For the Six Months Ending December 2013
The ICANN change in net assets is $3.3M, or 13.6%, higher than budget during the first six months of FY14 mainly as a result of (i) delays in planned operations ($2.8M, see Operating Expenses below), (ii) timing differences of ccTLD contributions ($1.3M), (iii) Reserve Fund and New gTLD investment income of ($3.7M) and ($1.4M), respectively, offset by (iv) delayed evaluation processing in the New gTLD program resulting in lower revenues recognized for the period (-$8.0M).
The Funds under Management by ICANN decreased by $28.2M during the first six months to a total of $331.6M, mainly as a result of the payment of New gTLD evaluation expenses ($16.9M) and general operating expenses for ICANN Ops ($11.3M).
Financial Position
The funds under management decreased by $28.2M during the quarter as a result of the following:
- A decrease of the New gTLD funds by $51.4M due to:
(i) the net reimbursement to ICANN Operations of the accumulated direct/allocated costs for $3.0M, (ii) the reimbursement to ICANN Operations of the historical development costs for $19.2M,
(iii) net refunds to applicants for $5.3M,
(iv) payments to vendors/employees for $25.5M,
(v) partially offset by appreciation of the new gTLD investments for $1.7M.
- An increase of the ICANN Operations funds by $23.2M due to:
(i) the net reimbursement from the New gTLD funds of the direct/allocated costs for $3.0M,
(ii) the reimbursement from the New gTLD program of the historical development costs for $19.2M, (iii) all other net operating variances for $1.0M.
The decrease of the deferred revenues balance of $48.1M corresponds to:
(i) the amount of revenues recognized for the New gTLD program ($45.5M), (ii) the refunds to New gTLD applicants ($3.7M)
(iii) other (-$1.1M).
Support and Revenue
Revenues for ICANN Ops were $1.8M favorable to budget primarily due to the timing of the non-contracted contribution from the ccTLDs for fiscal year 2013.
Revenues for New gTLD program were $22.3M unfavorable to budget primarily due to lower costs incurred in the first six months of FY14, resulting in lower revenues recognized for the period
Operating Expenses
Personnel costs for ICANN Ops were $0.3M favorable to budget primarily due to delayed hires offset by unbudgeted positions. Personnel costs for the New gTLD program were $1.5M favorable to budget primarily due to delayed hires.
Travel and Meetings costs for ICANN Ops and the New gTLD Program were relatively flat to budget.
Professional Services costs for ICANN Ops were $2.4M favorable to budget primarily due to delayed security projects, IDN Variant projects, and signing of EBERO contracts. Professional Services costs for the New gTLD Program were $12.9M favorable to budget due to lower costs incurred for Initial and Extended Evaluation and delayed Pre-delegation testing and contracting.
Administrative costs for ICANN Ops were $0.6M favorable to budget primarily due to timing of sponsorships and IT costs.
Administrative costs for the New gTLD Program were $0.2M favorable to budget due to a lower allocation of ICANN ops shared services costs to the program.
Bad debt expenses were $0.2M unfavorable to budget.
Depreciation costs were $0.4M unfavorable to budget primarily due to higher and earlier than budgeted capital projects expenditures.
Other Income /Expense
Investment Income was $3.7M and $1.4M favorable to budget for ICANN Ops and the New gTLD Program, respectively due to investment income/ loss not budgeted in FY14.
1
Statement of Activity FY14 Budget by Quarter In Thousands
Support and Revenue
Registry
Registrar
R.I.R.
ccTLD
ccTLD IDN Contributions & Other Income
New gTLD Application Fees
Total Support and Revenue
Expenses
Personnel
Travel & Meetings* Professional Services Administration
Bad Debt Expenses Depreciation Expenses
Total Expenses
Contingency
Interest – General
FX Translation (Gain) / Loss Investment (Income)/ Loss
Total Other (Income)/Expense
Change in Net Assets Before Historical Costs and Reserves
New gTLD Applicant Support
Hist. Development Costs/ (Reimbursement)
Risk Costs
Exceptional Items**
Change In Net Assets
Quarter 1
ICANN Ops NgTLD Total
Quarter 2
ICANN Ops NgTLD Total
Quarter 3
ICANN Ops NgTLD Total
Quarter 4
ICANN Ops NgTLD Total
Total Year
ICANN Ops NgTLD Total
$10,115 $0 8,448 0 206 0
10,115 8,448 206
000 000
450 0 450 0 41,411 41,411
$10,068 $0 8,005 0
10,068 8,005
206 0 206 100 0 100 000
450 0 450 0 26,343 26,343
$12,828 $0 9,237 0
12,828 9,237
206 0 206 150 0 150 000
450 0 450 0 22,665 22,665
$14,545 $0 10,389 0 206 0 1,650 0
14,545 10,389 206 1,650
000
450 0 450 0 21,687 21,687
$47,556 $0 36,079 0 823 0 1,900 0
47,556 36,079 823 1,900
000
1,800 0 1,800 0 112,105 112,105
19,219 41,411 60,629
18,829 26,343 45,172
22,870 22,665 45,535
27,240 21,687 48,927
88,158 112,105 200,263
7,464 2,965 4,062 444 4,805 18,531 2,797 917
120 0 510 0
10,429 4,506 23,336 3,714 120 510
8,973 2,779 3,818 430 6,197 10,412 3,120 919
120 0 677 0
11,753 4,248 16,609 4,039 120 677
9,874 2,552 3,820 411 5,436 8,669 2,902 878 120 0 677 0
12,426 4,231 14,105 3,781 120 677
10,404 2,217 3,792 357 4,805 8,579 3,278 817 120 0 677 0
12,621 4,149 13,384 4,095 120 677
36,715 15,493 21,243 12,098 480 2,540
10,513 1,642 46,190 3,531 0
0
47,229 17,134 67,433 15,628 480 2,540
19,759 22,856 42,615
22,905 14,540 37,445
22,829 12,510 35,339
23,076 11,970 35,046
88,569 61,875 150,444
925 0 925 000 000
0 (141) (141)
925 0 925 000 000
0 (125) (125)
925 0 925 000 000
0 (110) (110)
925 0 925 000 000 0 (94) (94)
3,700 0 3,700 000 000
0 (470) (470)
925 (141) 784
925 (125) 800
925 (110) 815
925 (94) 831
3,700 (470) 3,230
(1,465) 18,695 17,230
000
(4,317) 4,317 (0) 000 000
(5,001) 11,928 6,927
000
(2,746) 2,746 0 000 000
(884) 10,265 9,381
000
(2,363) 2,363 (0) 000 000
3,239 9,811 13,050
000
(2,261) 2,261 0 000 000
(4,111) 50,699 46,588
000
(11,687) 11,687 (0) 000 000
$2,852 $14,378 $17,230
($2,255) $9,182 $6,927
$1,479 $7,902 $9,381
$5,500 $7,550 $13,050
$7,576 $39,013 $46,588
*Includes Community Support Requests
**Exceptional Items are included in “Expenses” section above.
2
ICANN
Statement of Activity
Actual vs. Budget
For the Six Months Ending December 2013 In Thousands
Support and Revenue
Registry Registrar R.I.R. ccTLD ccTLD IDN
Contributions & Other Income Revenues from NgTLD App. Fees
Total Support and Revenue Expenses
Personnel
Travel & Meetings Professional Services Administration
Bad Debt Expenses Depreciation Expenses
Total Expenses
Contingency
Interest – General
FX Translation (Gain) / Loss Investment (Income)/ Loss
Total Other (Income)/Expense
Change in Net Assets Before Historical Costs and Reserves
New gTLD Applicant Support Hist. Development Costs/ (Reimbursement)
Risk Costs
Exceptional Items
Change In Net Assets
*
**
FY 14 Actuals
ICANN Ops NgTLD Total
FY 14 Budget
ICANN Ops NgTLD Total
Variance
ICANN Ops NgTLD Total %
$20,389 $0 17,003 0 412 0 1,381 0
20,389 17,003 412 1,381
000 640 3 643
0 45,456 45,456
$20,183 $0 16,453 0
20,183
16,453 412 0 412 100 0 100
000 900 0 900
0 67,754 67,754
$205 $0 550 0 0 0 1,281 0 0 0
(260) 3
0 (22,298)
$205 1.0% 550 3.3% 0 0.0%
1,281 1281.2% 0 0.0%
(257) (28.6%) (22,298) (32.9%)
39,824 45,460 85,283
38,047 67,754 105,801
1,776 (22,294) (20,518) (19.4%)
16,103 4,288 7,796 986 8,615 16,088 5,338 1,680
400 0 1,619 0
20,391 8,782 24,702 7,019 400 1,619
16,438 5,744 7,880 874 11,002 28,942
5,917 1,836 240 0 1,187 0
22,182 8,754 39,944 7,753 240 1,187
335 1,456 84 (112) 2,388 12,854
579 155 (160) 0 (432) 0
1,791 (28) 15,242
734 (160) (432)
8.1% (0.3%) 38.2% 9.5% (66.5%) (36.4%)
39,870 23,043 62,913
42,664 37,396 80,060
2,794 14,354 17,147 21.4%
250 0 250 000 48 40 88
(3,745) (1,671) (5,415)
1,850 0 1,850 000 000
0 (266) (266)
1,600 0 1,600 86.5% 0 0 0 0.0% (48) (40) (88) 0.0%
3,745 1,405 5,149 (1936.6%)
(3,447) (1,631) (5,078)
1,850 (266) 1,584
5,297 1,365 6,662 420.5%
3,400 24,048 27,448
000
(5,642) 5,642 0 000 000
(6,466) 30,624 24,157
000
(7,063) 7,063 (0) 000 000
9,867 (6,576) 3,291 13.6%
0 0 0 0.0%
(1,421) 1,421 (0) 100.0% 0 0 0 0.0% 0 0 0 0.0%
$9,042 $18,406 $27,448
$597 $23,561 $24,157
$8,446 ($5,154) $3,291 13.6%
