2017-08-15T16:27:42-05:00 2016-09-30 861065772 Deloitte Tax LLP 550 S Tryon Street Suite 2500 Charlotte NC 28202 990 2015-10-01 330435954 The Scripps Research Institute SCRI 8587841000 10550 North Torrey Pines Road La Jolla CA 92037 Jared Machado Chief Financial Officer 8587841000 2017-08-15 1 John W Sadoff Jr P00540589 7048871810 2015 2021-01-29 14:40:06Z Peter Schultz 10550 North Torrey Pines Road La Jolla CA 92037 390790831 0 X www.scripps.edu X 1924 CA TSRI conducts biomedical and biochemical research and postgraduate training programs. 6 5 2455 50 -452911 -542327 315512724 323083434 3853580 2855648 20222223 15991165 22874341 6658459 362462868 348588706 13848564 15779618 0 0 171574144 166464708 223267 112867 2806002 197296521 182330778 382942496 364687971 -20479628 -16099265 803333192 795642918 156143035 158641940 647190157 637000978 X The Scripps Research Institute ("TSRI") performs high impact basic biomedical research, improves the human condition by fostering translation of its discoveries into useful products and engages in the highest quality graduate scientific education and post graduate scientific training. TSRI is known for its entrepreneurial environment and its emphasis in research relating to synthetic chemistry, the relationship between molecular structure and activity and chemical biology. 0 0 325935674 2855648 Research is conducted in La Jolla, California and Jupiter, Florida with grants, contracts and fellowships that are received from public and private institutions and individuals. These awards fund biomedical research and the development of answers to fundamental and important questions. We believe that the pursuit of basic knowledge in chemistry and biology will inevitably lead to beneficial results applicable to the human condition and treatment of disease. 20504336 15779618 TSRI recognizes that a robust education program is key to the success of its laboratory-based investigations, and offers both graduate and post-graduate education programs. Post-doctoral education programs include fellowships for focused and supervised training on problems that will become central to subsequent investigations as these young scientists begin their scientific careers. TSRI's graduate program seeks to create an individualized curriculum for students studying at the interface of biology and chemistry - areas of scientific inquiry for which The Scripps Research Institute has earned its reputation for excellence. Courses can be chosen for either focused or interdisciplinary studies. Opportunities to craft a research project and area of study that encompasses several laboratories outside of the student's mentor are not only available but encouraged. Accommodations are made to suit the student's sensibilities and obstacles are routinely overcome to keep the best interests of the students at the forefront of the program. 346440010 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 1 1 0 1 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 283 0 1 2455 1 1 1 0 0 0 0 1 1 0 0 0 0 0 X 6 5 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA CT FL IL NJ NY PA MD X Jared Machado 8587849817 3301 North Torrey Pines Court La Jolla CA 92037 Peter G Schultz PhD President/CEO 24.00 0.00 X X 295219 0 66756 Marshall M Criser III Trustee (Thru 12/1/15) 1.00 0.00 X 0 0 0 John Davis Trustee (Thru 1/31/16) 1.00 0.00 X 0 0 0 Richard J Elkus Jr Trustee (Thru 1/31/16) 1.00 0.00 X 0 0 0 Peter C Farrell PhD DSc Trustee 1.00 0.00 X 0 0 0 Dennis M Fenton PhD Trustee (Thru 11/12/15) 1.00 0.00 X 0 0 0 Marjorie Fink Trustee (Thru 1/31/16) 1.00 0.00 X 0 0 0 Richard A Gephardt Trustee 1.00 0.00 X 0 0 0 Patrick R Griffin PhD Trustee/Professor (Thru 7/20/16) 40.00 0.00 X 299470 0 69265 James E LaBelle MD MBA Trustee (Thru 9/19/16) 1.00 0.00 X 0 0 0 Claudia S Luttrell Trustee 1.00 0.00 X 0 0 0 William H Molloie Trustee (Thru 9/19/16) 1.00 0.00 X 0 0 0 Mark Pearson Trustee 1.00 0.00 X 0 0 0 Bernard Saint-Donat Trustee 1.00 0.00 X 0 0 0 Edward J Sanderson Jr Trustee (Thru 12/11/15) 1.00 0.00 X 0 0 0 Lynn Schenk Trustee (Thru 9/19/16) 1.00 0.00 X 0 0 0 Linda A Sherman PhD Trustee/Professor (Thru 9/19/16) 40.00 0.00 X 231320 0 62914 Mark S Skaggs Trustee (Thru 9/19/16) 1.00 0.00 X 0 0 0 A Richard Sloane Trustee (Thru 3/24/16) 1.00 0.00 X 0 0 0 Horacio Valeiras Trustee (Thru 11/16/15) 1.00 0.00 X 0 0 0 Jared M Machado Treasurer/CFO (Start 6/4/16) 40.00 0.00 X 189436 0 43885 Donna J Weston Treasurer/CFO (Thru 12/26/15) 40.00 0.00 X 425094 0 65086 Thomas E Northrup Secretary/Gen Bus Cnsl (Thru 12/4/15) 40.00 0.00 X 280843 0 62677 Douglas A Bingham Secretary/Exec VP 40.00 0.00 X 62083 0 14805 Steve A Kay President 40.00 0.00 X 74638 0 8361 Richard A King COO (Start 5/16/16) 40.00 0.00 X 0 0 0 Tamara L Barnas Executive Admin & Asst Secretary 40.00 0.00 X 87797 0 24407 Cary Eaton Thomas Senior Vice President 40.00 0.00 X 380649 0 68819 Kaye I Wynne VP Office of Sponsored Programs 40.00 0.00 X 289951 0 67510 James R Williamson VP Academic Affairs 40.00 0.00 X 294640 0 65839 Richard A Lerner Professor 40.00 0.00 X 600694 0 65078 William R Roush Professor 40.00 0.00 X 417081 0 65884 Karl Barry Sharpless Professor 40.00 0.00 X 370787 0 65650 Roy G Smith Chairman Dept of Metabolism & Aging 40.00 0.00 X 393820 0 72372 Peter E Wright Professor 40.00 0.00 X 371906 0 68355 Michael A Marletta Past President 40.00 0.00 X 1316151 0 33547 Jim C Paulson Past President 40.00 0.00 X 461195 0 67799 Peter K Vogt Professor 40.00 0.00 X 315664 0 65468 7158438 0 1124477 281 1 1 0 Schwegman Lundberg Woessner PA 1600 TCF Tower 121 S 8th Street Minneapolis MN 55402 Legal Services 598207 Olson & Cepuritis LTD 20 North Wacker Drive 36th Floor Chicago IL 60606 Legal Services 444771 Deloitte & Touche LLP 655 W Broadway Suite 700 San Diego CA 92101 Audit & Tax Services 416980 Kilpatrick Townsend & Stockton Dept 34542 PO Box 39000 San Francisco CA 94139 Legal Services 291885 Wilson Sonsini Goodrich PO Box 742866 Los Angeles CA 90074 Legal Services 214904 10 464301 242488856 80130277 445308 323083434 Patent Office 900099 2855648 2855648 2855648 6575338 -452911 7028249 4433008 4433008 1311786 1340902 -29116 -29116 -29116 50177751 45408 39316108 1491224 10861643 -1445816 9415827 9415827 53891 464301 53891 0 Shared Services - 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Tsri also uses the services of KMarcus Research Group LLC and Southern Strategy Group for governmental relations needs. TSRI does not participate in or intervene in (including the publishing or distributing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office. 69296085 3512735 1291236 1447567 72652489 65643081 5867557 -1511798 702755 69296085 65149149 323271 1679735 1509074 65643081 63414527 252501 2154224 672103 65149149 60599628 370091 3094947 650139 63414527 0.31000 0.69000 0 0 42645590 42645590 414729003 189833874 224895129 21210229 19476591 1733638 261785028 212020225 49764803 4117760 2334379 1783381 320822541 Investment in Limited Partnerships 132298000 F 132298000 Pension Liability 34163988 Leases Scheduled Rent 5754744 Unitrust 866409 40785141 357285549 5910124 2786719 8696843 348588706 0 348588706 367474690 2786719 2786719 364687971 0 364687971 Part V, Line 4: Investment return from the endowments supports scientific projects consistent with the mission and principles of The Scripps Research Institute. Part XI, Line 2d - Other Adjustments: Rental Expenses Netted Against Rental Revenue 1,340,902. Loss on Disposal of Equipment 1,445,817. Part XII, Line 2d - Other Adjustments: Rental Expenses Netted Against Rental Revenue 1,340,902. Loss on Disposal of Equipment 1,445,817. 1 Europe (including Iceland and Greenland) 0 0 Program Services Laboratory for TSRI scientists & students 1481825 Middle East and North Africa 0 0 Program Services Laboratory for TSRI scientists & students 217292 East Asia and the Pacific 0 0 Program Services Laboratory for TSRI scientists & students 1815562 North America 0 0 Program Services Laboratory for TSRI scientists & students 1188832 Central America & the Caribbean 0 0 Investments 73398822 0 0 0 0 0 0 78102333 0 78102333 Europe (including Iceland and Greenland) Laboratory for TSRI scientists & students 718883 Electronic fund/wire transfer 0 Europe (including Iceland and Greenland) Laboratory for TSRI scientists & students 13010 Electronic fund/wire transfer 0 Europe (including Iceland and Greenland) Laboratory for TSRI scientists & students 57441 Electronic fund/wire transfer 0 Europe (including Iceland and Greenland) Laboratory for TSRI scientists & students 78252 Electronic fund/wire transfer 0 Middle East and North Africa Laboratory for TSRI scientists & students 217292 Electronic fund/wire transfer 0 Europe (including Iceland and Greenland) Laboratory for TSRI scientists & students 614239 Electronic fund/wire transfer East Asia and the Pacific Laboratory for TSRI scientists & students 12951 Electronic fund/wire transfer 0 East Asia and the Pacific Laboratory for TSRI scientists & students 1802611 Electronic fund/wire transfer 0 North America Laboratory for TSRI scientists & students 441260 Electronic fund/wire transfer 0 North America Laboratory for TSRI scientists & students 27573 Electronic fund/wire transfer 0 North America Laboratory for TSRI scientists & students 719999 Electronic fund/wire transfer 0 0 11 1 0 1 0 0 0 Part I, Line 2: TSRI monitors the amounts provided to the foreign organization by adherence to a grant contract for the lab provided for use of the TSRI researcher and monitors detailed billing statements for student research expenditures. TSRI has many scientists that travel around the world. Global travel is required by the scientists to attend various meetings and speak on their areas of specialty. It is not feasible to gather the detailed information regarding expenditures for Part I. There are no offices outside of the U.S. or employees who reside outside of the U.S. Schedule F, Part IV: TSRI has less than 10% ownership in a foreign corporation during the tax year and therefore was not required to file Form 5471. X X X X X X 1 Sanky Communications Inc 599 11th Avenue 6th Floor New York NY 100362110 E-Philanthropy 0 160112 112867 47245 160112 112867 47245 CA FL CT MI MA NJ PA DC NY IL Women For Cancer Research 234433 226970 7463 3577 3886 Ballenisles Men's Golf 156727 144559 12168 3509 8659 5 127032 92772 34260 21350 12910 518192 464301 53891 28436 25455 53891 0 PART I, LINE 2B, COLUMN (V): The Sanky E-Philanthropy Program is a flat rate, which includes the Sanky agency fee and all project fees. This includes all direct third-party vendor fees such as the merchant account for processing online contributions. 1 Scholarships & stipends, Kellog Graduate School 440 11076107 0 Part I, Line 2: Graduate student stipends are processed via personnel action forms which are approved by the Graduate Office and Human Resources prior to being sent to the payroll office. Once approved, graduate students are set up in TSRI's payroll system and are dispersed on the 1st and 15th of each month. Monitoring is done via the interaction between the student and faculty advisor. As long as the student is progressing, s/he would continue to be paid. X 1 1 X X X 1 1 0 0 0 0 0 0 0 Peter G Schultz PhD President/CEO 274245 0 0 0 20974 0 53000 0 13756 0 361975 0 0 0 Patrick R Griffin PhD Trustee/Professor (Thru 7/20/16) 296848 0 0 0 2622 0 53000 0 16265 0 368735 0 0 0 Linda A Sherman PhD Trustee/Professor (Thru 9/19/16) 226092 0 0 0 5228 0 46760 0 16154 0 294234 0 0 0 Jared M Machado Treasurer/CFO (Start 6/4/16) 179128 0 0 0 10308 0 27995 0 15890 0 233321 0 0 0 Donna J Weston Treasurer/CFO (Thru 12/26/15) 358439 0 0 0 66655 0 53000 0 12086 0 490180 0 0 0 Thomas E Northrup Secretary/Gen Bus Cnsl (Thru 12/4/15 233654 0 0 0 47189 0 47561 0 15116 0 343520 0 0 0 Cary Eaton Thomas Senior Vice President 315437 0 0 0 65212 0 53000 0 15819 0 449468 0 0 0 Kaye I Wynne VP Office of Sponsored Programs 256514 0 0 0 33437 0 53000 0 14510 0 357461 0 0 0 James R Williamson VP Academic Affairs 288776 0 0 0 5864 0 53000 0 12839 0 360479 0 0 0 Richard A Lerner Professor 588810 0 0 0 11884 0 53000 0 12078 0 665772 0 0 0 William R Roush Professor 409343 0 0 0 7738 0 53000 0 12884 0 482965 0 0 0 Karl Barry Sharpless Professor 361690 0 0 0 9097 0 53000 0 12650 0 436437 0 0 0 Roy G Smith Chairman Dept of Metabolism & Aging 381952 0 0 0 11868 0 53000 0 19372 0 466192 0 0 0 Peter E Wright Professor 364286 0 0 0 7620 0 53000 0 15355 0 440261 0 0 0 Michael A Marletta Past President 118833 0 0 0 1197318 0 26348 0 7199 0 1349698 0 0 0 Jim C Paulson Past President 426310 0 0 0 34885 0 53000 0 14799 0 528994 0 0 0 Peter K Vogt Professor 292902 0 0 0 22762 0 53000 0 12468 0 381132 0 0 0 Part I, Line 1a Business travel and first class travel. The Scripps Research Institute allows for business travel for certain key employees for long haul flights. In certain circumstances, business class service is not available on smaller aircraft. In those circumstances, TSRI allows first class travel. Part I, Lines 4a-b In conjunction with him no longer being President in 2014, beginning with the last payroll in September 2014, Michael Marletta, received severance of $1,400,000 over two years, which were reported on his 2014 and 2015 Form W2. He received severance of $215,384 in 2014 and $1,184,616 in 2015. Part I, Line 4b: Richard Lerner, M.D. participated in a non-qualified deferred compensation plan. No payments were made during the year. Total TSRI liability at 9/30/2016 was $6,388,000. A California Infrastructure & Economic Development Bank 630304653 13034AMU1 2016-08-30 40511601 Refund and defease bonds previously issued for the 0 0 0 A 40511601 9662961 648704 30199936 2016 1 1 1 1 A 0 0 0 1 1 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 Schedule K, Part I, Bond Issues: (a) Issuer Name: California Infrastructure & Economic Development Bank (f) Description of Purpose: Refund and defease bonds previously issued for the benefit of the Institute on 6/29/2000 and 2/23/2005. Schedule K, Part II, Column A: Issuance- $40,511,601 Refunded- ($30,199,936) Defeasance- ($9,662,961) Actual issuance costs paid- ($648,704) Schedule K, Part IV, Line 6: This question is being answered without regard to a yield-restricted advance refunding escrow financed with proceeds of the bonds. X 10 445308 Cost or selling price 0 0 1 1 Part I, Column (b): Securities - Publicly traded - No. of contributions Part I, Line 32b: Shares of stock gifted to TSRI are transferred into our brokerage account at Salomon Smith Barney and they in turn sell the shares and wire the stock proceeds to TSRI. Form 990, Part VII, Section B: TSRI patents many of its discoveries. For most of those discoveries, the cost of these patents is recovered from third parties pursuant to the terms of the underlying license. Form 990, Part VI, Section A, line 2 TSRI Board of Trustee members Claudia S. Luttrell and Mark S. Skaggs have a family relationship. Form 990, Part VI, Section A, line 4 Effective 10/01/16, the bylaws were amended to implement the affiliation agreement with The California Institute for Biomedical Research, a 501(c)(3) not-for-profit biomedical research institute incorporated in California. Form 990, Part VI, Section B, line 11 On June 21, 2017, the Audit Committee reviewed a draft of the form 990 (including all supplemental schedules). This review included a presentation of the statements by the Chief Financial Officer with particular emphasis on disclosures about governance and about transactions with interested persons. The 990 will be provided to the full Board of Trustees prior to filing. Form 990, Part VI, Section B, line 12c TSRI'S Conflict of interest Policies and Procedures apply to members of the Board of Trustees, officers, key personnel, and their family members, (altogether covered individuals) to protect the interests of TSRI when it is contemplating entering into a transaction or arrangement that could: 1) Benefit the private interest of a covered individual within the meaning of Treasury Regulation Section 1.501(c)(3)-1(d)(1)(ii), 2) Result in a possible excess benefit transaction within the meaning of Section 4958(c) of the Internal Revenue Code of 1986, as amended; or 3) Be a self-dealing transaction within the meaning of Section 5233 of the California Corporations Code (the "Corporations Code"). TSRI's policies and procedures are intended to supplement, but not replace, any state and federal laws governing actual, potential, or apparent conflict of interest applicable to TSRI. Disclosure documents responsive to TSRI's policies are annually submitted by covered individuals, and are reviewed by TSRI administration for pertinent relationships. Any transactions or arrangements involving covered individuals that fall within the scope of the policies are then subject to review and consideration by non-conflicted Board of Trustee members, with conflicted members being recused from any vote to approve or disapprove. Form 990, Part VI, Section B, line 15 The compensation of the CEO and certain other key executives was reviewed and approved by the Board of Trustees. This review was based, in part, on analysis performed by the Human Resources department, and included data from outside consultants or internally-conducted research. On an ongoing basis, executives may participate in the normal annual salary increase program, which is based on a recommendation from the Human Resources department based on market research and approved by the Board of Trustees. Any unusual or potentially non-qualified compensation would be reviewed by outside counsel for any tax compliance issues. Patrick R. Griffin, Ph.D. and Linda Sherman, Ph.D. were appointed to the Board of Trustees. However they received the compensation for their work as faculty members, not as trustees. Form 990, Part VI, Section C, line 19 Governing documents and Conflict of Interest Policies are not available to the public at this time. The financial statements are available on the TSRI web-site and are filed with the State of Florida by The Scripps Florida Funding Corporation. The statements are provided to bond holders through TSRI's dissemination agent. The annual information return is provided upon request. Form 990, Part IX, line 11g Research Contractor: Program service expenses 60,102,455. Management and general expenses 2,518,891. Fundraising expenses 558,555. Total expenses 63,179,901. Form 990, Part XI, line 9: Rounding -40. Form 990, Transactions with Interested Persons: Richard A. Lerner, M.D. term as President and CEO of TSRI expired on December 31, 2011. Dr. Lerner serves on the Board of Directors and is the Chair of the Compensation Committee of OPKO Health, Inc. OPKO is a health care company focused on the development of pharmaceuticals, has a use license with TSRI, and may be involved in business transactions with TSRI in the future. TSRI has licenses with Sorrento Therapeutics, and OPKO is an investor in Sorrento Therapeutics. Scripps Advance LLC 130 Scripps Way 4B2 Jupiter FL 334585284 Funding Vehicle for Biomedical Research DE 0 0 The Scripps Research Institute The Scripps Florida Inc 130 Scripps Way 4B2 Jupiter FL 334585284 475487399 Fundraising FL 501(c)(3) Line 11a, I The Scripps Research Institute 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0