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ORGANIZATION UTILIZED THE SERVICES OF A STAFF REGISTERED LOBBYIST AND TWO GOVERNMENT AFFAIRS FIRMS DURING THE YEAR ENDED JUNE 30, 2014, FOR A COST OF $576,138. 0 4011559 734491 3277068 0 22092327 10406525 11685802 0 1776733 1776733 16739603 0 0 X 134010078 6623234 6623234 127386844 427476 427476 127814320 124399476 132085 132085 124267391 124267391 Form 990, Schedule D, Part X, Line 2 ASC 740-10 FOOTNOTE ICANN IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SECTION 23071(D) OF THE CALIFORNIA REVENUE AND TAXATION CODE. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN MADE IN THE ACCOMPANYING FINANCIAL STATEMENTS. HOWEVER, ICANN IS SUBJECT TO INCOME TAXES ON ANY NET INCOME THAT IS DERIVED FROM A TRADE OR BUSINESS, REGULARLY CARRIED ON, AND NOT IN FURTHERANCE OF THE PURPOSES FOR WHICH IT WAS GRANTED EXEMPTION. NO INCOME TAX PROVISION HAS BEEN RECORDED AS THE NET INCOME, IF ANY, FROM ANY UNRELATED TRADE OR BUSINESS, IN THE OPINION OF MANAGEMENT, IS NOT MATERIAL TO THE BASIC FINANCIAL STATEMENTS TAKEN AS A WHOLE. ICANN BELIEVES IT IS IN COMPLIANCE WITH ALL APPLICABLE LAWS, HOWEVER, UPON AUDIT BY A TAXING AUTHORITY, IF AMOUNTS ARE FOUND DUE, ICANN MAY BE LIABLE FOR SUCH TAXES. MANAGEMENT HAS ANALYZED ICANN'S TAX POSITIONS TAKEN ON FEDERAL AND STATE INCOME TAX RETURNS FOR ALL OPEN TAX YEARS AND HAS CONCLUDED THAT, AS OF JUNE 30, 2014 AND 2013, NO LIABILITIES ARE REQUIRED TO BE RECORDED IN CONNECTION WITH SUCH TAX POSITIONS IN ICANN'S FINANCIAL STATEMENTS. THE FISCAL 2009 THROUGH 2013 TAX YEARS REMAIN OPEN FOR EXAMINATION BY THE TAXING AUTHORITIES. NO INTEREST OR PENALTIES ARE RECOGNIZED DURING THE YEAR AS ICANN HAS NOT RECORDED INCOME TAX CONTINGENCIES. ICANN IS NOT UNDER EXAMINATION BY THE INTERNAL REVENUE SERVICE FOR ANY OPEN TAX YEARS. Form 990, Schedule D, Part XII, Line 2d FOREIGN EXCHANGE GAIN(LOSS) $132,076 ROUNDING 9 -------- $132,085 true North America 1 Program services See 990 Part III 1060695 Central America and the Caribbean 1 Program services See 990 Part III 709811 South America 41 Program services See 990 Part III 4638878 East Asia and the Pacific 1 47 Program services See 990 Part III 8253339 Europe (Including Iceland and Greenland) 3 65 Program services See 990 Part III 22424210 Russia and the Newly Independent States 1 Program services See 990 Part III 178978 Middle East and North Africa 3 Program services See 990 Part III 1280285 Sub-Saharan Africa 107 Program services See 990 Part III 2587674 South Asia Program services See 990 Part III 348980 4 217 4 266 41482850 41482850 Central America and the Caribbean CTU ICT WORKSHOP 10000 WIRE/CASH East Asia and the Pacific APRICOT 2014 SPONSORSHIP 10000 WIRE/CASH East Asia and the Pacific INTERNET FORUM SPONSORSHIP 7000 WIRE/CASH East Asia and the Pacific ISIF ASIA SPONSORSHIP 23971 WIRE/CASH East Asia and the Pacific JPNIC SPONSORSHIP 8784 WIRE/CASH East Asia and the Pacific KISA EXCHANGE PROGRAM 49998 WIRE/CASH East Asia and the Pacific NOG SPONSORSHIP 23000 WIRE/CASH East Asia and the Pacific YOUTH@ICANN SINGAPORE SPONSORSHIP 20000 WIRE/CASH Europe (Including Iceland and Greenland) ARAB IGF SPONSORSHIP 81228 WIRE/CASH Europe (Including Iceland and Greenland) CRYPTECH PROJECT CONTRIBUTION 50000 WIRE/CASH Europe (Including Iceland and Greenland) EURODIG 2014 SPONSORSHIP 20910 WIRE/CASH Europe (Including Iceland and Greenland) EURODIG SPONSORSHIP 12869 WIRE/CASH Europe (Including Iceland and Greenland) IAD SUMMIT 2014 SPONSORSHIP 10000 WIRE/CASH Europe (Including Iceland and Greenland) MEP AWARDS 2013 SPONSORSHIP 13769 WIRE/CASH Europe (Including Iceland and Greenland) WEF ITIAP PARTICIPATION 69318 WIRE/CASH Europe (Including Iceland and Greenland) YOUTH IGF PROJECT 2013 27658 WIRE/CASH North America MSH DIALOGUES SPONSORSHIP 7000 WIRE/CASH Russia and the Newly Independent States IISI SPONSORSHIP 20000 WIRE/CASH Russia and the Newly Independent States MSU FORUM SPONSORSHIP 10000 WIRE/CASH Russia and the Newly Independent States PIR CENTER PROGRAM 25000 WIRE/CASH South America AYITIC SPONSORSHIP 10000 WIRE/CASH South America ECOMLAC - SPONSORSHIP 6000 WIRE/CASH South America LACIGF SPONSORSHIP 20000 WIRE/CASH South America LACNOG 2013 SPONSORSHIP 7000 WIRE/CASH South America LACTLD SPONSORSHIP 36500 WIRE/CASH South America LACNIC 21 SPONSORSHIP 7000 WIRE/CASH South America LACNIC 19 SPONSORSHIP 7000 WIRE/CASH South Asia IGF BALI 2013 SPONSORSHIP 250000 WIRE/CASH South Asia SANOG 22/23 SPONSORSHIP 7500 WIRE/CASH Sub-Saharan Africa AFIGF 2013 SPONSORSHIP 20000 WIRE/CASH Sub-Saharan Africa AFNOG WORKSHOP SPONSORSHIP 8000 WIRE/CASH Sub-Saharan Africa AFTLD CCTLD STUDY CONTRIBUTION 20000 WIRE/CASH Sub-Saharan Africa AIS CONFERENCE SPONSORSHIP 10000 WIRE/CASH Europe (Including Iceland and Greenland) WEF ANNUAL MEETING 2014 31244 WIRE/CASH Sub-Saharan Africa AFRNIC SPONSORSHIP 42000 WIRE/CASH 35 FELLOWSHIP PROGRAM Central America and the Caribbean 18 8750 WIRE/CASH 73305 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM East Asia and the Pacific 19 9000 WIRE/CASH 74347 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM Europe (Including Iceland and Greenland) 13 5500 WIRE/CASH 39459 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM Middle East and North Africa 24 8500 WIRE/CASH 55219 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM North America 3 1500 WIRE/CASH 10975 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM Russia and the Newly Independent States 9 4000 WIRE/CASH 29184 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM South America 18 7210 WIRE/CASH 53388 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM South Asia 18 7500 WIRE/CASH 50372 AIRFARE/LODGING ACTUAL EXP FELLOWSHIP PROGRAM Sub-Saharan Africa 39 18000 WIRE/CASH 120783 AIRFARE/LODGING ACTUAL EXP false false false false false false SCHEDULE F, PART I, LINE 2 ORGANIZATION'S PROCEDURES FOR MONITORING USE OF GRANTS AN ICANN FELLOWSHIP IS A GRANT OF SUPPORT THAT IS AWARDED TO ENABLE INDIVIDUALS FROM STAKEHOLDER GROUPS AROUND THE WORLD TO ATTEND ICANN PUBLIC MEETINGS. THIS IS A MEANS-TESTED PROGRAM. APPLICANTS MUST BE CITIZENS OF ECONOMICALLY ELIGIBLE COUNTRIES. ICANN USES THE WORLD BANK CLASSIFICATION OF LOW, LOWER-MIDDLE, AND UPPER-MIDDLE ECONOMIES. THE FELLOWSHIP COVERS THE COST OF ECONOMY CLASS AIRFARE AND HOTEL, AS WELL AS PROVIDING A STIPEND AFTER SUCCESSFUL COMPLETION OF THE PROGRAM, IN ORDER TO ASSIST IN COVERING SOME BASIC EXPENSES INCURRED BY THE FELLOW. RECIPIENTS ARE EXPECTED TO ACTIVELY CONTRIBUTE TO ICANN PROCESSES AND BE A PART OF THE NEXT GENERATION OF ICANN LEADERSHIP. FELLOWSHIPS ARE AWARDED BY AN INDEPENDENT SELECTION COMMITTEE BASED ON A MIX OF CRITERIA INCLUDING APPLICANT EXPERIENCE AND REFERENCES, GEOGRAPHIC PROXIMITY TO MEETING, RECEIPT OF PAST FELLOWSHIPS, ETC. INDIVIDUALS MAY NOT RECEIVE THIS GRANT OF SUPPORT MORE THAN THREE TIMES. FOR EACH PUBLIC MEETING THAT INCORPORATES THE FELLOWSHIP PROGRAM, A LIST OF SELECTED FELLOWS TO ATTEND THE UPCOMING MEETING IS POSTED ON THE ICANN WEBSITE PRIOR TO THE MEETING. SUBSEQUENT TO THE PUBLIC MEETING, A LIST OF FELLOWS WHO ATTENDED THE MEETING IS POSTED ON THE ICANN WEBSITE. TRAVEL AND HOTEL COSTS ASSOCIATED WITH FELLOWS PRE-SELECTED TO ATTEND THE PUBLIC MEETING ARE BOOKED AND PAID FOR DIRECTLY BY ICANN. ALL FELLOWS ARE ELIGIBLE TO RECEIVE A FLAT STIPEND NOT TO EXCEED U.S. $500.00. STIPENDS ARE GENERALLY PROVIDED TO FELLOWS BY WIRE TRANSFER AND ARE PAID TO EACH FELLOW SUBSEQUENT TO THE MEETING AND AFTER THE FELLOW HAS DEMONSTRATED COMPLETION OF THE FELLOWSHIP PROGRAM. DURING THE TWELVE MONTHS ENDED JUNE 30, 2014, ICANN PAID $576,991 TO ALLOW ONE HUNDRED AND SIXTY-ONE (161) FELLOWSHIP PARTICIPANTS TO ATTEND FOUR(4)ICANN PUBLIC MEETINGS. ICANN ALSO PROVIDES TRAVEL SUPPORT TO OTHER MEMBERS OF THE VOLUNTEER COMMUNITY TO FACILITATE POLICY DEVELOPMENT EFFORTS AND OUTREACH IMPORTANT TO ICANN'S MISSION. THE PROCESS FOR SELECTION IS LARGELY BASED ON SPECIFIC CRITERIA ESTABLISHED BY EACH STAKEHOLDER/CONSTITUENCY GROUP. TRAVEL SUPPORT EXTENDED TO THESE GROUPS IS REPORTED AS PART OF TRAVEL EXPENSES IN PART IX, STATEMENT OF FUNCTIONAL EXPENSES. FOR OTHER CONTRIBUTIONS, STAKEHOLDER ENGAGEMENT STAFF DEVELOP REQUESTS BASED UPON ICANN'S STRATEGIC PLAN AND ICANN'S OPERATING PLAN. SPECIFIC NEEDS WITHIN SPECIFIC REGIONS OF THE WORLD ARE CONSIDERED. ICANN EXECUTIVES REVIEW THE LIST OF SUGGESTED CONTRIBUTIONS AND DECIDE ON WHICH CONTRIBUTIONS TO PURSUE. THE ICANN BOARD AND COMMUNITY CONSIDER THE CONTRIBUTIONS WITHIN THE OVERALL FISCAL YEAR OPERATING PLAN AND BUDGET PROCESS. SCHEDULE F, PART I, LINE 3 AT JUNE 30, 2014, ICANN HAD INTERNATIONAL OFFICES LOCATED IN BRUSSELS, BELGIUM; ISTANBUL, TURKEY; SINGAPORE, SINGAPORE; AND GENEVA, SWITZERLAND. THE NUMBER OF PEOPLE IN EACH REGION SHOWN IN PART I LINE 3 COL (C) OF SCHEDULE F INCLUDES EMPLOYEES AND LONG-TERM INDEPENDENT CONTRACTORS WORKING FOR ICANN. THE TOTAL EXPENDITURES BY REGION SHOWN IN PART I, LINE 3 COL (F) OF SCHEDULE F INCLUDES: A. THE AMOUNTS PAID (FOR COMPENSATION, TRAVEL REIMBURSEMENT, AND OTHER COSTS AND EXPENSES) FROM THE US ACCOUNTS PAYABLE DEPARTMENT APPLICABLE TO THE REGION. B. ALL COSTS ASSOCIATED WITH THE FOUR ANNUAL PUBLIC MEETINGS (I.E. DURBAN, SOUTH AFRICA; BUENOS AIRES, ARGENTINA; SINGAPORE; AND LONDON, UK) FOR FISCAL YEAR 2014. C. AMOUNTS EXPENDED TO FUND THE BRUSSELS, TURKEY AND SINGAPORE BRANCH/LIAISON OFFICES AND PERSONNEL COSTS INCLUDING OFFICE EXPENSES, TRAVEL-RELATED AND OTHER EXPENSES PAID BY THE US ACCOUNTS PAYABLE DEPARTMENT. D. ALL PAYMENTS MADE TO INTERNATIONAL BASED EMPLOYEES AND CONTRACTORS WERE RECORDED IN US DOLLARS. SCHEDULE F, PART I, LINE 3 STATEMENT OF ACTIVITIES OUTSIDE THE UNITED STATES THE SUBTOTAL ON LINE 3(A), COLUMN C REPRESENTS THE INDIVIDUAL EMPLOYEES. THE ACTIVITIES PER REGION IN LINE 3 REPRESENT THE INDIVIDUAL EMPLOYEES AND LONG-TERM INDEPENDENT CONTRACTORS. false INVENEO 972 Mission St 5th Fl San Francisco CA 94103 201663266 501(c)(3) 58867 Program Support KIVA MICROFUNDS 875 Howard Street No 340 San Francisco CA 94103 710992446 501(C)(3) 58867 Program Support WIKIMEDIA FOUNDATION 149 New Montgomery 6th Fl San Francisco CA 94105 200049703 501(C)(3) 58867 PROGRAM SUPPORT 3 0 FORM 990, SCHEDULE I, PART II FUNDS DONATED FROM NEW GTLD PRIORITIZATION DRAW THE ONLY PRIORITIZATION DRAW ICANN HELD WAS CONDUCTED ON 17 DECEMBER 2012 IN LOS ANGELES TO ASSIGN PRIORITY NUMBERS TO ALL NEW GTLD APPLICATIONS. THIS DRAW WAS CONDUCTED PURSUANT TO ICANN'S NON-PROFIT RAFFLE REGISTRATION NUMBER RF0007607. THESE PRIORITY NUMBERS WERE USED TO DETERMINE, AMONG OTHER THINGS, THE ORDER IN WHICH INITIAL EVALUATION RESULTS ARE RELEASED. IN FISCAL YEAR 2014, 100% OF THE PROCEEDS WERE DONATED TO ELIGIBLE CALIFORNIA CHARITABLE ORGANIZATIONS IN ACCORDANCE WITH CALIFORNIA LEGAL REQUIREMENTS. ICANN SENT $58,866.67 EACH TO THE FOLLOWING CHARITIES: WIKIMEDIA FOUNDATION, INVENEO, AND KIVA MICROFUNDS. FORM 990, SCHEDULE I, PART I, LINE 2 ORGANIZATION'S PROCEDURES FOR MONITORING GRANTS IN THE UNITED STATES THE GRANTS ARE PROVIDED TO QUALIFIED ORGANIZATIONS. ONCE FUNDS ARE TRANSFERRED, ICANN DOES NOT MONITOR THE FUNDS. THE PURPOSE OF THE FUNDS IS AT THE DISCRETION OF THE GRANTEE. X true true X X X X X X false false false false false false false true false STEVE ANTONOFF DIRECTOR, HR OPERATION SERVICE 179646 0 49453 0 0 0 23160 0 18338 0 270597 0 0 0 AKRAM ATALLAH PRESIDENT, GENERIC DOMAINS DIV 460375 0 193647 0 0 0 33500 0 25942 0 713464 0 0 0 SUSANNA BENNETT CHIEF OPERATING OFFICER 164111 0 93991 0 0 0 27017 0 9239 0 294358 0 0 0 XAVIER CALVEZ CHIEF FINANCIAL OFFICER 281500 0 91519 0 0 0 28092 0 25942 0 427053 0 0 0 FADI CHEHADE CHIEF EXECUTIVE OFFICER 557500 0 285388 0 0 0 30250 0 25942 0 899080 0 0 0 ELISE GERICH VP,IANA & TECHNICAL OPERATIONS 216718 0 70085 0 0 0 30250 0 18424 0 335477 0 0 0 DANIEL HALLORAN DEPUTY GENERAL COUNSEL 223945 0 48372 0 0 0 30250 0 25942 0 328509 0 0 0 JAMES HEDLUND ADVISOR TO THE PRESIDENT 270136 0 87184 0 0 0 30250 0 25677 0 413247 0 0 0 JOHN JEFFREY GENERAL COUNSEL & SECRETARY 402271 0 168293 0 0 0 12750 0 25942 0 609256 0 0 0 DENISE MICHEL VP, STRAT INIT/ADVISOR TO PRES 232122 0 94472 0 0 0 33500 0 25942 0 386036 0 0 0 JEFFREY MOSS CHIEF SECURITY OFFICER 312663 0 114365 0 0 0 30250 0 18290 0 475568 0 0 0 CYRUS NAMAZI VP, DNS INDUSTRY ENGAGEMENT 243891 0 44252 0 0 0 30250 0 23537 0 341930 0 0 0 DAVID OLIVE VP, POLICY DEVELOPMENT 247200 0 80662 0 0 0 30250 0 25677 0 383789 0 0 0 MAGUY SERAD VP, CONTRACTUAL COMPLIANCE SVC 202500 0 77465 0 0 0 34003 0 25942 0 339910 0 0 0 AMY STATHOS DEPUTY GENERAL COUNSEL 245612 0 52861 0 0 0 34000 0 9425 0 341898 0 0 0 NICK TOMASSO SR DIR, MEETING OPERATIONS 181540 0 49708 0 0 0 29062 0 18145 0 278455 0 0 0 CHRISTINE WILLETT VP, GTLD OPERATIONS 231250 0 98815 0 0 0 29253 0 25942 0 385260 0 0 0 FORM 990, SCHEDULE J, PART I, LINE 1A AMOUNTS LISTED IN PART VII OF FORM 990 AND SCHEDULE J REPRESENT AMOUNTS FOR THE 2013 CALENDAR YEAR. FORM 990, SCHEDULE J, PART I, LINE 7 REGARDING AT-RISK COMPENSATION: THE OVERARCHING OBJECTIVE OF ICANN'S REMUNERATION FRAMEWORK IS TO ENSURE REMUNERATION PROVIDED IS COMPETITIVE GLOBALLY AND THAT IT PROVIDES STAFF WITH APPROPRIATE MOTIVATION FOR HIGH PERFORMANCE TOWARDS AGREED OBJECTIVES. THIS FRAMEWORK IS DESCRIBED IN DETAIL WITHIN THE DOCUMENT ENTITLED ICANN STAFF REMUNERATION PRACTICES. HTTPS://WWW.ICANN.ORG/EN/SYSTEM/FILES/FILES/REMUNERATION-PRACTICES-FY15-01 NOV14-EN.PDF SCHEDULE J, PART II ICANN'S OVERALL COMPENSATION PHILOSOPHY IS TO TARGET COMPENSATION BETWEEN THE 50TH AND 75TH PERCENTILE OF THE RELEVANT MARKET, TO ATTRACT AND RETAIN THE RIGHT STAFF. THE DRIVING ELEMENT OF THIS PHILOSOPHY IS THAT ICANN'S COMPENSATION IS MARKET-BASED. ICANN HAS STAFF IN MANY DIFFERENT PARTS OF THE WORLD, AND STRIVES TO APPLY THIS PHILOSOPHY LOCALLY. EMPLOYMENT MARKETS AROUND THE WORLD ARE QUITE DIFFERENT, AND ALSO BRING DIFFERENT TAX, BENEFIT, AND OTHER LOCAL CONDITIONS TO BEAR. IN ADDITION, EXCHANGE RATE FLUCTUATIONS ALSO AFFECT THE U.S. DOLLAR EQUIVALENCE OF THE INTERNATIONAL STAFF. MELBOURNE IT BRUCE TONKIN - DIRECTOR 502886 SEE PART V false AUDA CHRIS DISSPAIN - DIRECTOR 280000 SEE PART V false SCHEDULE L, PART IV BUSINESS TRANSACTIONS WITH RELATED PERSONS DR. BRUCE TONKIN IS A VOTING MEMBER OF THE BOARD OF DIRECTORS. DR. TONKIN IS ALSO CHIEF STRATEGY OFFICER OF MELBOURNE IT, AN ICANN ACCREDITED REGISTRAR. REVENUE FROM MELBOURNE IT AMOUNTED TO $502,886 AND $601,918 FOR THE YEARS ENDED JUNE 30, 2014 AND JUNE 30, 2013, RESPECTIVELY, UNDER THE FEE STRUCTURE OF THE STANDARD REGISTRAR ACCREDITATION AGREEMENT. TO AVOID ANY CONFLICT OF INTEREST BETWEEN ICANN AND MELBOURNE IT, DR. TONKIN ABSTAINS FROM VOTING ON ALL MATTERS HE IDENTIFIES AS POTENTIAL CONFLICTS OF INTEREST WHICH COME BEFORE THE BOARD. MR. CHRIS DISSPAIN IS A VOTING MEMBER OF THE BOARD OF DIRECTORS. MR. DISSPAIN IS ALSO CHIEF EXECUTIVE OFFICER OF AUDA, THE POLICY AUTHORITY AND INDUSTRY SELF-REGULATORY BODY FOR .AU DOMAIN NAMES. REVENUE FROM AUDA AMOUNTED TO $280,000 FOR THE YEAR ENDED JUNE 30, 2014, AND $310,000 FOR THE YEAR ENDED JUNE 30, 2013, UNDER THE STRUCTURE OF THE CCTLD AGREEMENT. TO AVOID ANY CONFLICT OF INTEREST BETWEEN ICANN AND AUDA, MR. DISSPAIN ABSTAINS FROM VOTING ON ALL MATTERS HE IDENTIFIES AS POTENTIAL CONFLICTS OF INTEREST WHICH COME BEFORE THE BOARD. IN ADDITION TO THE SPECIFIC DISCLOSURES ABOVE, ICANN MAY ENTER INTO OR CONSIDER PARTICIPATION IN SMALL ARM'S LENGTH TRANSACTIONS BETWEEN ICANN AND CERTAIN TAXABLE ORGANIZATIONS WITH WHICH CERTAIN ICANN DIRECTORS OR OFFICERS (OR MEMBERS OF THEIR FAMILIES) MAY HAVE AN AFFILIATION. UNDER ICANN'S CONFLICTS OF INTEREST POLICY, ALL OFFICERS AND DIRECTORS ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST BEFORE ENTERING INTO DISCUSSION ON SUCH MATTERS. IN ADDITION, THE BOARD COMMITTEE RESPONSIBLE FOR CONFLICTS OF INTEREST REVIEWS ALL BOARD MEMBER CONFLICTS OF INTEREST STATEMENTS. SEE: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/DOCUMENTS/SOIS. FORM 990, PART I, LINE 1 AND PART III, LINE I ORGANIZATION'S MISSION THE MISSION OF THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS ("ICANN") IS TO PROMOTE THE GLOBAL PUBLIC INTEREST IN THE OPERATIONAL STABILITY OF THE INTERNET BY: (I) COORDINATING THE ASSIGNMENT OF INTERNET TECHNICAL PARAMETERS AS NEEDED TO MAINTAIN UNIVERSAL CONNECTIVITY ON THE INTERNET; (II) PERFORMING AND OVERSEEING FUNCTIONS RELATED TO THE COORDINATION OF THE INTERNET PROTOCOL ("IP") ADDRESS SPACE; (III) PERFORMING AND OVERSEEING FUNCTIONS RELATED TO THE COORDINATION OF THE INTERNET DOMAIN NAME SYSTEM ("DNS"), INCLUDING, SUPPORTING THE DEVELOPMENT OF, AND IMPLEMENTING POLICIES FOR DETERMINING THE CIRCUMSTANCES UNDER WHICH NEW TOP-LEVEL DOMAINS ARE ADDED TO THE DNS ROOT SYSTEM; (IV) OVERSEEING OPERATION OF THE AUTHORITATIVE INTERNET DNS ROOT SERVER SYSTEM; AND (V) ENGAGING IN ANY OTHER RELATED LAWFUL ACTIVITY IN FURTHERANCE OF ITEMS (I) THROUGH (IV). SEE ADDITIONAL INFORMATION ABOUT ICANN'S PROGRAMS AND ACTIVITIES ON THE ICANN WEBSITE AND IN THE ICANN ANNUAL REPORT POSTED AT WWW.ICANN.ORG. FORM 990, PART I, LINE 3 AND PART VI, LINE 1A GOVERNING BODY IN ADDITION TO THE VOTING MEMBERS OF THE BOARD OF DIRECTORS, ICANN'S BYLAWS AS OF JUNE 30, 2014 ALLOWED FOR FOUR (4) NON-VOTING LIAISONS. THE NON-VOTING LIAISONS ARE ENTITLED TO ATTEND BOARD MEETINGS, PARTICIPATE IN BOARD DISCUSSIONS AND DELIBERATIONS, AND HAVE ACCESS (UNDER CONDITIONS ESTABLISHED BY THE BOARD) TO MATERIALS PROVIDED TO DIRECTORS FOR USE IN BOARD DISCUSSIONS, DELIBERATIONS AND MEETINGS. THE FOLLOWING INDIVIDUALS SERVED AS NON-VOTING LIAISONS DURING THE FISCAL YEAR ENDING JUNE 30, 2014: 1) HEATHER DRYDEN (GOVERNMENTAL ADVISORY COMMITTEE, 2010 - OCTOBER 2014) 2) RAM MOHAN (SECURITY AND STABILITY ADVISORY COMMITTEE, 2009 - PRESENT) 3) THOMAS NARTEN (IETF, 2005 - JULY 2013) 4) FRANCISCO DA SILVA (TECHNICAL LIAISON GROUP, 2012 - NOVEMBER 2013) 5) JONNE SOININEN (IETF, 2013 - PRESENT) 6) SUZANNE WOOLF (ROOT SERVER SYSTEM ADVISORY COMMITTEE, 2004 - PRESENT) NEW GTLD PROGRAM COMMITTEE IN ORDER TO HAVE EFFICIENT MEETINGS AND TAKE APPROPRIATE ACTIONS WITH RESPECT TO THE NEW GTLD PROGRAM FOR THE CURRENT ROUND OF THE PROGRAM AND AS RELATED TO THE APPLICANT GUIDEBOOK, THE BOARD CREATED THE NEW GTLD PROGRAM COMMITTEE ("NGPC") IN ACCORDANCE WITH ARTICLE XII OF THE BYLAWS. THE NGPC CONSISTS OF ALL BOARD MEMBERS NOT CONFLICTED WITH RESPECT TO THE NEW GTLD PROGRAM. THE BOARD HAS DELEGATED FULL DECISION MAKING AUTHORITY TO THE NGPC AS IT RELATES TO THE CURRENT ROUND OF THE NEW GTLD PROGRAM, WHICH COMMENCED IN JANUARY 2012. ESTABLISHING THIS NEW COMMITTEE WITHOUT CONFLICTED MEMBERS, AND DELEGATING TO IT DECISION MAKING AUTHORITY, PROVIDES SOME DISTINCT ADVANTAGES. FIRST, IT HELPS ELIMINATE ANY UNCERTAINTY FOR CONFLICTED BOARD MEMBERS WITH RESPECT TO ATTENDANCE AT BOARD MEETINGS AND WORKSHOPS SINCE THE NEW GTLD PROGRAM TOPICS CAN BE DEALT WITH AT THE COMMITTEE LEVEL. SECOND, IT ALLOWS FOR ACTIONS TO BE TAKEN WITHOUT A MEETING BY THE COMMITTEE. ACTIONS WITHOUT A MEETING CANNOT BE TAKEN UNLESS DONE VIA ELECTRONIC SUBMISSION BY UNANIMOUS CONSENT; SUCH UNANIMOUS CONSENT CANNOT BE ACHIEVED IF EVEN JUST ONE BOARD MEMBER IS CONFLICTED, AND THEREFORE NOT ALLOWED TO VOTE. THIRD, IT PROVIDES THE COMMUNITY WITH A TRANSPARENT VIEW INTO THE BOARD'S COMMITMENT TO DEALING WITH ACTUAL, POTENTIAL OR PERCEIVED CONFLICTS. THE NGPC MEMBERS AS OF JUNE 30, 2014 INCLUDED: CHERINE CHALABY (CHAIR) FADI CHEHAD (MEMBER) STEPHEN CROCKER (MEMBER) CHRIS DISSPAIN (MEMBER) HEATHER DRYDEN (NON-VOTING LIAISON) BILL GRAHAM (MEMBER) BRUNO LANVIN (MEMBER) OLGA MADRUGA-FORTI (MEMBER) ERIKA MANN (MEMBER) GONZALO NAVARRO (MEMBER) RAYMOND PLZAK (MEMBER) GEORGE SADOWSKY (MEMBER) MIKE SILBER (MEMBER) KUO-WEI WU (MEMBER) FORM 990, PART III, LINE 4A PROGRAM SERVICE ACCOMPLISHMENTS AS OF JUNE 30, 2014, THE INTERNET NAMESPACE CONSISTED OF 22 LEGACY, 322 NEW GENERIC TOP LEVEL DOMAINS (GTLDS) AND OVER 250 COUNTRY CODE TOP LEVEL DOMAINS (CCTLDS). EACH GTLD HAS A DESIGNATED "REGISTRY OPERATOR" AND, IN MOST CASES, A REGISTRY AGREEMENT BETWEEN THE OPERATOR (OR SPONSOR) AND ICANN. THE REGISTRY OPERATOR IS RESPONSIBLE FOR THE TECHNICAL OPERATION OF THE GTLD, INCLUDING ALL OF THE NAMES REGISTERED IN THAT TLD. OVER 1,000 ICANN ACCREDITED REGISTRARS INTERACT WITH REGISTRANTS (AND OTHERS) TO PERFORM DOMAIN NAME REGISTRATION AND OTHER RELATED SERVICES FOR NEW GTLDS. THE NEW GTLD PROGRAM HAS PROVIDED A MEANS FOR PROSPECTIVE REGISTRY OPERATORS TO APPLY FOR NEW GTLDS, AND CREATE NEW OPTIONS FOR CONSUMERS. THE PROGRAM OPENED ITS FIRST APPLICATION ROUND IN JANUARY 2012 AND ICANN RECEIVED 1930 APPLICATIONS. ALL APPLICATIONS FOR NEW GTLDS THAT HAVE NOT BEEN WITHDRAWN HAVE COMPLETED INITIAL EVALUATION (IE) PHASE AND, WHERE APPLICABLE, EXTENDED EVALUATION (EE). DURING IE AND EE, ALL APPLICATIONS WERE EVALUATED FOR, AMONG OTHER THINGS, FINANCIAL, TECHNICAL/OPERATIONAL, GEOGRAPHIC NAMES, AND REGISTRY SERVICES. FOLLOWING COMPLETION AND PASSING OF IE, AND EE IF APPLICABLE, FOR EACH APPLICATION, THE REGISTRY AGREEMENT CONTRACTING PHASE OF THE NEW GTLD PROGRAM COMMENCED. CONTRACTING IS A PROCESS THAT RESULTS IN EACH ELIGIBLE APPLICANT ENTERING INTO A REGISTRY AGREEMENT WITH ICANN TO OPERATE A GTLD. NOTE THAT THERE ARE SOME CIRCUMSTANCES THAT EXIST THAT MAY DELAY THE START OF THE CONTRACTING PROCESS INCLUDING, BUT NOT LIMITED TO, PENDING OBJECTION PROCEEDINGS, PENDING ICANN ACCOUNTABILITY MECHANISMS, UNRESOLVED CONTENTION, OR DIRECTION FROM THE ICANN BOARD'S NEW GTLD PROGRAM COMMITTEE. AFTER COMPLETION OF THE CONTRACTING PHASE, THE APPLICANT CAN ELECT TO ENTER INTO PRE-DELEGATION TESTING. PRE-DELEGATION TESTING (PDT) ENSURES THAT AN APPLICANT HAS THE CAPACITY TO OPERATE A NEW GTLD IN A STABLE, SECURE MANNER. EVERY NEW REGISTRY MUST DEMONSTRATE THAT IT HAS ESTABLISHED OPERATIONS IN ACCORDANCE WITH THE TECHNICAL AND OPERATIONAL CRITERIA DESCRIBED IN THE APPLICANT GUIDEBOOK. AFTER PASSING PDT, A REGISTRY'S GTLD CAN BE INTRODUCED INTO THE ROOT ZONE OF THE INTERNET. AS OF JUNE 30, 2014, 322 NEW GTLDS WERE DELEGATED IN THE ROOT ZONE. ICANN IS A MULTISTAKEHOLDER ORGANIZATION THAT COORDINATES THE INTERNET DOMAIN NAME SYSTEM (DNS) AND ADDRESSING FOR THE BENEFIT OF INTERNET USERS WORLDWIDE, ENABLING A SINGLE, INTEROPERABLE INTERNET. ICANN IS RESPONSIBLE FOR THE GLOBAL TECHNICAL COORDINATION OF THE DNS. AS OF JUNE 30, 2014, THERE WERE OVER 240 MILLION INTERNET DOMAIN NAMES, INCLUDING APPROXIMATELY 133 MILLION INTERNET DOMAIN NAMES FOUND IN GENERIC TOP-LEVEL DOMAINS, MOST OF WHICH ARE GOVERNED BY ICANN'S COMMUNITY-DEVELOPED POLICIES. SEE ADDITIONAL INFORMATION ABOUT ICANN'S PROGRAMS AND ACTIVITIES ON THE ICANN WEBSITE AND IN THE ICANN ANNUAL REPORT POSTED AT WWW.ICANN.ORG. NEW GTLD AUCTION ON 4 JUNE 2014, ICANN, THROUGH ITS AUTHORIZED AUCTION SERVICES PROVIDER, COMPLETED THE FIRST ICANN AUCTION TO RESOLVE A CONTENTION SET FOR A NEW GENERIC TOP-LEVEL DOMAIN (GTLD) STRING. CONTENTION SETS ARE GROUPS OF APPLICATIONS FOR IDENTICAL OR CONFUSINGLY SIMILAR STRINGS. IF TWO OR MORE APPLICANTS ARE UNABLE TO RESOLVE THEIR CONTENTION THROUGH OTHER MEANS, THEY PROCEED TO AN ICANN AUCTION, WHICH IS THE METHOD OF LAST RESORT TO RESOLVE STRING CONTENTIONS AS PRESCRIBED IN MODULE 4 OF THE APPLICANT GUIDEBOOK. THE FIRST ICANN AUCTION RESULTED IN A WINNING BID OF $600,000. SUBSEQUENT AUCTIONS HAVE BEEN SCHEDULED TO OCCUR ON A MONTHLY BASIS THROUGHOUT 2014 AND INTO EARLY 2015. FOR MORE INFORMATION ON AUCTIONS VISIT HTTP://NEWGTLDS.ICANN.ORG/EN/APPLICANTS/AUCTIONS FORM 990, PART VI, LINE 4 SIGNIFICANT CHANGES TO GOVERNING DOCUMENTS ON 7 FEBRUARY 2014, THE BOARD ADOPTED BYLAWS REVISIONS THAT ELIMINATED THE BOARD LIAISION SEAT THAT WAS HISTORICALLY APPOINTED ON A ROTATIONAL BASIS BY THE TECHNICAL LIAISION GROUP. FORM 990, PART VI, LINE 7A BODIES THAT APPOINT MEMBERS OF ICANN'S GOVERNING BODY THE NOMINATING COMMITTEE (NOMCOM) IS RESPONSIBLE FOR THE SELECTION OF EIGHT ICANN VOTING BOARD MEMBERS AND FOR OTHER SELECTIONS AS ARE SET FORTH IN THE BYLAWS. (SEE BYLAWS ARTICLE VII, SECTION 1.) THE NOMCOM IS CHARGED WITH POPULATING A PORTION OF THE ICANN BOARD AS NOTED ABOVE, AS WELL AS THE AT-LARGE ADVISORY COMMITTEE ("ALAC"), THE COUNTRY CODE NAMES SUPPORTING ORGANIZATION ("CCNSO") COUNCIL AND THE GENERIC NAMES SUPPORTING ORGANIZATION ("GNSO") COUNCIL. THE NOMCOM COMPLEMENTS THE OTHER MEANS FOR FILLING A PORTION OF KEY ICANN LEADERSHIP POSITIONS ACHIEVED WITHIN THE SUPPORTING ORGANIZATIONS AND ADVISORY COMMITTEES. THE BYLAWS ALSO STATE THAT THE NOMCOM SHALL ADOPT SUCH OPERATING PROCEDURES AS IT DEEMS NECESSARY, WHICH SHALL BE PUBLISHED ON THE ICANN WEBSITE. THE NOMCOM IS DESIGNED TO FUNCTION INDEPENDENTLY FROM THE BOARD, THE SUPPORTING ORGANIZATIONS, AND ADVISORY COMMITTEES. MEMBERS OF THE NOMCOM CONTRIBUTE BOTH THEIR UNDERSTANDING OF THE BROAD INTERESTS OF THE INTERNET AS A WHOLE AND THEIR KNOWLEDGE AND EXPERIENCE OF THE CONCERNS AND INTERESTS OF THE INTERNET STAKEHOLDERS THAT HAVE APPOINTED THEM. THE CHALLENGE FOR THE NOMCOM IS TO INTEGRATE THESE PERSPECTIVES AND DERIVE CONSENSUS IN ITS SELECTIONS. ALTHOUGH APPOINTED BY SUPPORTING ORGANIZATIONS AND OTHER ICANN BODIES, INDIVIDUAL NOMCOM MEMBERS ARE NOT ACCOUNTABLE TO THEIR APPOINTING CONSTITUENCIES BUT RATHER TO ICANN AS A WHOLE. NOMCOM MEMBERS ARE ACCOUNTABLE FOR ADHERENCE TO THE BYLAWS AND FOR COMPLIANCE WITH THE RULES AND PROCEDURES ESTABLISHED BY THE NOMCOM. IN ADDITION, AND ALSO IN ACCORDANCE WITH ICANN'S BYLAWS, EACH OF THE FOLLOWING SUPORTING ORGANIZATIONS NAME TWO VOTING BOARD MEMBERS TO THE ICANN BOARD, EACH FOR A THREE-YEAR TERM: THE ADDRESS SUPPORTING ORGANIZATION, THE CCNSO AND THE GNSO. FURTHER, THE AT-LARGE COMMUNITY ALSO NAMES ONE VOTING BOARD MEMBER TO THE ICANN BOARD EVERY THREE YEARS. FORM 990, PART VI, LINE 10A AND 10B LOCAL CHAPTERS, BRANCHES AND AFFILIATES DURING FISCAL 2014, ICANN HAD OFFICES OUTSIDE OF THE UNITED STATES IN BRUSSELS, BELGIUM; ISTANBUL, TURKEY; SINGAPORE, SINGAPORE; AND GENEVA, SWITZERLAND; ALL OF WHICH PROVIDED OPERATIONAL SUPPORT TO THEIR RESPECTIVE GEOGRAPHICAL REGIONS. FORM 990, PART VI, LINE 11B FORM 990 REVIEW PROCESS A COPY OF THE FORM 990 IS PROVIDED TO ICANN'S BOARD MEMBERS BEFORE IT IS FILED. THE PROCESS BY WHICH THE FORM 990 IS PREPARED, REVIEWED AND RECEIVED IS AS FOLLOWS: 1. ICANN ENGAGES AN OUTSIDE TAX PREPARER TO ASSIST IN THE PREPARATION OF ITS FORM 990. 2. ICANN'S CHIEF FINANCIAL OFFICER (CFO), AND OFFICE OF THE GENERAL COUNSEL REVIEW THE FORM 990, AND THE CFO SIGNS OFF FOR APPROVAL. 3. THE FORM 990 IS PROVIDED TO THE ICANN BOARD MEMBERS. FORM 990, PART VI, LINE 12C CONFLICTS OF INTEREST POLICY ICANN HAS WRITTEN CONFLICTS OF INTEREST POLICIES, WHICH ARE APPLICABLE TO ALL BOARD MEMBERS AND STAFF MEMBERS. THE OFFICE OF THE GENERAL COUNSEL MONITORS THE POLICIES WITH OVERSIGHT BY THE BOARD GOVERNANCE COMMITTEE AS THEY RELATE TO THE BOARD. A CONFLICTS OF INTEREST DISCLOSURE STATEMENT IS COMPLETED ANNUALLY AND SIGNED BY EACH BOARD MEMBER, OFFICER AND KEY EMPLOYEE. THE STAFF MEMBER AND CONTRACTOR DISCLOSURE STATEMENTS ARE REVIEWED BY THE HEAD OF HUMAN RESOURCES AND DISCUSSED WITH GENERAL COUNSEL'S OFFICE IF ANY ISSUES ARISE; THE BOARD LEVEL DISCLOSURE STATEMENTS ARE REVIEWED BY THE OFFICE OF GENERAL COUNSEL AND THE BOARD GOVERNANCE COMMITTEE. THE BOARD MEMBER, OFFICER AND KEY EMPLOYEE CONFLICTS OF INTEREST POLICY CAN BE FOUND AT: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/GOVERNANCE/COI. THIS POLICY DESCRIBES THE DUTY TO DISCLOSE, THE PROCEDURES FOR ADDRESSING CONFLICTS OF INTEREST, THE DUTY TO ABSTAIN, HOW VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY WILL BE HANDLED, THE PROCESS BY WHICH ALL COVERED PERSONS SIGN ANNUALLY THEIR AFFIRMATION OF THE POLICY AND DISCLOSE THEIR ACTUAL OR POTENTIAL CONFLICTS, AND THE REQUIREMENT AND NATURE OF PERIODIC REVIEWS. A SUMMARY OF BOARD MEMBER AND OFFICER DISCLOSURE STATEMENTS ARE POSTED ON THE WEBSITE AT: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/DOCUMENTS/SOIS FORM 990, PART VI, LINE 13 & 14 WHISTLEBLOWER POLICY AND DOCUMENT RETENTION AND DESCTRUCTION POLICY ICANN MAINTAINS AN INTERNAL DOCUMENT RETENTION AND DESTRUCTION POLICY AND HISTORICALLY HAS FOLLOWED BEST INDUSTRY PRACTICES FOR RETENTION AND DESTRUCTION. ICANN ALSO MAINTAINS AN INTERNAL WHISTLEBLOWER (OR "ANONYMOUS HOTLIINE") POLICY, THAT ALSO FOLLOWS INDUSTRY BEST PRACTICES. FORM 990, PART VI, LINES 15A AND 15B PROCESS FOR DETERMINING COMPENSATION ICANN FOLLOWS PRINCIPLES OF ACCOUNTABILITY AND TRANSPARENCY AND DESCRIBES ITS REMUNERATION PLANS AND PRACTICES, WHICH ARE CONTINUALLY UPDATED. THE MOST CURRENT VERSION OF ICANN'S REMUNERATION PRACTICES REPORT IS POSTED AT: HTTPS://WWW.ICANN.ORG/EN/SYSTEM/FILES/FILES/REMUNERATION-PRACTICES-FY15-01 NOV14-EN.PDF THE PROCESS FOR DETERMINING COMPENSATION, INCLUDING SURVEYS OF COMPARABLE POSITIONS AND OTHER MARKET STUDIES IS DESCRIBED IN THIS REMUNERATION PRACTICES REPORT. EXECUTIVE COMPENSATION IS DISCLOSED AS WELL. SALARIES OF ALL OFFICERS ARE REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS FOLLOWING RECOMMENDATIONS BY THE BOARD COMPENSATION COMMITTEE, WHICH ARE INFORMED BY RECOMMENDATIONS AND COMPARABLE DATA PROVIDED BY INDEPENDENT COMPENSATION EXPERTS. CONFIDENTIAL MINUTES OF THESE MEETINGS ARE MAINTAINED BY THE BOARD SECRETARY AS PART OF THE CORPORATE SECRETARIAT FUNCTION. EACH YEAR THE APPOINTMENT FOR EACH OFFICER IS CONFIRMED BY THE BOARD OF DIRECTORS AT THE ANNUAL GENERAL MEETING. FORM 990, PART VI, LINE 18 AVAILABILITY OF 990 ICANN POSTS ITS FORM 990 ON ITS WEBSITE. THE PRIOR YEAR POSTING IS LOCATED AT: HTTPS://WWW.ICANN.ORG/EN/SYSTEM/FILES/FILES/FY-2013-FORM-990-EN.PDF IN ADDITION, THE FORM 990 IS POSTED ON THE WWW.GUIDESTAR.ORG WEBSITE. FINALLY, HARD COPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST. REQUESTS SHOULD BE SUBMITTED TO ICANN'S CFO BY EMAIL TO XAVIER.CALVEZ@ICANN.ORG, OR BY PHONE AT +1.310.301.5838. ICANN POSTS THE ORIGINAL FORM 1023 (APPLICATION FOR TAX-EXEMPT STATUS) ON ITS WEBSITE. THE ORIGINAL FORM 1023 POST IS LOCATED AT: HTTPS://ARCHIVE.ICANN.ORG/EN/FINANCIALS/TAX/US/ FORM 990, PART VI, LINE 19 AVAILABILITY OF GOVERNING DOCS, CONFLICTS OF INTEREST, AND FINANCIAL STMTS IN ACCORDANCE WITH ITS CORPORATE BYLAWS(SEE HTTP://WWW.ICANN.ORG/EN/ABOUT/GOVERNANCE/BYLAWS) AND THE AFFIRMATION OF COMMITMENTS WITH THE UNITED STATES DEPARTMENT OF COMMERCE (SEE HTTPS://WWW.ICANN.ORG/RESOURCES/PAGES/AFFIRMATION-OF-COMMITMENTS-2009-09-3 0-EN), ICANN IS COMMITTED TO ACCOUNTABILITY AND TRANSPARENCY PRINCIPLES. THIS INCLUDES PROVIDING EXTENSIVE ACCESS TO THE PUBLIC THROUGH THE ICANN WEBSITE OF ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS. SEE: HTTP://WWW.ICANN.ORG/EN/ABOUT/GOVERNANCE AND HTTPS://WWW.ICANN.ORG/RESOURCES/PAGES/GOVERNANCE/FINANCIALS-EN FORM 990, PART VII OFFICER/DIRECTOR SERVICE DATES IN PART VII, A DATE FOLLOWING AN OFFICER/DIRECTOR'S NAME INDICATES THE DATE ON WHICH THE OFFICER/DIRECTOR'S SERVICES ENDED. IF NO DATE IS INDICATED, THAT OFFICER/DIRECTOR WAS ACTIVE AS OF JUNE 30, 2014 FORM 990, PART VII, SECTION B COMPENSATION OF INDEPENDENT CONTRACTORS PAID OVER $1,000,000 AS OF JUNE 30, 2014 IN ADDITION TO THE DISCLOSURE IN FORM 990, PART VII, SECTION B OF THE COMPENSATION OF THE FIVE HIGHEST PAID INDEPENDENT CONTRACTORS, ICANN, BELOW, DISCLOSES THE COMPENSATION OF ALL INDEPENDENT CONTRACTORS PAID OVER $1,000,000 AS OF JUNE 30, 2014. NAME: ERNST & YOUNG U.S. LLP ADDRESS: 200 PLAZA DRIVE, SECAUCUS, NJ 07094 DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 17,834,935 REFERENCE: SEE ATTACHMENT 2 NAME: KPMG LLP ADDRESS: 3 CHESTNUT RIDGE ROAD, MONTVALE, NJ 07645-0435 DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 16,059,383 REFERENCE: SEE ATTACHMENT 2 NAME: JAS GLOBAL ADVISORS LLC ADDRESS: 150 N. MICHIGAN AVE. SUITE 2800, CHICAGO, IL 60601-7586 DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 8,183,122 REFERENCE: SEE ATTACHMENT 2 NAME: INTERCONNECT COMMUNICATIONS LTD ADDRESS: MERLIN HOUSE, STATION ROAD NP16 5PB, CHEPSTOW, UNITED KINGDOM DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 4,436,571 REFERENCE: SEE ATTACHMENT 2 NAME: JONES DAY ADDRESS: 555 S. FLOWER ST. 50TH FL. LOS ANGELES, CA 90071 DESCRIPTION OF SERVICES: LEGAL SERVICES COMPENSATION: 3,964,736 REFERENCE: SEE ATTACHMENT 2 NAME: PRICEWATERHOUSECOOPERS LLP ADDRESS: 300 MADISON AVE. NEW YORK, NY 10017 DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 2,851,260 NAME: CHAMBRE DE COMMERCE INTERNATIONALE ADDRESS: 33-43 AVENUE DU PRESIDENT WILSON, PARIS 75116, FRANCE DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 2,586,977 NAME: INTERISLE CONSULTING GROUP ADDRESS: 4 TIFFANY TRAIL, HOPKINTON, MA 01748 DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 2,154,097 NAME: STIFTELSEN FOR INTERNETINFRASTRUKTUR.SE ADDRESS: RINGVAGEN 100 A/BOX 7399, STOCKHOLM 103 91, SWEDEN DESCRIPTION OF SERVICES: NEW GTLD PROGRAM COMPENSATION: 1,904,150 NAME: DANIEL J EDELMAN LTD ADDRESS: SOUTHSIDE 105 VICTORIA ST. LONDON SW1E 6QT, UNITED KINGDOM DESCRIPTION OF SERVICES: COMMUNICATIONS COMPENSATION: 1,229,004 NAME: NEO INNOVATION INC. ADDRESS: 717 MARKET ST. STE. 100, SAN FRANCISCO, CA 94103 DESCRIPTION OF SERVICES: SOFTWARE DEVELOPMENT COMPENSATION: 1,217,800 NAME: RC HOTELS (PTE) LTD ADDRESS: 2 STAMFORD ROAD, SINGAPORE 178882, SINGAPORE DESCRIPTION OF SERVICES: ICANN MEETINGS COMPENSATION: 1,128,869 NAME: TERRA NOVA TOURS ADDRESS: 72 ROODEBLOEM ROAD, CAPE TOWN 7945, SOUTH AFRICA DESCRIPTION OF SERVICES: ICANN MEETINGS COMPENSATION: 1,072,206 FORM 990, PART IX, LINE 11G FEES FOR SERVICES - OTHER TRANSLATION SERVICES 3,952,429 COMMUNICATIONS 3,675,866 NEW GTLD FINANCIAL AND TECHNICAL EVALUATIONS 3,546,358 NEW GTLD PRE-DELEGATION TESTING 3,467,558 CONSULTING SERVICES 3,430,806 NEW GTLD TRADEMARK CLEARINGHOUSE 2,999,513 STRATEGIC INITIATIVES 2,049,069 TEMPORARY PERSONNEL 1,293,423 RECRUITING SERVICES 749,567 CONTRACTUAL COMPLIANCE 665,743 GOVERNMENT ENGAGEMENT 509,796 INTERNET GOVERNANCE 490,000 POLICY DEVELOPMENT 450,446 DATA ESCROW SERVICES 443,824 NEW GTLD INDEPENDENT OBJECTORS 299,435 ----------- TOTAL 28,023,833 FORM 990, PART IX, LINE 24A RISK COSTS - GTLD RISK COSTS ARE EXPENSES THAT RELATE TO ANY CONTINGENCIES THAT MAY BE INCURRED BY ICANN AT ANY TIME THROUGHOUT OR AFTER THE NEW GTLD APPLICATION PROCESS. APPROXIMATELY ONE THIRD OF TOTAL FEES CHARGED TO APPLICANTS IN RELATION TO THE NEW GTLD PROGRAM ARE IN ANTICIPATION OF THESE COSTS. FORM 990, PART XI, LINE 8 FISCAL JUNE 30, 2013 RESTATEMENT OF REVENUE - CHANGE IN TRANSACTION-BASED FEE REVENUE RECOGNITION THROUGH THE YEAR ENDED JUNE 30, 2013, ICANN RECOGNIZED NONREFUNDABLE TRANSACTION-BASED FEES COLLECTED FROM REGISTRIES AND REGISTRARS AS EARNED IN THE YEAR THE BILLED FEE APPLIES (FOR EXAMPLE, 1/10TH OF A REGISTRATION TRANSACTION-BASED FEE WAS RECOGNIZED IN EACH YEAR OF A TEN YEAR DOMAIN NAME REGISTRATION). THIS RECOGNITION METHOD WAS BASED ON A PREVIOUS INTERPRETATION OF THE CONTRACTS THAT ICANN HAS OBLIGATIONS UNDER THOSE CONTRACTS THAT MUST BE FULFILLED OVER THE DURATION OF A SPECIFIC DOMAIN NAME REGISTRATION. GIVEN THE NEW GTLD PROGRAM, AND THE PROSPECTIVE DELEGATION OF HUNDREDS OF NEW REGISTRIES UNDER A NEW BASE REGISTRY AGREEMENT, ICANN HAS CONDUCTED FURTHER ANALYSIS OF ITS REVENUE RECOGNITION METHOD THROUGH REVIEW OF THE EXISTING AND NEW AGREEMENTS WITH REGISTRIES AND REGISTRARS AND THE SPECIFIC ACCOUNTING TREATMENT OF THE TRANSACTION-BASED FEES. UPON THIS FURTHER REVIEW AND ANALYSIS, ICANN HAS DETERMINED THAT THE REGISTRY AND REGISTRAR AGREEMENTS DO NOT INCLUDE ANY OBLIGATIONS FOR ICANN THAT PERTAIN TO EACH SPECIFIC REGISTRATION OF A DOMAIN NAME. ICANN CONSIDERS THAT ITS CONTRACTUAL OBLIGATIONS ARE UNRELATED TO A SPECIFIC DOMAIN NAME REGISTRATION, WHICH THEREFORE DOES NOT CREATE SPECIFIC PERFORMANCE OBLIGATIONS WHICH WOULD REQUIRE A DEFERRAL OF REVENUE OVER THE DURATION OF THE REGISTRATION. AS A RESULT, ICANN HAS CHANGED ITS REVENUE RECOGNITION METHOD SO THAT THE TRANSACTION-BASED FEES ARE RECOGNIZED AS REVENUE WHEN EACH TRANSACTION OCCURS. ACCORDINGLY, ICANN HAS RESTATED THE OPENING BALANCE OF UNRESTRICTED NET ASSETS AS OF JULY 1, 2012 AND FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2013. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS FOREIGN EXCHANGE GAIN(LOSS) (132,076) ROUNDING (9) ------------- $(132,085)