2022 Annual Report LU Digital

20 22 Together, Forward ANNUA L R E P OR T

Sincerely, Joseph J. Helble ’82 PRES IDENT So much has changed in the past decade, particularly in the past three years. We have seen hybrid, online and distance learning explode, both intentionally and as a result of new technologies and approaches to learning brought on by the pandemic. At the same time, we have seen both the cost and effectiveness of higher education come into question. Buoyed by a full return of our students, faculty and staff to our campus, we remain committed to preparing our students to live impactful lives in their communities, their places of employment and on the world stage. Together, we are moving forward to better position Lehigh for the next decade. In 2022, we began intensive work to develop a new strategic plan for the university, centering the planning process around four themes: Education With Purpose, the Lehigh User Experience, Research for Impact and Smart Growth. The process will help us to identify where Lehigh excels, where we should expand our research capabilities and where we can continue to innovate, all while encouraging the contributions of every member of our campus community. We are extraordinarily well positioned to tackle the challenges ahead. Our campus is expanding, most notably with an innovative new hub for interdisciplinary research—the Health, Science and Technology Building, which is designed to foster collaboration among faculty, staff and students across disciplines. We are expanding the footprint of our College of Business with a new Business Innovation Building, scheduled to open during the spring 2023 semester. We are beginning renovations to Lehigh’s most iconic building, the Clayton University Center, to create a dynamic new environment for campus life. Additionally, our faculty continue to generate new knowledge through their research to tackle the world’s complex problems, while our students generate positive changes through their leadership and other efforts. Our staff and alumni continue to infuse our Lehigh community with their expertise and engagement. As we work hard to generate new ideas through our strategic planning process, I am excited about the possibilities for the future, and I am thankful for the continued efforts of every member of our campus community. As we emerge from the pandemic and its innumerable challenges, we find ourselves at a pivotal moment in higher education, and at Lehigh. Letter from the P R E S I D E NT

In an ongoing commitment to provide its students with a vibrant and engaging learning environment, Lehigh has taken significant steps forward in myriad infrastructure projects. Lehigh is an institution that responds to change, and its buildings and how it uses them aid the university as it expands and evolves. Expanding Campus C L AY TON U N I V E R S I T Y C E N T E R AT PAC K E R H A L L The iconic structure will undergo an extensive renovation and reconfiguration that will create a dynamic new environment for undergraduate and graduate student life, while preserving the building’s historic grandeur. Plans call for reimagined spaces for dining, studying, socializing and meeting. C AM P U S P ROJ E C T S J E W I S H S T U D E N T C E N T E R Now relocated to a large, historic stone home that has been renovated, the Jewish Student Center has enough space for a kosher kitchen, dining room, student lounge and game room, study spaces, meditation room, prayer room for student-led religious services and offices for additional staff. 0 1 | L E H I G H U N I V E R S I T Y

GOODM A N C A M P U S AT H L E T I C COM P L E X Two planned projects comprise an ambitious renovation and expansion of Goodman Campus that will transform the Lehigh Athletics experience. The Cundey Varsity House will be renovated and expanded, and the university is moving forward on design plans for a new indoor field facility, which will house a roughly 94,000-square-foot turf field. B U S I N E S S I N NOVAT I ON B U I L D I N G The 74,000-square-foot building will add to the footprint of the Rauch Business Center and include a new Behavioral Research Lab and a new Lehigh Ventures Lab. The building will include flexible, tech-supported classrooms and collaborative meeting and project spaces for students. “ The HST Building, quite literally, eliminates walls, eliminates barriers to the kind of collaboration we think is critical for advancing research areas that are going to be a focus for Lehigh, for the country and, to some extent, the world.” – P ROVOS T N ATH AN U R BAN Lehigh’s Health, Science and Technology Building, the largest building on the Asa Packer Campus—and the largest the university has ever built—provides the most modern, up-to-date environment for interdisciplinary research on the university’s campus. The 200,000-square-foot building opened in the spring 2022 semester, with open concept labs that allow faculty, staff and student researchers across disciplines to work side by side. A pedestrian bridge connects the new building to Lehigh’s other core research facilities: Seeley-Mudd, Sinclair and Whitaker labs. L I V E V I E W An Innovative Hub for Interdisciplinary Research 2 0 2 2 A N N U A L R E P O R T | 0 2

Lehigh students traveled the world this past year, embarking on research and engaging in study outside the classroom. Global Reach A R T , A R C H I T E C T U R E A N D D E S I G N S T U D E N T S I N S I C I LY Led by Nik Nikolov, associate professor of art, architecture and design, and Emeritus Professor Anthony Viscardi (below left), 18 students spent five weeks immersed in the art, architecture and culture of Sicily. S U S TA I N A B L E L I V E L I HOOD S P ROG R A M I N U G A N DA Students, under the direction of Kelly Austin, professor of sociology, traveled to the Bududa District to engage in internships with Pathways Development Initiative, conduct research and further develop relationships from previous trips. 486 E DUC AT I ON A B ROA D E X P E R I E NC E S F OR S T UD E NT S I N 4 0 D I F F E R E NT COUNT R I E S 959 I NT E R NAT I ONA L S T UD E NT S F ROM 74 COUNT R I E S WHO C A L L L E H I GH HOM E 0 3 | L E H I G H U N I V E R S I T Y

M A R T I N DA L E S T U D E N T S I N D E NM A R K The College of Business’ Martindale Student Associates Honors Program, open to all students, spent 12 days on a research trip for in-depth study and fact gathering. They toured sites in and around Copenhagen. S U S TA I N A B L E I M PAC T I N K A Z A K H S TA N Through the Global Social Impact Fellowship program in the Office of Creative Inquiry, a contingent of students and faculty spent two weeks in Kazakhstan attending meetings and conducting site visits for projects on developing sustainable behaviors and improving air quality in Almaty. Lehigh Launch Expansion to Ecuador Through Lehigh Launch, a place-based, integrative learning experience, first-year students spent the fall semester in Ecuador, where they took classes in Quito and the Galapagos Islands and visited a research station in the Amazon. L E A R N M O R E 2 0 2 2 A N N U A L R E P O R T | 0 4

24th Ranking in The Princeton Review Guide to Green Colleges: 2023 Edition 2.3M Plastic bottles diverted from landfills since 2014 through installation of 50-plus water bottle refill stations 9 Years Lehigh participated in national Campus Race to Zero Waste recycling competition 27 Sets of smart, solarpowered trash and recycling bins installed on campus Sustainable Community In recognizing its responsibility to positively contribute to the welfare of its community, as well as the planet, Lehigh continues its efforts to become a model campus when it comes to sustainability. The university’s 10-year Sustainability Strategic Plan 2030, an interdisciplinary and interdepartmental effort, is a roadmap for progress as it builds on previous plans and fulfills its long-term vision for Lehigh. 0 5 | L E H I G H U N I V E R S I T Y

2030 500+ Trees on campus cataloged to aid Lehigh in earning its Tree Campus USA certification 39.56 Percentage of “real” food (local/community-based, fair trade, ecologically sound and humane) served on campus during 2021–22 academic year 100 Newly constructed or renovated building spaces certified under a green building rating system in 2021–22 $25K+ In Sustainable Initiative Grants awarded to campus groups for piloting innovative and scalable ideas to create a greener, more sustainable campus since 2010 A G R E E N E R F U T U R E • Year by which Lehigh intends to achieve Platinum STARS certification from the Association for the Advancement of Sustainability in Higher Education • Year by which Lehigh will transition its campus fleet to run exclusively on renewable energy L E A R N M O R E 2 0 2 2 A N N U A L R E P O R T | 0 6

Interdisciplinary Research Through collaboration across disciplines, Lehigh students and faculty take on the world’s most complex problems and ask challenging questions. Driven by the impact of their work, they examine issues that affect lives both globally and locally. The university has a long history of generating new knowledge through scholarship and recognizes the importance of interdisciplinary research in bringing about positive social, economic and cultural change. E X P L O R E T H E A N N U A L R E S E A R C H R E V I E W 0 7 | L E H I G H U N I V E R S I T Y

K E I T H MOO R E D A team of researchers led by Moored, associate professor of mechanical engineering and mechanics, received a five-year Multidisciplinary University Research Initiatives (MURI) award, sponsored by the U.S. Department of Defense, to help develop fast and efficient schools of bio-inspired underwater vehicles. DAV I D R E A Rea, an assistant professor of data and technology analytics, develops datadriven models to solve operational challenges in the delivery of basicneeds services, such as health care and food. He develops systems to allocate resources efficiently and fairly, emphasizing human well-being. FAT H I M A WA K E E L Wakeel, associate professor of public health, uses a strength-based approach in her community health research—evaluating and leveraging a community’s assets to make health programs work. Among her research: a multi-phase study of maternal resilience and an examination of the physical and mental health impacts of COVID. K R I S T I MO R I N Morin, assistant professor of special education, has an affiliated faculty position in the College of Health, where she collaborates with faculty on projects related to improving outcomes for individuals with autism. She leads “Project STAY, Supporting Teachers of Autism in Years 1-3” to improve teacher retention. M AY U R E S H KOT H A R E With support from National Institutes of Health, Kothare, the R. L. McCann Professor of Chemical and Biomolecular Engineering, and his colleagues are developing software and modeling tools for optimizing the delivery of neurostimulation signals to peripheral nerves to treat conditions such as cardiac arrhythmia and hypertension. ROS I R E E D With the support of a National Science Foundation Major Research Instrumentation award, Reed, associate professor of physics, will lead a series of experiments at the Brookhaven National Laboratory (far left) to collect and analyze data on quantum chromodynamics. 25% G ROW T H I N F E D E R A L R E S E A R C H F U N D I NG OV E R P R E V I OU S Y E A R 38% G ROW T H I N F E D E R A L R E S E A R C H F U N D I NG OV E R T H E PA S T T WO Y E A R S $58M AMOU N T O F N E W COM P E T I T I V E AWA R DS I N T H E 202 1 –2 2 AC A D EM I C Y E A R Faculty Research Highlights 2 0 2 2 A N N U A L R E P O R T | 0 8

From research and development to leadership and diversity efforts, Lehigh students continue to make an impact on campus and in their communities while succeeding in the classroom. Student Leaders M I C H A E L TA H I R U ’ 2 2 A member of the men’s soccer team, Tahiru also made an impact off the field, founding and becoming president of the Lehigh Africa Business Club. An Africana Studies class sparked the idea for the club, but he specifically wanted to incorporate business in Africa into Lehigh’s College of Business. A L E X A N D R A HOW Z E N , P H . D . S T U D E N T Howzen designed and built an atomic layer deposition chamber, which is used to grow thin films, as part of her research. The machine's incorporated electron gun allows her to study the surface structure of ultrathin oxide films, with the ultimate goal of improving the efficiency and reliability of chips used in electronic devices. LOG A N K R AM E R ’ 2 3 Manager of the Marching 97, Kramer was also the team leader for Lehigh Underwater Robotics, which started as a Mountaintop Summer Experience project. The team designed, manufactured, and tested a drone to participate in the international RoboSub competition, a student competition featuring autonomous underwater vehicles designed and built to mimic real-world systems. ZO E S H E RMA N ’ 2 5 Working with three friends, Sherman created InfernoGuard, a device smaller than an iPhone that aims to prevent thousands of wildfires each year. She won a EUREKA! Venture Program Pitch Night at the Baker Institute for the device, which is different from others on the market because it’s mounted lower to the ground and can detect fires before they get larger and more destructive. 0 9 | L E H I G H U N I V E R S I T Y

D E C L A N COS T E R ’ 2 3 A member of the Lehigh Student Senate, Coster co-founded The Douglass Dialogues, a club that strives to provoke respectful, difficult and honest dialogue about sociocultural and political issues, with Raihan Alam ’23. For the 2022 U.S midterm elections, Coster consolidated a number of political groups on campus into one named Lehigh Votes to organize Civic Engagement Day: 2022 Midterms with the goal of getting as many Lehigh students as possible to vote. V I C TO R I A D R Z Y MA L A ’ 2 3 The Student Senate president is also an inaugural Marcon Fellow. Her project, “Diverse Future Leaders: Government and Politics Internship,” focuses on establishing a partnership with the City of Bethlehem to create opportunities for students from traditionally underrepresented communities to intern with local government officials. Additionally, she participated in the Baker Institute’s LehighSiliconValley 2022 program. Teasha McKoy ’22 A standout track and field athlete, McKoy has been heavily involved in numerous diversity and leadership efforts. McKoy was a founding member of Student-Athletes of Color Leadership Council and an executive board member for Flight 45, a program that promotes, develops and inspires leadership in the Lehigh athletic community. 2 0 2 2 A N N U A L R E P O R T | 1 0

P OS S E F OU N DAT I ON PA R T N E R S H I P The ongoing partnership, which saw its first cohort of students graduate from Lehigh in 2022, aims to expand educational opportunities for a diverse group of California Bay Area public high school students. The university welcomes additional 10-student cohorts to campus at the start of each academic year. L E H I G H @ N A S DAQC E N T E R Students in Lehigh’s summer Startup Academy and Global Entrepreneurial Fellowship programs helped ring the opening bell of the Nasdaq market in July. The ceremony marked the fifth anniversary of a unique collaboration in entrepreneurial education between Lehigh and the Nasdaq Entrepreneurial Center through Lehigh@NasdaqCenter. Academic Partnerships Experiential learning and research aren't confined to campus. From multiple partnerships on the West Coast, including the Lehigh@ NasdaqCenter and LehighSiliconValley, to the United Nations Partnership, Lehigh’s academic partnerships span the globe. These collaborations allow Lehigh’s students the opportunity to forge important connections and expand their learning outside the classroom. L E H I G H S I L I CON VA L L E Y The Baker Institute for Entrepreneurship, Creativity & Innovation held its 11th installation of LehighSiliconValley (LSV), an eight-day immersive entrepreneurial program in Silicon Valley’s entrepreneurial ecosystem. In an LSV first, a cohort of 27 students participated in a hybrid program that combined remote and in-person sessions in San Francisco. 1 1 | L E H I G H U N I V E R S I T Y

N AT I ON A L S C I E N C E F OU N DAT I ON I - CO R P S H U B Lehigh became a member of the new Northeast region Innovation Corps Hub (I-Corps), which provides experiential entrepreneurial training to academic researchers across all fields of science and engineering and accelerates the transformation of scientific discoveries into technologies that improve everyday lives. U N I T E D N AT I ON S PA R T N E R S H I P Lehigh is approaching 20 years since it gained non-governmental organization (NGO) status with the United Nations and has seen more than 50 students intern at the UN while sending more than 1,000 students, faculty and staff to UN conferences and meetings each year. The university’s United Nations Partnership named its first youth representative from Lehigh’s new College of Health, Emma Closter ’24. 30 L E H I G H S T U D E N T S S E R V E D A S U N I T E D N AT I O N S YOU T H R E P R E S E N TAT I V E S , working with the UN on behalf of 11 non-governmental organizations (NGOs) from around the world in 2022. 2 0 2 2 A N N U A L R E P O R T | 1 2

Lehigh alumni are making an impact in their communities and around the world. Many return to the university to share their expertise and insights with students and the broader Lehigh community. Alumni Impact S COT T W I L LOU G H B Y ’ 8 9 As vice president and program manager of the James Webb Space Telescope at Northrop Grumman, Willoughby led a team tasked with most of the design and construction of the world’s first space deployable telescope. He hosted a Mountain Talk to discuss the complex engineering and technological advances involved. K R Y S TA L K A ’ A I ’ 1 0 Ka’ai is executive director of the White House Initiative on Asian Americans, Native Hawaiians and Pacific Islanders and the President’s Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders. She received Lehigh’s 2022 Dr. Costel Denson ’56 Award and participated in the Lehigh Asian Alumni Network Speaker Series. “ I truly believe that I would not be here today had it not been for my experience at Lehigh University and taking that first leap, leaving my island home (Hawaii) and getting out of my comfort zone to get to where I am today.” – K RYS TA L K A’ A I ’ 1 0 1 3 | L E H I G H U N I V E R S I T Y

C AT H Y E N G E L B E R T ’ 8 6 ’ 2 3 P The commissioner of the WNBA discussed the 50th anniversary of Title IX on Lehigh's GO Getters podcast and helped campus celebrate National Girls and Women in Sports Day. She previously was the first woman to lead a major U.S. professional services firm as CEO of Deloitte. R I C H A R D V E R M A ’ 9 0 Verma, a Lehigh trustee, general counsel and head of global public policy at Mastercard and former U.S. ambassador to India, hosted the inaugural Iacocca Leadership Speaker Series featuring Sylvia Acevedo, former CEO of the Girl Scouts of the USA. J U DY M A R K S ’ 8 4 ’ 1 3 P The chair, CEO and president of Otis Worldwide Corporation delivered the 2022 commencement address. Marks received the 2022 Lehigh Distinguished Alumni Award for Excellence in Industry. R AV E N G A D DY ’ 1 5 Gaddy, an administrative officer with the U.S. Department of Justice and former educator with the Peace Corps, serves as executive co-chair of Lehigh’s BALANCE (Black and Latino Alumni Network for Community and Equity). She cohosted a Dinners for 12 networking event for university alumnae. 85K+ G R A DUAT E S I N T H E L E H I G H A LUMN I N E T WO R K 6K+ A LUMN I M E N TO R S AVA I L A B L E F O R L E H I G H S T U D E N T S S A N J AY S H A H ’ 8 9 M B A The founder and CEO of enterprise software company Vistex delivered the 2022 Donald M. Gruhn ’49 Distinguished Finance Speaker Series. He won the Distinguished Alumni Award for Outstanding Entrepreneurship in 2021. 2 0 2 2 A N N U A L R E P O R T | 1 4

Giving at Lehigh GO: The Campaign for Lehigh launched in 2018 with a goal to raise more than $1 billion and engage at least 50% of our alumni, rallying alumni and friends to invest in Lehigh’s future. $236.9M for research and capital projects GO : TH E C AMPA I GN F OR L EH I GH $780.5M as of fiscal year close June 30, 2022 $213.9M for scholarships and financial aid $329.7M for student experience V I E W T H E C A M PA I G N I M PAC T R E P O R T 1 5 | L E H I G H U N I V E R S I T Y

Giving Day An annual event, started in 2017, calling on alumni, students, parents, friends, faculty and staff to support students’ education and experiences Regional Networks Gatherings across the country and around the world for networking, camaraderie and fun Virtual Engagement Online engagement opportunities including Mountain Talks and the Alumni Book Club Affinity and Alliance Networks Robust communities for alumni with shared interests and aspirations Soaring Together Celebration Events and expanded networks honoring Lehigh women and 50 years of coeducation Lehigh Connects A digital gateway to mentorship opportunities and professional connections used by more than 10,000 alumni and students Distinguished Alumni Awards Recognizing alumni changing the world through a commitment to diversity, public service, entrepreneurship and industry excellence Association of Student Alumni (ASA) Students committed to fostering community and traditions like the unveiling of the senior class year at the Clayton University Center Reunion An unprecedented number of alumni gathered for the 2022 Reunion to reconnect, once COVID restrictions were lifted Sendoffs and The Rally Continued traditions welcoming new students to campus—and to the alumni community Sustaining the Mission of the Arts The Zoellner Advisory Council Director’s Endowment Fund launched with a leadership gift from Oldrich “Ollie” Foucek III ’72 ’05P ’09P. The fund will help ensure that young audiences have access to transformative art experiences at Lehigh and help Zoellner meet programming needs. Fellow council members Marc Falato ’87 and Anne Kline ’81 also made gifts to the fund. Zisman Chair Mike Zisman ’70 (right) and his wife, Linda Gamble, made a $2.5 million gift to endow a faculty chair in honor of Professor William L. Luyben, Zisman’s chemical and biomolecular engineering professor and a Lehigh faculty member since 1967. The chairholder will embody the qualities of Luyben as “an exemplary teacher, mentor and distinguished researcher.” Zug Community Health Internships Created by Linda and D. Brooks Zug ’67, the endowed fund will ultimately support 10 to 12 College of Health students who undertake summer internships, providing them with a stipend for educational, travel or living expenses while they work in positions at community organizations, not-for-profits and other organizations. What Happens WhenWe GO? The Lehigh Fund Gifts of alumni and friends collectively add up to provide immediate and flexible support for the university’s top priority of scholarships and financial aid. of undergraduate students received scholarships and financial aid of undergraduate students who come from families that make less than $75K are fully funded through grants and scholarships 95+5N 51+49N 95% 51% Soaring Together Scholarships Created in honor of the milestone anniversary of Lehigh coeducation, Soaring Together offers full-tuition merit scholarships as well as experiential learning opportunities, career and professional development, and alumni support and networking to impact students academically and throughout their careers. The program was launched with four foundational gifts totaling nearly $3.5 million from Mark Alpert ’70; Trustee Maria Chrin ’87 ’10P and John Chrin ’85 ’86 ’10P; Board of Trustees Vice Chair Ann Lewnes ’83 ’22P; and Greg Welch ’22P and John Staub ’86. These gifts will allow the university to initially offer six scholarships. With the university's vision to offer 50 of these scholarships through philanthropy, the Soaring Together Scholarship Program will become the largest and most comprehensive of its type at Lehigh. 278 E N DOWE D S CHO L A R S H I P S C R E AT E D S I N C E T H E S TA R T O F T H E C AM PA I G N 33% CON TAC TA B L E A LUMN I E NG AG E D W I T H L E H I G H S I N C E C AM PA I G N L AU N CH Ways to Engage 2 0 2 2 A N N U A L R E P O R T | 1 6

Financial Report Included in the following pages are highlights of the University’s 2021–2022 fiscal year financial results, as well as key excerpts from the University’s consolidated financial statements. Statement of Financial Position A S S E T S The largest categories within the University’s $3.1 billion asset balance are investments and capital assets. The University’s endowment fund comprises the majority of the University’s investment balance (see “Endowment Review” on page 19) and experiences growth based on donor support and investment return net of operating distributions. Significant capital projects in process or recently completed include renovations to Chandler-Ullmann Hall, the Lehigh Business Building Expansion, and continued progress on new residential housing facilities. L I A B I L I T I E S The Bonds, Loans and Notes Payable balance of $499 million comprises the largest liability balance on the consolidated financial statements. The University’s debt balance includes a diversified mix of fixed and variable rate, and taxable and tax-exempt obligations. In support of the tax-exempt debt portfolio, the University has entered into interest rate exchange agreements that effectively minimize the variable rate exposure and/or reduce the University’s effective interest rate. In fiscal year 2021–2022, the University’s balance sheet also includes a $44.4 million asset (in Property, Plant and Equipment) and corresponding liability (in Other Liabilities) relating to the SouthSide Commons residential facility that is operated by a third party under the terms of a ground lease. N E T A S S E T S The University’s Net Assets balance of over $2.4 billion is classified as “with donor restrictions” or “without donor restrictions” in accordance with accounting standards. Net assets without donor restrictions are free of donor restrictions but may be designated for specific purposes by action of the Board of Trustees or senior management. Net assets with donor restrictions include net assets with donor-imposed restrictions that may be met by actions of the University or by the passage of time as well as net assets that are subject to permanent donor restrictions. Donors of these assets generally permit the University to use all or part of the investment income on related investments for general or specific purposes in accordance with a Board-approved spending policy. Statement of Activities O P E R AT I N G R E V E N U E S Net Tuition Revenue and Investment Return comprise the two largest sources of unrestricted operating revenue, representing 56% and 22% of the consolidated total in fiscal year 2021–2022. Tuition and fee revenue is reported net of related scholarships. Operating Investment Return includes $70.4 million of distributed earnings from the University endowment fund. The University’s policy for the distribution of endowment earnings is based on a three-year moving average market value that includes a ceiling and floor to insulate program spending from significant market fluctuations. While the $70.4 million of distributed earnings from the university endowment must be used according to the specified purpose of each fund, the payout touches all areas of the university and demonstrates the ongoing commitment to financial aid with more than 46 percent of the university's donor restricted endowment designated for scholarships and fellowships. In fiscal year 2021–2022, institutional financial aid was provided to more than 50 percent of undergraduate students, with an average need-based aid award of just over $49,313. O P E R AT I N G E X P E N S E The University continues to manage its expenses responsibly, aligning institutional resources from all sources to support its mission of education, research and public service. Salaries and benefits comprise approximately one-half of the University’s annual operating expense. NONO P E R AT I N G AC T I V I T Y Nonoperating activity includes transactions of a long-term investment nature or that indirectly relate to core activities. Examples include contributions restricted for campus improvements, contributions restricted because of donorimposed stipulations, income and expense resulting from certain fair-value adjustments, and investment returns from endowment net of earnings distributed for operations. 1 7 | L E H I G H U N I V E R S I T Y

Fiscal Year 2021–2022 Operating Revenue Sources ($ in thousands) TUITION & AUXILIARIES GRANTS & CONTRACTS CONTRIBUTIONS INVESTMENT RETURN INDEPENDENT OPERATIONS OTHER SOURCES 561432241 48118893310 INSTRUCTION RESEARCH PUBLIC SERVICE ACADEMIC SUPPORT STUDENT SERVICES INSTITUTIONAL SUPPORT AUXILIARY ENTERPRISES INDEPENDENT OPERATIONS Fiscal Year 2021–2022 Operating Expense by Functional Category ($ in thousands) 3811198+21+9+3 SALARIES & WAGES EMPLOYEE BENEFITS PURCHASED SERVICES OCCUPANCY DEPRECIATION INTEREST INDEPENDENT OPERATIONS OTHER BUSINESS EXPENSES 48% 11% 8% 8% 9% 3% 3% 10% 100% $ 270,335 62,959 14,958 85,324 15,274 9,550 $ 458,400 56% 14% 3% 22% 4% 1% 100% $ 161,964 59,265 4,193 41,409 43,486 84,944 48,658 11,032 $ 454,951 38% 11% 1% 9% 8% 21% 9% 3% 100% $ 190,690 62,177 41,437 37,166 38,288 15,534 11,302 60,627 $ 456,951 Fiscal Year 2021–2022 Operating Expenses by Natural Category ($ in thousands) 2 0 2 2 A N N U A L R E P O R T | 1 8

Endowment Fund Growth History The Endowment declined -2.7% for fiscal year 2021–2022, net of all fees. While the public equity asset class generated negative performance consistent with the precipitous decline in equity markets, we were able to offset losses with significant positive performance across the real estate, absolute return, and private equity asset classes. The real estate portfolio was the top performing asset class, generating a +22% return through both meaningful rental growth and higher sales prices. The absolute return portfolio generated an +11% return with consistent positive performance across hedge funds, private credit and opportunistic strategies. The private equity portfolio generated an +8% return with positive performance across venture, growth equity and buyout strategies, despite write-downs to capture the multiple compression and overall negative market environment. The treasury portfolio, while marginally negative, held up well as we shortened the overall duration, therefore reducing sensitivity to rising interest rates and repositioning the portfolio to capture an attractive yield opportunity. Endowment Review Lehigh Endowment Target Asset Allocation PUBLIC EQUITY 37% PRIVATE EQUITY 30% ABSOLUTE RETURN 20% TREASURIES/CASH 8% REAL ESTATE 5% 37302085 $ (reporting in thousands) $1,600,000 $1,200,000 $800,000 $400,000 $200,000 $600,000 $1,000,000 $1,400,000 $1,800,000 $2,000,000 JAN-97 JAN-98 JAN-99 JAN-00 JAN-01 JAN-02 JAN-03 JAN-04 JAN-05 JAN-06 JAN-07 JAN-08 JAN-09 JAN-10 JAN-11 JAN-12 JAN-13 JAN-14 JAN-15 JAN-16 JAN-17 JAN-18 JAN-19 JAN-20 JAN-21 JAN-22 1 9 | L E H I G H U N I V E R S I T Y

Lehigh University CONSOLIDATED STATEMENT OF FINANCIAL POSITION Year Ended June 30, 2022 (with comparative financial information for year ended June 30, 2021) (in thousands) ASSETS Cash and cash equivalents Accounts receivable, net Prepaid expenses and other assets Contributions receivable, net Notes receivable, net Investments Funds held in trust by others Property, plant and equipment, net Total assets 2022 $ 48,933 19,718 15,835 28,884 9,099 2,270,345 4,887 725,439 $ $ 3,123,140 2021 54,709 18,479 6,609 35,074 9,217 2,419,105 5,941 671,421 3,220,555 LIABILITIES AND NET ASSETS Accounts payable and accrued expenses Deferred revenues Annuity payment obligations Other liabilities Bonds, loans and notes payable Total liabilities Net assets: Without donor restrictions With donor restrictions Total net assets Total liabilities and net assets 2022 $ 53,596 16,418 17,248 103,017 498,592 688,871 1,198,209 1,236,060 2,434,269 $ 3,123,140 2021 44,971 14,180 18,076 121,405 505,244 703,876 1,212,498 1,304,181 2,516,679 3,220,555 2 0 2 2 A N N U A L R E P O R T | 2 0

Salaries and wages Employee benefits Purchased services Occupancy Depreciation Interest Independent operations Other business expenses Total expenses Operating income (loss) Lehigh University CONSOLIDATED STATEMENT OF ACTIVITIES Year Ended June 30, 2022 (with comparative financial information for year ended June 30, 2021) (in thousands) 2022 Without Donor Restrictions With Donor Restrictions Total 2021 SUPPORT AND REVENUES EXPENSES Tuition and fees, net Federal grants and contracts State and local grants and contracts Private grants and contracts Contributions Investment return, net Auxiliary enterprises, net Independent operations Other sources Net assets released from restrictions Total support and revenues $ 217,933 50,614 7,861 4,484 14,958 85,324 52,402 15,274 9,550 2,356 $ 460,756 — — — — — — — — — (2,356) (2,356) 217,933 50,614 7,861 4,484 14,958 85,324 52,402 15,274 9,550 — 458,400 199,110 41,825 9,303 3,801 13,011 85,497 21,296 13,149 3,668 — 390,660 190,690 62,177 41,437 37,166 38,288 13,534 11,032 60,627 454,951 5,805 — — — — — — — — — (2,356) 190,690 62,177 41,437 37,166 38,288 13,534 11,032 60,627 454,951 3,449 185,972 44,727 30,144 30,217 34,300 11,937 11,127 42,222 390,646 14 2 1 | L E H I G H U N I V E R S I T Y

Investment return, net University Independent operations Gifts and trusts Net assets released from restrictions and changes in donor intent Change in fair value of interest rate swaps Post-retirement plan changes other than net periodic benefit cost: University Independent operations Net periodic benefit costs other than service costs: University Independent operations Other Nonoperating (loss) income Change in net assets Net assets, beginning of year Net assets, end of year 2022 Without Donor Restrictions With Donor Restrictions Total 2021 NONOPERATING ACTIVITY $ (60,661) (7,373) 2,455 18,435 14,310 13,580 364 (1,924) (60) 798 (20,094) (14,289) 1,212,498 $ 1,198,209 (77,730) — 28,520 (18,435) — — — — — 1,880 (65,765) (68,121) 1,304,181 1,236,060 (138,391) (7,373) 30,975 — 14,310 13,580 346 (1,924) (60) 2,678 (85,859) (82,410) 2,516,679 2,434,269 460,203 5,573 23,632 — 11,732 1,618 46 (1,850) (57) (1,094) 499,803 499,817 2,016,862 2,516,679 Lehigh University CONSOLIDATED STATEMENT OF ACTIVITIES (CONTINUED) Year Ended June 30, 2022 (with comparative financial information for year ended June 30, 2021) (in thousands) 2 0 2 2 A N N U A L R E P O R T | 2 2

Lehigh University Board of Trustees University Leadership VINCENT A. FORLENZA JR. ’75 Chair of the Board Retired Executive Chairman and Chief Executive Officer, Becton, Dickinson and Company JORDAN HITCH ’88 ’20P ’21P Vice Chair of the Board Former Managing Director, Bain Capital ANN LEWNES ’83 ’22P Vice Chair of the Board Chief Marketing Officer and Executive Vice President, Corporate Strategy & Development, Adobe JEFFREY BOSLAND ’88 ’23P Former Senior Managing Director, Cerberus Capital and Operations Advisory Company PAUL A. CAMUTI ’83 Executive Vice President and Chief Technology and Sustainability Officer, Trane Technologies MARIA L. CHRIN ’87 ’10P Founder and Managing Partner, Circle Wealth Management, LLC JAY CLAYTON Senior Policy Advisor and Of Counsel, Sullivan & Cromwell LLP ERIC A. CLEMENT ’99 SVP and Fund Manager, RXR FREDERICK R. COLEMAN ’17 ’19G Technology Strategy Consultant, Accenture LLP SANDRA L. DENTON ’83 Vice President of Channels and Partnerships, Pipefy ANDREW D. FREED ’83 ’17P Retired President and Chief Executive Officer, Micro-Coax JULIE FREHAFER ’11 Project Planning Officer, U.S. Naval Air Warfare Center Aircraft Division JAMES H. GARRETT JR. Provost and Chief Academic Officer, Carnegie Mellon University COREY L. HARRISON ’03 Co-Founder and CEO, Flip Technology Corporation MARY T. KUSH ’88 Principal, Douglass Winthrop Advisors, LLC JAMES R. MAIDA ’85 ’17P ’19P President and Chief Executive Officer, Gaming Laboratories International, LLC LAUREN M. MANDUKE ’05 Commercial Litigator, Cole Schotz P.C. KENDALL B. O’BRIEN ’84 Retired Financial Executive and Group Chief Financial Officer, Johnson & Johnson MICHELE M. SCARINGELLA ’90 Former EVP, Business Operations and CFO, CBS Television Stations CHRISTOPHER M. SCOTT ’94 Managing Director, Fixed Income Division, Morgan Stanley SARAT SETHI ’92 Managing Partner, Douglas C. Lane & Associates ERIKA J. SMITH ’99 Dean of the College, Connecticut College SANDRA L. STELLING ’91 Vice President of Strategy, Analytics and Transformation, Alaska Airlines Inc. RICHARD R. VERMA ’90 General Counsel and Head of Global Public Policy, Regulatory Affairs and Litigation, Mastercard FRANK E. “TED” WALSH III ’88 Founding Partner, WR Capital Partners, LLC AMY WEAVER ’23P President and Chief Financial Officer, Salesforce.com Inc. MARK R. YEAGER ’81 Founder and Owner, MRY Associates, LLC 2 3 | L E H I G H U N I V E R S I T Y

University Administration JOSEPH J. HELBLE ’82 President NATHAN N. URBAN Provost and Senior Vice President for Academic Affairs STEPHEN P. DEWEERTH Dean, P.C. Rossin College of Engineering and Applied Science ELIZABETH A. DOLAN Interim Dean, College of Health ROBERT A. FLOWERS II ’91G Herbert J. and Ann L. Siegel Dean, College of Arts and Sciences WILLIAM GAUDELLI Dean, College of Education and Vice Provost for Innovation in Education GEORGETTE CHAPMAN PHILLIPS Kevin L. Clayton ’84 ’13P and Lisa A. Clayton ’13P Dean, College of Business KRISTIN A. AGATONE Chief Investment Officer YENNY D. ANDERSON ’18P Vice Provost for Institutional Research and Strategic Analytics JOSEPH E. BUCK Vice President for Development and Alumni Relations CHRISTINE COOK Vice President of Strategic Planning and Initiatives TIMOTHY EBNER Interim University Registrar RICARDO D. HALL Vice President for Student Affairs CHRIS HALLADAY Associate Vice President for Human Resources ANAND JAGOTA Vice Provost for Research JENNIFER M. JENSEN Deputy Provost for Academic Affairs JACKIE KRASAS ’87 Deputy Provost for Faculty Affairs KATHERINE W. LAVINDER Dean of Students BRETT LUDWIG Vice President for Communications and Public Affairs CHERYL A. MATHERLY Vice President and Vice Provost for International Affairs KHANJAN MEHTA Vice Provost for Creative Inquiry and Director of the Mountaintop Initiative HENRY U. ODI ’98G Deputy Vice President for Equity and Community and Associate Provost for Academic Diversity DONALD A. OUTING Vice President for Equity and Community GREG M. REIHMAN Vice Provost for Library and Technology Services FRANK A. ROTH ’80 ’08P ’11P General Counsel, Secretary to the Board of Trustees LLOYD H. STEFFEN University Chaplain JOSEPH D. STERRETT ’76 ’78G ’03P ’05P ’07P ’09P Murray H. Goodman Dean of Athletics MICHAEL J. TODD Vice President for Finance and Administration ERIK J. WALKER Chief of Staff, Office of the President DANIEL A. WARNER Vice Provost for Admissions and Financial Aid JOHN W. WELTY Vice Provost for Western Regional Office OLIVER YAO Interim Deputy Provost for Graduate Education Lehigh University’s 2022 Annual Report was produced by the Office of Communications and Public Affairs. EDITOR Mary Ellen Alu ASSOCIATE EDITOR Stephen Gross ART DIRECTOR Kurt Hansen DESIGNER Kate Cassidy PHOTOGRAPHY Christa Neu Stephanie Veto

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