2014-11-10T13:38:43-06:00 2013-12-31 861065772 Deloitte Tax LLP 2 Jericho Plaza Jericho NY 11753 990 2013-01-01 210634479 Educational Testing Service EDUC 6099219000 Rosedale Road MS 20-J Princeton NJ 08541 Jack Hayon SVP & Chief Financial Officer 6099219000 2014-11-10 Christine Kawecki P00743140 5169187000 2013 2015-11-30 17:44:51Z Jack Hayon Rosedale Road MS 20-J Princeton NJ 08541 1186472096 0 X www.ets.org X 1947 NY See Page 2, Part III, Question 1 20 19 20502 0 16539838 -4203420 9316768 11013107 976384468 1040969720 1831921 3802266 86158673 82318061 1073691830 1138103154 2414313 2388720 0 0 353788403 386960688 0 0 0 701394744 721011862 1057597460 1110361270 16094370 27741884 845364858 941669696 351445293 340298542 493919565 601371154 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 444914191 852078 555431625 Higher EducationHigher Education Division: This division of ETS is responsible for the development, administration (primarily in a computer based testing environment), scoring and reporting of assessments for graduate and business school admissions. The Division also develops College Programs assessments that are used to support student success and measure student learning outcomes. The College Programs products are used in nearly 1,400 higher education institutions.In 2013, approximately 731 thousand individuals took the graduate and business school admissions tests.Teacher Licensure & Certification (TLC): TLC is primarily involved in assessing prospective teachers for licensure and/or certification. TLC manages three major licensure and certification assessment programs. Tests for all three major TLC programs are delivered in a computer-based environment. Paper and pencil testing is available, as needed, for candidates with special requirements who cannot test online.In 2013, approximately 800 thousand tests were administered.ETS Services Provided to the College Board: ETS provides services to the College Board that relate to the testing of pre-college students and assisting in the transition from high school to college and to advanced college degrees.In 2013, approximately 11.3 million tests were administered on behalf of the College Board. 221571278 435164 297374229 GlobalThe Global Division is responsible for ETS's (educational) mission primarily in markets outside the United States. The Division provides products and services that: measure knowledge and skills; promote learning and performance; and support education and professional development. Its primary focus is the design, development and delivery of English Language tests and assessments.The Division administered approximately 8.2 million tests and assessments during 2013. 299785373 1101478 188163866 Student and Teacher Assessments (K12 Student Assessment Programs): K12 Student Assessment Programs currently has large scale assessment contracts in several states in the US. These K12 assessments measure levels of student achievement in their respective public school system. K12 Student Assessment Programs also contracts with non-profit consortia of states, dedicated to the pursuit of educational excellence. The purpose is to develop and administer testing programs that are designed to measure and improve teaching and learning.Research and Development:Research & Development provides: educational measurement research and analysis; innovative assessment and product development; and informative policy studies to advance quality and equity in education for all people worldwide. Research & Development ensures the technical quality and fairness of ETS's assessments and assessment-related services through excellence in assessment design, development, analysis and psychometric research. Support for its research programs comes primarily from its own resources. Support also comes from national governments and agencies and various private foundations.National Assessment of Educational Progress (NAEP):Considered the Nations Report Card, NAEP is a continuing series of academic content assessments of samples of students, mandated by Congress, and implemented by the National Center for Education Statistics. ETS has held primary contracts for NAEP since 1983. ETS is responsible for the overall coordination, strategic planning, development of survey questionnaires, test development for printed books and technology-based assessments, assessment design, test book preparation, data and psychometric analysis, and report preparation in print and on the NAEP website.ETS Policy and Evaluation & Research Center (PERC):The Policy Evaluation and Research Center (PERC) conducts research and analyses that address challenging education policy issues in the United States. The focus of PERC's research and analyses are increasing overall educational achievement and closing opportunity and achievement gaps among population groups.PERC publishes and disseminates reports and designs and carries out research and evaluation studies that are designed to increase understanding of education challenges and probable solutions. PERC plans and convenes symposiums, seminars and conferences to address the most challenging education problems in the nation.Institute for Student Achievement (ISA):Working in partnership with districts and schools, the ISA Division of ETS uses a proven, research-based educational framework to transform underperforming public high schools into rigorous and supportive learning environments that prepare students to be college-ready.Chauncey Conference Center:ETS operates a conference center. A portion of the revenue is classified as unrelated business income. 966270842 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 0 1 0 0 0 0 1 1 1 0 0 0 0 0 1 1 1 0 0 0 0 1 1 1 1 0 0 1 X 106920 0 1 20502 1 1 1 1 CA CH FR IN IS JO NL PL KS UK 0 0 0 0 0 0 0 0 X 20 19 0 0 0 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 Carstarphen Meria Trustee 2.00 X 44000 0 0 Colbert Isaac Trustee 2.00 X 48000 0 0 Eisgruber Christopher Trustee 2.00 X 54500 0 0 English Michela A Trustee 2.00 X 90250 0 0 Flores Roy Trustee 2.00 X 13000 0 0 Garcia Ofelia Trustee 2.00 X 48000 0 0 Henderson Wade N Trustee 2.00 X 88250 0 0 Johnson Melvin Trustee 2.00 X 52000 0 0 Kapoor Vikas Trustee 2.00 X 48000 0 0 Levin Henry M Trustee 2.00 X 48000 0 0 Levine Arthur E Trustee 2.00 X 48000 0 0 Lewis Earl Trustee 2.00 X 48000 0 0 Menezes Victor Trustee 2.00 X 50000 0 0 Murley Robert S Trustee 2.00 X 103000 0 0 Robertson Piedad F Trustee 2.00 X 48000 0 0 Rothkopf Arthur J Trustee 2.00 X 82500 0 0 Stewart Debra W Trustee 2.00 X 65500 0 0 Tatum Beverly Daniel Trustee 2.00 X 5000 0 0 Valdes Guadalupe Trustee 2.00 X 83500 0 0 Winckler Georg Trustee 2.00 X 44000 0 0 Landgraf Kurt M President & CEO 40.00 X X 1307314 0 42210 Bailey Diane A VP Production & Logisitics 40.00 X 315247 0 42328 Basehore John VP & Treasurer 40.00 X 351465 0 46547 Donado Yvette SVP People, Process & Comm 40.00 X 422793 0 55063 Draper Jr William C VP College Board Programs 40.00 X 384407 0 35518 Elliott Thomas J VP & CLO Strategic Workforce 40.00 X 390830 0 43752 Farnum Marisa VP Assessment Development 40.00 X 321684 0 45468 Freddo Michael J VP & Controller 40.00 X 316984 0 44879 Gilbertson Bruce M VP Construction & Facilities 40.00 X 339619 0 29938 Hayon Jack SVP & Chief Financial Officer 40.00 X 581814 0 69630 Hernandez Sandra VP Finance 40.00 X 361834 0 50435 House Naomi President ISA 40.00 X 431722 0 64006 Hunt David VP & COO Global 40.00 X 461259 0 52555 Johnson-Gregory Sheree L VP & Assoc General Counsel 40.00 X 375550 0 53387 Kerins Nancy J SVP Production & Delivery 40.00 X 617353 0 40899 Lawrence Ida M SVP Research & Development 40.00 X 464992 0 62195 Lazer Stephen VP Student & Teacher Asses 40.00 X 399431 0 55622 MacDonald Walter B Executive VP & COO 40.00 X 648615 0 43153 Mazzeo John VP Stat Analysis & Psych Research 40.00 X 386961 0 33408 Miller George VP Strategic Workforce Solutions 40.00 X 246220 0 51326 Nelson Scott F VP Marketing & Public Affairs 40.00 X 400830 0 53913 Nettles Michael T SVP - Policy Eval & Research Ctr 40.00 X 408648 0 59304 Oswald John VP & GM K12 Assessment Programs 40.00 X 392898 0 36910 Paris Scott G VP Research 40.00 X 368656 0 57078 Payne David G VP & COO Higher Education 40.00 X 377090 0 36465 Pfund Rebecca VP IT Production 40.00 X 333052 0 48562 Pote Stephen K VP & Chief Quality Officer 40.00 X 354094 0 45826 Powell George D VP & COO TLC & Nat ELL 40.00 X 413187 0 37994 Rockey Anne F VP Test Taker Services 40.00 X 334350 0 44583 Schroeder Glenn C SVP & General Counsel 40.00 X 488102 0 64864 Tabbiner Philip S SVP, Bus Innovation & Growth 0.10 X 655055 0 1850 Tyler Linda L VP New Product Development 40.00 X 288636 0 41313 Wakeman Daniel VP & Chief Information Officer 40.00 X 349046 0 52651 Weaver Scott V VP & Chief Strategy Officer 40.00 X 386692 0 56737 Bennett Randy E Frederiksen Chair-Assess Innov 40.00 X 316450 0 173308 Mislevy Robert Lord Chair in Meas & Stat 40.00 X 346707 0 35770 Kirsch Irwin Tyler Chair LG Scale Assessment 40.00 X 338892 0 38122 Leon Abel General Manager 40.00 X 312769 0 21715 Kane Michael Messick Chair in Test Validity 40.00 X 296284 0 36216 Ramsey Paul A Former SVP Global Dev & Relations 7.00 X 120625 0 0 17519657 0 1905500 1089 1 1 0 Computer Sciences Corporation (CSC) 3170 Fairview Park Drive Falls Church VA 22042 Computer services 53241639 Accenture LLP 161 North Clark St Chicago IL 60601 Supply chain services 52162341 NCS Pearson Inc 5601 Green Valley Dr Bloomington MN 55437 Test administration services 44294003 Torcon Inc 328 Newman Springs Road Red Bank NJ 07701 Construction services 24785829 McCann Relationship Marketing Inc dba 105 Carnegie Center Princeton NJ 08540 Marketing 18133681 272 8004119 3008988 3260 11013107 Higher Education 611710 555431625 555431625 Global 611710 297374229 297374229 ESE and Other 611710 188163866 188163866 1040969720 471717 471717 65684886 65684886 129060 35723 93337 93337 93337 51639868 23900 46996105 1337114 4643763 -1313214 3330549 3330549 Occupational & Prof Sk 611600 9836726 9836726 Chauncey Conf. Center 721000 3639787 3639787 Computerized Assessmen 611600 2218689 2218689 844636 844636 16539838 1138103154 1040969720 16539838 69580489 X 1587816 1587816 365740 365740 435164 435164 17388299 4753280 12635019 120625 120625 291211418 253301442 37909976 24412912 19642919 4769993 33936401 17520278 16416123 19891033 16004561 3886472 6357421 6357421 3179244 3179244 40851 40851 680855 680855 482309042 439825907 42483135 12746923 12746923 134201660 129910686 4290974 1537812 1537812 14482733 13456658 1026075 10606435 8848310 1758125 2968164 2174271 793893 152621 152621 37643696 32550277 5093419 2108989 2108989 Foreign & State Taxes 4336302 4336302 Miscellaneous 3943491 3624654 318837 Chauncey Conf Center 3189797 3189797 Memberships and Dues 525826 337420 188406 1110361270 966270842 144090428 0 6461925 10309716 95971029 73028714 109364072 90919506 15690023 15603979 251152652 130752568 85482600 120400084 415409225 511410054 116476130 116225793 509854 3771850 845364858 941669696 145388940 159163440 74599721 61324513 131456632 119810589 351445293 340298542 X 493919565 601371154 493919565 601371154 845364858 941669696 X 27741884 19017749 6581821 54110135 X 0 1 X 1 1 1 X 5746388 12889559 13420573 9316768 11378847 52752135 851511617 880691488 942813001 976442900 1040603980 4692062986 857258005 893581047 956233574 985759668 1051982827 4744815121 0 283748345 279286338 294059142 286153574 301401059 1444648458 283748345 279286338 294059142 286153574 301401059 1444648458 3300166663 38561274 51618196 60310105 69479111 66285663 286254349 38561274 51618196 60310105 69479111 66285663 286254349 8795 7030 9505 7562 32892 895828074 945206273 1016553184 1055246341 1118268490 5031102362 0.65600 0.64680 0.05690 0.05310 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 40851 40851 1094183750 1094224601 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 114801 152599 62120 40851 370371 250000 250000 250000 250000 1000000 1500000 Part II-A, Line 2, Lobbying Activities: Total lobbying expenses of $40,851 were used for the following Federal and State lobbying activities: Federal Lobbyists: Penn Hill Group: $5,000 Association of Test Publishers (ATP): $1,191 Total Federal Lobbying $6,191 State Lobbyists: CA Capitol Advocacy: $16,717 NY Whiteman Osterman: $11,173 PA Gmerek GR, Inc.: $1,370 SC Southern Strategy Group of SC: $5,400 Total State Lobbying $34,660. Total Federal and State Lobbying $40,851 1970618 1970618 188764896 97496217 91268679 4736188 3307320 1428868 55680950 29949031 25731919 120400084 Investment in affiliated entities 387084060 F Non publicly traded securities 124325994 F 511410054 Post-retirement medical benefits 106176409 Intercompany payable 12294180 Other liabilities 1340000 119810589 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 tax liability recorded for these uncertain tax positions can change within the next twelve months. The tax liability has various open statutes which range from three to ten years. 1 East Asia and the Pacific 0 0 Grantmaking Grantmaking 368164 South Asia 0 0 Grantmaking Grantmaking 67000 North America 0 1084 Program services Testing activities 2539939 Europe 0 539 Program services Testing activities 7849762 Central America and the Caribbean 0 483 Program services Testing activities 221370 East Asia and the Pacific 0 2017 Program services Testing activities 8591873 Middle East and North Africa 0 555 Program services Testing activities 2039236 Russia and Neighboring States 0 75 Program services Testing activities 28426 South America 0 355 Program services Testing activities 300094 South Asia 0 871 Program services Testing activities 2739286 Sub-Saharan Africa 0 449 Program services Testing activities 217114 Europe 0 0 Investments 3994469 North America 0 0 Investments 461020 0 4753 0 1675 0 6428 21705770 7711983 29417753 Scholarships for outstanding Korean Students East Asia and the Pacific 24 72000 Checks sent to students schools for tuition 0 Scholarships for outstanding Chinese Students East Asia and the Pacific 125 212164 Checks sent to students schools for tuition 0 Scholarships for outstanding Japanese Students East Asia and the Pacific 14 42000 Checks sent to students schools for tuition 0 Scholarships for outstanding Taiwanese Students East Asia and the Pacific 14 42000 Checks sent to students schools for tuition 0 Scholarships for outstanding Indian Students South Asia 20 67000 Checks sent to students schools for tuition 0 0 0 1 0 0 1 Part I, Line 2: Educational Testing Service requires applicants for scholarships to provide transcripts and other information upon which they are evaluated. Scholarship funds are made payable directly to the university or college or to both the recipient and the university or college that the recipient attends. Scholarships awarded to recipients outside the United States are monitored at the university level, since the awards are for one year only. 1 American Assoc of Hispanics in Higher Education (AAHHE) PO Box 877905 Tempe AZ 85257 300150324 501(c)(3) 100500 1653 Fair Market Value Printing and Catering Support of local community educational programs American Education Research Association (AERA) 1430 K Street NW Suite 1200 Washington DC 20005 237003537 501(c)(3) 5000 Support of local community educational programs 100 Hispanic Women 413 East 120th Street New York NY 10035 133831889 501(c)(3) 5000 Support of local community educational programs Anchor House Foundation Inc 482 Centre Street Trenton NJ 08611 222229995 501(c)(3) 10000 Support of local community educational programs Boys & Girls Club of Trenton and Mercer County 212 Centre Street Trenton NJ 08611 731658119 501(c)(3) 1000 18163 Fair Market Value Catering Support of local community educational programs Career Development Awards PO Box 2314 Princeton NJ 08542 236206954 501(c)(3) 5000 6130 Fair Market Value Catering Support of local community educational programs Court Appointed Special Advocates (CASA) of Mercer County 180 Ewingville Road Ewing NJ 08638 223770968 501(c)(3) 5000 Support of local community educational programs Children's Defense Fund 25 E Street NW Washington DC 20001 520895622 501(c)(3) 200000 Support of local community educational programs Delsea Regional HS District 242 Fries Mill Road PO Box 405 Franklinville NJ 08322 216007269 501(c)(3) 50208 Support of local community educational programs Church of St Francis Xavier 55 West 15th Street New York NY 10011 136104557 501(c)(3) 5000 Support of local community educational programs Communities in Schools of San Antonio 1616 E Commerce St Bldg 1 San Antonio TX 78205 742393714 501(c)(3) 5256 Support of local community educational programs CONTACT of Mercer County New Jersey Inc 60 South Main St Pennington NJ 08534 222320153 501(c)(3) 10250 Support of local community educational programs Council of Chief State School Officers (CCSSO) One Massachusetts Avenue NW Suite 700 Washington DC 20001 530198090 501(c)(3) 66539 Fair Market Value Catering Support of local community educational programs Committee for Hispanic Children and Families Inc 110 William St Suite 1802 New York NY 10038 112622003 501(c)(3) 8500 Support of local community educational programs Education Law Center 60 Park Place Newark NJ 07102 222104555 501(c)(3) 20000 Support of local community educational programs The Education Trust Inc 1250 H Street NW Suite 700 Washington DC 20005 523636158 501(c)(3) 10000 Support of local community educational programs Every Child Valued 175 Johnson Avenue Lawrenceville NJ 08648 264654078 501(c)(3) 48474 Support of local community educational programs Ewing Public Education Foundation Inc PO Box 7033 Ewing NJ 08628 223347353 501(c)(3) 43750 1588 Fair Market Value Catering Support of local community educational programs Dual Language Education of New Mexico 1309 Fourth Street SW Suite E Albuquerque NM 87102 850477820 501(c)(3) 7500 Support of local community educational programs Support of local community educational programs Hispanics Inspiring Students' Performance and Achievement (HISPA) 3587 Highway 9N - 145 Freehold NJ 07728 521825305 501(c)(3) 8974 2431 Fair Market Value Catering Support of local community educational programs Lawrence Township Community Foundation PO Box 6707 Lawrenceville NJ 08648 223835387 501(c)(3) 15000 Support of local community educational programs Hurricane Sandy New Jersey Relief Fund Inc One Gateway Center Newark NJ 07102 364745729 501(c)(3) 5425 Support of local community educational programs Institute for Educational Leadership 4455 Connecticut Avenue NW Washington DC 20008 521198450 501(c)(3) 5000 Support of local community educational programs The Latino Institute Inc 50 Park Place Suite 1539 Newark NJ 07102 201516874 501(c)(3) 28500 Support of local community educational programs Junior Achievement of New Jersey 4365 Route 1 South Princeton NJ 08540 221774147 501(c)(3) 20284 Support of local community educational programs Lawrence Township Education Foundation Inc 17 Phillips Ave Lawrenceville NJ 08648 223192024 501(c)(3) 81612 Support of local community educational programs Lawrenceville Fire Company 64 Phillips Avenue Lawrenceville NJ 08648 237330548 501(c)(3) 10000 Support of local community educational programs Life Pieces to Masterpieces 1600 Otis Street NE Washington DC 20018 522076894 501(c)(3) 10000 Support of local community educational programs Literacy Volunteers of Mercer County 3535 Quakerbridge Road Hamilton NJ 08619 223502495 501(c)(3) 10000 Support of local community educational programs Mercer Street Friends 151 Mercer St Trenton NJ 08618 210733990 501(c)(3) 5000 Support of local community educational programs National Alliance on Mental Illness (NAMI) Mercer County 3371 Brunswick Pike Suite 124 Lawrenceville NJ 08648 222587453 501(c)(3) 10100 4970 Fair Market Value Printing Support of local community educational programs Mercer County 640 South Broad Street Box 8068 Trenton NJ 08650 216000856 Government 9372 Fair Market Value Catering Support of local community educational programs National Center for Learning Disabilities 381 Park Ave South Suite 140 New York NY 10016 132899381 501(c)(3) 5000 Support of local community educational programs National Urban League 120 Wall Street New York NY 10005 131840489 501(c)(3) 42500 Support of local community educational programs Nat Commission on Asian American and Pacific Islander Research in Ed 82 Washington Square East Pless annex New York NY 10003 135562308 501(c)(3) 8150 Fair Market Value Printing Support of local community educational programs New Jersey Education Foundation Partnership Inc PO Box 8082 Red Bank NJ 07701 364613556 501(c)(3) 15000 3341 Fair Market Value Catering Support of local community educational programs Parents Step Ahead Inc 2102 Empire Central Dallas TX 75235 262477378 501(c)(3) 35000 Support of local community educational programs Princeton Healthcare System Foundation 3828 US Route One Princeton NJ 08540 222225911 501(c)(3) 5268 Support of local community educational programs Princeton YWCA 59 Paul Robeson Place Princeton NJ 08540 210635056 501(c)(3) 10180 3345 Fair Market Value Catering Support of local community educational programs Rutgers Universtiy Foundation Winanta Hall 7 College Avenue New Brunswick NJ 08901 237318742 501(c)(3) 5100 Support of local community educational programs Rutgers University 3 Rutgers Plaza New Brunswick NJ 08901 226001086 501(c)(3) 20000 Support of local community educational programs Stony Brook Millstone Watershed Association 31 Titus Mill Road Pennington NJ 08534 210649717 501(c)(3) 8000 Support of local community educational programs Morris Hall - St Lawrence Inc (StLawrence Rehabilitation Center) 2381 Lawrenceville Road Lawrenceville NJ 08648 522250044 501(c)(3) 13000 Support of local community educational programs Richard Stockton College of NJ 101 Vera King Farris Drive Galloway NJ 08205 222832788 501(c)(3) 24000 Support of local community educational programs The College Board 2099 Gateway Place Suite 550 San Jose CA 95110 131623965 501(c)(3) 20000 Support of local community educational programs United Way of Greater Mercer County 3150 Brunswick Pike Lawrenceville NJ 08648 210683073 501(c)(3) 50635 5485 Fair Market Value Printing and Catering Support of local community educational programs Woodrow Wilson National Fellowship Foundation 5 Vaughn Drive Suite 300 Princeton NJ 08543 210703075 501(c)(3) 150000 Support of local community educational programs Young Audiences of New Jersey Inc 200 Forrestal Road Princeton NJ 08540 237384991 501(c)(3) 55000 Support of local community educational programs Ewing Public Schools 2099 Pennington Road Ewing NJ 08638 216000324 Government 24849 Fair Market Value Catering and Supplies Support of local community educational programs New Jersey City University Foundation Inc 2039 Kennedy Blvd Jersey City NJ 07305 237261698 501(c)(3) 16500 Support of local community educational programs US Hispanic Leadership Institute 431 South Dearborn Ste 1203 Chicago IL 60605 363191740 501(c)(3) 5000 Support of local community educational programs Wagner College One Campus Road Staten Island NY 10301 135604699 501(c)(3) 30000 Support of local community educational programs Princeton Area Community Foundation 15 Princess Road Lawrenceville NJ 08648 521746234 Government 5955 Fair Market Value Catering Support of local community educational programs Trenton Board of Education 108 North Clinton Ave Trenton NJ 08609 216000326 Government 6089 Fair Market Value Catering Support of local community educational programs New Venture Fund 1201 Connecticut Avenue Washington DC 20036 205806345 501(c)(3) 50000 Support of local community educational programs New York University 82 Washington Street New York NY 10003 135562308 501(c)(3) 15000 Support of local community educational programs Plansmart NJ 118 West State Street Trenton NJ 08608 221854716 501(c)(3) 5000 Support of local community educational programs Asian & Pacific Islander American Scholarship Fund 2025 M Street NW Ste 610 Washington DC 20036 571192973 501(c)(3) 10000 Support of local community educational programs 57 0 Historically Black Colleges and Universities Presidential Scholarship 15 146105 Trenton Central High School Scholarship 6 190135 Research Fellowships 1 29500 Part I, Line 2: The ETS Center for Advocacy and Philanthropy, a division of ETS which 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 1 1 X X X X 1 1 0 0 0 1 0 1 0 Landgraf Kurt M President & CEO 660236 0 516801 0 130277 0 22950 0 19260 0 1349524 0 0 0 Bailey Diane A VP Production & Logisitics 192386 0 97295 0 25566 0 28516 0 13812 0 357575 0 0 0 Basehore John VP & Treasurer 192788 0 117469 0 41208 0 31087 0 15460 0 398012 0 0 0 Donado Yvette SVP People, Process & Comm 260056 0 131287 0 31450 0 38603 0 16460 0 477856 0 0 0 Draper Jr William C VP College Board Programs 210834 0 125000 0 48573 0 33018 0 2500 0 419925 0 0 0 Elliott Thomas J VP & CLO Strategic Workforce 166995 0 100361 0 123474 0 22342 0 21410 0 434582 0 19763 0 Farnum Marisa VP Assessment Development 177305 0 99189 0 45190 0 29156 0 16312 0 367152 0 0 0 Freddo Michael J VP & Controller 194417 0 88800 0 33767 0 29377 0 15502 0 361863 0 0 0 Gilbertson Bruce M VP Construction & Facilities 207291 0 102155 0 30173 0 29938 0 0 0 369557 0 0 0 Hayon Jack SVP & Chief Financial Officer 316497 0 216000 0 49317 0 47610 0 22020 0 651444 0 0 0 Hernandez Sandra VP Finance 207162 0 128425 0 26247 0 30895 0 19540 0 412269 0 0 0 House Naomi President ISA 325785 0 0 0 105937 0 48620 0 15386 0 495728 0 0 0 Hunt David VP & COO Global 254948 0 181130 0 25181 0 36999 0 15556 0 513814 0 0 0 Johnson-Gregory Sheree L VP & Assoc General Counsel 222037 0 133971 0 19542 0 32221 0 21166 0 428937 0 0 0 Kerins Nancy J SVP Production & Delivery 295166 0 187387 0 134800 0 22950 0 17949 0 658252 0 37489 0 Lawrence Ida M SVP Research & Development 278238 0 144113 0 42641 0 42375 0 19820 0 527187 0 0 0 Lazer Stephen VP Student & Teacher Asses 249372 0 127840 0 22219 0 36102 0 19520 0 455053 0 0 0 MacDonald Walter B Executive VP & COO 345844 0 243360 0 59411 0 22950 0 20203 0 691768 0 0 0 Mazzeo John VP Stat Analysis & Psych Research 216486 0 126509 0 43966 0 33408 0 0 0 420369 0 0 0 Miller George VP Strategic Workforce Solutions 213432 0 13943 0 18845 0 30334 0 20992 0 297546 0 0 0 Nelson Scott F VP Marketing & Public Affairs 221599 0 143408 0 35823 0 34505 0 19408 0 454743 0 0 0 Nettles Michael T SVP - Policy Eval & Research Ctr 237068 0 126835 0 44745 0 37284 0 22020 0 467952 0 0 0 Oswald John VP & GM K12 Assessment Programs 233579 0 117800 0 41519 0 22950 0 13960 0 429808 0 0 0 Paris Scott G VP Research 220875 0 106000 0 41781 0 35058 0 22020 0 425734 0 0 0 Payne David G VP & COO Higher Education 224707 0 112500 0 39883 0 22889 0 13576 0 413555 0 0 0 Pfund Rebecca VP IT Production 199840 0 109205 0 24007 0 28896 0 19666 0 381614 0 0 0 Pote Stephen K VP & Chief Quality Officer 212355 0 118223 0 23516 0 31282 0 14544 0 399920 0 0 0 Powell George D VP & COO TLC & Nat ELL 229970 0 120155 0 63062 0 22950 0 15044 0 451181 0 0 0 Rockey Anne F VP Test Taker Services 221164 0 104246 0 8940 0 30551 0 14032 0 378933 0 0 0 Schroeder Glenn C SVP & General Counsel 312609 0 149344 0 26149 0 43898 0 20966 0 552966 0 0 0 Tabbiner Philip S SVP, Bus Innovation & Growth 10390 0 15000 0 629665 0 997 0 853 0 656905 0 15995 0 Tyler Linda L VP New Product Development 167170 0 73484 0 47982 0 27501 0 13812 0 329949 0 0 0 Wakeman Daniel VP & Chief Information Officer 208994 0 115916 0 24136 0 31391 0 21260 0 401697 0 0 0 Weaver Scott V VP & Chief Strategy Officer 242576 0 119351 0 24765 0 34977 0 21760 0 443429 0 0 0 Bennett Randy E Frederiksen Chair-Assess Innov 228579 0 62990 0 24881 0 160650 0 12658 0 489758 0 0 0 Mislevy Robert Lord Chair in Meas & Stat 267662 0 68850 0 10195 0 22950 0 12820 0 382477 0 0 0 Kirsch Irwin Tyler Chair LG Scale Assessment 246495 0 67647 0 24750 0 22950 0 15172 0 377014 0 0 0 Leon Abel General Manager 210000 0 87875 0 14894 0 12750 0 8965 0 334484 0 0 0 Kane Michael Messick Chair in Test Validity 235172 0 48616 0 12496 0 22256 0 13960 0 332500 0 0 0 Ramsey Paul A Former SVP Global Dev & Relations 120625 0 0 0 0 0 0 0 0 0 120625 0 0 0 Part I, Line 1a Part I, Line 1a: First-class or charter travel: Officers (2) and Trustees (2) received this benefit during 2013. It was not treated as taxable compensation to the individual. This benefit is provided based on length of travel time required of the individual. Part I, Line 1a: Tax gross-up payments: Officers (29) received this benefit during 2013. It was treated as taxable compensation to the individual. Part I, Line 1a: Housing allowance or residence for personal use: Officer (1) received this benefit during 2013. It was treated as taxable compensation to the individual. Part I, Line 3 ETS engages an external executive independent compensation consultant organization to review and advise on excess benefit transaction law and to prepare an annual report and analysis of proposed compensation of ETS's CEO and officers. The analysis includes data on compensation for comparable organizations and similar occupations/functions in similarly situated organizations. The external executive independent compensation consultant also develops a Letter of Reasonableness regarding the analyses of Officers 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 Officer (1) received a severance payment from the organization in 2013. Philip Tabbiner - $576,500. The officers participated in a supplemental non-qualified retirement plan under 457(f). The earned portion of each officer's deferred compensation is reported in Column C. The vested portion of each officer's deferred compensation is reported in Column F. In 2013, Philip Tabbiner received a $35,053 payment from the 457(f) nonqualified retirement plan. Part I, Line 6a and 7: ETS incentive 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's performance. Payments under these programs are realized when ETS meets and achieves its annual performance targets for the year, as determined by holistic assessment of metrics from ETS's balanced scorecard objectives, including financial, operational, customer and growth goals. Deanna Basehore see Part V 47557 see Part V 0 Teresa M Sanchez-Lazer see Part V 156654 see Part V 0 Charles E Cascio see Part V 148775 see Part V 0 Paul Ramsey see Part V 120625 see part V 0 Part IV: (a)Name of person: Deanna Basehore(b)Relationship between interested person and the organization: family member of John Basehore, Current Officer(d)Description of transaction: Salary and benefits(a)Name of person: Teresa M. Sanchez-Lazer(b)Relationship between interested person and the organization: family member of Stephen Lazer, Current Officer(d)Description of transaction: Salary and benefits(a)Name of person: Charles E. Cascio(b)Relationship between interested person and the organization: Charles E. Cascio is a former ETS officer who retired in 2010.(d)Description of transaction: In 2013 Charles E. Cascio through his limited liability company, Cascio Communications and Consulting LLC, provided consulting services to ETS.(a)Name of person: Paul Ramsey(b)Relationship between interested person and the organization: Paul Ramsey is a former ETS officer who retired in 2009.(d)Description of transaction: In 2013 Paul Ramsey provided consulting services to ETS. Form 990, Part VI, Section B, line 11 All Trustees received a copy of Form 990 for review and information prior to Board of Trustees meeting. Form 990 was reviewed by the Board of Trustees' Audit Committee and the full Board of Trustees prior to filing. 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 includes a policy on Conflict of Interest. The Trustees annually complete a Trustee Disclosure Statement and a Trustee Affiliation Form. The Disclosure Statement requests if there are any Trustees with 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 might be in contrast with the Code of Ethics, 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 rescuing 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 the Code of Ethics 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 or procedures from the Corporate Secretary or the General Counsel and Chief Ethics Officer. 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 policy, which contains its Conflict of Interest Policy, to discuss the matter with their supervisors. Employees wishing to engage in outside activities must submit an Outside Activities Report to their division director 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 Strategic Workforce Solutions (SWS)(ETS's Human Resources Department) 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 SWS 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 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 Strategic Workforce Solutions. 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's Board of Trustees ("Board") engages an independent external organization, a leading consultant in executive compensation, to review the structure and process of Officer compensation to ensure practices that are within IRS and not-for-profit guidelines. The external organization issues a letter to the Board that presents their expert opinion as to the reasonableness and comparability of the total remuneration of the executives. The Board has reviewed and agreed upon the analysis and the Opinion Letter as to the Reasonableness of the Total Compensation Provided for the executives working for ETS. The independent, external executive compensation consultant prepares a Letter of Reasonableness regarding the analysis of Officer pay consistent with government guidelines which is presented to the Board Committee on Governance and Human Resources and the full Board for review, comment and approval. Form 990, Part VI, Section C, line 19 Currently, ETS does not provide its governing documents, conflict of interest policy, or financial statements available to the public. This process is consistent with prior years. Form 990, Part IX, line 11g Test Admin and Consultants: Program service expenses 336,773,290. Management and general expenses 22,149,692. Fundraising expenses 0. Total expenses 358,922,982. Subcontracting Costs: Program service expenses 103,052,617. Management and general expenses 20,333,443. Fundraising expenses 0. Total expenses 123,386,060. Form 990, Part XI, line 9: Equity earnings in affiliates 65,851,000. Income from discontinued operations -3,291,260. ETS Tech disregarded entity income -1,786,000. Capstar disregarded entity income 28,000. Cumulative effect of pension adjustment -6,691,605. Capstar LLC Rosedale Road Princeton NJ 08541 820582786 Inactive DE 0 0 Educational Testing Service ETS Tech LLC Rosedale Road Princeton NJ 08541 454054815 Holding company DE 0 12580000 Educational Testing Service Computerized Assessments and Learning LLC 1202 East 23rd Street Suite D Lawrence KS 66046 204973305 Educational services KS 9795000 21720000 Educational Testing Service Likelive LLC Rosedale Road Princeton NJ 08541 383860534 Educational services DE 64000 0 Educational Testing Service Educational Testing Service Retiree's Benefit Trust Rosedale Road MS 20-J Princeton NJ 08541 223372287 Benefit Plan NJ 501(c)9 Educational Testing Service 0 Educational Testing Service (ETS) Global BV Strawinskylaan 929 Amsterdam NL 1077 XX Educational services NL Educational Testing Service C 35716127 13025881 1.00000 1 Educational Testing Service Canada Inc 212-133 Princess St Kingston Ontario CA K7L 1A8 Educational services CA Educational Testing Service C 1776827 993690 1.00000 1 ETS 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