2019-08-09T12:51:24-05:00 2018-09-30 861065772 Deloitte Tax LLP 2 Jericho Plaza Jericho NY 11753 990 2017-10-01 210634479 Educational Testing Service EDUC 6099219000 Rosedale Road MS 20-J Princeton NJ 08541 Jack Hayon SVP & Chief Financial Officer 6099219000 2019-08-09 Christine Kawecki P00743140 5169187000 174.200.4.191 2019-08-09 12:50:33 ED P 8121CA463AABFA4EFE5158FD2073B628CA1C8F6D 6410079965079D3074AAD5C60F569B728853E432 2017 2019-02-21 02:37:17Z Jack Hayon Rosedale Road MS 20-J Princeton NJ 08541 3531275161 0 X www.ets.org X 1947 NY See Page 2, Part III, Question 1 X 18 17 30188 0 15140133 -8313783 8163384 9606303 1227726560 1196751734 85841710 829335932 84862955 90754819 1406594609 2126448788 1363691 1789171 0 0 453425438 442063792 0 0 0 885261534 884508811 1340050663 1328361774 66543946 798087014 1319854215 2035173070 508653571 511607210 811200644 1523565860 X Educational Testing Service (ETS) was incorporated in 1947 by the Board of Regents for the Education Department of the State of New York as an educational organization to engage in research, services and other activities in the field of educational testing.MISSIONOur mission is to help advance quality and equity in education by providing fair and valid assessments, research and related services. Our products and services measure knowledge and skills, promote learning and performance, and support education and professional development for all people worldwide.VISIONETS will be recognized as the global leader in providing fair and valid assessments, research and related products and services to help individuals make successful educational and career transitions throughout their lives, parents understand and use assessments and related products to help their children reach their full potential and teachers improve their practice through assessment and professional development. 0 0 830526239 1789170 852927605 Assessment Research, Development, and Scoring Educational Testing Service ("ETS") conducts research on statistical and psychometric methodology to advance the science of educational measurement and ensure the technical quality and fairness of ETS's assessments and assessment-related services. Through its Policy Evaluation and Research Center, ETS also conducts research and analyses that address challenging educational policy issues. In conjunction with its research, ETS develops educational assessments for use by states in K-12 assessment, for college admissions and the transition from high school to college, for graduate and business school admissions, and for use in measuring knowledge and skills, promoting learning and performance, and supporting education and professional development. ETS has developed more than 200 assessment programs including but not limited to Praxis, HiSET, Test of English as a Foreign Language (TOEFL), Graduate Record Examination (GRE), Test of English for International Communication (TOEIC), and state specific and pre-college assessments. In conjunction with its research, ETS continues working collaboratively with the National Center for Education Statistics on the National Assessment of Educational Progress (NAEP). Additionally, ETS's Institute for Student Achievement (ISA) continues working in partnership with districts and schools to transform underperforming high schools into rigorous and supportive learning environments that prepare students to be college-ready.Each year, ETS scores and delivers millions of assessments and score reports to examinees and institutions, in numerous formats and using a variety of means.The process of scoring educational assessments includes ensuring that tests: (a) accurately measure what they are intended to measure; (b) generate consistent results across different versions and among different groups of test takers; and (c) are fair to all test takers. 328351093 343824129 Assessment Administration & Delivery ETS provides test administration and delivery services. ETS administers approximately 23 million assessments annually in more than 9,000 locations. ETS oversees test centers and related test administration staff who undergo a rigorous training and approval process prior to the administration of an assessment. For example, test center administrators are primarily responsible for establishing a secure testing environment and managing day-to-day testing activities. These activities provide vital support for the administration and delivery of ETS assessment in numerous formats and using a variety of means. 1158877332 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 1 0 0 1 X 111576 0 30188 1 1 1 1 AS BE CA CH FR GM IN EI IS IT JA JO LU MY MT NL PL SN SF KS SZ TU AE UK 0 0 0 0 0 0 0 0 X 18 17 0 0 1 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ CA DC DE IN KS NJ NY OR X Michael J Freddo Vice President a 6099219000 Rosedale Road MS 20-J Princeton NJ 08541 Colbert Isaac Trustee 2.00 X 62000 0 0 Driver Darienne Trustee 2.00 X 46500 0 0 English Michela A Trustee 2.00 X 92000 0 0 Gandara Patricia Trustee 0.30 X 17500 0 0 Garcia Mildred Trustee 0.30 X 11500 0 0 Garcia Ofelia Trustee 2.00 X 62000 0 0 Henderson Wade N Trustee 2.00 X 86000 0 0 Kanter Martha Trustee 2.00 X 62000 0 0 Lewis Earl Trustee 2.00 X 77000 0 0 Lumpkins Robert Trustee 2.00 X 65334 0 0 Murley Robert S Trustee 2.00 X 77000 0 0 Pellegrino James Trustee 1.00 X 105763 0 0 Rothkopf Arthur J Trustee 1.00 X 73666 0 0 Sine Jeffrey Trustee 2.00 X 68000 0 0 Stewart Debra W Trustee 2.00 X 82000 0 0 Tatum Beverly Daniel Trustee 2.00 X 62000 0 0 Valdes Guadalupe Trustee 2.00 X 85150 0 0 Winckler Georg Trustee 2.00 X 58000 0 0 MacDonald Walter B President 40.00 X X 1195836 0 32645 Bailey Diane A SVP, Production & Delivery 40.00 X 421552 0 53791 Basehore John VP & Treasurer 40.00 X 376996 0 51877 Donado Yvette SVP & Chief Admin Officer 40.00 X 664384 0 42512 Draper Jr William C VP & COO College Board 40.00 X 425168 0 38773 Ercikan-Alper Kadriye VP Stat Analysis & Psych Research 40.00 X 237993 0 56087 Farnum Marisa VP Assessment Development 40.00 X 372145 0 31312 Freddo Michael J VP & Controller 40.00 X 389147 0 38492 Gilbertson Bruce M VP Facilities & Real Estate 40.00 X 385366 0 32565 Gorin Joanna VP Research 40.00 X 375892 0 32077 Hayon Jack SVP & CFO 40.00 X 697223 0 48264 Hernandez Sandra VP Finance 40.00 X 411482 0 39017 Hobson David VP & Corporate Secretary 40.00 X 387802 0 37996 Hunt David Executive VP & COO 40.00 X 627911 0 79671 Johnson-Gregory Sheree L VP Assoc. Gen Counsel & CDO 40.00 X 535842 0 46989 Lawrence Ida M SVP Research & Development 40.00 X 560998 0 41063 Lowery Lillian M VP & COO STA K12 & TLC 4.00 X 0 0 0 Nelson Scott F SVP & Chief Marketing Officer 40.00 X 495138 0 67845 Nettles Michael T SVP & Controller for Policy Eval 40.00 X 496721 0 50311 Oswald John VP, Client Relations & Outreach 40.00 X 317051 0 39912 Payne David G VP & COO Global Education 40.00 X 490396 0 47711 Pfund Rebecca Chief Information Officer 40.00 X 479919 0 59337 Pote Stephen K VP & Chief Quality Officer 40.00 X 376096 0 49627 Robinson Deirdre VP & CLO SWS 40.00 X 208079 0 31603 Rockey Anne F VP Operations 40.00 X 379575 0 48741 Schroeder Glenn C SVP & General Counsel 40.00 X 640419 0 43732 Wakeman Daniel VP & Chief Information Officer 40.00 X 378198 0 61438 Weaver Scott V VP & Chief Strategy Officer 40.00 X 463302 0 63646 Williamson David VP New Product Development 40.00 X 342307 0 52610 Bennett Randy E Frederiksen Chair Assessment 40.00 X 365036 0 32254 Chan Peter General Mgr, Application Develop 40.00 X 309685 0 56815 Kirsch Irwin Tyler Chair LG Scale Assessment 40.00 X 374271 0 41128 McHale Frederick General Manager, Stat Analysis 40.00 X 349161 0 37741 Schmidt Amy General Manager, Stat Analyst 40.00 X 313699 0 47671 Carstarphen Meria Former Trustee 0.20 X 10500 0 0 Menezes Victor Former Trustee 1.00 X 23000 0 0 Elliott Thomas J Former VP & CLO SWS 40.00 X 324480 0 40828 House Naomi Former President ISA 40.00 X 472802 0 36009 Kerins Nancy J Former SVP Prod & Delivery 40.00 X 594024 0 24923 Lazer Stephen Former SVP Stud & Teach Assess 40.00 40.00 X 352363 216394 35898 Mazzeo John Former VP Stat Analysis & Psych. 0.00 X 460550 0 24300 Miller George Former VP SWS 0.00 X 195577 0 0 18471499 216394 1697211 1435 1 1 0 Accenture LLP 161 North Clark St Chicago IL 60601 Supply chain 73807816 Computer Sciences Corporation 3180 Fairview Park Drive Falls Church VA 22042 Computer services 55128177 American Institutes for Research 200 Vesey Street Floor 24 New York NY 10281 Consulting 26367504 Iris Software Inc 200 Metroplex Drive Suite 300 Edison NJ 08817 Temporary labor 24072688 Adecco Corporation 175 Broad Hollow Road Melville NY 11747 Temporary labor 23357745 263 9152475 453828 9606303 Assess R&D & Scoring 611710 852927605 852927605 Assess Admin&Delivery 611710 343824129 343824129 1196751734 62148717 62148717 75590773 75590773 23913 0 23913 23913 23913 1057297172 1114716416 1011235934 393590439 46061238 721125977 767187215 767187215 Occupational & Prof Sk 611600 10404810 10404810 Chauncey Conf. Center 721000 4163577 4163577 Services to subsidiari 541900 60371 60371 511375 511375 15140133 2126448788 1196751734 15140133 904950618 X 1559325 1559325 229846 229846 15255851 6250178 9005673 846935 846935 326064064 270356367 55707697 27992625 22629145 5363480 46833933 37860396 8973537 25070384 20266815 4803569 6807340 1998120 4809220 3478827 3478827 49960 49960 1663138 1663138 568778434 520992604 47785830 24921666 23531965 1389701 173377251 167649001 5728250 1889773 1889773 21858190 15618797 6239393 7482918 5926292 1556626 1906578 1496923 409655 2522410 2522410 50688784 46508193 4180591 2211187 2211187 Business Fees 9905284 7301091 2604193 Chauncey Conference Cen 3813981 3813981 Foreign and State Tax 2656234 2656234 Memberships and Dues 496856 342286 154570 1328361774 1158877332 169484442 0 24363634 64541928 105914677 147644161 142493350 155858138 27573064 42879502 26910462 31376786 302724208 182739352 121679770 119984856 124671114 169753652 502791360 1111869104 105007285 71356969 135262499 116428400 3187000 3479574 1319854215 2035173070 171855154 200939661 101199740 106592983 235598677 204074566 508653571 511607210 X 811200644 1523565860 811200644 1523565860 1319854215 2035173070 X 798087014 -47326655 -38395143 X 0 1 X 1 1 1 X 9848829 5869527 8691255 8163384 9606303 42179298 1086721635 812183280 1211680710 1227726560 1196751734 5535063919 1096570464 818052807 1220371965 1235889944 1206358037 5577243217 0 400936397 363759501 525014890 525817956 552234747 2367763491 400936397 363759501 525014890 525817956 552234747 2367763491 3209479726 119431874 96024877 119884373 138342221 137763402 611446747 119431874 96024877 119884373 138342221 137763402 611446747 1216002338 914077684 1340256338 1374232165 1344121439 6188689964 0.51860 0.54480 0.09880 0.09060 X Part III, Sections A and B As a result of Educational Testing Service changing from a calendar year end to a September 30 fiscal year end in 2015, Schedule A, Part III, Sections A and B, the 2017 column represents the period 10/01/2017 to 09/30/2018. The 2016 column represents the period 10/01/2016 to 09/30/2017. The 2015 column represents the period 10/01/2015 to 09/30/2016. The 2014 column represents the period 01/01/15 to 09/30/2015. The 2013 column represents the period 01/01/14 to 12/31/2014. 49960 49960 1304857898 1304907858 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 49570 37186 27376 49960 164092 250000 250000 250000 250000 1000000 1500000 Part II-A, Line 2, Lobbying Activities: Total ETS federal and state lobbying expenses were $49,960. The total lobbying expenditures of ETS were minimal in comparison to total revenues. 1970618 1970618 212285394 124941810 87343584 8834314 3554750 5279564 79633882 54242792 25391090 119984856 Investment in affiliated entities 15064475 F Non-publicly traded securities 1096804629 F 1111869104 Post-retirement medical benefits 105623310 Other liabilities 98451256 204074566 X Part X, Line 2: This summary reflects the ETS portion of the ASC 740-10(FIN 48) Note in the Consolidated Financial Statements. Educational Testing Service adopted ASC 740-10(FIN 48) on January 1, 2009 in accordance with U.S. Generally Accepted Accounting Procedures (US GAAP). In accordance with the US GAAP requirements, Educational Testing Service adjusted its net assets for its uncertain tax positions. It is reasonably possible that the balance of gross unrecognized tax benefits may change within the next twelve months, due to lapse of applicable statutes of limitations or closure of an examination. 1 North America 0 1107 Program services Assessment Administration & Delivery 1775731 Europe 0 563 Program services Assessment Administration & Delivery 12091509 Central America and the Caribbean 0 675 Program services Assessment Administration & Delivery 419539 East Asia and the Pacific 0 2224 Program services Assessment Administration & Delivery 10041742 Middle East and North Africa 0 758 Program services Assessment Administration & Delivery 1521374 Russia and Neighboring States 0 274 Program services Assessment Administration & Delivery 381379 South America 0 640 Program services Assessment Administration & Delivery 1188265 South Asia 0 1863 Program services Assessment Administration & Delivery 4059388 Sub-Saharan Africa 0 459 Program services Assessment Administration & Delivery 2035820 Europe 0 0 Investments 14279782 North America 0 0 Investments 424015 Central America and the Caribbean 0 0 Investments 126375077 0 8104 0 459 0 8563 31478927 143114694 174593621 1 0 1 0 0 1 1 African Leadership Foundation PO Box 7408 New York NY 10150 830425133 501(c)(3) 100000 Support of local community educational programs. American Assoc of Hispanics in Higher Education (AAHHE) c/o Arizona State University Tempe AZ 85257 300150324 501(c)(3) 55000 Support of local community educational programs. American Educational Research Association (AERA) 1430 K Street NW Suite 1200 Washington DC 20005 237003537 501(c)(3) 10000 Support of local community educational programs. American Indian College Fund 8333 Greenwood Blvd Denver CO 80221 821573446 501(c)(3) 5000 Support of local community educational programs. Anchor House Foundation Inc 482 Centre Street Trenton NJ 08611 222229995 501(c)(3) 10200 Support of local community educational programs. Asian Pacific Islander American Scholarship Fund 2025 M Street NW Suite 610 Washington DC 20036 571192973 501(c)(3) 10000 Support of local community educational programs. Career Development Awards PO Box 2314 Princeton NJ 08542 237206954 501(c)(3) 5000 3694 Fair Market Value Catering and Supplies Support of local community educational programs. Child Care Connection Inc 1001 Spruce Street Suite 201 Trenton NJ 08638 222698190 501(c)(3) 15000 Support of local community educational programs. Children's Defense Fund 25 E Street NW Washington DC 20001 520895622 501(c)(3) 360000 Support of local community educational programs. Communities in Schools of San Antonio 1616 E Commerce Bldg 1 San Antonio TX 78205 742393714 501(c)(3) 5248 Support of local community educational programs. Contact of Mercer County 60 S Main Street Pennington NJ 08534 222320153 501(c)(3) 5000 Support of local community educational programs. Council of Chief State School Officers One Massachussetts Ave NW Suite 700 Washington DC 20001 530198090 501(c)(3) 73017 Fair Market Value Catering and Supplies Support of local community educational programs. Court Appointed Special Advocates of New Jersey (CASANJ) 77 Church Street New Brunswick NJ 08901 223679194 501(c)(3) 25000 Support of local community educational programs. Education Law Center 60 Park Place Newark NJ 07102 222014555 501(c)(3) 15100 Support of local community educational programs. Educational Leadership Foundation of New Jersey 413 West State Street Suite 207 Trenton NJ 08618 264437074 501(c)(3) 90000 Support of local community educational programs. Every Child Valued 175 Johnson Avenue Lawrenceville NJ 08648 264654078 501(c)(3) 15278 Support of local community educational programs. Ewing High School 990 Parkway Avenue Ewing NJ 08618 Government 5821 Fair Market Value Catering and Supplies Support of local community educational programs. Ewing Public Education Foundation PO Box 7033 Ewing NJ 08628 223347353 501(c)(3) 45318 Support of local community educational programs. Ewing Public School District 2099 Pennington Road Ewing NJ 08618 Government 6695 Fair Market Value Catering and Supplies Support of local community educational programs. Fight for Children 1029 Vermont Ave NW Ste 300 Washington DC 20005 521706059 501(c)(3) 5000 Support of local community educational programs. Foundation of Morris HallSt Lawrence Rehabilitation Foundation 2381 Lawrence Road Lawrence NJ 08648 522250044 501(c)(3) 12500 Support of local community educational programs. Hispanics Inspiring Students' Performance and Achievement (HISPA) PO Box 702 Princeton NJ 08542 521825305 501(c)(3) 40456 Support of local community educational programs. Junior Achievement of New Jersey 4365 Route 1 South Princeton NJ 08540 221774147 501(c)(3) 20236 Support of local community educational programs. Lawrence Township Community Foundation PO Box 6707 Lawrenceville NJ 08648 223835387 501(c)(3) 5000 748 Fair Market Value Catering and Supplies Support of local community educational programs. Lawrence Township Education Foundation 17 Phillips Ave Lawrenceville NJ 08648 223192024 501(c)(3) 85609 175 Fair Market Value Catering and Supplies Support of local community educational programs. McCarter Theater 91 University Place Princeton NJ 08540 210724198 501(c)(3) 10000 Support of local community educational programs. Mercer County Community College 1200 Old Trenton Road West Windsor NJ 08550 Government 9132 Fair Market Value Catering and Supplies Support of local community educational programs. Mercer County Community College Foundation 1200 Old Trenton Road West Windsor NJ 08550 221824242 501(c)(3) 10206 Support of local community educational programs. Mercer County Office of Education 1075 Old Trenton Road Trenton NJ 08690 Government 10314 Fair Market Value Catering and Supplies Support of local community educational programs. Minding Our Business 349 West State Street Trenton NJ 08618 461076647 501(c)(3) 5000 Support of local community educational programs. National Urban League 80 Pine Street 9th Floor New York NY 10005 131840489 501(c)(3) 25000 Support of local community educational programs. New Venture Fund 1201 Connecticut Avenue NW Suite 300 Washington DC 20036 205806345 501(c)(3) 40000 Support of local community educational programs. Ocean City Board of Education 501 Atlantic Ave Suite 1 Ocean City NJ 08226 216000270 501(c)(3) 77979 Support of local community educational programs. Opportunity Junction 3102 Delta Fair Blvd Antioch CA 94509 680459131 501(c)(3) 10320 Support of local community educational programs. Parents Step Ahead 2102 Empire Central Dallas TX 75235 262477378 501(c)(3) 27867 Support of local community educational programs. PEI Kids 231 Lawrence Road Lawrenceville NJ 08648 222594219 501(c)(3) 6586 Support of local community educational programs. Princeton Family YMCA 59 Paul Robeson Place Princeton NJ 08550 210639890 501(c)(3) 12000 1368 Fair Market Value Catering and Supplies Support of local community educational programs. Princeton Regional Chamber of Commerce 182 Nassau Street Suite 301 Princeton NJ 08540 210722138 501(c)(6) 9000 Support of local community educational programs. Regents University of California Los Angeles Box 951521 2052 Moore Hall Los Angeles CA 90095 956006143 501(c)(3) 20000 Support of local community educational programs. Shiloh Community Development Corporation (Trenton Freedom School) PO Box 398 Trenton NJ 08603 123799161 501(c)(3) 10000 150 Fair Market Value Catering and Supplies Support of local community educational programs. Stony Brook Millstone Watershed Association 31 Titus Mill Road Pennington NJ 08534 210649717 501(c)(3) 10248 Support of local community educational programs. UIH Family Partners 4 N Broad Street 2nd Floor Suite 2R Trenton NJ 08608 210635048 501(c)(3) 6296 Support of local community educational programs. United States Hispanic Leadership Institute 431 S Dearborn Street Chicago IL 60605 363191740 501(c)(3) 5000 Support of local community educational programs. United Way of Greater Mercer County 3150 Brunswick Pike Suite 230 Lawrenceville NJ 08648 210683073 501(c)(3) 100222 132 Fair Market Value Catering and Supplies Support of local community educational programs. Young Audiences of New Jersey Inc 200 Forrestal Road Princeton NJ 08540 237384991 501(c)(3) 35000 Support of local community educational programs. YWCA Princeton 59 Paul Robeson Place Princeton NJ 08540 210639890 501(c)(3) 20600 8624 Fair Market Value Catering and Supplies Support of local community educational programs. 45 1 Historically Black Colleges and Universities Presidential Scholarship 7 54346 Trenton Central High School Scholarship 12 90000 Research Fellowships 2 85500 Part I, Line 2: Educational Testing Service requires applicants for scholarships to provide transcripts and other information upon which they are evaluated. During Fiscal Year 2018,scholarship funds were made payable directly to the university or college that the awarded recipient attends or made payable to both the institution and the student. The ETS Center for Advocacy and Philanthropy, a division of ETS that manages ETS's contributions, has established criteria for making grants and other contributions. It also maintains records to substantiate the amount of grants or in-kind contributions, as well as the grantees eligibility for the grants. IRS Form W-9 is requested from all organizations to ascertain the legal name, EIN or Taxpayer Identification Number and address. ETS typically maintains close contact with its grantees to monitor their progress in the use of funds and, whenever feasible, the extent to which the funded program met its objectives. Small contributions (under $2,000) are sometimes made to 501(c)(3) organizations to promote volunteerism and philanthropy among employees at ETS. ETS monitors the use of funds in several ways: (1) requests written reports on the use of restricted funds and the organization's annual report when the grant is unrestricted; (2) for sponsored events, such as conferences and workshops, ETS requests programs and other materials prepared for the event; (3) staff members attend a number of sponsored events so that there is direct observation; (4) ETS remains in contact with grant recipients via email, phone calls and face-to-face meetings; and (5) ETS obtains copies of any research papers that might be developed as a result of the grant. X X X X X 1 1 X X X X 1 1 0 0 0 1 0 1 0 MacDonald Walter B President 609990 0 389169 0 196677 0 24300 0 8345 0 1228481 0 0 0 Bailey Diane A SVP, Production & Delivery 266473 0 122625 0 32454 0 38395 0 15396 0 475343 0 0 0 Basehore John VP & Treasurer 221012 0 117225 0 38759 0 33865 0 18012 0 428873 0 0 0 Donado Yvette SVP & Chief Admin Officer 273562 0 193950 0 196872 0 24300 0 18212 0 706896 0 115996 0 Draper Jr William C VP & COO College Board 233650 0 139125 0 52393 0 36173 0 2600 0 463941 0 0 0 Ercikan-Alper Kadriye VP Stat Analysis & Psych Research 208464 0 0 0 29529 0 32500 0 23587 0 294080 0 0 0 Farnum Marisa VP Assessment Development 204597 0 112500 0 55048 0 22500 0 8812 0 403457 0 0 0 Freddo Michael J VP & Controller 198732 0 123125 0 67290 0 22163 0 16329 0 427639 0 0 0 Gilbertson Bruce M VP Facilities & Real Estate 208965 0 125250 0 51151 0 32565 0 0 0 417931 0 0 0 Gorin Joanna VP Research 228750 0 123375 0 23767 0 32077 0 0 0 407969 0 0 0 Hayon Jack SVP & CFO 350578 0 260488 0 86157 0 24300 0 23964 0 745487 0 0 0 Hernandez Sandra VP Finance 228070 0 142313 0 41099 0 23288 0 15729 0 450499 0 0 0 Hobson David VP & Corporate Secretary 192127 0 132000 0 63675 0 21600 0 16396 0 425798 0 0 0 Hunt David Executive VP & COO 368482 0 214350 0 45079 0 54573 0 25098 0 707582 0 0 0 Johnson-Gregory Sheree L VP Assoc. Gen Counsel & CDO 237186 0 161850 0 136806 0 24108 0 22881 0 582831 0 71140 0 Lawrence Ida M SVP Research & Development 308511 0 178375 0 74112 0 24300 0 16763 0 602061 0 0 0 Nelson Scott F SVP & Chief Marketing Officer 282609 0 166375 0 46154 0 43258 0 24587 0 562983 0 0 0 Nettles Michael T SVP & Controller for Policy Eval 278291 0 171738 0 46692 0 24300 0 26011 0 547032 0 0 0 Oswald John VP, Client Relations & Outreach 257561 0 14513 0 44977 0 24300 0 15612 0 356963 0 0 0 Payne David G VP & COO Global Education 260297 0 169130 0 60969 0 24300 0 23411 0 538107 0 0 0 Pfund Rebecca Chief Information Officer 230214 0 202500 0 47205 0 35750 0 23587 0 539256 0 0 0 Pote Stephen K VP & Chief Quality Officer 232984 0 118013 0 25099 0 34092 0 15535 0 425723 0 0 0 Robinson Deirdre VP & CLO SWS 180976 0 0 0 27103 0 25200 0 6403 0 239682 0 0 0 Rockey Anne F VP Operations 241565 0 127250 0 10760 0 33085 0 15656 0 428316 0 0 0 Schroeder Glenn C SVP & General Counsel 338128 0 240175 0 62116 0 24300 0 19432 0 684151 0 0 0 Wakeman Daniel VP & Chief Information Officer 241364 0 110000 0 26834 0 35750 0 25688 0 439636 0 0 0 Weaver Scott V VP & Chief Strategy Officer 259569 0 161013 0 42720 0 38058 0 25588 0 526948 0 0 0 Williamson David VP New Product Development 206649 0 115625 0 20033 0 30062 0 22548 0 394917 0 0 0 Bennett Randy E Frederiksen Chair Assessment 303533 0 33226 0 28277 0 24300 0 7954 0 397290 0 0 0 Chan Peter General Mgr, Application Develop 224223 0 60893 0 24569 0 33228 0 23587 0 366500 0 0 0 Kirsch Irwin Tyler Chair LG Scale Assessment 270644 0 75792 0 27835 0 24300 0 16828 0 415399 0 0 0 McHale Frederick General Manager, Stat Analysis 234241 0 63875 0 51045 0 21545 0 16196 0 386902 0 0 0 Schmidt Amy General Manager, Stat Analyst 228165 0 60465 0 25069 0 33343 0 14328 0 361370 0 0 0 Carstarphen Meria Former Trustee 10500 0 0 0 0 0 0 0 0 0 10500 0 0 0 Menezes Victor Former Trustee 23000 0 0 0 0 0 0 0 0 0 23000 0 0 0 Elliott Thomas J Former VP & CLO SWS 155877 0 142329 0 26274 0 16447 0 24381 0 365308 0 0 0 House Naomi Former President ISA 261609 0 158100 0 53093 0 24300 0 11709 0 508811 0 0 0 Kerins Nancy J Former SVP Prod & Delivery 173963 0 175500 0 244561 0 16403 0 8520 0 618947 0 0 0 Lazer Stephen Former SVP Stud & Teach Assess 194379 162307 104625 40000 53359 14087 19315 0 16583 0 388261 216394 0 0 Mazzeo John Former VP Stat Analysis & Psych. 254750 0 179986 0 25814 0 24300 0 0 0 484850 0 0 0 Miller George Former VP SWS 0 0 0 0 195577 0 0 0 0 0 195577 0 0 0 Part I, Line 1a First-class or charter travel: Two trustees received the benefit of a single first class airplane ticket during 2017. It was not treated as taxable compensation to the individual. This benefit is provided based on length of travel time required of the individual. Tax gross-up payments/Personal Services: Twenty Six Officers received this benefit (related to financial planning) during 2017. It was treated as taxable compensation to the individuals. Housing allowance or residence for personal use: One officer received this benefit during 2017. It was treated as taxable compensation to the individual. Health or social club dues or initiation fees: One officer received this benefit during 2017. It was treated as taxable compensation to the individual. Part I, Line 3 ETS engages an external Independent Executive Compensation Consultant Organization ("IECCO") to review and advise on worker compensation laws. Further, the IECCO prepares an annual report of proposed compensation for ETS's CEO and officers evaluating the reasonableness of the compensation, as defined by the IRS intermediate Sanction rules. The report assesses the relevant labor market for officer roles using national data from comparable organizations of similar size and complexity. Then, consistent with the composition of the labor markets in which ETS competes for executive talent, appropriate comparative analyses are developed from both not-for-profit and for-profit data. Finally, the IECCO prepares a Letter of Reasonableness regarding the analyses of officer pay consistent with government guidelines which is presented to the Committee on Governance and Human Resources and the Board for review, comment and approval. Part I, Lines 4a-b Officers and other executives participated in a supplemental non-qualified retirement plan under 457(f). The non-vested portion of each officer's deferred compensation is reported in Column C. The vested portion of each officer's deferred compensation is reported in Columns B & F. Part 1, Line 4a: Two officers, Nancy Kerins and George Miller, received severance payments of $175,500 and $195,577 respectively, from the organization in 2017. Part I, Line 6 Part I, Lines 6a and 7: ETS investment compensation programs are variable cash compensation programs to provide employees earnings opportunities in addition to base pay. These variable compensation components recognize and reward based on individual and ETS performance. Payment under these programs are realized when ETS meets and achieves its annual performance targets for the year, as determined by a holistic assessment of metrics from ETS's balanced scorecard objectives including financial, operational, customer and growth goals. Teresa M Sanchez-Lazer See Part V 245177 See Part V 0 Irene Elliott See Part V 74457 See Part V 0 Liana Hernandez See Part V 43870 See Part V 0 Raymond Gregory See Part V 18486 See Part V 0 Alberto Acereda See Part V 207884 See Part V 0 Part IV: (a)Name of person: Teresa M. Sanchez-Lazer(b)Relationship between interested person and the organization: family member of Stephen Lazer, Former Officer(d)Description of transaction: Salary and benefits(a)Name of person: Irene Elliott(b)Relationship between interested person and the organization: family member of Thomas J. Elliott, Former Officer(d)Description of transaction: Salary and benefits(a)Name of person: Liana Hernandez(b)Relationship between interested person and the organization: family member of Sandra Hernandez, Officer(d)Description of transaction: Salary and benefitsa)Name of person: Raymond Gregory(b)Relationship between interested person and the organization: family member of Sheree L Johnson-Gregory, Officer(d)Description of transaction: Salary and benefitsa)Name of person: Alberto Acereda(b)Relationship between interested person and the organization: family member of Joanna Gorin, Officer(d)Description of transaction: Salary and benefits Shares of ETS Holding Inc and subsidiaries 2018-01-28 1114716417 Fair Market Value 823291553 Sarbacane Bidco Inc 100 Wilshire Blvd Suite 1830 Santa Monica CA 90401 C Corporation 0 0 0 0 Form 990, Line 1, Box G - Gross Receipts The primary driver for the increase in gross receipts as shown on Form 990, Page 1, Box G is related to the gain on the sale of ETS Holdings Inc and Subsidiaries and the subsequent investment gains from the proceeds. Form 990, Part VI, Section A, line 4 The following significant change was made to ETS' Corporate ByLaws effective October 27, 2017. Formation of Committee of the Whole. This committee shall consider and deliberate major, broad issues identified as relevant and essential to the effective governance and of significant import to ETS. Form 990, Part VI, Section B, line 11b All Trustees receive a copy of Form 990 for review and information prior to Board of Trustees meeting. Form 990 is reviewed by the Board of Trustees' Audit Commitee and the full Board of Trustees. Form 990, Part VI, Section B, line 12c The Trustees of Educational Testing Service, individually and collectively, are expected to act in accordance with the highest standards of ethical behavior. Annually, the Audit Committee reviews the ETS Code of Ethics for Members of the Board of Trustees. Subsequently, each Trustee receives a copy of the Code of Ethics and signs a statement agreeing to abide by the Code. The Code of Ethics states a clear policy on conflicts of interest. ETS also has a conflict of interest policy that is supplied to the Board of Trustees, officers and key employees. The Trustees annually complete a Trustee Disclosure Statement and a Trustee Affiliation Form. The Disclosure Statement requests information regarding whether any Trustee has material financial interest to which ETS is a party. The Affiliation Form requests information regarding the Trustees employment as a staff member or as a consultant of ETS, as well as their affiliation with other organizations. The Corporate Secretary reviews these disclosures for potential conflicts or the potential appearance of a conflict. Should a situation be disclosed that presents a potential conflict, the Corporate Secretary would seek resolution with the involvement of the appropriate authority such as the Audit Committee or the ETS General Counsel and Chief Ethics Officer. Intrinsic to the policy is a Trustee recusing themselves on certain matters or resigning from the Board to prevent a conflict of interest or avoid an appearance of a conflict of interest. Failure to respond to the annual disclosure process would result in the requisite follow up by the Corporate Secretary. Candidates for Trustees receive general information on relevant ETS policies, such as the Code of Ethics and Conflict of Interest and are required to complete the Affiliations Form prior to standing for election. Trustees can obtain assistance with the interpretation or administration of the Code of Ethics conflicts policy or procedures from the Corporate Secretary or the General Counsel and Chief Ethics Officer. Trustees receive the complete policy statements upon their election. Educational Testing Service requires that employees, including officers, who are uncertain whether an outside activity comes within the scope of ETS's Code of Ethics or Conflict of Interest policy, discuss the matter with their supervisors. Employees wishing to engage in outside activities must submit an Outside Activities Report to their division Vice President for review and approval prior to engaging in the activity. Employees must submit an amended report whenever the activity changes. The report is reviewed and the employee is informed whether the request is approved. The employee's division Vice President and the Vice President of Human Resources (HR) receive a copy of all such reports regardless of whether the request is approved. Any situation involving a potential conflict of interest must be reviewed by HR to verify that no conflict exists. Any employee who acquires information that gives the employee reason to believe that any employee, officer or trustee is engaged in conduct that is prohibited by ETS's Code of Ethics or subject to ETS's Conflict of Interest policy, or that any sales representative, distributor or other person or firm representing ETS in any transaction is engaged in the type of conduct (whether or not in connection with a transaction involving ETS or its products) which, if engaged in by an employee, would violate this policy is required to report this information immediately. All complaints regarding potential conflicts of interest are investigated promptly, and where necessary, immediate and appropriate action is taken to stop and remedy any such conduct. Any employee or officer, found in violation of this policy will be subject to disciplinary action, up to and including termination, depending upon the severity of the violation. This policy is reviewed on an annual basis by the Vice President of Human Resources. All ETS employees receive a copy of the Code of Ethics on an annual basis. The annual review and signature indicating their agreement to comply with the policy is mandatory as part of employment with ETS. Form 990, Part VI, Section B, line 15 ETS engages an external Independent Executive Compensation Consultant Organization (IECCO) to review and advise on worker compensation laws. Further, the IECCO prepares an annual report of proposed compensation for ETS's CEO and officers evaluating the reasonableness of the compensation, as defined by the IRS intermediate sanction rules. The report assesses the relevant labor market for officer roles using national data from comparable organizations of similar size and complexity. Then, consistent with the composition of the labor markets in which ETS competes for executive talent, appropriate comparative analyses are developed from both not-for-profit and for-profit data. Finally, the IECCO prepares a Letter of Reasonableness regarding the analyses of officer pay consistent with government guidelines which is presented to the Committee on Governance and Human Resources and the Board for review, comment and approval. Form 990, Part VI, Section C, line 19 ETS does not make its governing documents, conflict of interest policy, or financial statements available to the public. Form 990, Part IX, line 11g Test Admin and Consultants: Program service expenses 367,448,985. Management and general expenses 25,175,858. Fundraising expenses 0. Total expenses 392,624,843. Subcontracting Costs: Program service expenses 153,543,619. Management and general expenses 22,609,972. Fundraising expenses 0. Total expenses 176,153,591. Form 990, Part XI, line 9: Postretirement benefits 25,046,000. Equity in earnings reported separately -63,441,143. ETS Tech LLC Rosedale Road Princeton NJ 08541 454054815 Holding company DE 0 0 Educational Testing Service Educational Testing Service Retiree Medical and Life Ins Plan Rosedale Road MS 20-J Princeton NJ 08541 223372287 Benefit Plan NJ 501(c)(9) Educational Testing Service 1 Educational Testing Service (ETS) Global BV Strawinskylaan 929 Amsterdam NL 1077 XX Educational services NL Educational Testing Service C 32863869 10020043 1.00000 1 ETS Educational Testing Service Canada Inc 660 Rosedale Road Princeton NJ 08541 Educational services NJ Educational Testing Service C 429226 440063 1.00000 1 ETS Assessments (Beijing) Ltd No 3 Dongsanhuan Beilu Block B L Beijing CH 100027 Educational services CH Educational Testing Service (ETS) Global BV C 3685428 2630328 1.00000 1 ETS Educational Services (India) Private Limited 12-2-417/A/15 Jayanagar Colony Hyderabad IN 500 082 Educational services IN Educational Testing Service (ETS) Global BV C 1.00000 1 Prometric Holdings Inc 1501 South Clinton Street Baltimore MD 21224 260416543 Holding company DE Educational Testing Service C 1.00000 1 Educational Testing Service International Holdings Limited 25/28 North Wall Quay Dublin EI 1 Educational services EI Educational Testing Service C 58154 9862368 1.00000 1 Edusoft Ltd 16 Hamelacha St North Industrial P Rosh HaAyin IS 48091 Educational services IS Educational Testing Service International Holdings Limited C 7273254 12724805 1.00000 1 ETSQ Holdings LLC 660 Rosedale Road Princeton NJ 08541 815154354 Holding company DE Educational Testing Service C 6000 1.00000 1 Questar Assessments Inc 5550 Upper 147th Street Apple Valley MN 55124 132846796 Educational services MN ETSQ Holdings LLC C 91717000 144374000 1.00000 1 Prometric LLC 1501 South Clinton Street Baltimore MD 21224 260416596 Educational services DE Prometric Holdings Inc C 94024197 336027760 1.00000 1 Prometric Japan Company Limited Ochanomizu Sola City 5F 4-6 Kanda S Tokyo JA 101-0062 Educational services JA Prometric LLC C 10910166 13720991 1.00000 1 Prometric Limited 7th Floor The Victoria Harbour Cit Manchester UK M5 03SP 980561896 Educational services UK Prometric LLC C 1339888 3416522 1.00000 1 Prometric Luxembourg SARL 5 Rue Guillaume Kroll Luxembourg LU L-1882 Holding company LU Prometric LLC C 546926 878493 1.00000 1 Ireland Test Center Delivery Limited Office 11 Verdala Business Center Mriehel MT BKR 3000 980561894 Holding company MT Prometric Luxembourg SARL C 2681456 36080198 1.00000 1 Prometric Ireland Limited 25/28 North Wall Quay Dublin EI 1 981020297 Educational services EI Ireland Test Center Delivery Limited C 9902683 11652893 1.00000 1 Prometric Pty Limited Suite 12 Level 12 37 Bligh Street Sydney NSW AS 2000 981072358 Educational services AS Ireland Test Center Delivery Limited C 111965 184818 1.00000 1 Prometric BV Hogehilweg 8 Amsterdam NL 1101CC 981071416 Educational services NL Prometric Luxembourg SARL C 7751171 101685752 1.00000 1 Prometric Korea Limited Yoon-Ik Building 8 Floor 430 Eonj Seoul KS Educational services KS Prometric BV C 178576 236413 1.00000 1 Prometric (Proprietary) Ltd 4 Daventry Street Lynnwood Manor Pretoria SF 0081 Educational services SF Prometric BV C 13364 255462 1.00000 1 Prometric Testing Services Private Ltd 2nd Floor DLF Infinity Tower-A Sec Gurgaon Haryana IN 122002 Educational services IN Prometric BV C 2335695 7795625 1.00000 1 Prometric Technology (Beijing) Co Ltd Unit 406 Raycom InfoTech Tower A Beijing CH 100080 Educational services CH Prometric BV C 605551 249291 1.00000 1 Prometric Technology SDN Bhd Suite 11-1 11-3 Level 11 Wisma Kuala Lumpur MY 50490 Educational services MY Prometric BV C 2151075 1683039 1.00000 1 Prometric Pte Ltd 77 Robinson Road 15-01 Singapore SN 068898 Educational services SN Prometric BV C 14694 93842 1.00000 1 Prometric FZ-LLC Dubai Knowledge Village Office 108 Dubai AE Educational services AE Prometric BV C 283296 288540 1.00000 1 Prometric Canada Testing Services Inc 550 Burrard Street Suite 2300 Bent Vancouver British Columbia CA Educational services CA Prometric Inc C 1129895 980915 1.00000 1 1 0 0 1 0 1 0 0 0 0 0 1 1 0 0 1 1 0 1 Educational Testing Service Retiree Benefits Trust Q 2993246 Cash Educational Testing Service (ETS) Global BV A 6890391 Fair market value Educational Testing Service (ETS) Global BV L 765857 Fair market value ETS Educational Testing Service Canada Inc A 47028 Fair market value ETS Educational Testing Service Canada Inc L 150689 Fair market value Prometric LLC A 357721 Fair market value Prometric LLC L 167125 Fair market value Prometric LLC Q 60371 Cash Edusoft Ltd L 111788 Fair market value Prometric Holdings Inc F 54900000 Cash Educational Testing Service (ETS) Global BV M 9711265 Fair market value ETS Assessments (Beijing) Ltd M 2152191 Fair market value Prometric LLC M 27123307 Fair market value Edusoft Ltd M 1035138 Fair market value Educational Testing Service International Holdings Limited F 450000 Cash Questar Assessments Inc L 3726110 Fair market value Questar Assessments Inc Q 9648 Cash ETS Educational Testing Service Canada Inc F 230000 Cash ETSQ Holdings LLC D 19285714 Cash Questar Assessments Inc D 11000000 Cash Questar Assessments Inc M 17753541 Fair market value Educational Testing Service (ETS) Global BV P 2105590 Cash Educational Testing Service (ETS) Global BV S 4711000 Cash Schedule R, Part IV: Identification of Related Organizations On January 28, 2018 ETS sold all of its stock in ETS Holdings, Inc. to a third party buyer, thus completely divesting its interest in Prometric Inc. and Subsidiaries. Subsequent to the sale, two of the entities changed their name and the new names are reflected in Schedule R as follows: Prometric Holdings Inc. formerly known as ETS Holdings, Inc. Prometric LLC formerly known as Prometric Inc.