general expenses on the statement of activities.
There was no gain or loss from sales or abandonment of property and equipment in 2019.
Capitalized implementation costs at 31 December

2020 2019
are as follows
CAPITALIZED IMPLEMENTATION
Capitalized implementation costs $ 10,295,323 -
Less accumulated amortization (1,429,906) -
Capitalized implementation costs, net $ 8,865,417 -

NOTE 5. Business Combinations consideration transferred for the Disciplined Agile, Inc.
business combination.
See Note 17.
Disciplined Agile: DAI, the parent of Disciplined Agile
Consortium, (DAC) is the governing body for The Disciplined Agile, Inc. transaction was accounted
certification in The Disciplined Agile Toolkit – A for as a business combination under the acquisition
Foundation for Business Agility. DAC was founded in method of accounting. Accordingly, the tangible and
2012 and is based in Calgary, Canada. DAC provides identifiable assets acquired and liabilities assumed
information technology services for individuals and were recorded at fair value as of 31 July 2019, with
teams to make informed choices, improve their way the remaining purchase price recorded as goodwill.
of working, and help organizations streamline agile The goodwill is attributable primarily to strategic
and lean strategies to make better decisions. opportunities related to leveraging the Institute’s
DAC is the governing body for certification in existing customer base when offering the Disciplined
Disciplined Agile. As such, DAC offers training and Agile certification program.
certification services to those requesting to become
The following table summarizes the fair values of the
certified instructors, coaches, and partners. DAC
assets acquired and liabilities assumed at 31 July
provides information on curriculum, certification,
2019:
access to certified members, and resources to
support Disciplined Agile activities. The Disciplined
Agile Toolkit enables better decision making when FAIR VALUE OF ASSETS ACQUIRED:
customizing approaches for adopting agile within
the context of your organization and projects. The CURRENT ASSETS:
Transaction allows PMI the ability to offer the Accounts receivables, net $ 232,751
exiting training and certification of Disciplined
Agile to its existing training and certification Prepaid expenses 1,991
portfolio and market the offering to its existing Total current assets 234,742
customer base.
On 31 July 2019, the Institute and Disciplined Agile,

INTANGIBLE ASSETS:
Inc. entered into an Asset Purchase Agreement
(the DA Agreement). Under the terms of the DA Trade names $ 675,000
Agreement, the Institute acquired certain assets Proprietary intellectual property 2,253,000
and liabilities of the Disciplined Agile, Inc. The
Total intangible assets 2,928,000
assets acquired primarily consist of intangible
assets, accounts receivable and other assets as of Total intangible acquired 3,162,742
31 July 2019. Acquired liabilities primarily consist of
those directly relating to the acquired assets.
FAIR VALUE OF LIABILITIES ASSUMED:
Total consideration was approximately $10 million,
including cash of $9 million and escrow payments
Accounts payable and accrued
of $1 million. In addition, the DA Agreement $ 70,192
expenses
included a deferred proceeds note for $8 million to
Total identifiable net assets 3,092,550
the former owners of Disciplined Agile, Inc. to be
split into three equal installment payments in 2020, Fair value of consideration
9,993,550
transferred
2021 and 2022. On 18 December 2020, the
deferred proceeds note was amended to extend
payments to 2021, 2022 and 2023. These payments The fair values of intangible assets, including trade
are based on the former owners’ names and proprietary intellectual property, were
continuing employment with the Institute; therefore, determined using variations of the income approach
the deferred proceeds note is not included in the including the relief from royalty approach, and the
cost approach. Varying discount rates were also

applied to the projected net cash flows. The Institute FAIR VALUE OF ASSETS ACQUIRED:
believes the assumptions are representative of those INTANGIBLE ASSETS:
a market participant would use in estimating fair Trade names $ 87,000
value. Proprietary intellectual property 380,000
Total intangible assets 467,000
Net Objectives: Net Objectives, Inc. (Net Objectives)
is the governing body for certification in Flex – Flow Total assets acquired 467,000
for Enterprise Transformation. Net Objectives offers Fair value of consideration
5,000,028
transferred
training and certification services to those requesting
Goodwill $ 4,533,028
to become certified instructors and coaches. Net
Objectives is an approach based on Lean-Thinking
and patterns that improves an organization’s ability The fair values of intangible assets, including trade
to achieve business agility – the quick realization of names and proprietary intellectual property, were
value predictably, sustainable and with high quality. determined using variations of the income approach
This transaction allows PMI the ability to offer this including the relief from royalty approach and the
exciting training and certification of Flex to its cost approach. Varying discount rates were also
existing training and certification portfolio and applied to the projected net cash flows. The Institute
market the offering to its existing customer base. believes the assumptions are representative of those
a market participant would use in estimating fair
On 25 September 2019, the Institute and Net
value.
Objectives entered into an Intellectual Property
Purchase Agreement (the Net Objectives Agreement). In 2019, the Institute elected to account for the DA
Under the terms of the Net Objectives Agreement, and Net Objective Agreements under the accounting
the Institute acquired certain assets from Net alternatives offered to not-for-profit entities
Objectives. The assets acquired primarily consist of extended in ASU 2019-06, commonly known as the
intellectual property, acquired contracts and tangible PCC election. The PCC election has two primary
personal property. The Institute notes that the aspects, first under Topic 350, a not-for-profit entity
tangible personal property was deemed immaterial should amortize goodwill on a straight-line basis over
by the Institute. Specific excluded assets and liabilities 10 years. Secondly, under the amendments to the
are noted in the Net Objectives Agreement. Total accounting alternative in Topic 805, for transactions
consideration was $4.5 million paid as cash plus $0.5 occurring after adoption of the alternative, a not-for-
million of funds deposited in escrow subject to an profit entity should subsume into goodwill and
escrow agreement. A portion of the cash purchase amortize customer-related intangible assets that are
price was used to pay expenses of Net Objectives. not capable of being sold or licensed independently
from the other assets of a business and all
The Net Objectives transaction was accounted for
noncompetition agreements acquired. By electing the
as a business combination under the acquisition
accounting alterative under Topic 805, the Institute is
method of accounting. Accordingly, the identifiable
required to make the election under Topic 350. As a
intangible assets acquired were recorded at fair
part of the making the election, the Institute included
value as of 25 September 2019, with the remaining
in goodwill the acquired customer relationships. Also,
purchase price recorded as goodwill. No liabilities
the Institute will amortize all acquired and previously
were assumed in the Net Objectives Agreement.
recognized goodwill on a straight-line basis over 10
The goodwill recognized is attributable primarily
years.
to strategic opportunities related to leveraging the
Institute’s existing customer base when offering Gantthead.com, Inc.: On 31 December 2013, the
the Net Objectives certification program. Institute purchased 100% of the ownership interests
of Gantthead.com, Inc. (Gantthead or the Entity), a
The following table summarizes the fair values of
taxable entity incorporated in Delaware, for
the assets acquired and liabilities assumed at 25
$3,100,000. On 10 April 2014, the Institute’s Board of
September 2019:

Directors adopted a resolution to dissolve the Entity NOTE 6. Goodwill and Other
in accordance with Delaware General Corporation
Law and to file an election under IRC Section 338(h)
Intangible Assets
(10) to liquidate the Entity. All assets, liabilities and Goodwill of $184,900 as of 31 December 2020 and
intellectual property of the Entity were effectively 2019, is the result of the acquisition of Gantthead.
transferred to the Institute as of the acquisition date. The excess of the purchase price over the net
tangible assets and liabilities of $184,900 was
Through the acquisition of Gantthead, the Institute
recorded as goodwill. Effective 1 January 2019, the
acquired two websites, ProjectManagement.com
goodwill associated with the Gantthead acquisition is
and [email protected]. As a result, the Institute
now being amortized over 10 years upon the
now delivers the most comprehensive access to
Institute’s adoption of ASU 2019-06.
knowledge resources, tools, networks and broader
perspectives to project, program, and portfolio The gross carrying amount and accumulated
managers worldwide. Both sites focus on generating amortization of goodwill at 31 December are as
content through use of industry experts, and follows:
facilitating global networking and knowledge sharing
among practitioners at all levels, across all regions
and industries.
2020 GROSS ASSETS

ACCUMULATED
NET BOOK VALUE USEFUL LIFE
AMORTIZATION
Goodwill $ 11,623,428 $ 1,582,150 $ 10,041,278 10 years
2019 GROSS ASSETS

ACCUMULATED
AMORTIZATION
Goodwill $ 11,623,428 $ 419,807 $ 11,203,621 10 years
The gross carrying amount and accumulated amortization

of intangible assets at 31 December are as follows: The
2020 GROSS ASSETS

ACCUMULATED
AMORTIZATION
Intangibles
Advertiser relationships $ 1,170,643 $ 1,170,643 - 7 years
trademarks/tradenames 1,666,100 387,435 1,278,665 15-20 years
Intellectual property 2,633,000 366,675 2,266,325 10 years
$ 5,469,743 $ 1,924,753 $ 3,544,990

2019 GROSS ASSETS
ACCUMULATED
AMORTIZATION
Intangibles
Advertiser relationships $ 1,170,643 $ 1,103,343 S 67,300 7 years
trademarks/tradenames 1,666,100 291,430 1,374,670 15-20 years
Intellectual property 2,633,000 103,375 2,529,625 10 years
$ 5,469,743 $ 1,498,148 $ 3,971,595
Institute acquired these intangibles as a result of Aggregate amortization expense was $1,588,948 and
the acquisitions described in Note 5. Estimated $655,887 in the years ended 31 December 2020 and
aggregate amortization expense for goodwill of 2019, respectively.
$10,041,278 and the remaining identified intangible
assets of $3,544,990 is as follows for the years
ending 31 December:
NOTE 7. Chapter Dues Payable
Accounts payable include amounts due to local
2021 $ 1,521,648 chapters for dues collected by the Institute on their
2022 1,521,648 behalf. Amounts due to chapters as of 31 December
2023 1,521,648 2020 and 2019, were $1,184,476 and $1,275,138,
2024 1,521,648 respectively.
2025 1,521,648
Thereafter 5,978,028
$ 13,586,268
NOTE 8. Unearned Revenue

Unearned revenues at 31 December are as
follows:
2020 2019
Unearned membership dues $ 44,154,625 $ 37,641,969

Unearned professional examination fees 20,793,899 15,710,965
Unearned registered education provider membership dues 2,502,380 1,351,937
Advance seminar registration fees, booth sales and others 1,714,671 636,898
$ 69,165,575 $ 55,341,769
NOTE 9. Grants Payable

Grants payable include amounts that will be paid
more than one year after the date of the
consolidated financial statements, which are
discounted to present value using a discount rate
equal to the risk-free rate of return on the date of
grant approval. Grants payable at 31 December
are as follows:

2020 2019
INTANGIBLES
Accumulated
Gross Assets Net Book Value Useful Life
Amortization
Advertiser
$ 1,170,643 1,103,343 67,300 7 years
relationships
trademarks/
1,666,100 291,430 1,374,670 15-20 years
tradenames
Intellectual
2,633,000 103,375 2,529,625 10 years
property
$ 5,469,743 $ 1,498,148 $ 3,971,595
The Institute has three conditional grants payable whereby grantees must meet
specific performance barriers, in order to receive future years’ payments. These
conditional grants payable total $1,523,839 and are not recorded as of 31 December
NOTE 10. Net Assets

Net assets without donor restrictions at 31
December consist of the following: 2020 2019
Undesignated $ 311,331,847 $ 270,543,308

Board designated:
Required reserve funds 191,809,251 174,450,120
Surplus reserve funds 33,000,000 39,300,000
Restricted foreign earnings 316,360 241,515
Endowment fund (Note 11) 770,434 677,921
Opportunity reserve (board designated endowment) (Note 11) 118,851 120,162
Operating reserve 136,680 116,312
Professional development 25,192 26,000
226,176,768 214,932,030
$ 537,508,615 $ 485,475,338
Required reserve funds: The Institute maintains Restricted foreign earnings: The Institute’s wholly
required reserve funds to assist in the event of an owned foreign enterprise in Beijing, China is required
unanticipated major crisis, catastrophic loss, or to appropriate not less than 10% of its profit after
severe economic shortfall or for opportunity tax for employee welfare benefit usage according
building. The board-designated reserve fund is to foreign invested enterprises law in the People’s
calculated as 85% of the three-year average of Republic of China. Annual appropriation of earnings
operating expenses, comprised of the previous is required until the accumulated restricted
two years’ actual operating expenses and the earnings balance is at least 50% of the registered
current year budgeted operating expenses. capital of the Institute. Net assets appropriated
under this rule were $316,360 and $241,515 as of
Surplus reserve funds: Surplus reserve funds are
December 31, 2020 and 2019, respectively, and are
for Coalition Building and Transformation, which are
included in net assets without restrictions in the
based on business plans approved by the Board of
statements of financial position.
Directors.

Operating reserve: The Foundation’s operating Opportunity reserve: The Foundation’s opportunity
reserve is intended to be used in situations of reserve is intended to provide additional funds for
financial shortfall, with the long-term target to unexpected opportunities to build the Foundation’s
supply funding for up to one year of ongoing reputation or capability to deliver its mission. The
operation of the Foundation. Effective 1 January opportunity reserve is to be used to fund innovative
2019, certain accounts are board-designated as growth and expansion in a way that does not create
the initial funding for the operating reserve. The large disruptions in normal operating budgets.
targeted reserve amount is to supply funding for Effective 1 January 2019, the quasi-endowment
up to one year of limited operations of the balance is board-designated as the initial funding
Foundation, particularly to assure the Foundation for the opportunity reserve. The minimum target of
can meet its outstanding grant commitments and the opportunity reserve is $500,000; however,
commitments for endowed scholarships. The there will be no further funding of the opportunity
targeted reserve amount is calculated at a reserve until the operating reserve is fully funded.
percentage of three years’ average operating The opportunity reserve will be tracked and
expenses augmented by anticipated budget growth invested as part of the endowment fund until such
plus total outstanding grant liabilities. The operating time as further funding begins, at which point it will
reserve plans to be funded to be funded at the be maintained in a separate investment account,
discretion of the Foundation’s Board of Directors governed by specific direction to be created at that
beginning 2022. Thereafter, the reserve will be time.
funded as determined by the Foundation’s
Board-designated for professional development:
Board of Directors with the expectation that
Effective June 2019, the Foundation’s Board approved
contributions to the reserve will fully fund the
the creation of the PMI Educational Foundation
target reserve amount in no more than 15 years.
Professional Development Scholarship, an endowed
fund for professional development scholarships.
Net assets with donor restrictions at 31 December

2020 2019
consist of the following:
Subject to expenditure for specified purpose:

Scholarships and awards $ 61,255 $ 55,560
Endowments:
Subject to appropriation and expenditure when a specified
event occurs:
Restricted by donors for scholarships and awards 755,148 489,952
Subject to endowment spending policy and appropriation: 2,021,978 2,021,978
Endowments for scholarships and awards 2,777,126 2,511,930
Total endowments $ 2,838,381 $ 2,567,490
Net assets with restrictions contain endowment Net assets were released from restrictions by
fund assets to be held in perpetuity. The income satisfying purpose restrictions during the years
from these assets is to be used to provide ended 31 December as follows:
scholarships and awards.
2020 2019
Purpose release:
Scholarships and awards $ 221,993 $ 251,050

NOTE 11. Endowment Funds value of subsequent gifts to the endowment and
(c) accumulations to the endowment made in
Accounting standards for the classification and accordance with the direction of the applicable donor
disclosure of endowments of nonprofit organizations gift instrument at the time the accumulation is added
provide guidance on the net asset classification of to the fund. The remaining portion of the donor
donor restricted endowment funds for a not for restricted endowment that is not classified in net
profit organization that is subject to an enacted assets with donor restrictions for endowment is
version of the Uniform Prudent Management of classified as net assets with donor restrictions for
Institutional Funds Act of 2006 (UPMIFA) and scholarships and awards or net assets without donor
disclosures about an organization’s endowment restrictions, based on the existence of donor
funds. As of 31 December 2020, Pennsylvania has restrictions or by law. Net assets with donor
not adopted UPMIFA. restrictions for scholarships and awards are classified
as such, until those amounts are appropriated for
The endowment of the Foundation consists of
expenditure by the Foundation in a manner consistent
approximately 30 funds established for various
with the standard of prudence prescribed by PA Law.
purposes (donor-restricted endowment funds) and
In accordance with PA Law, the Foundation considers
a board-designated fund that was established in
the following factors in deciding to appropriate or
2015 to support general operations. As required by
accumulate donor restricted endowment funds:
U.S. GAAP, net assets associated with endowment
funds, including funds designated by the Board of • Duration and preservation of the fund
Directors to function as endowments, are classified • the purposes of the Foundation and the donor
and reported based on the existence or absence • restricted endowment fund
of donor imposed restrictions. • general economic conditions
• the possible effect of inflation and deflation
Management has interpreted Pennsylvania law for
• the expected total return from income and the
investment of trust funds (PA Law) as requiring the
• appreciation of the investments
preservation of the fair value of the original gift as
• other resources of the Foundation
of the gift date absent explicit donor stipulations to
• the investment policies of the Foundation
the contrary. As a result of this interpretation, the
Foundation classifies as net assets with donor
Composition of endowment net assets: Endowment
restrictions for endowment: (a) the original value
funds as of 31 December 2020, and changes therein
of gifts donated to the endowment, (b) the original
during the year then ended are as follows:
2020 WITHOUT DONOR WITH DONOR

TOTAL
RESTRICTIONS RESTRICTIONS
Endowment Net Assets

Donor-restricted endowment funds $ 143,786 $ 2,777,126 $ 2,920,912
BOARD DESIGNATED ENDOWMENT FUNDS:
Opportunity reserve 118,851 - 118,851
Other 770,434 - 770,434
1,033,071 2,777,126 3,810,197
Endowment net assets, beginning of year 914,087 2,511,930 3,426,017

Net investment return 136,593 343,690 480,283
Amounts appropriated for expenditure (17,609) (78,494) (96,103)
Endowment net assets, end of year $ 1,033,071 $ 2,777,126 $ 3,810,197

Endowment funds as of 31 December 2019, and
changes therein during the year then ended are
as follows:
2019 WITHOUT DONOR WITH DONOR

TOTAL
RESTRICTIONS RESTRICTIONS
Endowment Net Assets

Donor-restricted endowment funds $ 116,004 $ 2,511,930 $ 2,627,934
BOARD DESIGNATED ENDOWMENT FUNDS:
Opportunity reserve 120,162 - 120,162
Other 677,921 - 677,921
$ 914,087 $ 2,511,930 $ 3,426,017
Endowment net assets, beginning of year 769,871 2,203,158 2,973,029

Net investment return 156,143 392,892 549,035
Amounts appropriated for expenditure (11,927) (84,120) (96,047)
Endowment net assets, end of year $ 914,087 $ 2,511,930 $ 3,426,017
Amounts classified as net assets with restrictions as of 31 December are as follows:
2020 2019
ENDOWMENT FUND CLASSIFIED AS NET ASSETS WITH DONOR RESTRICTIONS:

$ 2,021,978
The portion of the perpetual endowment fund that is required to be retained
$ 2,021,978 (formerly perm
permanently either by explicit donor stipulation or by State law
restricted)
489,952
The portion of the perpetual endowment fund subject to purpose restrictions $ 755,148 $ (formerly perm
restricted)
$ 2,777,126 $ 2,511,930
Funds with donor restrictions with deficiencies: At intent or relevant laws and regulations. In the event of
times, the fair value of the assets associated with significant anticipated underwater endowments due
individual donor restricted endowment funds may fall to continued appropriation for certain programs, the
below the level that the donor or PA Law requires the Foundation would pay out scholarships through
Foundation to retain as a fund of perpetual duration. funding from general operations.
There were no deficiencies of this nature at 31 Return objectives and risk parameters: The Foundation
December 2020 or 2019. Deficiencies result from has adopted investment and spending policies for
unfavorable market fluctuations that occur shortly endowment assets that attempt to provide a source
after the investment of new permanently restricted of funding for specific program activities of the
contributions and continued appropriation for certain Foundation, including Scholarships and Awards, while
programs that were deemed prudent by attempting to maintain the purchasing power of the
management. The Foundation’s investment and endowment assets. Endowment assets include those
spending policy permits management to assess assets that the Foundation must hold in perpetuity or
prudent spending from underwater endowment funds for a donor specified period of time. The primary long
depending on the degree to which the fund is term management objective is to preserve the real
underwater, unless otherwise precluded by donor (inflation adjusted) purchasing power of the

endowment, both with and without restrictions, The target spending rate is that which, as part of the
before gifts. This objective should be achieved over a total return, satisfies these conditions: (a) permits
three to five year period. reinvestment of enough total return to preserve the
real purchasing power of current funds, (b) permits a
Strategies employed for achieving objectives: To level of consistency and stability in the scholarship,
satisfy its long term rate of return objectives, the academic and humanitarian programs of the
Foundation relies on a total return strategy in which Foundation (c) is sustainable over time regardless of
investment returns are achieved through both capital periodic variations in the levels required to satisfy (a),
appreciation (realized and unrealized) and current and (d) recognizes that circumstances may preclude
yield (interest and dividends). The primary investment achievement of all three objectives in any one year
objective of the endowment is to earn an average real
total return of 6.1%.
Spending policy and how the investment objectives NOTE 12. Liquidity and
relate to spending policy: The Foundation has a policy
of appropriating for distribution each year 4% of its
Availability of Financial Assets
endowment fund’s average value over the prior three Financial assets available within one year of the
years through the calendar year-end preceding the statement of financial position date for general
fiscal year in which the distribution is planned. In expenditures are as follows:
establishing this policy, the Foundation considers the
long term expected return on its endowment.
2020 2019
FINANCIAL ASSETS
Cash and cash equivalents $ 29,045,113 US$ 19,718,123
Receivables without donor restrictions due in one year or less 25,893,648 18,565,578
Investment balances, short-term 558,107,085 520,396,795
Endowment spending-rate distributions and appropriations 118,904 115,117
Less:appropriations required under foreign law (316,360) (241,515)
Less:required reserve funds not available for general expenditures (191,809,251) (191,809,251)
Less:surplus reserve funds not available for general expenditures (33,000,000) (39,300,000)
Financial assets available to meet cash needs for general

$ 388,039,139 $ 344,803,978
expenditures within one year
Financial assets of the Institute were reduced by

amounts not available for general use within one year
of the statements of financial position date because
of contractual or donor-imposed restrictions and
board designations. As described in Note 11, the
endowment fund has a spending policy of 4%.
Appropriations as of 31 December 2020 and 2019
from the endowment fund will be available within the
next 12 months and are included in financial assets
available above.

The Institute regularly monitors its cash available to on currency exchange. Currency exchange controls
meet its operating needs and other contractual and restrictions on the export of currency by certain
commitments. The Institute has various sources of countries may negatively impact the cash flows of
liquidity at its disposal, including cash and cash the Institute. For example, there are currently existing
equivalents, marketable mutual funds and certificates currency exchange controls and restrictions on the
of deposit. The Institute maintains reserve funds to RMB, the currency of China. Net assets of foreign
assist in the event of an unanticipated major crisis, subsidiaries are less than 2% of the Institute’s total
catastrophic loss, or severe economic shortfall or net assets and consist mainly of cash, accounts
for opportunity building. If the Institute has surplus receivable, property and equipment, and deferred
reserve funds, use of these funds may be authorized tax assets, less accounts payable, accrued expenses,
by the Board of Directors in support of a written and accrued salaries and payroll taxes. As of 31
business plan. In 2020 and 2019, the Board of December 2020, total non-U.S. assets equaled
Directors approved the use of surplus reserve funds approximately $17.5 million, which represented less
for the following year’s spending for coalition building than 1.5% of the Institute’s total assets.
and strategic plan refresh.
The wholly owned foreign subsidiary (WOFE) in
China has a requirement to fund $650,000 USD in
registered capital and is included in net assets
NOTE 13. Concentration of without donor restrictions. As the funding
requirement was satisfied in previous years, no
Credit Risk further funding is required as of 31 December
The Institute maintains cash and cash equivalent
2020 or 2019.
balances at financial institutions in accounts insured
by the Federal Deposit Insurance Corporation (FDIC
insured) to $250,000 per account. The Institute also
holds cash at overseas locations which are not subject NOTE 15. Income Taxes
to FDIC insurance, but which in some cases may be
partially covered by local country deposit protection The Institute has a 99.9% interest in a foreign for-
schemes. As of 31 December 2020, uninsured profit subsidiary, PMI Organization Centre Private
balances were approximately $25,300,000. The Ltd, Mumbai, India. In addition, the Institute has a
Institute has not experienced any loss in such wholly owned foreign enterprise, PMI Project
accounts. The Institute’s management believes it is not Management Technology Co., Ltd, Beijing, China;
exposed to any significant credit risk on its cash and Project Management Institute Australasia PTY LTD,
cash equivalents and its investment balances. a proprietary limited company in Sydney, Australia;
Project Management Institute Khaleeji FZ LLC, a
limited liability company in Dubai, UAE; PMI
Management Singapore, a private limited company
NOTE 14. Non-U.S. Operations and in Singapore; and PMI Management Europe, a private
limited company in Brussels, Belgium. The Institute
Assets has elected to treat these foreign subsidiaries as
Operations outside the United States are currently pass-through entities for U.S. income tax purposes.
conducted by subsidiaries in Beijing, China; Brussels, The earnings from the investments in the subsidiaries
Belgium; Dubai, UAE; London, United Kingdom; Mumbai, are included in taxable income in a manner consistent
India; Singapore; and Sydney, Australia. Foreign with the financial reporting results. The majority of
operations are subject to risks inherent in operating the earnings of the subsidiaries are derived through
under different legal systems and various political and a cost-plus-fee arrangement with the Institute.
economic environments. Among the risks are changes The terms of the fee arrangements were established
in existing tax laws, possible limitations on foreign by independent transfer pricing studies. All of the
investment and income repatriation, government earnings are wholly related to the tax-exempt
price or foreign exchange controls and restrictions

purpose of the Institute and are, therefore, not
2020 2019
subject to unrelated business income tax in the
United States. Deferred tax assets $ 395,429 $ 414,586
Valuation allowance - -
The Institute has 100% interest in a foreign
Net deferred tax assets 395,429 414,586
for-profit subsidiary, PMI Europe Limited (PEL),
Deferred tax liabilities - -
London, United Kingdom. As noted in Note 1, PEL’s
Total net deferred tax assets $ 395,429 $ 414,586
subsidiaries in London, United Kingdom were
formally dissolved on 17 April 2018 and PEL’s
subsidiary in Sydney, Australia was formally
dissolved on 8 August 2018. PEL is treated as a
Deferred income taxes result from transactions
controlled foreign corporation for United States
which are recognized in different periods for financial
income tax purposes.
and tax reporting purposes and relate primarily to
As of 31 December 2020, the Institute has federal differences in the bad debts written off for tax
income tax net operating loss (NOL) carryforwards purposes, the period of deduction for goodwill and
of $1,046,280, which have no expiration date. The intangible assets, certain accrued expenses, and
Institute’s foreign subsidiaries have NOL different depreciation methods. Deferred income
carryforwards that will expire at various dates from taxes are recognized for the tax consequences of
2029 through 2036. The current provision reflects a these differences by applying enacted statutory
deferred benefit and corresponding deferred tax rates expected to be in effect when taxes are
asset of $395,429 related to such NOLs. actually paid or recovered.
As of 31 December 2019, the Institute has federal Cash paid for foreign income taxes for the years
income tax NOL carryforwards of $1,190,403, which ended 31 December 2020 and 2019, were $202,071
have no expiration date. The Institute’s foreign and $9,449, respectively.
subsidiaries have NOL carryforwards that will
expire at various dates from 2028 through 2035.
The current provision reflects a deferred benefit NOTE 16. Foreign Currency
and corresponding deferred tax asset of $414,586 Translation Adjustments
related to such NOLs.
Foreign currency translation adjustments associated
The provision for taxes on income earned in Australia, with consolidating the accounts of the Institute’s
Belgium, China, India, Singapore, the United Kingdom, majority owned for-profit subsidiaries are reported in
and the United States for the years ended 31 the consolidated statements of activities. The amount
December were as follows: of accumulated translation adjustments is included in
net assets without restrictions in the consolidated
2020 2019 statements of financial position.
Current provision $ 756,883 $ 369,036 The accumulated foreign currency translation

Deferred provision (benefit) 19,157 208,528 adjustments are as follows for the years ended 31
Icome tax provision, net $ 776,040 $ 577,564 December:
2020 2019
The net deferred tax assets are reported in the
consolidated statements of financial position at 31 Balance, beginning of year $ (528,184) $ (414,586)
December as follows: Foreign currency translation
209,873 (52,989)
adjustments
Balance, end of year $ 318,311) $ (528,184)

NOTE 17. Commitments The Institute has certain claims and legal proceedings
incident to the course of business. The Institute’s
and Contingencies management, after consulting with legal counsel,
Operating leases: The Institute has operating lease believes the ultimate resolution of the proceedings will
agreements for office space located in Newtown not have a material adverse effect on the Institute’s
Square, Pennsylvania, USA; Beijing, Shenzhen and financial position or changes in net assets.
Shanghai, China; Mumbai, New Delhi and Bangalore,
Coronavirus pandemic: On 11 March 2020, the World
India; Dubai, UAE; Singapore and Belgium, Brussels, for
Health Organization declared the coronavirus
which obligations end at various dates through 2023.
outbreak to be a pandemic. Actions taken around the
The Institute has a lease for office space for its world to help mitigate the spread of the coronavirus
Global Headquarters (GHQ) in Newtown Square, include restrictions on travel, and quarantines in
Pennsylvania, USA. The original 10-year lease ended certain areas, and forced closures for certain types
in January 2018. The lease was renewed and amended of public places and businesses. The Institute’s
to extend its term for an additional five years. The business could be susceptible to changes in client
amended lease has total lease payments of demand and may experience a varying degree of
approximately $9,400,000 and annual minimum lease business interruption due to this outbreak. The extent
payments starting at $1,800,000 that increase to which the coronavirus impacts the Institute results
annually over the lease term to amounts up to will depend on future developments, which are highly
$1,950,000 per year through January 2023. The lease uncertain and cannot be predicted, including new
amendment included a tenant improvement allowance information which may emerge concerning the
of $556,336, which was recorded as deferred rent severity of the coronavirus and actions taken to
liability. The Institute amortizes the deferred rent contain the coronavirus or its impact, among others.
on a straight-line basis over the lease.
Additionally, the Institute has lease agreements for

various pieces of office equipment. NOTE 18. Retirement Plans
The primary component of the Institute’s future The Institute has a defined contribution savings plan
obligations summarized below is the office rent for the benefit of its employees. Under the plan, a
expense for GHQ. The summary of the minimum contribution based on compensation is made for each
future obligations related to the office space and covered employee. The plan allows employees to make
office equipment leases for each of the fiscal years elective salary deferrals and the Institute will make
ending 31 December is presented below: matching contributions based on the employees’
elective salary deferrals. For the years ended
YEARS ENDING 31 DECEMBER:
December 31, 2020 and 2019, the Institute
2021 $ 2,315,923
contributed $3,461,489 and $2,663,180, respectively,
to the plan.
2022 1,958,583
2023 162,265
$ 4,436,771
Rent expense for office space and equipment was NOTE 19. Adoption of ASU 2014-
$2,663,318 and $2,632,640 for the years ended 31 09, Revenue from Contracts with
December 2020 and 2019, respectively.
Customer (Topic 606)
As noted in Note 5, the DA Agreement included a
During the year ended 31 December 2019, the
deferred proceeds note for $8,000,000 to the
Institute adopted ASU 2014-09 using the modified
former owners of Disciplined Agile, Inc. to be split into
retrospective approach. As a result, the revenue
three equal payment in 2021, 2022 and 2023.
recognition was changed for the recognition of

certain program services which are included in the
revenue line items for membership and certification
revenues. Previously, application fees for
memberships and certifications were recognized
immediately. Now, application fees for certification
revenue are recognized at a point in time when the
exam is taken or if a no show for the exam after 12
months from the date of application. Also, application
fees for membership revenue is now recognized over
time on the input method based on the one-year
membership period.
The following presents the effect of the adoption

of ASU 2014-09 on the statement of financial 1 January 2019
position as of 1 January 2019: 31 DECEMBER ADOPTION OF ASU 1 JANUARY
2018 2014-09 2019
Unearned revenue $ 43,151,584 $ 7,025,806 $ 50,177,390
Total liabilities 84,867,060 7,025,806 91,892,866
Net assets without donor restrictions 469,568,275 (7,025,806) 462,542,469

Total net assets $ 471,831,020 $ (7,025,806) $ 464,805,214

31 December 2019
of ASU 2014-09 on the statement of financial
position as of 31 December 2019: BALANCES WITHOUT
EFFECT OF CHNAGE
AS REPORTED ADOPTION OF ASU
-HIGHER (LOWER)
2014-09
Unearned revenue $ 55,341,769 $ 46,823,279 $ 8,518,490
Total liabilities $ 125,073,066 $ 116,554,576 $ 8,518,490
Net assets without donor restrictions 485,475,338 493,993,828 (8,518,490)

Total net assets $ 488,042,828 $ 496,561,318 $ (8,518,490)

31 December 2019
of ASU 2014-09 on the statement of financial
position as of 31 December 2019: BALANCES WITHOUT
EFFECT OF CHNAGE
AS REPORTED ADOPTION OF ASU
-HIGHER (LOWER)
2014-09
Dues and professional examination fees $ 225,276,657 $ 226,769,341 $ (1,492,684)
Total support and revenue 330,090,167 331,582,851 (1,492,684)
Change in net assets without donor restrictions 22,932,869 24,425,553 (1,492,684)

Change in net assets 23,237,614 24,730,298 (1,492,684)
Total net assets beginning $ 464,805,214 $ 471,831,020 $ (7,025,806)
Total net assets ending $ 488,042,828 $ 496,561,318 $ (8,518,490)

NOTE 20. Subsequent Events
In preparing these consolidated financial statements,
management has evaluated events and transactions
for potential recognition or disclosure through 2
August 2021, the date the consolidated financial
statements were available to be issued.

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Project Management Institute

31 DECEMBER 2020 & 2019

16 Note 3. Fair Value Measurements

19 Note 4. Property and Equipment and Capitalized

20 Note 5. Business Combination

22 Note 6. Goodwill and Other Intangible Assets

23 Note 7. Chapter Dues Payable

23 Note 8. Unearned Revenue

23 Note 9. Grants Payble

24 Note 10. Net Assets

26 Note 11. Endowment Fund

28 Note 12. Liquidity and Availability of Financial Asset

29 Note 13. Concentration of Credit Risk

29 Note 14. Non-U.S. Operations and Assets

29 Note 15. Income Taxes

30 Note 16. Foreign Currency Translation Adjustments

31 Note 17. Commitments and Contingencies

31 Note 18. Retirement Plans

31 Note 19. Adoption of ASU 2014-09, Revenue from Contracts

33 Note 20. Subsequent Events

Project Management Institute and Subsidiaries

of Financial Position 2020 2019

Property and equipment, net (Note 4) 11,558,113 8,395,995

Total assets 677,247,602 613,115,894

Liabilities and Net Assets

Total liabilities 136,900,606 125,073,066

Commitments and contingencies (Notes 17)

NET ASSETS (NOTE 10):

See notes to consolidated financial statements.

of Activities 2020 2019

Changes in Net Assets Without Donor Restrictions

EXPENSES AND LOSSES:

Total expenses 266,338,464 307,157,298

Change in net assets without donor restrictions 52,033,277 22,932,869

Changes in Net Assets With Donor Restrictions

Change in net assets with donor restrictions 270,891 304,745

See notes to consolidated ﬁnancial statements.

Project Management Institute and Subsidiaries

of Cash Flows 2020 2019

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Project Management Institute and Subsidiaries

of Cash Flows (continued) 2020 2019

Cash Flows from Financing Activities

Cash and Cash Equivalents

Supplemental Disclosure of Cash Flow Information

Supplemental disclosure of noncash investing activity:

See notes to consolidated financial statements.

Project Management Institute and Subsidiaries

Project Management Institute and Subsidiaries

Use of estimates: The preparation of financial

Cash and cash equivalents: For the purpose of the

Project Management Institute and Subsidiaries

Project Management Institute and Subsidiaries

adjustments of $6,194,680 and $831,126 for

Project Management Institute and Subsidiaries

Project Management Institute and Subsidiaries

Project Management Institute and Subsidiaries

Project Management Institute and Subsidiaries

(e) A U.S. limited partnership that invests in privately