Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

16. Subscription-Based Information Technology Arrangements Payable Subscription-based information technology arrangements (SBITAs) represent the university’s obligation to pay vendors for access to their information technology. The university’s SBITAs typically range from 2-7 years, with renewal options ranging from 1-3 years. The university utilizes stated or implicit rates when determinable, otherwise the university uses its incremental borrowing rate to discount lease payments. The weighted-average remaining term on the university’s SBITAs is 3.7 years with a weight ed-average discount rate of 2.97%. Some contracts in the university’s SBITA portfolio contain provisions for variable payments based upon usage of the underlying assets or additional licenses. The university paid $0.1 million in variable payments during fiscal year 2025. The university had no impairment losses on its SBITA portfolio in fiscal year 2025. The university has $0.1 million in commitments for SBITAs as of June 30 2025. Future Principal Commitments As of June 30, 2025 (all dollars in thousands) Beginning Balance Additions Retirements Terminations Ending Balance Current Portion Long-term SBITAs payable $ 19,239 $ 14,147 $ 9,832 $ 46 $ 23,508 $ 8,296

Future Principal Commitments For fiscal years subsequent to 2025 (all dollars in thousands)

Future Interest Commitments For fiscal years subsequent to 2025 (all dollars in thousands)

2026 2027 2028 2029 2030

$

8,296 5,976 4,053 3,732 1,451 23,508

2026 2027 2028 2029 2030

$

873 460 285 161

45

$

$

1,824

Total future principal payments

Total future interest payments

17. Changes in Other Liabilities A summary of the changes in other liabilities for the year ended June 30, 2025 (all dollars in thousands)

Beginning Balance (as restated)

Ending Balance

Current Portion

Net Change

Accrued compensated absences

$

68,011 $

14,165 $

82,176 $

53,013

Federal student loan program contributions refundable

670

-

670

- -

Net pension liability

316,090 142,552

(10,338) (11,027)

305,752 131,525

Other postemployment benefits

3,072 56,085

Total other liabilities

$

527,323 $

(7,200) $

520,123 $

18. Capital Improvement Commitments The amounts listed in the following tables represent the value of obligations remaining on capital improvement project contracts. These obligations are for future effort and as such have not been accrued as expenses or liabilities on the university’s financial statements. Outstanding contractual commitments for capital improvement projects at June 30, 2025 (all dollars in thousands) :

Capital Commitments by Project Mitchell Hall construction

Capital Commitments by Funding Source Capital appropriations

$

36,298

$

40,131 12,177 10,000

Virginia Tech Carilion School of Medicine and Fralin Biomedical Research Institute expansion

University cost recoveries

12,164 5,126 3,186 1,691 1,336 1,293 2,108 63,202

Private gifts

Building envelope improvements Academic Building One in Alexandria

VCBA 21st Century bonds to be paid by the commonwealth

617 274

Auxiliary enterprise funds

Pamplin College of Business new building construction

Other funds

3

Eastern Shore AREC improvements

Total

$

63,202

Livestock and poultry research facility, phase II construction

Other projects

Total

$

39