2012-11-08T10:00:12-06:00 2011-12-31 861065772 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2011-01-01 953797687 GEMOLOGICAL INSTITUTE OF AMERICA INC GEMO 7606034000 5345 ARMADA DRIVE CARLSBAD CA 920084602 DAVID J TEARLE 7606034000 2012-11-07 1 SHARON ZORBACH P00125475 6192326500 2011 2016-02-24 21:20:13Z DONNA M BAKER 5345 ARMADA DRIVE CARLSBAD CA 920084602 216715607 0 X WWW.GIA.EDU X 1931 CA SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT. 17 15 1177 23 1144560 0 268910 340850 139629427 153997991 6872108 8099745 13906415 17573462 160676860 180012048 178278 458965 0 0 69715631 77623061 0 0 21570 41233748 53019110 111127657 131101136 49549203 48910912 287033716 324244613 46824553 54383296 240209163 269861317 X SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT. 0 0 21963473 435326 15787400 EDUCATION:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 93155253 138236507 LABORATORY:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 3481603 403106 RESEARCH & PUBLICATIONS:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 118600329 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 1 0 1 1 1 0 0 0 0 1 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 0 1 X 164 0 1 1177 1 1 1 1 BE BC HK IN IS UK SF TW AE TH 0 0 0 0 0 0 0 0 0 X 17 15 0 0 1 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AK AR CA FL GA HI KY ME MD MA MI MS NH NJ NM NY OK OR PA WV X DAVID J TEARLE VICE PRESIDENT AND CFO 7606034000 5345 ARMADA DRIVE CARLSBAD CA 920084602 X DONNA BAKER 40.00 X X 503240 0 54851 RODNEY C EWING 1.00 X 6000 0 0 JEFFREY H FISHER 1.00 X 6000 0 0 JOHN A GREEN 1.00 X 6259 0 0 SUSAN JACQUES 1.00 X 3000 0 0 DIONE D KENYON 1.00 X 0 0 0 FREDERICK N LEVINGER 1.00 X 6000 0 0 ANNA MARTIN 1.00 X 3000 0 0 ROLAND NAFTULE 1.00 X 6259 0 0 GLENN R NORD 1.00 X 3000 0 0 JAMES P SHINEHOUSE 1.00 X 3000 0 0 HANK B SIEGEL 1.00 X 6259 0 0 ARON SUNA 1.00 X 6111 0 0 EPHRAIM ZION 1.00 X 3000 0 0 PAUL KREUTZ 1.00 X 6000 0 0 STEVE RELYEA 1.00 X 6000 0 0 THOMAS YANG 1.00 X 6000 0 0 THOMAS MOSES 40.00 X 433075 0 38065 DAVID TEARLE 40.00 X 327278 0 38041 TAWFIC FARAH 40.00 X 289735 0 29517 LINDA SCHOLL 40.00 X 241856 0 22915 KATHRYN KIMMEL 40.00 X 235166 0 21892 LINDA ELLIS 40.00 X 209649 0 19726 PHILLIP YANTZER 40.00 X 216257 0 37693 BRUCE LANZL 40.00 X 215195 0 20006 CYNTHIA SANDERS 40.00 X 195357 0 19320 BEVERLY HORI 40.00 X 325249 0 36424 JOHN M KING 40.00 X 210777 0 27295 DONALD J FOSTER 40.00 X 197825 0 32503 SUSAN SCHINDELAR 40.00 X 189394 0 31928 SABRA C NORRIS 40.00 X 183926 0 22565 TIMOTHY N THOMAS 40.00 X 186233 0 26328 4236100 0 479069 108 0 1 0 DLA PIPER US LLP 401 B STREET SUITE 1700 SAN DIEGO CA 921014297 LEGAL 3864543 WEXLER WASSERMAN & ASSOCIATES 1120 PONCE DE LEON BLVD CORAL GABLES FL 33134 INSURANCE 968567 SIMPLER NORTH AMERICA LP PO BOX 64399 PITTSBURG PA 152643979 LEAN TRANSFORMATION SERVICE 485018 DELOITTE TAX LLP 13943 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 TAX 434606 DELOITTE & TOUCHE LLP PO BOX 403568 ATLANTA GA 303843568 ACCOUNTING 303291 12 340850 119276 340850 GEMOLOGICAL LABORATORY 541900 138236507 138236507 TUITION & FEES 611600 15358378 15358378 GEMOLOGY PUBLICATIONS 511120 403106 403106 153997991 3559300 3559300 15674472 15674472 37864739 901771 33131527 1094538 4733212 -192767 4540445 -1277 4541722 3973931 2477494 1496437 429022 1067415 MISCELLANEOUS INCOME 900099 445142 54749 390393 NET MANAGEMENT FEE 900099 26022 26022 FOREIGN EXCHANGE LOSS 900099 -68611 -2349 -66262 402553 180012048 154427013 1144560 24099625 37694 37694 263378 263378 157893 157893 3267945 2072692 1195253 55155533 52842888 2293423 19222 3452887 3091387 360238 1262 11274712 10554454 720258 4471984 4335458 135440 1086 4092043 4092043 321279 7898 313381 442287 442287 10988347 9964624 1023723 5156682 5150028 6654 8466105 8067015 399090 3100 3100 4798562 4798562 2185659 1585738 599921 801538 716141 85397 5715762 5652220 63542 1137112 1033618 103494 SMALL FURNITURE & EQUIP 2810768 2819482 -8714 0 FOREIGN WITHHOLDING TAX 2100964 2100964 0 0 ARTICLE EXPENSES 1563480 1563480 0 0 MAINTENANCE 772648 772565 83 0 1662774 1009050 653724 131101136 118600329 12479237 21570 4621371 16938941 29735444 22395677 538929 353608 56749231 48266799 2877469 2712043 2279846 2683376 128490517 62275635 63879738 66214882 78694388 113493259 47657300 51186028 287033716 324244613 3769797 4046250 5797579 4341331 37257177 45995715 46824553 54383296 X 227079234 256561490 1262843 1101582 11867086 12198245 240209163 269861317 287033716 324244613 X 48910912 -19258758 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 67584620 172917 -410686 423921 -158244 -69217 67150391 61080217 50000 6827503 171078 39289 162733 67584620 53275261 268637 7754949 218630 61080217 70869286 145033 -17502143 236915 53275261 0.80430 0.18170 0.01400 0 0 13227037 13227037 58182786 24161325 34021461 20521104 13585469 6935635 36559590 24528841 12030749 66214882 GEM COLLECTIONS 24069584 INVESTMENT IN SUBSIDIARIES 24833808 OTHER ASSETS 2282636 51186028 ACCRUED PAYROLL 1238442 OTHER CURRENT LIABILITIES 3053402 SALES & USE TAX PAYABLE 19990 OTHER LONG TERM LIABILITIES 3525554 ACCRUED PAID TIME OFF 6674486 ACCRUED PENSION EXPENSE 22283668 INTERCOMPANY ACCOUNTS 9200173 45995715 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: GIA USES ENDOWMENT FUNDS FOR ACTIVITIES PURSUANT TO THE INSTITUTE'S MISSION, WHICH IS SUMMARIZED IN THE RESPONSE TO PART III, ITEM 1. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE INSTITUTE ADOPTED FASB ASC NO. 740-10, ACCOUNTING FOR INCOME TAXES, FORMERLY FASB INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES - AN INTERPRETATION OF FASB STATEMENT NO. 109 ("ASC 740-10"), ON JANUARY 1, 2007. AS OF THE DATE OF ADOPTION THROUGH DECEMBER 31, 2011, THE INSTITUTE HAD NO LIABILITY FOR UNRECOGNIZED TAX BENEFITS. THE INSTITUTE WOULD RECOGNIZE INTEREST AND PENALTIES RELATED TO UNCERTAIN TAX BENEFITS AS INCOME TAX EXPENSE WHEN ACCRUED. AS THE INSTITUTE HAD NO LIABILITIES FOR UNCERTAIN TAX POSITIONS, THERE HAS BEEN NO ACCRUAL FOR INTEREST AND PENALTIES FOR THE YEARS ENDED DECEMBER 31, 2011 OR 2010. PART V, LINE 1E: THIS AMOUNT REPRESENTS A CHANGE IN PRESENT VALUE FOR THE CURRENT YEAR. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 SEE PART II FOR DESCRIPTION OF NONDISCRIMINATION POLICY. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 GIA IS ACCREDITED BY ACCSC, WHICH IS RECOGNIZED BY THE US DEPARTMENT OF EDUCATION. GIA PARTICIPATES IN TITLE IV PROGRAMS. GIA ALSO ACCEPTS VETERAN'S BENEFITS FOR PROGRAMS THAT QUALIFY. SCHEDULE E, LINE 3, DESCRIPTION OF NONDISCRIMINATION POLICY: THE INSTITUTE'S BROCHURES AND APPLICATIONS ALL INCLUDE STATEMENTS OF RACIAL NONDISCRIMINATION POLICY. THE INSTITUTE CUSTOMARILY DRAWS A SUBSTANTIAL PERCENTAGE OF ITS STUDENTS NATIONWIDE OR WORLDWIDE AND FOLLOWS A RACIALLY NONDISCRIMINATION POLICY. ACCORDINGLY, THE NEWSPAPER OR BROADCAST PUBLICATION REQUIREMENT IS SATISFIED BY ADHERENCE TO REV. PROC. 75-50, SECTION 4.02. 1 NORTH AMERICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 7895 MIDDLE EAST AND NORTH AFRICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 4500 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 46801 EAST ASIA AND THE PACIFIC 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 3500 SOUTH ASIA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 89197 SUB-SAHARAN AFRICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 6000 MIDDLE EAST AND NORTH AFRICA 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES -1926300 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES 1035110 SOUTH ASIA 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES 4816107 SOUTH ASIA 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES INDIRECT OWNERSHIP IN WHOLLY OWNED SUBSIDIARIES 22246547 SUB-SAHARAN AFRICA 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES -297552 SOUTH ASIA 0 0 CAPITAL CONTRIBUTION TO WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES 271200 0 0 0 0 0 0 -733297 27036302 26303005 SOUTH ASIA CAPITAL CONTRIBUTION TO WHOLLY OWNED SUBSIDIARY 67800 ELECTRONIC FUND/WIRE 0 FMV SOUTH ASIA CAPITAL CONTRIBUTION TO WHOLLY OWNED SUBSIDIARY 203400 ELECTRONIC FUND/WIRE 0 FMV 2 SCHOLARSHIP AWARDS SOUTH ASIA 7 72397 SCHOLARSHIP TO PARTICIPATE IN THE PROGRAMS. FMV SCHOLARSHIP AWARDS EUROPE (INCLUDING ICELAND & GREENLAND) 4 43801 SCHOLARSHIP TO PARTICIPATE IN THE PROGRAMS. FMV 1 0 1 0 0 1 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: AFTER GIA RECEIVES THE SIGNED ACCEPTANCE FORM AND THE STUDENT ENROLLS, AN AWARD LINE IS SET UP IN PEOPLESOFT TO READY THE AWARD FOR DISBURSEMENT. THE AWARD IS DISBURSED THROUGH THE PEOPLESOFT SYSTEM AS A CREDIT TO THE STUDENT'S TUITION ACCOUNT. THE FUNDS ARE NOT DISBURSED DIRECTLY TO THE STUDENT UNLESS THE PROVISIONS OF THE SCHOLARSHIP INCLUDE LIVING EXPENSES; ANY SUCH AWARD IS DISBURSED THROUGH PEOPLESOFT IN THE SAME MANNER AS OTHER FINANCIAL AID DESIGNATED FOR LIVING EXPENSES. THE INTERNATIONAL SCHOOL MUST INITIATE THE PROCESS OF TRANSFERRING FUNDS FROM GIA CARLSBAD BY SUBMITTING A WRITTEN INVOICE TO THE SCHOLARSHIP COORDINATOR AT GIA CARLSBAD; EMAIL IS ACCEPTABLE. THE INVOICE MUST INCLUDE THE SCHOLARSHIP RECIPIENT'S NAME, STUDENT NUMBER, SCHOLARSHIP AWARD AMOUNT IN LOCAL CURRENCY, NAME OF THE SCHOLARSHIP, AND COURSE ENROLLMENT INFORMATION (START DATE, COURSE NAME AND NUMBER). GIA CARLSBAD WILL TRANSFER THE FUNDS TO THE SCHOOL WHEN THE SCHOLARSHIP RECIPIENTS BEGIN THEIR QUALIFIED COURSE OF STUDY AT GIA INDIA, GIA ENGLAND OR GIA (INTERNATIONAL) COMPANY, LTD (AKA GIA THAILAND SCHOOL). 1 FBI HEADQUARTERS LCN UNITMAJOR THEFT PROGRAM 935 PENNSYLVANIA AVE NW ROOM 3349 WASHINGTON DC 20535 GOV'T ENTITY 35044 FMV TRAINING SEMINAR TO FBI SPECIAL AGENTS AND LAW ENFORCEMENT OFFICERS 1 0 SCHOLARSHIP AWARDS 91 263378 FMV TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: AFTER GIA RECEIVES THE SIGNED ACCEPTANCE FORM AND THE STUDENT ENROLLS, AN AWARD LINE IS SET UP IN PEOPLESOFT TO READY THE AWARD FOR DISBURSEMENT. THE AWARD IS DISBURSED THROUGH THE PEOPLESOFT SYSTEM AS A CREDIT TO THE STUDENT'S TUITION ACCOUNT. THE FUNDS ARE NOT DISBURSED DIRECTLY TO THE STUDENT UNLESS THE PROVISIONS OF THE SCHOLARSHIP INCLUDE LIVING EXPENSES; ANY SUCH AWARD IS DISBURSED THROUGH PEOPLESOFT IN THE SAME MANNER AS OTHER FINANCIAL AID DESIGNATED FOR LIVING EXPENSES. X 1 1 X X X X X 1 0 0 0 0 0 0 0 0 DONNA BAKER 401970 0 100000 0 1270 0 17469 0 37382 0 558091 0 0 0 THOMAS MOSES 356914 0 60000 0 16161 0 17426 0 20639 0 471140 0 0 0 DAVID TEARLE 286008 0 40000 0 1270 0 17373 0 20668 0 365319 0 0 0 TAWFIC FARAH 257725 0 25000 0 7010 0 17351 0 12166 0 319252 0 0 0 LINDA SCHOLL 219782 0 20000 0 2074 0 16690 0 6225 0 264771 0 0 0 KATHRYN KIMMEL 207188 0 25000 0 2978 0 16137 0 5755 0 257058 0 0 0 LINDA ELLIS 186964 0 20000 0 2685 0 14512 0 5214 0 229375 0 0 0 PHILLIP YANTZER 179198 0 30000 0 7059 0 15200 0 22493 0 253950 0 0 0 BRUCE LANZL 170526 0 0 0 44669 0 14316 0 5690 0 235201 0 0 0 CYNTHIA SANDERS 171778 0 22000 0 1579 0 13500 0 5820 0 214677 0 0 0 BEVERLY HORI 282875 0 40000 0 2374 0 17370 0 19054 0 361673 0 0 0 JOHN M KING 176866 0 22000 0 11911 0 14602 0 12693 0 238072 0 0 0 DONALD J FOSTER 182914 0 14000 0 911 0 13785 0 18718 0 230328 0 0 0 SUSAN SCHINDELAR 169558 0 19000 0 836 0 13210 0 18718 0 221322 0 0 0 SABRA C NORRIS 165886 0 17500 0 540 0 12994 0 9571 0 206491 0 0 0 TIMOTHY N THOMAS 171654 0 13000 0 1579 0 8237 0 18091 0 212561 0 0 0 PART I, LINE 1A AS PROVIDED IN THE GIA EMPLOYEE HANDBOOK, GIA PROVIDES TO ALL EMPLOYEES ON A ONE-TIME BASIS, REIMBURSEMENT UP TO $100 OF THE EMPLOYEE'S HEALTH CLUB OR FITNESS PROGRAM MEMBERSHIP FEE. GIA WILL ONLY REIMBURSE THE EMPLOYEE ONCE RECEIPTS ARE SUBMITTED. THIS REIMBURSEMENT IS AVAILABLE TO ALL EMPLOYEES. PART I, LINE 4A THE PAYMENT IN THE AMOUNT OF $7,693 WAS SEVERANCE PAY FOR BRUCE LANZL, VP OF GRADING LAB OPERATIONS. THE PAYMENT WAS MADE BASED ON THE SEPARATION AGREEMENT. SEE PART V 112021 0 0 SCHEDULE L, PART IV: THE INSTITUTE STRIVES TO MAINTAIN A BOARD OF GOVERNORS COMPOSED OF OUTSTANDING INDIVIDUALS WITH VARIED BACKGROUNDS WHO ARE ABLE TO CONTRIBUTE IMPORTANTLY TO THE ACCOMPLISHMENT OF THE INSTITUTE'S EXEMPT PURPOSES. THESE INCLUDE EXPERTS FROM THE FIELDS OF SCIENCE, ACADEMIA, FINANCE AND BUSINESS. THE INSTITUTE IS ALSO FORTUNATE TO HAVE BEEN ABLE TO RECRUIT A NUMBER OF OUTSTANDING EXPERTS (BOTH RETIRED AND ACTIVE) IN THE VARIOUS ASPECTS OF GEMS AND JEWELRY. THEREFORE, IT IS NOT SURPRISING THAT FIRMS ASSOCIATED WITH SOME OF THESE GOVERNORS HAVE PARTICIPATED IN THE INSTITUTE'S THREE EXEMPT ACTIVITIES PREVIOUSLY REPORTED TO AND APPROVED BY THE IRS: EDUCATION, RESEARCH AND GEM LABORATORY ACTIVITIES. (IN ADDITION, A RELATIVELY SMALL PORTION OF THE TRANSACTIONS INVOLVED SALES OF GEMOLOGICAL INSTRUMENTS, BOOKS AND SUPPLIES WHICH HAVE BEEN REPORTED AS NONEXEMPT ACTIVITIES.) SUCH PARTICIPATION BY THESE FIRMS, HOWEVER, BEGAN BEFORE THE ELECTION OF THESE INDIVIDUALS TO THE BOARD OF GOVERNORS AND REPRESENTS A TINY FRACTION OF THE TOTAL ACTIVITIES REPORTED ON FORM 990. OBVIOUSLY, TO BAR FIRMS AFFILIATED WITH BOARD MEMBERS FROM UTILIZING THE SERVICES OF THE INSTITUTE THEY HAD PREVIOUSLY ENJOYED WOULD LIKELY DEPRIVE GIA OF THE SERVICES OF COMMITTED AND TALENTED LEADERS SUCH AS THESE. LABORATORYIN 2011, APPROXIMATELY 11,210 CLIENTS SUBMITTED GEMSTONES TO THE GIA LABORATORY, WHILE ONE FIRM ASSOCIATED WITH MEMBERS OF THE BOARD OF GOVERNORS AVAILED ITSELF OF THIS SERVICE AND PAID A REPORTABLE AMOUNT (UNDER SCHEDULE L OF FORM 990). IN THE AGGREGATE, THE FEES FROM TRANSACTIONS WITH SUCH FIRM WERE APPROXIMATELY 0.08 PERCENT OF THE TOTAL TRANSACTIONS OF THIS TYPE. FIRMS ASSOCIATED WITH A MEMBER OF THE BOARD OF GOVERNORS PAID THE SAME FEES AS PAID BY ANY OTHER SIMILARLY-SITUATED CLIENT. THIS FIRM WAS A CLIENT OF THE GIA LABORATORY BEFORE THE AFFILIATED INDIVIDUAL BECAME A MEMBER OF THE BOARD OF GOVERNORS.GOVERNOR: EPHRAIM ZIONAFFILIATED FIRM: DEHRES LIMITED AGGREGATE AMOUNT PAID TO GIA: $112,021GENERAL COMMENTSTHE AFFILIATION OF THE GOVERNOR IDENTIFIED ABOVE WITH THE FIRM IS EPHRAIM ZION. MR. ZION IS THE MANAGING DIRECTOR OF DEHRES LTD. THE INSTITUTE BELIEVES THAT MR. ZION OWNS LESS THAN 35 PERCENT OF HIS RESPECTIVE FIRM. NONE OF THE FOREGOING TRANSACTIONS INVOLVED A SHARING OF THE INSTITUTE'S REVENUE. X 13 119276 FMV 8 0 1 0 FORM 990, PART III, LINE 1, ORGANIZATION MISSION STATEMENT: THE INSTITUTE'S MISSION AND MOST SIGNIFICANT ACTIVITIES TO ORGANIZATION MISSION STATEMENT ARE (A) OPERATING A SCHOOL PROVIDING EDUCATION AND GRANTING DIPLOMAS IN GEMOLOGY AND RELATED AREAS; (B) PROTECTING THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS, DETERRING GEM THEFT, ASSISTING IN THE RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND PROMOTING STATE OF THE ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY AND AS IMITATIONS OF GEMS; AND (C) SUPPORTING, PERFORMING, AND PUBLISHING SCIENTIFIC RESEARCH AND ANALYSIS RELATED TO GEMS AND GEMOLOGY AND LEARNING IN RELATED FIELDS. FORM 990, PAGE 1, ITEM L, YEAR OF FORMATION: THE GEMOLOGICAL INSTITUTE OF AMERICA WAS ESTABLISHED IN 1931 BY ROBERT M. SHIPLEY WHO INTRODUCED CORRESPONDENCE COURSES IN THE SAME YEAR. SUBSEQUENTLY, GIA CORPORATIONS WERE FORMED IN OHIO AND IN CALIFORNIA. THE CURRENT GEMOLOGICAL INSTITUTE OF AMERICA, INC., WHICH IS A CALIFORNIA PUBLIC BENEFIT CORPORATION, IS THE SUCCESSOR TO THE CALIFORNIA CORPORATION INITIALLY INCORPORATED IN 1982, WHICH IN TURN IS THE SUCCESSOR TO THE OHIO CORPORATION INCORPORATED IN 1943. SIGNIFICANT ACTIVITIES: FORM 990, PAGE 1, LINE 1, ORGANIZATION MISSION STATEMENT AND MOST GIA IS THE WORLD'S LARGEST AND MOST RESPECTED NONPROFIT INSTITUTE OF GEMOLOGICAL RESEARCH AND LEARNING. THE INSTITUTE'S MISSION AND MOST SIGNIFICANT ACTIVITIES ARE (A) OPERATING A SCHOOL PROVIDING EDUCATION AND GRANTING DIPLOMAS IN GEMOLOGY AND RELATED AREAS; (B) PROTECTING THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS, DETERRING GEM THEFT, ASSISTING IN THE RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND PROMOTING STATE OF THE ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY AND AS IMITATIONS OF GEMS; AND (C) SUPPORTING, PERFORMING, AND PUBLISHING SCIENTIFIC RESEARCH AND ANALYSIS RELATED TO GEMS AND GEMOLOGY AND LEARNING IN RELATED FIELDS. GIA OFFERS A COMPREHENSIVE GEMOLOGY CURRICULUM TAUGHT BY A FULL-TIME, PROFESSIONAL FACULTY TO REGULARLY ENROLLED STUDENTS AT ITS ON-CAMPUS FACILITIES IN CARLSBAD, CALIFORNIA AND NEW YORK CITY. GIA ALSO OFFERS EXTENSIVE DISTANCE EDUCATION. GIA'S RESEARCHERS UTILIZE SOPHISTICATED ANALYTICAL TECHNIQUES AND EQUIPMENT TO ADVANCE THE SCIENCE OF GEMOLOGY, AND TO DETECT SYNTHETIC AND ALTERED GEMS. ITS LIBRARY AND QUARTERLY PUBLICATION, GEMS & GEMOLOGY, COLLECT AND DISSEMINATE RESEARCH ON GEMS. THE GIA'S LABORATORY PROTECTS THE PUBLIC FROM MISREPRESENTATION ABOUT GEMS, DETERS GEM THEFT, AND HELPS LAW ENFORCEMENT BY TRACING STOLEN GEMS, WHILE PROMOTING STATE-OF-THE-ART RESEARCH. FORM 990, PART III, LINES 4A: EDUCATION: GIA OFFERS A COMPREHENSIVE GEMOLOGY CURRICULUM AT THE INSTITUTE'S CALIFORNIA AND NEW YORK CAMPUSES, AND THROUGH INTERNATIONAL SUBSIDIARIES IN INDIA, THAILAND, HONG KONG, ENGLAND, SOUTH AFRICA, BOTSWANA, DUBAI, AND TAIWAN, AND LICENSEES IN ITALY, JAPAN, KOREA, AND RUSSIA. DISTANCE EDUCATION COURSES ARE DISTRIBUTED DOMESTICALLY AND INTERNATIONALLY IN A VARIETY OF LANGUAGES. IN 2011, TOTAL ENROLLMENTS WERE 15,892, COMPRISING 3,417 ON-CAMPUS, AND 12,475 DISTANCE-EDUCATION ENROLLMENTS. GIA'S EDUCATIONAL OFFERINGS COVER THE GAMUT OF GEMOLOGY SUBJECTS, INCLUDING, BUT NOT LIMITED TO: (A) THE USE OF GEMOLOGICAL INSTRUMENTS, (B) THE OPTICAL AND PHYSICAL PROPERTIES OF DIAMONDS, GEMSTONES, PEARLS AND OTHER NATURAL ORGANIC GEM MATERIALS, (C) SYNTHETIC DIAMONDS AND DIAMOND SIMULANTS, (D) DETECTION OF FRACTURE-FILLED DIAMONDS AND SYNTHETIC DIAMONDS, (E) DETERMINATION OF COLOR, CLARITY, CUT, AND CARAT WEIGHT OF DIAMONDS, (F) APPLICATION OF FTC GUIDELINES FOR JEWELRY TRANSACTIONS, (G) DETECTION OF SYNTHETIC, TREATED, IMITATION OR ASSEMBLED COLORED GEM MATERIALS, AND (H) DETECTION OF CULTURED, IMITATION, ASSEMBLED AND TREATED PEARLS. A GRADUATE GEMOLOGIST (G.G.) DIPLOMA FROM GIA IS RECOGNIZED AROUND THE GLOBE AS A KEY CREDENTIAL IN THE GEMOLOGICAL WORLD. IN 2003, IN RESPONSE TO A GROWING NEED FOR QUALITY SCIENCE COURSES FOR CHILDREN, GIA CREATED THE JUNIOR GEMOLOGIST PROGRAM. THE JUNIOR GEMOLOGIST PROGRAM TEACHES GEMOLOGY, GEOLOGY AND MINERALOGY TO LOCAL STUDENTS AND YOUTH GROUPS, WITH INSTRUCTION PROVIDED BY THE INSTITUTE'S INSTRUCTORS AND MEMBERS OF THE GEM AND JEWELRY INDUSTRY. THE MATERIAL IS PRESENTED IN AN INTERACTIVE AND SCIENTIFIC WORKSHOP THAT INCLUDES HANDS-ON TRAINING WITH GEMOLOGICAL INSTRUMENTS AND EQUIPMENT. IN 2011, APPROXIMATELY 3,971 STUDENTS ATTENDED THE JUNIOR GEMOLOGIST PROGRAM. GIA HOSTS A JEWELRY CAREER FAIR AND OPEN HOUSE AT ITS CAMPUS IN CALIFORNIA ON AN ANNUAL BASIS. THE EVENT IS FREE AND OPEN TO THE PUBLIC. AS THE JEWELRY INDUSTRY'S LARGEST JOB FAIR, THE EVENT ALWAYS ATTRACTS THE INDUSTRY'S TOP RETAILERS, MANUFACTURERS, LABORATORIES AND WHOLESALERS INTERESTED IN HIRING GIA STUDENTS AND GRADUATES. IN 2011, APPROXIMATELY 600 INDIVIDUALS ATTENDED THE CAREER FAIR AND OPEN HOUSE EVENT. THE MISSION OF THE INSTITUTE'S RICHARD T. LIDDICOAT GEMOLOGICAL LIBRARY AND INFORMATION CENTER IN CARLSBAD, CALIFORNIA IS TO CONTINUE AS THE WORLD'S PREMIER RESOURCE FOR INFORMATION IN THE FIELDS OF GEM AND JEWELRY-RELATED STUDIES. AS SUCH, THE INSTITUTE PROMOTES THE USE OF ITS RESOURCES FOR EDUCATION AND RESEARCH BY THE PUBLIC, THE GEM AND JEWELRY INDUSTRY, AND THE INSTITUTE'S STUDENTS, FACULTY AND ALUMNI. THE INSTITUTE'S LIBRARY HOUSES THE WORLD'S LARGEST COLLECTION OF DIAMOND, GEM AND JEWELRY RESOURCE MATERIALS. WHETHER BY PHONE, E-MAIL OR IN PERSON, THE LIBRARY STAFF SERVES SCIENTISTS, JEWELERS, GEMOLOGISTS AND STUDENTS FROM EVERY CORNER OF THE GLOBE. THE EXPERT LIBRARY STAFF DRAWS UPON A GROWING COLLECTION OF OVER 13,000 VOLUMES IN ITS CIRCULATING COLLECTION, 25,000 VOLUMES IN THE RENOWNED CARTIER RARE BOOK REPOSITORY AND ARCHIVES, OVER 100,000 PHOTOGRAPHIC IMAGES, 1,300 VIDEOS/DVDS, APPROXIMATELY 700 JOURNAL AND MAGAZINE TITLES, 200 CD-ROMS AND 120 AUDIO CDS TO PROVIDE READY REFERENCE IN THE FIELDS OF GEMOLOGY AND JEWELRY. THE INSTITUTE'S MUSEUM ALSO EDUCATES THE PUBLIC ON GEMS AND GEMOLOGY, DISPLAYING CUT GEMS, MINERAL SPECIMENS AND JEWELRY. THE MUSEUM HAS HOSTED A SERIES OF THEMED EXHIBITS. IN 2011, 4,898 GUESTS VISITED AND TOURED THE MUSEUM THROUGHOUT THE YEAR. AS DISCUSSED BELOW, THE INSTITUTE PUBLISHES GEMS & GEMOLOGY, WHICH EDUCATES ITS READERSHIP ABOUT THE LATEST DISCOVERIES IN GEMOLOGY. FORM 990, PART III, LINE 4B: LABORATORY: THE MISSION OF THE INSTITUTE'S LABORATORY IS TO PROTECT THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS (WHETHER INNOCENT, NEGLIGENT OR INTENTIONAL), TO DETER GEM THEFT, TO ASSIST IN RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND TO PROMOTE STATE-OF-THE-ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY. THE FBI'S JEWELRY AND GEM PROGRAM HAS DESIGNATED GIA AS A PARTNER LISTED ON THE FBI WEBSITE IN COMBATING GEM THEFT. IN 2011, THE LABORATORY FLAGGED 529 STOLEN GEMSTONES IN ITS DATABASE, AND RECOVERED 35 GEMSTONES IN 28 CASES IN WHICH STONES WERE RESUBMITTED TO THE LABORATORY AFTER HAVING BEEN STOLEN. GIA ALSO REGULARLY ASSISTS OTHER GOVERNMENT AGENCIES. IN 2011, GIA ISSUED 5 DIAMOND GRADING REPORTS FOR LAW ENFORCEMENT AGENCIES. PER REQUEST OF THE FBI, IN 2011, GIA OFFERED A TWO-WEEK GEMOLOGY TRAINING SEMINAR TO 10 FBI SPECIAL AGENTS, 7 SPECIAL AGENTS FROM IMMIGRATION AND CUSTOMS ENFORCEMENT, AND LOCAL LAW ENFORCEMENT OFFICERS FROM HOUSTON AND MIAMI. THE PURPOSE OF THE TRAINING SEMINAR WAS TO ASSIST THE LAW ENFORCEMENT OFFICERS IN THE INVESTIGATION AND PROSECUTION OF JEWELRY RELATED CRIMES. FURTHERMORE, GIA PROVIDED SUPPORT AND INFORMATION TO THE DEPARTMENT OF HOMELAND SECURITY. THE LABORATORY FULFILLS ITS MISSION BY EXAMINING AND CLASSIFYING INDIVIDUAL GEM MATERIALS SUBMITTED TO THE GIA LABORATORY AND ITS INTERNATIONAL SUBSIDIARIES' LABORATORIES. DIAMONDS AND SYNTHETIC DIAMONDS ARE IDENTIFIED AND GRADED, WITH REPORTS ISSUED ON THEIR PRECISE IDENTIFYING FEATURES AND WITH QUALITY ASSESSMENTS ON THE 4CS: COLOR, CLARITY, CUT AND CARAT WEIGHT. COLORED GEMSTONES, SYNTHETIC COLORED STONES, PEARLS AND CULTURED PEARLS ARE IDENTIFIED, WITH REPORTS ISSUED UPON CLIENT REQUEST. THE DISTINGUISHING CHARACTERISTICS AND FEATURES OF A GIVEN GEM ARE UNIQUE TO THAT GEM IN MUCH THE SAME WAY A FINGERPRINT IS UNIQUE TO AN INDIVIDUAL PERSON. ONCE A GEM HAS BEEN SUBMITTED FOR EXAMINATION, ITS CHARACTERISTICS AND FEATURES ARE RECORDED FOR FUTURE REFERENCE IN CASE IT IS EVER RESUBMITTED, EITHER IN THE NORMAL COURSE OR IN QUESTIONABLE CIRCUMSTANCES, SUCH AS WITH LOST OR STOLEN ITEMS. ADDITIONALLY, IF REQUESTED BY THE CLIENT, AN IDENTIFICATION CODE CAN BE LASER INSCRIBED UPON THE GEM. THE SUBSTANTIAL AND CONTINUOUS VOLUME OF GEM MATERIALS THAT ARE SUBMITTED FOR EXAMINATION, TOGETHER WITH THE LARGE COLLECTION OF COMPARISON GEMS ACQUIRED BY GIA, CONSTITUTE AN INVALUABLE DATABASE FOR RESEARCH AND PUBLIC SERVICE CONDUCTED BY THE INSTITUTE. TO MAKE POSSIBLE THIS PUBLIC SERVICE, GIA CHARGES RELATIVELY MODEST FEES THAT VARY BY THE TYPE AND SIZE OF THE GEM MATERIAL. IT SHOULD BE NOTED THAT GIA DOES NOT APPRAISE ANY GEM MATERIALS OR OTHERWISE ESTABLISH THEIR MARKET VALUE. COMMERCE IN GEMS HAS BECOME MORE GLOBAL OVER THE PAST DECADE, WITH THE RESULT THAT MANY GEM MATERIALS ARE SOLD BY FOREIGN GEM OWNERS OR DEALERS BUT ULTIMATELY FIND THEIR WAY TO THE U.S. MARKET, EITHER THROUGH WHOLESALE DISTRIBUTION OR FUTURE RESALE. MOST DIAMONDS PURCHASED IN THE U.S. HAVE BEEN MINED AND PROCESSED OUTSIDE OF THIS COUNTRY. SOME PROPORTION OF THOSE DIAMONDS HAVE HISTORICALLY NOT BEEN SUBMITTED TO GIA'S LABORATORY BECAUSE OF THE GEOGRAPHIC DISTANCE BETWEEN GIA'S LABORATORY FACILITIES IN CALIFORNIA AND NEW YORK AND THE FAR FLUNG LOCATIONS OF MINES AND DEALERS. TO ENHANCE ITS ABILITY TO PURSUE THE MISSION OF PROTECTING THE GEM PURCHASING PUBLIC, DETERRING THEFT, AND ASSISTING IN RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, GIA OPERATES LABORATORIES THROUGH ITS BRANCH AND WHOLLY-OWNED SUBSIDIARIES IN BOTSWANA, HONG KONG, INDIA, ISRAEL, SOUTH AFRICA, AND THAILAND; AND GIA OPERATES TAKE-IN WINDOWS OFFERING LOGISTICAL SUPPORT THROUGH ITS WHOLLY-OWNED SUBSIDIARY IN DUBAI. FORM 990, PART III, LINE 4C: RESEARCH & PUBLICATIONS: THE INSTITUTE'S RESEARCHERS UTILIZE SOPHISTICATED ANALYTICAL TECHNIQUES AND SCIENTIFIC EQUIPMENT TO ADVANCE THE SCIENCE OF GEMOLOGY, INCLUDING DETECTION OF SYNTHETIC GEMS, CULTURED PEARLS AND TREATED NATURAL GEMS. THE MISSION OF THE RESEARCH DEPARTMENT IS TO (1) CHARACTERIZE THE GEMOLOGICAL PROPERTIES OF GEM MATERIALS AND DEVELOP PRACTICAL WAYS TO IDENTIFY THEM; (2) UNDERSTAND THE CONDITIONS OF GEMSTONE FORMATION IN THE EARTH, AS WELL AS THE CONDITIONS OF GEM TREATMENT AND SYNTHESIS IN THE LABORATORY, AS A FURTHER BASIS FOR DEVELOPING MEANS OF GEM IDENTIFICATION; (3) INVESTIGATE THE FACTORS THAT ARE RESPONSIBLE FOR THE APPEARANCE OF DIAMONDS AND OTHER GEM MATERIALS, SO AS TO ESTABLISH METHODS TO EVALUATE THEIR QUALITY; AND (4) DESIGN AND IMPROVE INSTRUMENTATIONS FOR GEM STONE TESTING. THE INSTITUTE IS THE WORLD LEADER IN RESEARCHING THE METHODS BY WHICH GEM MATERIALS CAN BE ENHANCED IN COLOR OR CLARITY OR SYNTHESIZED IN A LABORATORY. THIS RESEARCH HELPS PROTECT THE PUBLIC FROM POSSIBLE MISREPRESENTATIONS PERTAINING TO GEM MATERIALS. THE INSTITUTE ACTS AS A CONSUMER ADVOCATE TO ENSURE THAT CONSUMERS, ALONG WITH RETAILERS AND WHOLESALERS, ARE FULLY APPRISED OF THE TRUE CHARACTER - NATURAL, ENHANCED, OR SYNTHETIC - OF ANY SPECIFIC GEM. IN 2011, GIA ENTERED INTO AN AGREEMENT WITH UNITED STATES CUSTOMS AND BORDER PROTECTION TO COLLABORATE ON ANALYSES OF GEMSTONES IN ORDER TO DETERMINE THEIR IDENTITY (NATURAL, TREATED-NATURAL OR SYNTHETIC), INDICATIONS OF COUNTRY OF ORIGIN, AND DEVELOP A DATABASE FOR U.S. CUSTOMS AND BORDER PROTECTION THAT WILL FACILITATE TRADE AND LAW ENFORCEMENT. THIS COLLABORATION WILL HELP TO LESSEN THE BURDENS OF GOVERNMENT. TO DISSEMINATE THEIR FINDINGS, GIA RESEARCHERS SPEAK AT SEMINARS, POST DEVELOPMENTS ONLINE ON THE GIA RESEARCH WEB SITE, AND PUBLISH FREQUENTLY IN SCHOLARLY TEXTS AND JOURNALS, INCLUDING GEMS & GEMOLOGY, GIA'S QUARTERLY SCIENTIFIC PUBLICATION. GEMS & GEMOLOGY, WHICH HAS BEEN IN CONTINUOUS PUBLICATION FOR MORE THAN 75 YEARS, PROVIDES INFORMATION ON NEW GEM MATERIALS, GEM LOCALITIES, TREATMENT AND SYNTHESIS TECHNIQUES, AND IDENTIFICATION METHODS. THE JOURNAL KEEPS STUDENTS AND PROFESSIONALS ALIKE UP-TO-DATE ON THE MOST CRITICAL TOPICS IN GEMOLOGY. IN RECENT YEARS, GIA HAS PUBLISHED THREE COMPENDIUMS OF ARTICLES FROM GEMS & GEMOLOGY, ON SYNTHETIC, COLORED AND TREATED DIAMONDS. THERE IS A CONSTANT DEMAND FOR BACK ISSUES BY STUDENTS, PROFESSIONALS AND HOBBYISTS RESEARCHING NUMEROUS GEMOLOGICAL SUBJECTS. IN ADDITION, GIA SUMMARIZES TECHNICAL ARTICLES PUBLISHED BY GIA RESEARCHERS IN GEMS & GEMOLOGY FOR REPUBLICATION IN TRADE JOURNALS NATIONALLY AND INTERNATIONALLY, SO THE INFORMATION CAN BE BROADLY DISSEMINATED. SINCE NOVEMBER 2008, THE JOURNAL HAS BEEN AVAILABLE ONLINE AS WELL AS IN PRINT. AND SINCE OCTOBER 2009, STAFF MEMBERS AT GEMS & GEMOLOGY HAVE PRODUCED A MONTHLY ELECTRONIC NEWSLETTER CALLED THE G&G EBRIEF, WITH SHORT, ORIGINAL REPORTS FROM GIA AND OTHER RESEARCHERS ABOUT THE NEW DEVELOPMENTS IN THE FIELD. PUBLICATION INFORMATION FOR THE YEAR 2011: ISSUES DISTRIBUTED TO SUBSCRIBERS: 16,466 CURRENT ISSUES ORDERED: 2,118 BACK ISSUES ORDERED: 2,292 TOTAL ISSUES: 20,876 FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE RESTATED TO CHANGE THE NUMBER OF CONSECUTIVE TERMS FROM FOUR (4) TO THREE (3) FOR AN ELECTED MEMBER OF THE BOARD OF GOVERNORS. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF GOVERNORS DELEGATES THE DETAILED REVIEW AND APPROVAL OF FORM 990 TO A 990 REVIEW TEAM. THE 990 REVIEW TEAM CONSISTS OF: GIA PRESIDENT / CEO AND GOVERNOR; ITS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER; ITS VICE PRESIDENT AND CHIEF MARKETING OFFICER; GIA'S OUTSIDE COUNSEL SPECIALIZING IN NON-PROFIT TAX; DIRECTOR OF GLOBAL CORPORATE COMPLIANCE; AND GLOBAL TAX DIRECTOR OF GIA. THE 990 REVIEW TEAM SCHEDULES A MEETING WITH THE FIRM THAT PREPARES THE FORM 990 TO CONDUCT A DETAILED REVIEW. THE FIRM RESPONDS TO ANY OUTSTANDING QUESTIONS OR CONCERNS RAISED BY THE 990 REVIEW TEAM. ONCE THE REVIEW TEAM COMPLETES ITS DETAILED REVIEW, THE FORM 990 IS AVAILABLE TO THE BOARD OF GOVERNORS PRIOR TO ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE INSTITUTE REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICIES THROUGH ANNUAL CIRCULATION OF A CONFLICT OF INTEREST QUESTIONNAIRE, WHICH IS COMPLETED AND SIGNED BY ALL MEMBERS OF THE BOARD OF GOVERNORS, OFFICERS, AND MEMBERS OF EXECUTIVE MANAGEMENT. IN ADDITION, GIA REQUIRES ALL EMPLOYEES (INCLUDING THOSE OF GIA AND ITS INTERNATIONAL AFFILIATES) TO REVIEW ITS CODE OF CONDUCT, AS IT MAY BE AUGMENTED BY GIA FROM TIME TO TIME, AND TO ACKNOWLEDGE BY SIGNATURE ADHERENCE TO ITS ETHICAL STANDARDS, INCLUDING ITS CONFLICT OF INTEREST POLICIES, AS A CONDITION OF EMPLOYMENT. THE LEGAL DEPARTMENT REVIEWS CONTRACTUAL RELATIONSHIPS ENTERED INTO BY THE ORGANIZATION AND IS RESPONSIBLE FOR MONITORING CONFLICTS OF INTEREST AS REPORTED THROUGH DISCLOSURES AND BY OTHER MEANS. FURTHER, IT IS INCUMBENT UPON ALL OF THE AFOREMENTIONED PARTIES TO DISCLOSE ANY CONFLICTS OF INTEREST IN THE COURSE OF THE YEAR. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF GOVERNORS EXECUTIVE COMMITTEE MEETS ANNUALLY IN NOVEMBER TO REVIEW THE OFFICER COMPENSATION AND TO SET THE PAY RATE FOR THE SUBSEQUENT YEAR. GIA RETAINED THE SERVICES OF THE HAY GROUP, INTERNATIONAL COMPENSATION AND BENEFITS CONSULTANTS, WHICH DISTRIBUTES PERIODIC MARKET PAY COMPARISONS OF COMPARABLE JOBS TO THOSE OF GIA OFFICERS. THIS INFORMATION IS PROVIDED TO THE BOARD EXECUTIVE COMMITTEE FOR REVIEW AND USE. IN THE INTERIM YEARS BETWEEN COMPREHENSIVE MARKET STUDIES, GIA OBTAINS SUCH MARKET DATA AS AVERAGE MERIT INCREASES FROM THE HAY GROUP AND ALSO TAKES THE CPI INTO CONSIDERATION. FORM 990, PART VI, SECTION C, LINE 19 GIA'S EMPLOYEE CODE OF CONDUCT, WHICH INCLUDES A SECTION ON CONFLICTS OF INTEREST, IS POSTED ON GIA'S WEBSITE. THIS CODE GOVERNS EMPLOYEES OF GIA AND ITS GLOBAL SUBSIDIARIES. FINANCIAL STATEMENTS ARE INCORPORATED INTO THE FORM 990, WHICH, OF COURSE, IS AVAILABLE TO THE PUBLIC. THE INSTITUTE'S GOVERNING DOCUMENTS ARE ALSO AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, SECTION A: IN 2011 BOARD MEMBERS RECEIVED A STIPEND BASED ON THE NUMBER OF MEETINGS THEY ATTENDED. HOWEVER, EACH GOVERNOR HAS THE OPTION TO DECLINE THIS STIPEND. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: UNREALIZED INVESTMENT LOSSES -7,566,226. PENSION PLAN ADJUSTMENT -12,358,764. BOOK/TAX DIFFERENCE ON EQUITY EARNINGS OF SUBSIDIARIES 1,249,458. UNREALIZED FOREIGN EXCHANGE LOSS -81,653. DIVIDEND PAYMENT RECEIVED FROM FOREIGN SUBS -472,973. LOSS ON DISCONTINUED OPERATIONS -28,600. TOTAL TO FORM 990, PART XI, LINE 5: -19,258,758. GIA INSTRUMENTS UK LIMITED 35 VINE STREET LONDON, ECN 2AA UK GEMOLOGICAL INSTRUMENT SALES UK 7415 129564 GEMOLOGICAL INSTITUTE OF AMERICA INC GIA (ISRAEL) 21 TUVAL ST HAYAHALOM BLDG 1ST FL RAMAT GAN 52522 IS LABORATORY SERVICES IS 0 258179 GEMOLOGICAL INSTITUTE OF AMERICA INC GIA HOLDINGS INC 5345 ARMADA DRIVE CARLSBAD CA 92008 330990032 TITLE HOLDING COMPANY FOR TAX-EXEMPT PARENT CA 501(C)(2) GEMOLOGICAL INSTITUTE OF AMERICA INC 1 GIA ENGLAND 104 GREAT RUSSELL STREET LONDON, WC1B 3LA UK EDUCATIONAL SERVICES UK GEMOLOGICAL INSTITUTE OF AMERICA INC 1 GIA (INTERNATIONAL) COMPANY LTD U-CHU-LIANG BLDG 2ND FL 968 RAMA SILOM, BANGRAK, BANGKOK 10500 TH EDUCATIONAL SERVICES TH GEMOLOGICAL INSTITUTE OF AMERICA INC 1 GIA INDIA 10TH FL TRADE CENTRE BANDRA KURLA BANDRA (EAST), MUMBAI, 400 051 IN EDUCATIONAL SERVICES IN GIA HOLDINGS INC 1 GIA INSTRUMENT (TAIWAN) CO 3F 270 NANJING EAST ROAD SEC 3 TAIPEI, 105 TW ROC EDUCATIONAL SERVICES TW GEMOLOGICAL INSTITUTE OF AMERICA INC C 1586782 1612124 1.00000 GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD U-CHU-LIANG BLDG 10TH FL 968 RAM SILOM, BANGRAK, BANGKOK 10500 TH LIMITED LABORATORY SERVICE TH GEMOLOGICAL INSTITUTE OF AMERICA INC C 3819715 5724978 1.00000 GIA HOLDINGS COMPANY LTD U-CHU-LIANG BLDG 10TH FL 968 RAM SILOM, BANGRAK, BANGKOK 10500 TH HOLDING COMPANY TH GEMOLOGICAL INSTITUTE OF AMERICA INC C 1.00000 GIA HONG KONG LIMITED ROOM 301 3/F AON CHINA BUILDING 29 QUEEN'S ROAD CENTRAL HK EDUCATIONAL SERVICES HK GEMOLOGICAL INSTITUTE OF AMERICA INC C 1829756 4209495 1.00000 GIA HONG KONG LABORATORY SERVICES CENTER LIMITED C/O ROOM 1411 NEW WORLD TOWER 16-18 QUEEN'S ROAD CENTRAL HK LOGISTICAL SUPPORT HK GEMOLOGICAL INSTITUTE OF AMERICA INC C 34279 5351906 1.00000 GIA BELGIUM NV LANGE HERENTALSESTRAAT 20-26 B-2018 ANTWERP BE RESEARCH SERVICES BE GEMOLOGICAL INSTITUTE OF AMERICA INC C 836078 904155 0.78770 GIA SWITZERLAND SA 4 ROUTE DE FLORISSAN CASE POSTALE CH-1211 GENEVE 12 SZ LIMITED LABORATORY SERVICE SZ GEMOLOGICAL INSTITUTE OF AMERICA INC C -2252 16929 1.00000 GIA EDUCATION AND LABORATORY LIMITED SUITE 106 THE ATRIUM DIAMOND TECH 67782 BLK 8 INDUSTRIAL GABORONE BC EDUCATIONAL AND LABORATORY SERVICES BC GEMOLOGICAL INSTITUTE OF AMERICA INC C 3121982 2322588 1.00000 GEMOLOGICAL INSTITUTE INTERNATIONAL INC 5345 ARMADA DR CARLSBAD CA 92008 263688898 EDUCATIONAL AND TRAINING SERVICES CA GEMOLOGICAL INSTITUTE OF AMERICA INC C 2491835 5201958 1.00000 GIA INDIA LABORATORY PRIVATE LIMITED 10TH FLOOR TRADE CENTRE BANDRA KU BANDRA (EAST), MUMBAI, 400 051 IN LABORATORY SERVICES IN GIA HOLDINGS INC C 40318205 42744087 1.00000 GIA MIDDLE EAST (LLC) BUILDING 6WA OFFICE 801 DUBAI AIR P.O. BOX 293800, DUBAI AE EDUCATION AND LOGISTIC SUPPORT AE GEMOLOGICAL INSTITUTE OF AMERICA INC C 304414 2102656 1.00000 GIA EDUCATION AND LABORATORY (PTY) LTD SUITE 512 5TH FL SA DIAMOND CEN JOHANNESBURG, 2001 SF EDUCATION AND LAB SERVICES SF GEMOLOGICAL INSTITUTE OF AMERICA INC C 5146911 2516942 1.00000 GIA HONG KONG LABORATORY LIMITED ROOM 1411 NEW WORLD TOWER 16-18 QUEEN'S ROAD CENTRAL HK LABORATORY SERVICE HK GEMOLOGICAL INSTITUTE OF AMERICA INC C 4362355 6016442 1.00000 1 1 0 1 0 1 1 0 0 0 0 0 0 0 0 1 1 1 GIA INDIA LABORATORY PRIVATE LIMITED A 14137158 FMV GIA EDUCATION AND LABORATORY (PTY) LTD A 203884 FMV GIA (INTERNATIONAL) COMPANY LTD B 67800 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD B 203400 FMV GIA MIDDLE EAST (LLC) D 388536 FMV GIA ISRAEL D 268594 FMV GIA INDIA LABORATORY PRIVATE LIMITED F 183995 FMV GIA EDUCATION AND LABORATORY (PTY) LTD F 58812 FMV GIA INDIA P 145727 FMV GIA INDIA LABORATORY PRIVATE LIMITED P 398390 FMV GIA EDUCATION AND LABORATORY (PTY) LTD P 724420 FMV GIA EDUCATION AND LABORATORY LIMITED P 1849860 FMV GIA BELGIUM NV Q 852356 FMV GIA INDIA LABORATORY PRIVATE LIMITED R 22238150 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD R 139997 FMV GIA EDUCATION AND LABORATORY (PTY) LTD R 923666 FMV GIA INSTRUMENT (TAIWAN) CO R 391506 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD F 137874 FMV GIA BELGIUM NV G 108241 FMV SCHEDULE R, PART V: THE TRANSACTIONS REPORTED BETWEEN GIA AND THE RELATED ORGANIZATIONS LISTED ON LINES 2(1) AND 2(2) OF PART V INVOLVE THE PAYMENT OF ROYALTIES BY THE RELATED ORGANIZATIONS TO GIA FOR THE USE OF CERTAIN INTELLECTUAL PROPERTY. THESE RELATED ORGANIZATIONS ARE NOT TAX EXEMPT UNDER SECTION 501(C)(3) OF THE CODE, BECAUSE THEY ARE NOT LOCATED IN OR OPERATING IN THE UNITED STATES. HOWEVER, IF THESE ORGANIZATIONS WERE TAX EXEMPT UNDER SECTION 501(C)(3) OF THE CODE WITH THE SAME EXEMPT PURPOSES AS GIA, THESE ORGANIZATIONS WOULD HAVE NO UNRELATED BUSINESS INCOME, SINCE ALL OF THEIR INCOME AND ACTIVITIES ARE IDENTICAL IN CHARACTER TO GIA'S INCOME AND ACTIVITIES. ACCORDINGLY, THESE ROYALTY PAYMENTS ARE NOT TREATED AS UNRELATED BUSINESS INCOME FOR GIA UNDER SECTION 512(B)(13) OF THE CODE. THE TRANSACTIONS REPORTED BETWEEN GIA AND THE RELATED ORGANIZATIONS LISTED ON LINES 14-16 ARE ASSOCIATED WITH THE PROVISION OF GRADING AND MANAGEMENT SERVICES BY GIA. THESE GRADING SERVICES ARE PERFORMED IN GIA'S ORDINARY COURSE OF BUSINESS AS DESCRIBED IN SCHEDULE O, PART III, LINE 4B. THE TRANSACTION REPORTED ON LINE 17 IS A DIVIDEND DISTRIBUTION FROM A RELATED ORGANIZATION.