2013-11-14T09:37:00-06:00 2012-12-31 521855942 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2012-01-01 530241211 PHARMACEUTICAL RESEARCH & MANUFACTURERS OF AMERICA PHAR 2028353400 950 F STREET NW NO 300 WASHINGTON DC 20004 JOHN J CASTELLANI 2028353400 2013-11-14 1 DEBORAH G KOSNETT P00290720 2022932200 2013-11-13 2012 2016-02-24 21:20:13Z PHRMA JOHN J CASTELLANI 950 F STREET NW NO 300 WASHINGTON DC 20004 207407265 0 X WWW.PHRMA.ORG X 1958 DE PHRMA'S MISSION IS WINNING ADVOCACY FOR PUBLIC POLICIES THAT ENCOURAGE THE DISCOVERY OF LIFE-SAVING AND LIFE-ENHANCING NEW MEDICINES FOR PATIENTS BY PHARMACEUTICAL/BIOTECHNOLOGY RESEARCH COMPANIES. 31 30 217 2867 0 0 0 0 200881920 200404451 2064200 3785594 1905111 29037 204851231 204219082 17107455 18111007 0 0 50566521 54592800 0 0 0 133450836 133413799 201124812 206117606 3726419 -1898524 128749479 127678178 76115941 77874942 52633538 49803236 PHRMA'S MISSION IS WINNING ADVOCACY FOR PUBLIC POLICIES THAT ENCOURAGE THE DISCOVERY OF LIFE-SAVING AND LIFE-ENHANCING NEW MEDICINES FOR PATIENTS BY PHARMACEUTICAL/BIOTECHNOLOGY RESEARCH COMPANIES. 0 0 PUBLIC POLICY ADVOCACY: PHRMA'S MISSION IS TO CONDUCT EFFECTIVE ADVOCACY FOR PUBLIC POLICIES THAT ENCOURAGE DISCOVERY OF IMPORTANT NEW MEDICINES FOR PATIENTS BY PHARMACEUTICAL/BIOTECHNOLOGY RESEARCH COMPANIES. PHRMA ACHIEVES THIS MISSION BY WORKING WITH, AND ON BEHALF OF, ITS MEMBER COMPANIES BEFORE GOVERNMENTAL AND REGULATORY BODIES IN THE UNITED STATES AND THROUGHOUT THE WORLD IN SUPPORT OF PRO-PATIENT, PRO-INNOVATION POLICIES. SPECIFICALLY, PHRMA ADVOCATES FOR BROAD PATIENT ACCESS TO SAFE AND EFFECTIVE MEDICINES THROUGH A FREE MARKET, WITHOUT GOVERNMENT PRICE CONTROLS; STRONG INTELLECTUAL PROPERTY INCENTIVES; AND TRANSPARENT, EFFICIENT REGULATION AND A FREE FLOW OF INFORMATION TO PATIENTS. MEMBER SERVICES: IN REPRESENTING THE COUNTRY'S LEADING PHARMACEUTICAL RESEARCH AND BIOTECHNOLOGY COMPANIES, PHRMA PROVIDES A FORUM FOR MEMBER COMPANIES TO PARTICIPATE IN DISCUSSIONS OF RELEVANT HEALTH CARE ISSUES AND TO DEVELOP CONSENSUS POSITIONS ON MATTERS OF PUBLIC POLICY ADVOCACY. MEMBER COMPANIES PARTICIPATE IN PHRMA ACTIVITIES THROUGH REPRESENTATION ON THE BOARD OF DIRECTORS, BOARD-LEVEL COMMITTEES AND KEY ISSUE TEAMS, STAFF WORK GROUPS, SECTIONS, TASK FORCES, AND SUBCOMMITTEES. MEMBER COMPANY REPRESENTATIVES ALSO REGULARLY COMMUNICATE WITH PHRMA STAFF. GENERAL EDUCATION ABOUT BIOPHARMACEUTICAL INDUSTRY: PHRMA DISSEMINATES INFORMATION ABOUT BIOPHARMACEUTICAL COMPANIES, THEIR PRODUCTS, AND THEIR BUSINESS, SCIENTIFIC AND PHILANTHROPIC ACTIVITIES THROUGH A WIDE RANGE OF CHANNELS, INCLUDING PROFILES, REPORTS, PRINCIPLES, GUIDELINES, FACT SHEETS, POLICY PAPERS AND OTHER RESOURCES. THESE EFFORTS BOLSTER PHRMA'S ABILITY TO EDUCATE AND INFORM MEMBERS OF THE GENERAL PUBLIC AS WELL AS POLICYMAKERS, THE MEDIA, PATIENTS AND OTHERS IN THE HEALTH CARE COMMUNITY ABOUT THE BIOPHARMACEUTICAL INDUSTRY AND PHRMA'S PUBLIC POLICY ACTIVITIES IN PARTICULAR. 0 0 1 1 0 0 0 0 0 1 0 0 0 1 1 0 1 0 1 1 1 0 0 0 0 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 1 385 0 1 217 1 0 1 JA 0 0 1 1 0 X 31 30 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 CA X ARDELL PERSINGER 2028353400 950 F STREET NW NO 300 WASHINGTON DC 20004 JOHN C LECHLEITER PHD 2.00 0.00 X X 0 0 0 ROBERT HUGIN 2.00 0.00 X X 0 0 0 IAN READ 2.00 0.00 X 0 0 0 MARK ALTMEYER 2.00 0.00 X 0 0 0 LAMBERTO ANDREOTTI 2.00 0.00 X 0 0 0 PHILIP BLAKE 2.00 0.00 X 0 0 0 MICHAEL BONNEY 2.00 0.00 X 0 0 0 ROBERT A BRADWAY 2.00 0.00 X 0 0 0 LONNEL COATS 2.00 0.00 X 0 0 0 DEIDRE P CONNELLY 2.00 0.00 X 0 0 0 JOAQUIN DUATO 2.00 0.00 X 0 0 0 PAUL R FONTEYNE 2.00 0.00 X 0 0 0 KENNETH C FRAZIER 2.00 0.00 X 0 0 0 JOHN P GARGIULO 2.00 0.00 X 0 0 0 JERZY GRUHN 2.00 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PHRMA MAKES CONTRIBUTIONS TO OTHER ORGANIZATIONS FOR SECTION 527 EXEMPT FUNCTION ACTIVITIES. 2042004 865219 1176785 3268214 2638440 629774 8277181 6449469 1827712 3634271 CAPITAL LEASE 142252 POSTRETIREMENT BENEFITS 12670011 PENSION BENEFITS 37925816 DEFERRED RENT EXPENSE 3136382 ACCRUED ANNUAL LEAVE 1145311 55019772 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: PHRMA BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. PHRMA'S INCOME TAX RETURNS ARE GENERALLY SUBJECT TO EXAMINATION BY THE IRS FOR THREE YEARS AFTER THEY WERE FILED. 0 EAST ASIA AND THE PACIFIC - 1 4 PROGRAM SERVICES MONITORS FOREIGN REGS 3146876 MIDDLE EAST AND NORTH AFRICA - 1 1 PROGRAM SERVICES MONITORS FOREIGN REGS 591090 EAST ASIA AND THE PACIFIC - 0 0 GRANT MAKING 1215012 EUROPE (INCLUDING ICELAND & GREENLAND) - 0 0 GRANT MAKING 807640 NORTH AMERICA - CANADA AND MEXICO, BUT 0 0 GRANT MAKING 163000 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 GRANT MAKING 125000 SOUTH AMERICA - ARGENTINA, BOLIVIA, 0 0 GRANT MAKING 125000 2 5 0 0 2 5 6173618 0 6173618 EAST ASIA AND THE PACIFIC GRANT-GENERAL 165750 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 30000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 36578 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 14890 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 7440 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 30354 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 50000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 35000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 15000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 100000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 100000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 190000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 115000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 125000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 125000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 50000 BANK WIRE EAST ASIA AND THE PACIFIC GRANT-GENERAL 25000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 75000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 58000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 103000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 175000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 70000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 38480 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 38160 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 50000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 50000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 50000 BANK WIRE EUROPE (INCLUDING ICELAND & GREENLAND) GRANT-GENERAL 100000 BANK WIRE NORTH AMERICA GRANT-GENERAL 40000 BANK WIRE NORTH AMERICA GRANT-GENERAL 60000 BANK WIRE NORTH AMERICA GRANT-GENERAL 53000 BANK WIRE NORTH AMERICA GRANT-GENERAL 10000 BANK WIRE RUSSIA & THE NEWLY INDEPENDENT STATES GRANT-GENERAL 125000 BANK WIRE SOUTH AMERICA GRANT-GENERAL 20000 BANK WIRE SOUTH AMERICA GRANT-GENERAL 25000 BANK WIRE SOUTH AMERICA GRANT-GENERAL 30000 BANK WIRE SOUTH AMERICA GRANT-GENERAL 50000 BANK WIRE 0 25 0 0 0 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: DEPENDING ON THE NATURE AND PURPOSE OF THE GRANT, PHRMA MAY REQUIRE THE RECIPIENT OF A GRANT TO SUBMIT PERIODIC REPORTS OR SIMILAR DOCUMENTATION TO VERIFY THAT THE GRANT IS BEING USED APPROPRIATELY FOR THE INTENDED USE. IN GENERAL, UNLESS THE GRANT IS USED TO SUPPORT A SPECIFIC EFFORT OR PROJECT, THEN NO ADDITIONAL FORMAL MONITORING MAY BE INVOLVED BEYOND ENSURING APPROPRIATE DOCUMENTATION OF THE GRANT AND LEGITIMACY OF THE RECIPIENT ORGANIZATION. IRRESPECTIVE OF THE NATURE OR PURPOSE OF THE GRANT, PHRMA AWARDS GRANTS BASED ON THE UNDERSTANDING THAT RECIPIENTS ARE RESPONSIBLE FOR ENSURING THAT GRANTS ARE USED FOR PROPER PURPOSES AND IN COMPLIANCE WITH ALL LEGAL REQUIREMENTS. 1 A PHILLIP RANDOLPH INSTITUTE 815 16TH STREET NW 5TH FLR WASHINGTON DC 20006 132548181 501(C)4 10000 CONTRIB-GENERAL ACTION CF 66 NOTTINGHAM RD FAIR LAWN NJ 07410 200349885 501(C)4 10000 CONTRIB-GENERAL AIDS INSTITUTE INC 17 DAVIS BLVD STE 403 TAMPA FL 33606 650380952 501(C)3 20000 CONTRIB-GENERAL ALABAMA HOUSE REPUBLICAN CAUCUS 2835 ZELDA RD STE 1 MONTGOMERY AL 36106 631239670 527 5000 CONTRIB-POLITICAL ALABAMA SENATE REPULICAN CAUCUS 1603 FIRST AVENUE EAST JASPER AL 35501 454145072 527 5000 CONTRIB-POLITICAL ALDER HEALTH SERVICES INC 100 N CAMERON STREET SUITE 301 HARRISBURG PA 17101 232485020 501(C)3 5000 CONTRIB-GENERAL ALLIANCE FOR AGING RESEARCH 750 17TH STREET NW SUITE 1100 WASHINGTON DC 20006 541379174 501(C)3 15000 CONTRIB-EVENT ALLIANCE FOR 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501(C)3 25000 CONTRIB-GENERAL YES ON PROP 30 2633 TELEGRAPH AVE STE 317 OAKLAND CA 94612 364718020 527 100000 CONTRIB-POLITICAL YOUTHLINKS INDIANA INDIANA SPORTS CORPORATION 201 SOUTH CAPITOL AVENUE SUITE 1200 INDIANAPOLIS IN 46225 310975117 501(C)3 5000 CONTRIB-GENERAL 231 100 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: DEPENDING ON THE NATURE AND PURPOSE OF THE GRANT, PHRMA MAY REQUIRE THE RECIPIENT OF A GRANT TO SUBMIT PERIODIC REPORTS OR SIMILAR DOCUMENTATION TO VERIFY THAT THE GRANT IS BEING USED APPROPRIATELY FOR THE INTENDED USE. IN GENERAL, UNLESS THE GRANT IS BEING USED TO SUPPORT A SPECIFIC EFFORT OR PROJECT, THEN NO ADDITIONAL FORMAL MONITORING MAY BE INVOLVED BEYOND ENSURING APPROPRIATE DOCUMENTATION OF THE GRANT AND LEGITIMACY OF THE RECIPIENT ORGANIZATION. IRRESPECTIVE OF THE NATURE OR PURPOSE OF THE GRANT, PHRMA AWARDS GRANTS BASED ON THE UNDERSTANDING THAT RECIPIENTS ARE RESPONSIBLE FOR ENSURING THAT GRANTS ARE USED FOR PROPER PURPOSES AND IN COMPLIANCE WITH ALL LEGAL REQUIREMENTS. X X X X X 1 1 X X X X X 0 1 1 JOHN CASTELLANI 1466283 0 644833 0 61879 0 806967 0 21633 0 3001595 0 65243 0 ARDELL PERSINGER 379740 0 154803 0 7836 0 209700 0 23738 0 775817 0 0 0 JAMES SPEARS 464203 0 0 0 6660 0 78484 0 6964 0 556311 0 0 0 RICHARD SMITH 472544 0 437907 0 5913 0 181058 0 27902 0 1125324 0 27376 0 CHESTER DAVIS 541945 0 175934 0 9038 0 132792 0 24079 0 883788 0 26828 0 DAVID WHEADON 429434 0 123658 0 5246 0 161300 0 13014 0 732652 0 28295 0 ROBERT FILIPPONE 383832 0 120315 0 4456 0 149432 0 31950 0 689985 0 14546 0 JEFF BOND 368404 0 107950 0 5626 0 166043 0 24829 0 672852 0 23681 0 JOSEPHINE MARTIN 385244 0 58500 0 5476 0 134164 0 24820 0 608204 0 0 0 ROSZELL HUNTER 369795 0 56250 0 4308 0 102884 0 29079 0 562316 0 0 0 IRA WOLF 292584 0 8000 0 469534 0 117012 0 7037 0 894167 0 0 0 SALVATORE ALESCI 319313 0 102000 0 200531 0 53056 0 24585 0 699485 0 0 0 LORI REILLY 285099 0 277534 0 9508 0 100470 0 25902 0 698513 0 0 0 SANDEEP DHAR 287736 0 237076 0 9108 0 115950 0 20987 0 670857 0 0 0 DOUG COMPTON 249466 0 220624 0 6843 0 116713 0 28347 0 621993 0 0 0 NEAL COMSTOCK 43199 0 550159 0 821752 0 13522 0 0 0 1428632 0 0 0 DIANE BIERI 64214 0 394171 0 599391 0 12664 0 483 0 1070923 0 0 0 HUGH W METHENY 15422 0 387948 0 386781 0 13114 0 0 0 803265 0 0 0 JAMES BRYANT HALL 0 0 125000 0 0 0 0 0 0 0 125000 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL: THE PRESIDENT AND EVP FOR ADVOCACY ARE AUTHORIZED TO TRAVEL USING FIRST CLASS. TRAVEL FOR COMPANIONS: COMPANIONS OCCASIONALLY TRAVEL WITH PHRMA EXECUTIVES ON BUSINESS TRAVEL. IN SUCH CASES, COMPANION TRAVEL IS INCLUDED IN THE TAXABLE INCOME OF THE PHRMA EXECUTIVE. TAX INDEMNIFICATION AND GROSS UP PAYMENTS: THE JAPAN REPRESENTATIVE, AN EXPATRIATE RESIDING IN TOKYO, JAPAN AND ONE OF PHRMA'S TOP 5 COMPENSATED EMPLOYEES, IS TAX-EQUALIZED. GROSS-UP PAYMENTS MAY BE PROCESSED FOR PHRMA EXECUTIVES WHEN A FRINGE BENEFIT IS CONSIDERED TAXABLE INCOME AND THERE IS A BUSINESS REQUIREMENT GIVING RISE TO THE TAXABLE FRINGE BENEFIT. HOUSING ALLOWANCE: THE APARTMENT LEASE FOR THE JAPAN REPRESENTATIVE WHO RESIDES IN TOKYO, JAPAN, IS PAID FOR BY PHRMA. THE VALUE OF THE APARTMENT LEASE IS INCLUDED IN THE INCOME OF THE JAPAN REPRESENTATIVE AND TAX EQUALIZED. HEALTH OR SOCIAL CLUB DUES: ALL PHRMA EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN A PHRMA SPONSORED FITNESS CLUB MEMBERSHIP OR MAY RECEIVE A REIMBURSEMENT UP TO A CERTAIN VALUE ANNUALLY FOR A FITNESS CLUB MEMBERSHIP OF THEIR CHOOSING. THE VALUE OF THIS BENEFIT IS CONSIDERED TAXABLE INCOME TO THE EMPLOYEE. THE JAPAN REPRESENTATIVE BELONGS TO THE TOKYO AMERICAN CLUB. THIS CLUB MEMBERSHIP IS PAID FOR BY PHRMA, INCLUDED IN THE INCOME OF THE JAPAN REPRESENTATIVE AND TAX EQUALIZED. PART I, LINES 4B-C PHRMA SPONSORS A NON-QUALIFIED SECTION 457(F) DEFERRED COMPENSATION PLAN. AMOUNTS PAID OUT UNDER THIS PLAN ARE INCLUDED IN PART VII (WHEN PAID) AND SCHEDULE J, RESPECTIVELY (WHEN PAID, EARNED AND REPORTED IN A PRIOR YEAR). NAME: 457F (PRIOR YEAR LTIP & DEF. COMP PAID IN 2012); 457F (LTIP & DEF. COMP AWARDED IN 2012 BUT NOT PAID UNTIL FUTURE YEARS) DIANE BIERI: $308,635; $0 JEFF BOND: $20,374; $54,735 JOHN CASTELLANI: $56,133; $718,875 NEAL COMSTOCK: $284,519; $0 CHESTER DAVIS: $23,082; $81,885 ROBERT FILIPPONE: $12,515; $57,750 ROSZELL HUNTER: $0; $28,125 JOSEPHINE MARTIN: $0; $43,875 WES METHENY: $304,421; $0 ARDELL PERSINGER: $58,051; $0 RICHARD SMITH: $303,507; $72,000 DAVID WHEADON: $24,344; $64,770 DOUG COMPTON: $174,465; $25,646 SANDEEP DHAR: $184,987; $28,938 LORI REILLY: $202,062; $29,028 IRA WOLF 2011 TEQ X 110297 110297 0 0 1 110297 TAUZIN STRATEGIC NETWORKS LLC FORMER PRESIDENT/CEO WILBERT TAUZIN IS A PRINCIPAL OF THIS COMPANY 373158 CONSULTING SERVICES 0 TIBER CREEK HEALTH STRATEGIES LLC FORMER KEY EMPLOYEE JAMES BRYANT HALL IS A PRINCIPAL OF THIS COMPANY 240000 CONSULTING SERVICES 0 METHENY PUBLIC AFFAIRS FORMER KEY EMPLOYEE WES METHENY IS A PRINCIPAL OF THIS COMPANY 420000 CONSULTING SERVICES 0 DIANE BIERI FORMER KEY EMPLOYEE 144000 CONSULTING SERVICES 0 FORM 990, PART VI, SECTION A, LINE 6 A CORPORATION, SUBSIDIARY OR DIVISION OF A COMPANY WITH OPERATIONS IN THE UNITED STATES THAT IS PREDOMINANTLY ENGAGED IN THE RESEARCH, MANUFACTURING AND MARKETING OF INNOVATIVE FINISHED DOSAGE PRESCRIPTION PHARMACEUTICAL OR BIOLOGICAL MEDICINES MAY QUALIFY FOR PHRMA MEMBERSHIP. PHRMA HAS TWO CLASSES OF MEMBERSHIP: MEMBERS AND RESEARCH ASSOCIATES. MEMBERS ARE VOTING MEMBERS OF THE ASSOCIATION. RESEARCH ASSOCIATES ARE NON-VOTING MEMBERS. MEMBERS AND RESEARCH ASSOCIATES ARE REPRESENTED ON THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A PHRMA'S BOARD OF DIRECTORS IS ELECTED BY ITS REGULAR MEMBERS AT EACH REGULAR ANNUAL MEETING, UPON RECOMMENDATION OF THE NOMINATING COMMITTEE AND PRIOR APPROVAL THEREOF BY THE BOARD. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN MATTERS, SUCH AS AMENDING THE BY-LAWS OF THE ASSOCIATION, OR THE LEVYING OF SPECIAL ASSESSMENTS, REQUIRE MEMBER APPROVAL. FORM 990, PART VI, SECTION B, LINE 11 PHRMA'S FORM 990 IS PREPARED BY ITS ACCOUNTING FIRM, AND IS REVIEWED INTERNALLY BY KEY FINANCIAL MANAGEMENT, THE CFO AND INTERNAL LEGAL COUNSEL. A COPY OF THE FORM 990 IS PROVIDED TO THE FINANCE AND AUDIT COMMITTEE (A SUBCOMMITTEE OF THE BOARD OF DIRECTORS) PRIOR TO FILING. THE BOARD OF DIRECTORS IS ADVISED THAT THE FORM 990 HAS BEEN FILED AND THAT IT IS AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION B, LINE 12C PHRMA'S CONFLICT OF INTEREST POLICY (POLICY) REQUIRES ALL EMPLOYEES TO PROMPTLY DISCLOSE ANY FACT OR CIRCUMSTANCE THAT MAY INVOLVE A CONFLICT OF INTEREST TO THE EMPLOYEE'S SUPERVISOR OR THE LEGAL DEPARTMENT BEFORE STARTING AN ACTIVITY OR ACQUIRING AN INTEREST WHICH MAY BE QUESTIONABLE. THE POLICY IDENTIFIES SPECIFIC SITUATIONS WHICH MUST BE DISCLOSED BECAUSE A CONFLICT OF INTEREST COULD EXIST. EMPLOYEES ARE DIRECTED TO CONTACT PERSONNEL IN THE LEGAL DEPARTMENT OR FINANCE AND OPERATIONS DEPARTMENT WITH ANY QUESTIONS ABOUT A POSSIBLE CONFLICT OF INTEREST. OFFICERS AND KEY EMPLOYEES MUST COMPLETE AN ANNUAL CERTIFICATION THAT REQUIRES THEM TO CERTIFY THEIR DUTY TO COMPLY WITH THE POLICY AND TO DISCLOSE ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. MEMBERS OF PHRMA'S BOARD OF DIRECTORS ARE SUBJECT TO THE CONFLICT OF INTEREST POLICY WITH RESPECT TO MEMBERS OF THE BOARD OF DIRECTORS (DIRECTORS POLICY). THE DIRECTORS POLICY REQUIRES MEMBERS OF THE BOARD OF DIRECTORS TO DISCLOSE THE EXISTENCE OR POSSIBLE EXISTENCE OF ANY CONFLICT OF INTEREST TO THE BOARD OF DIRECTORS AND MEMBERS OF COMMITTEES OF THE BOARD OF DIRECTORS CONSIDERING THE PROPOSED MATTER GIVING RISE, OR RELATING, TO SUCH EXISTING OR POSSIBLE CONFLICT OF INTEREST. THE REMAINING BOARD OF DIRECTORS OR COMMITTEE MEMBERS DETERMINE IF A CONFLICT OF INTEREST EXISTS WITH RESPECT TO THE DIRECTOR WHO MADE THE DISCLOSURE. IF A CONFLICT OF INTEREST IS FOUND TO EXIST, THE INTERESTED DIRECTOR IS BARRED FROM PARTICIPATING IN A MEETING OR ANY RELATED DELIBERATIONS DISCUSSING OR WITH RESPECT TO THE MATTER GIVING RISE TO THE CONFLICT OF INTEREST, RECEIVING ANY COMMUNICATIONS REGARDING SUCH MATTER, AND PARTICIPATING IN OR BEING PRESENT FOR A VOTE ON SUCH MATTER. EACH BOARD MEMBER MUST SIGN AN ANNUAL ACKNOWLEDGEMENT WITH RESPECT TO COMPLIANCE WITH THE DIRECTORS POLICY. FORM 990, PART VI, SECTION B, LINE 15 EACH EXECUTIVE'S PERFORMANCE IS ASSESSED ANNUALLY AGAINST SPECIFIC PERFORMANCE OBJECTIVES AND ORGANIZATION VALUES. SENIOR LEADERSHIP, INCLUDING THE PRESIDENT/CEO, REVIEW THESE EVALUATIONS AND MAKE RECOMMENDATIONS FOR ANY COMPENSATION ADJUSTMENTS, INCLUDING MERIT INCREASES AND BONUS APPROPRIATE TO PERFORMANCE AND WITHIN AVAILABLE BUDGET. THESE RECOMMENDATIONS ARE REVIEWED WITH AND APPROVED BY THE NOMINATION AND COMPENSATION COMMITTEE OF THE PHRMA BOARD. HUMAN RESOURCES REVIEWS ALL SALARY ADJUSTMENTS TO ASSURE SALARIES REMAIN WITHIN A REASONABLE RANGE COMPARED TO MARKET BENCHMARKS. PRESIDENT/CEO COMPENSATION IS ESTABLISHED BY PHRMA'S BOARD OF DIRECTORS, WITH RECOMMENDATION BY THE NOMINATION AND COMPENSATION COMMITTEE. THE GOVERNANCE AND COMPENSATION COMMITTEE REVIEWS AND APPROVES THE PRESIDENT/CEO'S ANNUAL COMPENSATION ADJUSTMENTS AND BONUS, BASED ON PERFORMANCE TO ANNUAL OBJECTIVES. PHRMA ENGAGES AN INDEPENDENT CONSULTANT TO ADVISE ON EXECUTIVE COMPENSATION, INCLUDING THAT OF THE PRESIDENT/CEO. FORM 990, PART VI, SECTION C, LINE 19 PHRMA DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. OTHER FEES FORM 990, PART IX, LINE 11G CONSULTANTS: TOTAL EXPENSES 32,341,475. PRODUCTION, WRITING, & EDITING: TOTAL EXPENSES 1,212,038. WEBSITE MAINTENANCE & DEV.: TOTAL EXPENSES 1,382,016. RECRUITING: TOTAL EXPENSES 1,035,407. OTHER: TOTAL EXPENSES 639,582. TRANSLATION: TOTAL EXPENSES 334,922. TEMPORARY SERVICES: TOTAL EXPENSES 125,969. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGES IN PENSION AND POST RETIREMENT -200,307. FORM 990, PART XII, LINE 2C THE AUDIT OVERSIGHT PROCESS REMAINS UNCHANGED FROM THE PRIOR YEAR. PHRMA PAC 1127 11TH STREET SUITE 300 SACRAMENTO CA 95814 204447742 POLITICAL CA 1 PHRMA INDEPENDENT EXPENDITURE COMMITTEE 1127 11TH STREET SUITE 300 SACRAMENTO CA 95814 900239652 POLITICAL CA 1 PHRMA RI PAC 125 WASHINGTON STREET UNIT 1 FOXBORO MA 02035 205127823 POLITICAL RI 1 PHRMA COLORADO ACTION FUND 1740 BROADWAY DENVER CO 80274 205123531 POLITICAL CO 1 PHRMA BETTER GOVERNMENT COMMITTEE 950 F STREET NW WASHINGTON DC 20004 521606127 POLITICAL DC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 PHRMA PAC R 78000 CASH PHRMA INDEPENDENT EXPENDITURE COMMITTEE R 489999 CASH PHRMA BETTER GOVT R 115590 CASH