Condensed Statements of Financial Position

For the years ended December 31, 2004 and 2003

Amounts in thousands.

ASSETS		2004		2003
Cash and cash equivalents		$         184,026		$          41,387
Investments		28,312,620		26,431,305
Interest and dividends receivable		278,714		300,881
Federal excise tax refunds receivable		2,850		12,945
Program related investment receivable		1,440		1,440
Property and equipment, net		18,959		22,560
TOTAL ASSETS1		$  28,798,609		$  26,810,518

LIABILITIES AND NET ASSETS		2004		2003
Liabilities:
Accounts payable		$            5,736		$            4,726
Accrued and other liabilities		19,482		15,583
Deferred excise taxes		34,039		26,034
Grants payable, net		1,885,063		1,672,868
TOTAL LIABILITIES1		1,944,320		1,719,211
Net Assets:
Unrestricted net assets		26,854,289		25,091,307
TOTAL LIABILITIES & NET ASSETS1		$  28,798,609		$  26,810,518

Investments reflected at market value; all other assets shown at cost.

¹For purposes of this presentation, the foundation has departed from the presentation required under accounting principles generally accepted in the United States of America by netting amounts loaned and payable under secured lending agreements and by netting investment sales receivable and investment purchases payable. Had these amounts not been netted, total assets for 2004 and 2003 would be $36,115,584 and $33,678,517, respectively; total liabilities for 2004 and 2003 would be $9,261,295 and $8,587,210, respectively; and total liabilities and net assets for 2004 and 2003 would be $36,115,584 and $33,678,517, respectively.