AARP Summary of 2008 AARP Consolidated Financial Statements

							AARP
Summary of 2008 AARP Consolidated Financial Statements

The following summary financial         Expenses                                 AARP’s balance sheet reflected a
information is derived from the         AARP contained 2008 operating            decline in net assets, mainly due
                                        expenses to $1.14 billion, down 2        to unrealized losses relating to
consolidated statements of activities
                                        percent from 2007. AARP continued        investments as well as certain post-
and financial position of AARP and
                                        to invest in member value and            retirement benefit costs. However,
its affiliates for the year ending      social impact areas in furtherance       the core operations of AARP
December 31, 2008.                      of its mission. For example, $114        continued to be strong and provided
                                        million was invested in membership       an increase in cash of $146 million
Revenue
                                        development and $284 million was         over the prior year.
AARP’s total operating revenue
                                        invested in member services.
in 2008 reached just over $1.08                                                  AARP continues to be strong and
billion. Royalty revenues rose          Programs and field services of $298      well-positioned to advance our
from the prior year to $653 million     million included expenditures for        mission of enhancing the quality of
while membership dues ($249             work-training, tax assistance and        life for all of us as we age.
million) and publication advertising    driver safety programs, support
revenues ($120 million) remained        of our state offices, as well as our     The complete AARP 2008 Audited
relatively stable. Even though the      Divided We Fail initiative, promoting    Financial Statements are available
nationwide downturn in investment       health reform and financial security.    on the Internet at www.aarp.org
markets hit AARP with losses of $175    Our publications expenditures of
million, AARP’s core operations         $178 million supported educating
continued to be strong through          and informing our members
strategic cost-containment efforts.     through AARP The Magazine, the
                                        AARP Bulletin, and AARP Segunda
                                        Juventud.

                                        Recent changes in accounting
                                        standards require the recognition of
                                        certain post-retirement benefit costs,
                                        which amounted to an unrealized
                                        loss of $112 million in 2008.