NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Longleaf Partners Fund (the "Fund") is a series of Longleaf Partners Funds Trust, a Massachusetts business trust
which is registered under the Investment Company Act of 1940, as amended, as a diversified open-end
management investment company. The Fund was organized on November 26, 1986 and on March 24, 1987 the
initial capitalization of $100,000 was provided by two principals of Southeastern Asset Management, Inc., the
Investment Counsel, who received 10,000 shares of beneficial interest in return. The Fund commenced its public
offering of shares on April 8, 1987.
The following is a summary of significant accounting policies:
(a) Valuation of Securities and Repurchase Agreements:
(1) Portfolio securities listed or traded on a securities exchange and over-the-counter securities traded on the
NASDAQ national market are valued at the last sales price. If there are no transactions in the security that day,
securities are valued at the midpoint between the closing bid and ask prices.
(2) All other portfolio securities for which over-the-counter market quotations are readily available are valued at
the midpoint between the closing bid and ask prices. Repurchase agreements are valued at cost which, combined
with accrued interest, approximates market. Short-term U.S. Government obligations are valued at amortized
cost which approximates current market value.
(3) When market quotations are not readily available, portfolio securities are valued at their fair value as
determined in good faith under procedures established by and under the general supervision of the Fund's
(b) Accounting for Investments:
The Fund follows industry practice and records security transactions on the day following the trade date (date the
order to buy or sell is executed). Realized gains and losses on security transactions are determined using the
specific identification method. Dividend income is recognized on the ex-dividend date and interest income