2012-11-12T08:38:03-06:00 2011-12-31 861065772 Deloitte Tax LLP 2 Jericho Plaza Jericho NY 11753 990 2011-01-01 210634479 Educational Testing Service EDUC 6099219000 Rosedale Road MS 56D Princeton NJ 08541 Jack Hayon 6099219000 2012-11-12 Christine Kawecki P00743140 5169187000 2011 2016-02-24 21:20:13Z Jack Hayon Rosedale Road MS 56D Princeton NJ 08541 1056144343 0 X www.ets.org X 1947 NY See Page 2, Part III, Question 1 19 18 22034 0 19646441 -1532585 12889559 13420573 880691488 942813001 2725711 2981345 63544566 78408437 959851324 1037623356 1901440 2102608 0 0 296640545 329076624 0 0 0 634561649 679879355 933103634 1011058587 26747690 26564769 665006780 731362873 332775385 347326292 332231395 384036581 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 424160293 513141937 Higher Education: 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. Such services include designing, developing, administering, scoring and reporting for the SAT Reasoning and Subject tests (SAT I and SAT II), the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT), the Advanced Placement Program (AP), and the College Level Examination Program (CLEP). The SAT and PSAT tests are designed to measure verbal and mathematical reasoning ability, as well as to assess knowledge in subject specific test areas. Along with high school records, these tests are used by colleges and universities as part of their admission evaluations as key predictors of likely academic success. The AP Program offers detailed course descriptions and examinations for introductory advanced placement or credit when students enter college. CLEP is a college-by-credit examination program for persons of any age to demonstrate college level knowledge. In 2011, approximately 10.9 million tests were administered on behalf of the College Board.Higher Education Division: This division of ETS is responsible for the test development, test administration (primarily in a computer based testing environment) and scoring and reporting services for a graduate admissions testing program. The Graduate Records Examination (GRE) tests verbal and quantitative reasoning and writing skills as well as selected subject areas, which are used to supplement the college records of students applying for admissions to graduate departments. ETS has established the GRE Advisory council made up of public academic leaders and graduate school deans to provide direction for the program. The test is also used for admission purposes by over 900 business schools and MBA programs worldwide. In 2011, approximately 802 thousand applicants took the GRE test and/or services. Teacher Licensure & Certification (TLC): TLC is significantly involved in the assessment, teaching and certification of teachers through its innovative PRAXIS Series. PRAXIS I measures a candidate's basic skills in reading, writing and math, while PRAXIS II involves the assessment of teaching and performance skills in the classroom. In addition, ETS is responsible for the development and delivery of assessments on behalf of the Texas Education Agency (TEA). These tests are delivered in a computer-based environment with some continuing paper & pencil testing.In 2011, approximately 900 thousand applicants took these tests and/or these services (PRAXIS Series and TEA assessments).All of the activities described within Higher Education are classified as related activities. 198598438 313258345 Global Division is responsible for carrying out ETS's mission primarily in markets outside the United States providing products and services that measure knowledge and skills, promote learning and performance and support education and professional development. Its primary focus is on the design, development and delivery of English Language tests and assessments.A college-level testing program developed and administered by ETS is the Test of English as a Foreign Language (TOEFL), a test designed to measure the academic English proficiency of students whose native language is not English. The test is required by many universities to evaluate the degree to which international students have sufficient English language proficiency to pursue higher education on an English-speaking campus. ETS has established the TOEFL Board, made up of public academic leaders and graduate school deans to provide direction for the program. The program is primarily administered in a computer-based environment with some paper-based testing. Other TOEFL assessments include TOEFL ITP, an institutional, two-skill test designed for use with adult learners, and The TOEFL Junior Standard test, an academic English proficiency test for younger students.Global also is responsible for the development and administration of the Test of English in International Communication (TOEIC), a test of the ability of non-native English-speaking people to use English in everyday work activities. TOEIC is delivered in a paper-based format as well as a computer-based environment.Each family of tests also offer test prep products. Both the TOEIC and the TOEFL tests are also used by immigration officials in the UK and Australia to evaluate certain visa applicants in support of their requirements, the Global Division has a channel distribution group, which has oversight responsibility for our world-wide test distributor network, as well as a client relations group, which manages relationships with TOEFL score user institutions. The division also is responsible for the Global Institute, which provides instruction on assessment development and usage to education leaders, college and university staff, government officials and representatives of testing agencies both at its Princeton headquarters as well as in region. 259700930 116412719 Elementary and Secondary Education (K12 Assessments), Research & Development, National Assessment of Educational Progress, English Language Learning, Policy Evaluation & Research Center and other supported activities.K12 Assessments current large scale assessment business contracts in California include the High School Exit Examination (CAHSEE), the California Standardized Testing and Reporting (STAR) Program including additional alternative assessments for students with English Language learning challenges or of lesser abilities California Alternate Performance Assessment (CAPA), Standards-based Tests in Spanish (STS) and California Modified Assessment (CMA) assessment batteries, in addition to the regular California Standardized Test (CST), and General Educational Development (GED) scoring service for the California Department of Education. These K12 Assessments measure levels of student achievement in the California public school system. K-12 Assessments also has a subcontract in the state of California to perform psychometric work for the California English Language Development Test (CELDT). In addition, ETS provides the English Placement Test (EPT), Entry Level Mathematics Test (ELM) and Early Assessment Program (EAP) programs for the California State University System. K12 Assessments has also been awarded assessment contracts in other states to measure the educational achievement and progress of K-12 students. Those contracts include: Maryland High School Assessment Program, a Wyoming statewide testing program, which is K-12s first full service contract, a test development and psychometric contract with the state of Washington, and a small research contract with the state of New York. K-12 Assessments also has subcontracts for state assessments in Texas, Tennessee, Virginia, Mississippi, Florida and Colorado. In addition to the State assessment contracts, ETS is the prime contractor or subcontractor for several SBAC and PARCC assessment programs which are being developed according to Federal Common Core Assessment initiatives. K12 Assessments also contracts with the Southern Regional Educational Board, a non-profit consortium of states, dedicated to the pursuit of educational excellence, to develop and administer the High Schools That Work testing program that is designed to measure and improve educational instruction.All of the activities within K-12 Assessments are classified as related activities, due to their role in educational assessment.RESEARCH AND DEVELOPMENTResearch & 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, development of background questionnaires, test development, assessment design, test book preparation, data 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) conduct research and analysis that address challenging education issues in the United States. The primary focus of PERC's research and analysis are increasing overall educational achievement; and closing achievement gaps in representation, achievement and attainment between advantaged and disadvantaged groups. PERC publishes and disseminates reports through its Policy Information Center reports and studies designed to increase understanding of education challenges and promote improvement of education and education policy and teaching practice. SCHOLARSHIP & RECOGNITION PROGRAMS Scholarship & Recognition Programs (SRP) has experience providing outsourced scholarship program design and administration services to corporations and philanthropic organizations. All of the activities within SRP are classified as unrelated business income.Chauncey Conference CenterETS also operates a conference center, the revenues from which are classified as unrelated business income. 2102608 2102608 Grants and other assistance to organizations and individuals inside and outside of the United States. 2102608 2102608 884562269 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 0 1 0 0 0 0 0 1 1 1 1 0 0 1 X 17973 0 1 22034 1 1 1 1 FR UK NL JO BE PL KS CH IS IN CA 0 0 0 0 0 0 0 0 X 19 18 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 56D Princeton NJ 08541 Alvarado Anthony J 1.50 X 30167 0 0 Carstarphen Meria 1.50 X 56000 0 0 Clarkeson John S 1.50 X 56000 0 0 Colbert Isaac 1.50 X 66000 0 0 Eisgruber Christopher 1.50 X 52000 0 0 English Michela A 1.50 X 73000 0 0 Flores Roy 1.50 X 44000 0 0 Garcia Ofelia 1.50 X 62000 0 0 Henderson Wade N 1.50 X 76000 0 0 Johnson Melvin 1.50 X 66000 0 0 Levin Henry M 1.50 X 17000 0 0 Levine Arthur E 1.50 X 7333 0 0 Menezes Victor 1.50 X 66000 0 0 Murley Robert S 1.50 X 70333 0 0 Robertson Piedad F 1.50 X 74667 0 0 Rothkopf Arthur J 1.50 X 72667 0 0 Stewart Debra W 1.50 X 26000 0 0 Valdes Guadalupe 1.50 X 78000 0 0 Varn Richard J 40.00 X 177604 0 30551 Winckler Georg 1.50 X 36000 0 0 Landgraf Kurt M 40.00 X X 1254023 0 80374 Bailey Diane A 40.00 X 308813 0 25563 Basehore John 40.00 X 340570 0 45169 Donado Yvette 40.00 X 417814 0 56654 Draper Jr William C 40.00 X 312707 0 30513 Elliott Thomas J 40.00 X 358881 0 53672 Farnum Marisa 40.00 X 310407 0 42005 Gatti Frank R 40.00 X 561140 0 17665 Gilbertson Bruce M 40.00 X 325631 0 47219 Hayon Jack 40.00 X 397798 0 62691 Hernandez Sandra 40.00 X 248451 0 48074 Hunt David 40.00 X 391324 0 56504 Johnson-Gregory Sheree L 40.00 X 339735 0 54468 Kerins Nancy J 40.00 X 479558 0 59515 Lawrence Ida M 40.00 X 413897 0 57183 Lazer Stephen 40.00 X 376912 0 53175 MacDonald Walter B 40.00 X 535531 0 70479 Mazzeo John 40.00 X 367137 0 30366 Nelson Scott F 40.00 X 376853 0 50426 Nettles Michael T 40.00 X 397815 0 61130 Oswald John 40.00 X 397108 0 45077 Paris Scott G 40.00 X 233054 0 30287 Payne David G 40.00 X 355138 0 48905 Pfund Rebecca 40.00 X 312177 0 47604 Pote Stephen K 40.00 X 331801 0 47933 Powell George D 40.00 X 401038 0 44616 Rockey Anne F 40.00 X 324714 0 40901 Schroeder Glenn C 40.00 X 478178 0 62826 Tabbiner Philip S 40.00 X 447762 0 61812 Tyler Linda L 40.00 X 300353 0 37969 Wakeman Daniel 40.00 X 324508 0 52971 Weaver Scott V 40.00 X 383984 0 54863 Bennett Randy E 40.00 X 296263 0 41776 Kirsch Irwin 40.00 X 319951 0 34638 Montero Dianne H 40.00 X 361894 0 36827 Moss Jeffrey 40.00 X 302519 0 37820 Patanella Richard 40.00 X 296430 0 42350 15588640 0 1802571 873 0 1 0 Computer Sciences Corporation 400 Commerce Drive Newark DE 19713 Computer services 53717362 Accenture LLP PO Box 70629 Chicago IL 60673 Supply chain services 48288692 NCS Pearson Inc 5601 Green Valley Dr Bloomington MN 55437 Test administration services 45768534 MRM Worldwide Princeton 3450 Princeton Pike Lawrenceville NJ 086481206 Marketing 19231006 Adecco USA Inc 175 Broad Hollow Rd Melville NY 11747 Temporary labor services 14314827 232 4090 11219363 2197120 13420573 Higher Education 611710 513141937 513141937 Global 611710 313258345 313258345 ESE and Other 611710 116412719 116412719 942813001 1466763 1466763 58574551 58574551 268791 73856 194935 194935 194935 19343145 552459 17369904 1011118 1973241 -458659 1514582 1514582 49114 4090 66109 -16995 -16995 9505 0 9505 9505 Occupational & Prof Sk 611600 14218667 14218667 Chauncey Conf. Center 721000 3457863 3457863 Scholarship Recognitio 611600 1969911 1969911 19646441 1037623356 942813001 19646441 61743341 1313174 1313174 443434 443434 346000 346000 14275937 5230748 9045189 576853 576853 245328190 212451800 32876390 20834131 16766658 4067473 30787057 16225763 14561294 17274456 13901943 3372513 7604542 917355 6687187 1854984 1854984 100000 100000 389548 389548 424490849 391573682 32917167 13783684 13783684 140183327 135537032 4646295 1063756 1063756 11956373 10098470 1857903 12601579 10445939 2155640 128663 128663 1957624 1461296 496328 190971 190971 48117000 42880733 5236267 2087244 2087244 Miscellaneous 6811029 3034816 3776213 Chauncey Conf Center 3125526 3125526 0 Foreign & State Taxes 2810614 2781864 28750 Memberships and Dues 622042 469414 152628 1011058587 884562269 126496318 0 1639048 34783 89810338 76158373 70671367 95472582 5669366 2169366 10587570 16406202 190430115 120461281 70583304 69968834 295436043 353531795 120280014 115389730 329730 2231208 665006780 731362873 132806833 128768538 82204532 77374513 117764020 141183241 332775385 347326292 X 332231395 384036581 332231395 384036581 665006780 731362873 X 26564769 25240417 X X 0 1 1 X 1 1 X 6147791 7448670 5746388 12889559 13420573 45652981 780071035 835128581 851511617 880691488 942813001 4290215722 786218826 842577251 857258005 893581047 956233574 4335868703 0 340499830 293846372 283748345 279286338 294059142 1491440027 340499830 293846372 283748345 279286338 294059142 1491440027 2844428676 34203916 34538223 38561274 51618196 60310105 219231714 34203916 34538223 38561274 51618196 60310105 219231714 8795 7030 9505 25330 820422742 877115474 895828074 945206273 1016553184 4555125747 0.62440 0.61890 0.04810 0.04360 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 152599 152599 991762527 991915126 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 196650 218163 114801 152599 682213 250000 250000 250000 250000 1000000 1500000 Part IV, Supplemental Information: Total lobbying expenses of $152,599 were used for the following Federal and State lobbying activities: Federal Lobbyists: Penn Hill Group: $120,000 ESEA - testing, accountability, teacher evaluation Higher Education- teacher quality measurements, institutional quality and accreditation, and higher education regulatory activities Education Research - the definition of scientifically based research Association of Test Publishers (ATP): $1,180 ATP provides trade association support and 5.9% of the trade association dues are attributable to lobbying expenses. Total Federal Lobbying $121,180 State Lobbyists: CA Capitol Advocacy $7,000 Provided information related to educational testing and accountability. Lobbied the Legislature and the Governor's office regarding educational assessments. NY Whiteman Osterman $22,639 SAT Test Impersonation Case. Communication with NYS Senate [LaValle/Staff]. Coverage of NYS Senate Higher Education Hearings PA Gmerek GR, Inc. $1,780 Discussions regarding assessments, Praxis/Teacher Certification, Budget and Fiscal Code, School Code Amendments, Funding for Teacher Evaluation System in Budget and Race to the Top Program. Total State Lobbying $31,419 Total Federal and State Lobbying $152,599 1970618 1970618 143101275 89893116 53208159 5071936 4267080 804856 40286286 26301085 13985201 69968834 Archstone Partners 15265103 F Federal Street Partners 14569891 F Investment in affiliated entities 261313853 F Silchester International Investors 9187512 F State Street Global 23248336 F Wellington Capital Management 10901799 F Blackrock (Barclays) 10354458 F Next Century 8690843 F 353531795 Post-retirement medical benefits 89756990 Intercompany payable 20318267 Other liabilities 31107984 141183241 Description of Uncertain Tax Positions Under FIN 48: Part X: Note: 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 271000 South Asia 0 0 Grantmaking Grantmaking 60000 North America 0 0 Program services Testing activities 285443 Europe 0 0 Program services Testing activities 5751997 North America 0 0 Investments 372020 Europe 0 0 Investments 1686000 Middle East and North Africa 0 0 Program services Testing activities 7660 Middle East and North Africa 0 0 Investments 8246000 0 0 0 0 0 0 16680120 0 16680120 Scholarships for outstanding Korean Students East Asia and the Pacific 30 120000 Checks sent to students schools for tuition Scholarships for outstanding Chinese Students East Asia and the Pacific 47 81000 Checks sent to students schools for tuition Scholarships for outstanding Japanese Students East Asia and the Pacific 10 40000 Checks sent to students schools for tuition Scholarships for outstanding Taiwanese Students East Asia and the Pacific 10 30000 Checks sent to students schools for tuition Fellowship for outstanding Beijing Foreign Studies University(BFSU) students East Asia and the Pacific 1 15000 Checks sent to students schools for tuition Scholarships for outstanding Indian Students South Asia 9 60000 Checks sent to students schools for tuition 1 0 1 0 0 1 Procedure for Monitoring Grants Outside the U.S.: Schedule F, 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 to both the recipient and the university 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 PO Box 877905 Tempe AZ 85257 300150324 501-c-3 100500 8990 Fair Market Value Venue and Catering Support of local community educational programs American Educational Research Association 1430 K Street NW Suite 1200 Washington DC 20005 237003537 501-c-3 5000 Support of local community educational programs American Red Cross of Central New Jersey 707 Alexander Road Suite 101 Princeton NJ 08540 530196605 501-c-3 12650 Support of local community educational programs Anchor House Foundation Inc 482 Center Street Trenton NJ 08611 222229995 501-c-3 10000 Support of local community educational programs Assn of Public and Land-Grant Universities 1307 New York Ave NW Ste 400 Washington DC 20005 530183246 501-c-3 15000 207 Fair Market Value Supplies Support of local community educational programs Career Development Awards PO Box 2314 Princeton NJ 08542 236206954 501-c-3 5000 4291 Fair Market Value Venue and Catering Support of local community educational programs The CEJJES Institute 5 Cooper Morris Dr Pomona NY 10970 134102065 501-c-3 10000 Support of local community educational programs Committee for Economic Development 2000 L Street NW Suite 700 Washington DC 20036 131623973 501-c-3 10000 Support of local community educational programs Communities in Schools of New Jersey 200 Washington Street Newark NJ 07102 223176409 501-c-3 78730 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 4900 Support of local community educational programs Communicard LLC 3112 Windsor Rd Austin TX 78703 010782390 501-c-3 5000 Support of local community educational programs CONTACT of Mercer County New Jersey Inc 60 S Main St Pennington NJ 08534 222320153 501-c-3 5272 Support of local community educational programs Education Commission of the States 700 Broadway Suite 810 Denver CO 80203 310722194 501-c-3 10000 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 Education Law Center 60 Park Place Newark NJ 07102 222104555 501-c-3 10264 Support of local community educational programs Every Child Valued 175 Johnson Avenue Lawrenceville NJ 08648 264654078 501-c-3 10000 Support of local community educational programs Ewing Public Education Foundation Inc PO Box 7033 Ewing NJ 08628 223347353 501-c-3 65760 6225 Fair Market Value Venue, Catering and Printing Support of local community educational programs Excelencia in Education Inc 1717 N Street NW 2ND Floor Washington DC 20036 200927912 501-c-3 10000 Support of local community educational programs Fight for Children Inc 1726 M Street NW Suite 202 Washington DC 20036 521706059 501-c-3 6500 Support of local community educational programs Hispanics Inspiring Students' Performance and Achievement (HISPA) 3587 Highway 9n - 145 Freehold NJ 07728 521825305 501-c-3 7766 Support of local community educational programs HomeFrontInc 1880 Princeton Ave Lawrenceville NJ 08648 223165145 501-c-3 5147 Fair Market Value Back to School backpacks and supplies 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 Institute for Student Achievement One Hallow Lane Lake Success NY 11042 112995109 501-c-3 50000 Support of local community educational programs Junior Achievement of New Jersey 4365 Route 1 South Princeton NJ 08540 221774147 501-c-3 13000 Support of local community educational programs Lawrence Hopewell Trail Corporation PO Box 6735 Lawrenceville NJ 08648 222219524 501-c-3 5288 149 Fair Market Value Venue and Catering Support of local community educational programs Lawrence Township Education Foundation Inc 17 Phillips Ave Lawrenceville NJ 08648 223192024 501-c-3 78672 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 Lawrenceville Fire Company 64 Phillips Avenue District 3 Lawrenceville NJ 08648 237330548 501-c-3 11000 Support of local community educational programs Literacy Volunteers of Mercer County 3535 Quakerbridge Road Suite 104 Lawrenceville 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 10000 Support of local community educational programs The Morning Star Institute 611 Penn Ave 377 Washington DC 20003 581699691 501-c-3 5000 Support of local community educational programs National Center for Learning Disabilities 381 Park Ave South Suite 1401 New York NY 10016 132899381 501-c-3 8400 Support of local community educational programs National Indian Education Association (NIEA) 700 North Fairfax St Alexandria VA 22314 410976048 501-c-3 5000 Support of local community educational programs National Urban League 120 Wall Street New York NY 10005 131840489 501-c-3 20000 Support of local community educational programs New Jersey Association of State Colleges and Universities 150 West State Street Trenton NJ 08608 222681317 501-c-3 14000 2834 Fair Market Value Printing Support of local community educational programs New Jersey Education Foundation Partnership Inc PO Box 908 Princeton Junction NJ 08550 364613556 501-c-3 25000 5625 Fair Market Value Venue and Catering Support of local community educational programs New York University 70 Washington Square South New York NY 10003 135562308 501-c-3 10000 Support of local community educational programs Parents Step Ahead Inc 2102 Empire Central Dallas TX 75235 262477378 501-c-3 25000 Support of local community educational programs Princeton YWCA 59 Paul Robeson Place Princeton NJ 08540 210635056 501-c-3 10345 3825 Fair Market Value Venue and Catering Support of local community educational programs Princeton Healthcare System Foundation 3626 Route 1 Princeton NJ 08540 222225911 501-c-3 100216 Support of local community educational programs Rutgers Universtiy Foundation Winants Hall 7 College Avenue New Brunswick NJ 08901 237318742 501-c-3 11000 163 Fair Market Value Food Support of local community educational programs Stony Brook Millstone Watershed Association 31 Titus Mill Road Pennington NJ 08534 210649717 501-c-3 5000 Support of local community educational programs Southern University JS Clark Administration Bldg Baton Rouge LA 70813 237052911 501-c-3 50000 Support of local community educational programs Morris Hall - St Lawrence Inc (StLawrence Rehabilitation Center) 2381 Lawrenceville Road Lawrenceville NJ 08648 522250044 501-c-3 12778 Support of local community educational programs The College Board 45 Columbus Avenue New York NY 10023 131623965 501-c-3 10000 Support of local community educational programs Trenton Public Education Foundation Inc 1540 Kuser Rd Mercerville NJ 08619 562463017 501-c-3 10000 7555 Fair Market Value Printing Support of local community educational programs United Way of Greater Mercer County 3131 Princeton Pike Bldg 4 Lawrenceville NJ 08648 210683073 501-c-3 50238 2713 Fair Market Value Food and Venue Support of local community educational programs Urban League of Middle Tennessee 2250 Rosa L Parks Blvd Nashville TN 37228 620795167 501-c-3 10000 Support of local community educational programs US Hispanic Leadership Institute 431 S Dearborn Ste 1203 Chicago IL 60605 363191740 501-c-3 5000 Support of local community educational programs Young Audiences of New Jersey Inc 200 Forrestal Road Princeton NJ 08540 237384991 501-c-3 31000 Support of local community educational programs Boys & Girls Club of Trenton and Mercer County 212 Centre Street Trenton NJ 08611 731658119 501-c-3 5840 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 0 85460 Fair Market Value Venue and Catering Support of local community educational programs Burlington County Institute of Technology 695 Woodlane Road West Hampton NJ 08060 210735947 Government 41176 0 Support of local community educational programs Ewing Township 2 Jake Garzio Drive Ewing NJ 08628 216000557 Government 5000 3960 Fair Market Value Venue and Catering Support of local community educational programs Mercer County Department of Education Admin Building 640 South Broad Street Trenton NJ 08618 216000856 Government 10943 Fair Market Value Venue and Catering Support of local community educational programs Princeton Area Community Foundation 15 Princess Road Lawrenceville NJ 08648 521746234 Government 960 4745 Fair Market Value Venue and Catering Support of local community educational programs Trenton Board of Education 108 North Clinton Ave Trenton NJ 08609 216000326 Government 20000 Support of local community educational programs Ewing Public School Admin Building 2099 Pennington Rd Ewing NJ 08618 216000324 Government 0 14280 Fair Market Value Supplies Support of local community educational programs 58 0 Historically Black Colleges and Universities Presidential Scholarship 14 65525 Trenton Central High School Scholarship 5 238962 Research Fellowships 4 138947 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The ETS Social Investment Fund, 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 under consideration to ascertain the legal name, EIN or Taxpayer Identification Number and address. Tax-exempt status is verified in the following ways: (1) For organizations that are new to the ETS Social Investment Fund, we request the IRS Determination Letter which is kept on file. (2) ETS requests copies of the IRS Form 990. (3) ETS Social Investment Fund also requests and reviews the most recent audited financial statements for information about their financial condition. ETS typically maintains close contact with its grantees to monitor their progress in the use of grant funds and, whenever feasible, the extent to which the funded program met its objectives. Small grants (under $2,000) are typically made to 501(c)(3) organizations that participate in fairs 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 organizations 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 phone calls and meetings and (5) ETS obtains copies of any research papers that might be developed as a result of the grant. X X X X 1 1 X X X X X 0 0 0 1 0 1 0 1 0 Varn Richard J 152424 0 0 0 25180 0 13548 0 17003 0 208155 0 0 0 Landgraf Kurt M 641159 0 492188 0 120676 0 60883 0 19491 0 1334397 0 0 0 Bailey Diane A 191356 0 94461 0 22996 0 25563 0 0 0 334376 0 0 0 Basehore John 194112 0 109485 0 36973 0 29839 0 15330 0 385739 0 0 0 Donado Yvette 257888 0 135960 0 23966 0 37524 0 19130 0 474468 0 0 0 Draper Jr William C 168203 0 96000 0 48504 0 25513 0 5000 0 343220 0 0 0 Elliott Thomas J 199401 0 116926 0 42554 0 30051 0 23621 0 412553 0 0 0 Farnum Marisa 190436 0 96300 0 23671 0 26824 0 15181 0 352412 0 0 0 Gatti Frank R 116590 0 393335 0 51215 0 11327 0 6338 0 578805 0 0 0 Gilbertson Bruce M 197803 0 95700 0 32128 0 27728 0 19491 0 372850 0 0 0 Hayon Jack 247701 0 108268 0 41829 0 37940 0 24751 0 460489 0 0 0 Hernandez Sandra 199884 0 40500 0 8067 0 27831 0 20243 0 296525 0 0 0 Hunt David 226401 0 124755 0 40168 0 33072 0 23432 0 447828 0 0 0 Johnson-Gregory Sheree L 224495 0 106420 0 8820 0 31329 0 23139 0 394203 0 0 0 Kerins Nancy J 286060 0 144144 0 49354 0 40030 0 19485 0 539073 0 0 0 Lawrence Ida M 251516 0 133673 0 28708 0 36892 0 20291 0 471080 0 0 0 Lazer Stephen 231334 0 112700 0 32878 0 33424 0 19751 0 430087 0 0 0 MacDonald Walter B 335028 0 167616 0 32887 0 47988 0 22491 0 606010 0 0 0 Mazzeo John 218905 0 110542 0 37690 0 30366 0 0 0 397503 0 0 0 Nelson Scott F 212055 0 122921 0 41877 0 30935 0 19491 0 427279 0 0 0 Nettles Michael T 245002 0 124348 0 28465 0 36379 0 24751 0 458945 0 0 0 Oswald John 227323 0 114369 0 55416 0 30948 0 14129 0 442185 0 0 0 Paris Scott G 165678 0 25000 0 42376 0 19818 0 10469 0 263341 0 0 0 Payne David G 198959 0 111527 0 44652 0 29502 0 19403 0 404043 0 0 0 Pfund Rebecca 170044 0 95422 0 46711 0 27853 0 19751 0 359781 0 0 0 Pote Stephen K 211312 0 103301 0 17188 0 27682 0 20251 0 379734 0 0 0 Powell George D 218377 0 116920 0 65741 0 29486 0 15130 0 445654 0 0 0 Rockey Anne F 182988 0 101210 0 40516 0 26587 0 14314 0 365615 0 0 0 Schroeder Glenn C 308916 0 144994 0 24268 0 42685 0 20141 0 541004 0 0 0 Tabbiner Philip S 266745 0 132942 0 48075 0 37061 0 24751 0 509574 0 0 0 Tyler Linda L 165640 0 89893 0 44820 0 25308 0 12661 0 338322 0 0 0 Wakeman Daniel 192776 0 108038 0 23694 0 28480 0 24491 0 377479 0 0 0 Weaver Scott V 241555 0 115875 0 26554 0 34112 0 20751 0 438847 0 0 0 Bennett Randy E 213383 0 59693 0 23187 0 19636 0 22140 0 338039 0 0 0 Kirsch Irwin 229735 0 65000 0 25216 0 20058 0 14580 0 354589 0 0 0 Montero Dianne H 207482 0 47250 0 107162 0 19697 0 17130 0 398721 0 0 0 Moss Jeffrey 190646 0 105483 0 6390 0 18181 0 19639 0 340339 0 0 0 Patanella Richard 173427 0 78864 0 44139 0 26434 0 15916 0 338780 0 0 0 Part I, Line 1a First class and charter travel: Trustees (6) and Officers (10), received this benefit during 2011. It was not treated as taxable compensation to the listed person. This benefit is provided based on length of travel time required of the listed person. Travel for companions: Officers (2) received this benefit during 2011. It was not treated as taxable compensation to the listed person. A non-employee/companion/spouse may accompany an employee on business at ETS expense when the companion/spouses presence is required because it serves a valid business purpose or is part of a special employee recognition event. All companion/spousal travel to be paid by ETS must be approved in writing in advance by a Vice President or the CFO or the CEO and President. Tax gross-up payments: Officers (31) and Highest Compensated Employees (3) received this benefit during 2011. It was treated as taxable compensation to the listed person. Housing allowance or residence for personal use: Officers (2) received this benefit during 2011. It was treated as taxable compensation to the listed person. Supplemental Information Part III 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. Payment 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. Gloria Pote see Part V 63804 see Part V 0 Teresa M Sanchez-Lazer see Part V 211529 see Part V 0 Mary Lou Lennon see Part V 120252 see Part V 0 Part IV: Relationship between interested person and the organization: (a)Name of person: Gloria Pote(b)Relationship between interested person and the organization: family member of Stephen K. Pote, 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: Mary Lou Lennon(b)Relationship between interested person and the organization: family member of Randy Bennett, currently one of the five Highest Compensated Employees(d)Description of transaction: Salary and benefits Form 990, Part VI, Section B, line 11 All active Trustees received a copy of Form 990 for reveiw prior to Board of Directors 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 also annually complete a Trustee Disclosure Statement and a Trustee Affiliation Form. The Disclosure Statement addresses the Trustees material financial interest to which ETS is a party, or the material financial interest of a related party to which ETS is a party. The Affiliation Form addresses the Trustees employment as a staff member or as a consultant, 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 releasing themselves 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 (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 by a team of Strategic Workforce Solutions employees. Beginning in 2009, 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 engages an external executive compensation consultant organization to review and advise on excess benefit transaction law and to prepare an annual report and analysis of proposed compensation for ETS's CEO and officers. The analysis includes data on compensation for comparable organizations and similar occupations/functions in similarly situated organizations. The executive compensation consultant also develops a Letter of Reasonableness regarding the analyses of Officer pay consistent with government guidelines which is presented to the Committee on Governance and Human Resources and the Board for review, comment and approval. Form 990, Part VI, Section C, line 19 Currently, ETS does not make its governing documents, conflict of interest policy, or financial statements available to the public. This process is consistent with prior years. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized losses on investments: -4,458,334. Dividend received from ETS Canada -200,000. Equity earnings in affiliates 49,432,000. Miscellaneous 3,400. ETS Tech disregarded entity income -565,000. Increase to post-retirement medical benefits obligation -18,971,649. Total to Form 990, Part XI, Line 5: 25,240,417. PART XII Line 2c The process has not changed from prior year. BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: Schedule L, Part IV (a) Name of Person: Gloria Pote (b) Relationships between Interested Person and Organization: Family member of Stephen K.Pote, Current Officer (d) Description of Transaction: Salary and benefits (a) Name of Person: Teresa M. Sanchez-Lazer (b) Relationships between Interested Person and Organization: Family member of Stephen Lazer, Current Officer (d) Description of Transaction: Salary and benefits (a)Name of person: Mary Lou Lennon (b)Relationship between interested person and the organization: family member of Randy Bennett, currently one of the five Highest Compensated Employees (d)Description of transaction: Salary and benefits Capstar LLC Rosedale Road Princeton NJ 08541 820582786 Inactive DE 0 87456 Educational Testing Service ETS Tech LLC Rosedale Road Princeton NJ 08541 454054815 Holding company DE 0 10500000 Educational Testing Service Computerized Assessments and Learning LLC 1202 East 23rd Street Suite D Lawrence KS 66046 204973305 Educational services KS 565000 22667000 Educational Testing Service Likelive LLC Rosedale Road Princeton NJ 08541 383860534 Educational services DE 0 0 Educational Testing Service Educational Testing Service Retiree's Benefit Trust Rosedale Road MS 56-D Princeton NJ 08541 223372287 Benefit Plan NJ 501(c)9 Educational Testing Service 0 Educational Testing Service Medical and Dental Benefits Plan Rosedale Road MS 56-D Princeton NJ 08541 222680630 Benefit Plan NJ 501(c)9 Educational Testing Service 0 Educational Testing Service (ETS) Global BV World Trade Center Amsterdam Strawi Amsterdam NL 1077 XX Educational services NL Educational Testing Service C 35596377 10460254 1.00000 Educational Testing Service Canada Inc 212-133 Princess St Kingston Ontario CA K7L 1A8 Educational services CA Educational Testing Service C 1895690 928820 1.00000 ETS Assessments (Beijing) Ltd No 3 Dongsanhuan Beilu Block B L Beijing CH 100027 Educational services CH Educational Testing Service (ETS) Global BV C 1770756 1038137 1.00000 ETS Educational Services (India) Private Limited 12-2-417/A/15 Jayanagar Colony Hyderabad IN 500 082 Educational services IN Educational Testing Service C 12609 1.00000 Prometric Holdings Inc 1501 South Clinton Street Baltimore MD 21224 260416543 Holding company DE Educational Testing Service C 125849072 1.00000 Prometric Inc 1501 South Clinton Street Baltimore MD 21224 260416596 Educational services DE Prometric Holdings Inc C 251818354 527434345 1.00000 Prometric Japan Company Limited Kayabacho Tower Bldg 15F 1-21-2 Shi Tokyo JA 104-0033 Educational services JA Prometric Inc C 35816055 31421497 1.00000 Prometric Limited 6th Fl 1 Exchange Quay Salford Q Manchester UK M5 3EA 980561896 Educational services UK Prometric Inc C 21189940 9366269 1.00000 Ireland Test Center Delivery Limited Office 11 Verdala Business Center Mriehel MT BKR 3000 980561894 Holding company MT Prometric Inc C -15 1.00000 Australia Test Centre Pty Limited Suite 12 Level 12 37 Bligh Street Sydney NSW AS 2000 980561893 Holding company AS Prometric Inc C 14 11428438 1.00000 The Netherlands Test Center Holding BV Strawinskylaan 913 Amsterdam NL 1077 980561890 Holding company NL Prometric Inc C 54390661 1.00000 Prometric Ireland Ltd 25/28 North Wall Quay Dublin EI 1 Educational services EI Ireland Test Center Delivery Limited C 11302003 18448134 1.00000 Prometric Pty Ltd Suite 12 Level 12 37 Bligh Street Sydney NSW AS 2000 Educational services AS Australia Test Centre Pty Limited C 914733 1591763 1.00000 Prometric I BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL The Netherlands Test Center Holding BV C 23600320 47427347 1.00000 Prometric BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 8615904 49708621 1.00000 Prometric II BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 6598651 5876742 1.00000 Prometric III BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 4818242 2240377 1.00000 Prometric Korea Limited Yoon-Ik Building 8 Fl 706-13 Yeok Seoul KS Educational services KS Prometric BV C 2554186 2076472 1.00000 Prometric (Pty) Ltd Block C Empire Park 55 Empire Roa Johannesburg SF 2193 Educational services SF Prometric BV C 893151 483294 1.00000 Prometric Testing Services Private Ltd 2nd Floor DLF Infinity Tower-A Sec Gurgaon, Haryana IN 122-002 Educational services IN Prometric BV C 6592365 5083604 1.00000 Prometric Technology (Beijing) Co Ltd Unit 406 Raycom InfoTech Tower A Beijing CH 100080 Educational services CH Prometric BV C 1810389 791933 1.00000 Prometric Limited Israel 22 Rivlin Street Jerusalem IS 94240 Educational services IS Prometric BV C 72632 1.00000 Prometric Technology SDN Bhd Suite 21A-15-1 Farber Imperial CRT Kuala Lumpur MY 50250 Educational services MY Prometric BV C 4843964 2201744 1.00000 Prometric GmbH Tortrasse 49 Berlin GM 10119 Educational services GM Prometric II BV C 398722 1008483 1.00000 Prometric Pte Ltd 77 Robinson Road 15-01 SN 068898 Educational services SN Prometric II BV C 2525871 1172267 1.00000 Prometric Thomson Learning Sp Zoo Room 307 UI Nowogrodzka 84/86 Warsaw PL Educational services PL Prometric II BV C Prometric FZ LLC Dubai Knowledge Village Office 108 Dubai AE Educational services AE Prometric I BV C 1409768 514659 1.00000 Educational Testing Service International Holdings Limited 25/2 Dublin EI 1 Educational services EI Educational Testing Service C 11700000 1.00000 Edusoft Ltd 16 Hamelacha St North Industrial P Rosh Ha'Ayin IS 48091 Educational services IS Educational Testing Service International Holdings Limited C 1893582 16630556 1.00000 SpeakingPal Ltd 6 HaNehoshet Street Tel Aviv IS 69710 Educational services IS Edusoft Ltd C 298079 209804 0.26930 1 0 0 1 0 0 0 0 0 0 1 1 0 1 1 0 0 1 Educational Testing Service (ETS) Global BV L 5842359 Fair market value Educational Testing Service (ETS) Global BV A 1937818 Cash Educational Testing Service (ETS) Global BV R 1070744 Cash Educational Testing Service Medical and Dental Benefits Plan O 20300242 Cash ETS Canada Inc L 285443 Fair market value ETS Canada Inc K 71401 Fair market value ETS Canada Inc A 225471 Cash ETS Canada Inc R 200000 Cash Prometric Inc L 106140275 Fair market value Prometric Inc K 1800954 Fair market value