2011-11-14T08:32:08-06:00 2010-12-31 Deloitte Tax LLP 2 World Financial Center New York NY 10281 990 2010-01-01 210634479 Educational Testing Service EDUC 6099219000 Rosedale Road MS 56D Princeton NJ 08541 Jack Hayon 6099219000 2011-11-14 2124362000 2010 2016-03-07 17:11:31Z Jack Hayon Rosedale Road MS 56D Princeton NJ 08541 991229479 0 X www.ets.org X 1947 NY See Page 2, Part III, Question 1 17 16 19857 0 13451255 -4073270 8866276 12889559 848400524 880691488 -2746975 2725711 51076549 63544566 905596374 959851324 1573957 1901440 0 0 282270130 296640545 0 0 0 614333761 634561649 898177848 933103634 7418526 26747690 569626943 665006780 300876169 332775385 268750774 332231395 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 274732772 490620841 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 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 in 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 2010, approximately 10.6 million tests were administered on behalf of the College Board.College and Graduate Programs(CGP):This division of ETS supervises 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, quantitative 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 policy council made up of public academic leaders and graduate school deans to provide direction for the program. In 2010, approximately 708 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 candidates basic teaching skills, 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 2010 approximately 1.1 million applicants participated in these tests and/or these services (PRAXIS Series and TEA assessments).All of the activities described above are classified as related activities, due to their role in educational assessment. 156198600 278102368 Global Division is responsible for carrying out ETSs mission 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. Global offers consultation and technical assistance in support of building capacity for ministries of education, colleges and universities, and national testing agencies worldwide. The Global Institute provides instruction to education leaders, college and university staff, government officials and representatives of testing agencies both at its Princeton headquarters as well as in region.In addition, Global designs, develops and delivers English language and student learning 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 English proficiency of students whose native language is not English. The test is required by many domestic 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 policy council, 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. Global oversees the 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.In addition, Global has a custom assessment group dedicated to responding to international bids or client requests for educational services, a channel group which manages iBT test centers and the preferred associate (vendor) network; a partnership implementation group, a network planning group, and a client relations group. 398084002 111968279 Elementary and Secondary Education (K12 Assessments and K12 Learning and Development), Research & Development, National Assessment of Educational Progress, English Language Learning, Policy Evaluation & Research Center and other supported activities.K12 AssessmentsK12 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 CAPA, STS and 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. 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 and the University of California Admissions Program for the UC system. K12 Assessments has also been awarded assessment contracts in other states to measure the educational achievement and progress of K-12 students. A partial listing of those contracts include: Maryland High School Assessment Program; testing programs in Math and English Chicago Public Schools and Miami Dade school districts and subcontracts for state assessments in Texas, Tennessee, Virginia, Mississippi and Washington.K12 Assessments also contracts with the US Department of Education for the Comprehensive English Language Learning Assessment in Florida. In addition, it contracts with the Educational Records Bureau (ERB) to administer the Comprehensive Testing Program 4(CTP 4), which consists of an assessment for grades 1-11 in key areas of school achievement including: listening, reading, vocabulary, writing and mathematics. In addition, CTP 4 includes two tests to measure verbal and quantitative reasoning for students in grades 3 through 11. Under a separate contract with ERB, K12 Assessments is developing and piloting a computerized adaptive assessment test (CAAT). The results of the ERB tests will be used for educational guidance, evaluation of student progress and curriculum improvement. K12 Assessments also contracts with the Southern Regional Educational Board, a non-profit consortium of states, for the pursuit of educational excellence, to develop and administer two testing programs, the High Schools That Work and Middle Grade Assessment tests, designed to measure and improve educational instruction. K12 Learning and DevelopmentIn addition to custom large scale assessment projects for states and large school districts, ETS, through its K12 Learning and Development division, also develops, markets and sells products that enhance learning in K-12 students. For example, K12 Learning and Development Products and Services provides test development services for districts who wish to plan and administer formative benchmark and diagnostic assessments to measure students progress and determine areas where learning is incomplete and can be addressed through follow-up instruction, using the Focus on Standards (FOS) model of professional development. Other examples include a wide array of professional development training and learning experiences for educators such as assessment literacy training from the Assessment Training Institute (ATI), computer-based practice and feedback of ones writing skills using K12 Learning and Development's Criterion software product, and the sale of test questions from K12 Learning and Developments large item banks for either secure large scale assessment or less secure classroom assessment.The K12 Assessments and K12 Learning and Development divisions of ETS have an ambitious charge: to advance student learning by providing a new generation of high-quality, customized assessments, and related products and services to help states and school districts implement standards-based education. They work side by side with educators across the country to create and implement assessment products that are: customized, linked to state standards, developmentally appropriate, more inclusive, and designed to provide assessment information teachers can use in the classroom.All of the activities in these divisions 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 ETSs 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 on the NAEP website.ETS Policy and Evaluation & Research Center (PERC)The Policy Evaluation and Research Center (PERC) conducts research and analyses that address challenging education issues in the United States. The primary focus of PERC's research and analysis are (1) increasing overall educational achievement; and (2) closing achievement gaps in representation, achievement and attainment between advantaged and disadvantaged groups. PERC publishes and disseminates reports through its Policy Information Center to increase understanding of education challenges and promote improvement of education and education policy and praxis. Other Supported Activities ETS Scholarship & Recognition Programs (SRP)Scholarship & Recognition Program (SRP) has experience providing outsourced scholarship program design and administration services to corporations and philanthropic organizations which is classified as unrelated business income.Chauncey Conference CenterETS also operates a conference center, the revenues from which are classified as unrelated business income. 1901440 1901440 Grants and other assistance to organizations and individuals inside and outside of the United States. 1901440 1901440 830916814 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 13699 0 1 19857 1 1 1 1 FR GM UK NL JO SP PL KS CH SN IN CA 0 0 0 0 0 0 0 0 X 17 16 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 NJ NY OR X Michael J Freddo Controller 6099219000 Rosedale Road MS 56D Princeton NJ 08541 Alvarado Anthony J 1.50 X 28000 0 0 Carstarphen Meria 1.50 X 28000 0 0 Clarkeson John S 1.50 X 33000 0 0 Colbert Isaac 1.50 X 36000 0 0 English Michela 1.50 X 36000 0 0 Garcia Ofelia 1.50 X 32000 0 0 Henderson Wade 1.50 X 24000 0 0 Johnson Melvin 1.50 X 39000 0 0 Menezes Victor 1.50 X 35000 0 0 Murley Robert S 1.50 X 36000 0 0 Richardson Earl S 1.50 X 8000 0 0 Robertson Piedad F 1.50 X 58000 0 0 Rothkopf Arthur 1.50 X 32000 0 0 Valdes Guadalupe 1.50 X 46000 0 0 Varn Richard J 1.50 X 38000 0 0 Winckler Georg 1.50 X 24000 0 0 Landgraf Kurt M 40.00 X X 1192362 0 35110 Bailey Diane A 40.00 X 289743 0 24349 Basehore John 40.00 X 342272 0 38696 Cascio Charles E 40.00 X 430487 0 22413 Donado Yvette 40.00 X 410515 0 45138 Draper Jr William C 40.00 X 200610 0 25031 Elliott Thomas J 40.00 X 353379 0 43846 Farnum Marisa 40.00 X 242716 0 35615 Gatti Frank R 40.00 X 590672 0 31392 Gilbertson Bruce M 40.00 X 310636 0 41796 Hayon Jack 40.00 X 333632 0 42791 Hunt David 40.00 X 375826 0 45702 Johnson-Gregory Sheree L 40.00 X 265285 0 43494 Kerins Nancy J 40.00 X 469959 0 51456 Lawrence Ida M 40.00 X 396589 0 48898 Lazer Stephen 40.00 X 334069 0 43917 MacDonald Walter B 40.00 X 488471 0 56960 Mazzeo John 40.00 X 302318 0 31509 Nelson Scott F 40.00 X 361499 0 38454 Nettles Michael T 40.00 X 391371 0 48621 Oswald John 40.00 X 356896 0 41837 Pote Stephen K 40.00 X 321332 0 39857 Powell George D 40.00 X 385416 0 31392 Rockey Anne F 40.00 X 256800 0 35044 Schroeder Glenn C 40.00 X 456122 0 54525 Tabbiner Phillip S 40.00 X 410535 0 48945 Wakeman Daniel 40.00 X 300499 0 42122 Weaver Scott V 40.00 X 333923 0 46198 Payne David G 40.00 X 342748 0 42394 Tyler Linda L 40.00 X 291801 0 33657 Pfund Rebecca 40.00 X 269880 0 40627 Kirsch Irwin 40.00 X 305287 0 30146 Patanella Richard 40.00 X 266550 0 36496 Chan Peter 40.00 X 273662 0 30699 Cano Diana 40.00 X 317746 0 32622 Bennett Randy 40.00 X 269111 0 34003 Gale Anne S N 40.00 X 5998 0 0 Horne Eleanor V 40.00 X 71634 0 0 Pfister Linda 40.00 X 9503 0 0 Ramsey Paul A 40.00 X 131483 0 0 VonMayrhauser Stanford 40.00 X 2232 0 0 13905202 0 1415752 753 1 1 0 Computer Sciences Corporation 400 Commerce Drive Newark DE 19713 Computer services 47795530 Accenture LLP PO Box 70629 Chicago IL 60673 Supply chain services 45315204 NCS Pearson Inc 5601 Green Valley Dr Bloomington MN 55437 Test administration services 44985318 Adecco USA Inc 175 Broad Hollow Rd Melville NY 11747 Temporary labor services 20178861 MRM Worldwide Princeton 3450 Princeton Pike Lawrenceville NJ 086481206 Marketing 11753076 222 13577 8592975 4283007 12889559 Higher Education 611710 490620841 490620841 Global 611710 278102368 278102368 ESE and Other 611710 111968279 111968279 880691488 1445243 1445243 49922172 49922172 250921 77465 173456 173456 173456 32530671 31250203 1280468 1280468 1280468 41140 13577 50487 -9347 -9347 7030 7030 7030 Occupational & Prof Sk 611600 8798818 8798818 Chauncey Conf. Center 721000 2780299 2780299 Scholarship Recognitio 611600 1872138 1872138 13451255 959851324 880691488 13451255 52819022 1098462 1098462 300978 300978 502000 502000 13593150 4984166 8608984 221832 221832 220217433 189345122 30872311 18759264 14926587 3832677 27922349 14494849 13427500 15926517 12672594 3253923 7304103 161003 7143100 1703496 1703496 114801 114801 335219 335219 397514235 379693998 17820237 7423234 7423234 132847790 129850269 2997521 947075 946550 525 11547020 11532792 14228 11066827 9501935 1564892 2077716 1585256 492460 228003 228003 48411505 41964392 6447113 2119368 2119368 Foreign & State Taxes 4699639 4665889 33750 Miscellaneous 2933127 1506326 1426801 Chauncey Conf Center 2607584 2607584 Memberships and Dues 680907 589606 91301 933103634 830916814 102186820 0 1844063 1639048 30145590 89810338 64196856 70671367 7169366 5669366 20146417 10587570 186643919 116060615 73962012 70583304 252364619 295436043 114685935 120280014 5112085 329730 569626943 665006780 128034363 132806833 87985119 82204532 5033723 79822964 117764020 300876169 332775385 X 268750774 332231395 268750774 332231395 569626943 665006780 X 26747690 36732930 X 0 1 1 X 1 1 X 6599069 6147791 7448670 5746388 12889559 38831477 754141608 780071035 835128581 851511617 880691488 4101544329 760740677 786218826 842577251 857258005 893581047 4140375806 0 263780693 340499830 293846372 283748345 279286338 1461161578 263780693 340499830 293846372 283748345 279286338 1461161578 2679214228 29982569 34203916 34538223 38561274 51618196 188904178 29982569 34203916 34538223 38561274 51618196 188904178 8795 7030 15825 790723246 820422742 877115474 895828074 945206273 4329295809 0.61890 0.61470 0.04360 0.03910 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 114801 114801 919910182 920024983 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 144338 196650 218163 114801 673952 250000 250000 250000 250000 1000000 1500000 Part IV, Supplemental Information: Lobbying expenses of $114,801 were used for the following Federal and State lobbying activities: Federal Lobbyist - Van Scoyoc Associates: $90,001 Reauthorization of Elementary and Secondary Education Act Researching and analyzing Race to the Top opportunities. Lobbied on Higher Education Performance Assessments Monitored and lobbied on Common Core Assessments, PARCC and SBAC. State Lobbyists: CA Capitol Advocacy $11,600 Provided information on issues related to educational testing and accountability, lobbied the Legislature and the Governor's office regarding educational assessments. FL Southern Strategy Group $7,800 Met with legislators and staff regarding teacher licensure, teacher certification, teacher evaluation and teacher quality. Specific bills lobbied for are Senate Bill 4 and Senate Bill 6. PA Gmerek GR, Inc. $5,400 Legislation proposing changes to Pennsylvania's teacher certification system. Lobbying efforts include Senate Bill 441, Senate Bill 1011, House Bill 1863 and House Bill 1529. Meetings with the House and Senate Education Committees and the bill sponsors were held to include the requirement that individuals seeking certification be required to pass a subject content exam prior to receiving state certification. State Lobbying Total $24,800 Total Lobbying $114,801 1970618 1970618 140971544 85532972 55438572 4747020 4160032 586988 38954737 26367611 12587126 70583304 Archstone Partners 16046551 F Federal Street Partners 15618700 F Investment in affiliated entities 200946852 F Silchester International Investors 9617545 F State Street Global 22202683 F Wellington Capital Management 11730934 F Blackrock (Barclays) 10160831 F Next Century 9111947 F 295436043 Post-retirement medical benefits 64538598 Intercompany payable 22078776 Other liabilities 31146646 117764020 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 Grantmaking Grantmaking 452000 South Asia Grantmaking Grantmaking 50000 Middle East and North Africa 1 Program services Testing activities 2043399 North America Program services Testing activities 275737 Europe Program services Testing activities 4742099 North America Investments 520020 Europe Investments 0 1 0 1 8083255 0 8083255 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 37 332000 Checks sent to students schools for tuition Scholarships for outstanding Indian Students South Asia 7 50000 Checks sent to students schools for tuition 0 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 85287 300150324 501-c-3 99500 5625 Fair Market Value Venue and Catering Support of local community educational programs American Cancer Society Eastern Division 132 West 32nd Street New York NY 10019 131788491 501-c-3 10000 Support of local community educational programs American Educational Research Association 1430 K Street NW Suite 1200 Washington DC 20005 237003537 501-c-3 10000 Support of local community educational programs American Red Cross of Central New Jersey 707 Alexander Road Ste 101 Princeton NJ 08540 530196605 501-c-3 12816 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 Capital Corridor Community Development Corporation 433 Bellevue Ave 4th Floor Rm 326 Trenton NJ 08618 123799161 501-c-3 10000 Support of local community educational programs CASA (Court Appointed Special Advocates of Mercer County Inc) 180 Ewingville Rd Ewing NJ 08638 223770968 501-c-3 9480 Support of local community educational programs Career Development Awards PO Box 2314 Princeton NJ 08544 236206954 501-c-3 5000 4340 Fair Market Value Venue and Catering 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 San Antonio 1616 E Commerce St Bldg 1 San Antonio TX 78205 742393714 501-c-3 5062 Support of local community educational programs CONTACT of Mercer County New Jersey Inc 1985 Pennington Road Ewing NJ 08618 222320153 501-c-3 10000 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 15000 Support of local community educational programs Eggerts Crossing Civic League Inc PO Box 66048 Lawrenceville NJ 08648 223636158 501-c-3 18000 Support of local community educational programs Every Child Valued 175 Johnson Avenue Lawrenceville NJ 08648 264654078 501-c-3 30422 1221 Fair Market Value Venue and Catering Support of local community educational programs Ewing Public Education Foundation Inc PO Box 7033 Ewing NJ 08628 223347353 501-c-3 40366 Support of local community educational programs Excelencia in Education Inc 1717 N Street NW 2ND Floor Washington DC 20036 200927912 501-c-3 5000 Support of local community educational programs Fight for Children Inc 1726 M Street NW Suite 202 Washington DC 20036 521706059 501-c-3 7750 Support of local community educational programs Hispanics Inspiring Students' Performance and Achievement (HISPA) 3587 Highway 9n - 145 Freehold NJ 07728 521825305 501-c-3 8500 3600 Fair Market Value Venue and Catering Support of local community educational programs Hopatcong Board of Education 2 Windsor Avenue Hopatcong NJ 07843 226001999 Government 51570 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 Junior Achievement of New Jersey 4365 Route 1 South Princeton NJ 08540 221774147 501-c-3 10000 Support of local community educational programs Lawrence Hopewell Trail Corporation PO Box 6735 Lawrenceville NJ 08648 222458313 501-c-3 15000 Support of local community educational programs Lawrence Township Education Foundation Inc 200 Canal Pointe Blvd Princeton NJ 08540 223192024 501-c-3 76459 Support of local community educational programs Lawrence Township Community Foundation PO Box 6707 Lawrenceville NJ 08648 223835387 501-c-3 20000 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 Hamilton NJ 08614 223502495 501-c-3 10000 Support of local community educational programs Mercer Alliance to End Homelessness 3131 Princeton Pike Bldg 4 Lawrenceville NJ 08648 201594569 501-c-3 5000 900 Fair Market Value Venue and Catering Support of local community educational programs Mercer Street Friends 824 Silvia St Ewing NJ 08628 210733990 501-c-3 10402 Support of local community educational programs NAACP Legal Defense & Education Fund 99 Hudson Street 12-F New York NY 100132815 131655255 501-c-3 5000 Support of local community educational programs NAMI Mercer Inc 3371 Brunswick Pike Suite 124 Lawrenceville NJ 08648 222587453 501-c-3 20270 2705 Fair Market Value Catering Support of local community educational programs National Center for Learning Disabilities 381 Park Ave South Suite 1420 New York NY 10016 132899381 501-c-3 10000 Support of local community educational programs National Indian Education Association (NIEA) 110 Maryland Ave NE ste 104 Washington DC 20002 410976048 501-c-3 6000 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 Network For Good 7920 Norfolk AveSuite 520 Bethesda MD 20814 680480736 501-c-3 6405 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 30000 Support of local community educational programs New Jersey Education Foundation Partnership Inc PO Box 908 Princeton Junction NJ 08550 364613556 501-c-3 25000 7315 Fair Market Value Venue and Catering Support of local community educational programs New Jersey State Chamber of Commerce 216 West State Street Trenton NJ 08608 221153980 501-c-3 5000 Support of local community educational programs Parents Step Ahead Inc 2102 Empire Central Dallas TX 75235 262477378 501-c-3 25500 Support of local community educational programs Princeton YWCA 59 Paul Robeson Place Princeton NJ 08540 210635056 501-c-3 11104 3052 Fair Market Value Venue and Catering Support of local community educational programs Recording for the Blind & Dyslexic 20 Rozel Road Princeton NJ 08540 131659345 501-c-3 7350 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 Morris Hall - St Lawrence Inc (StLawrence Rehabilitation Center) 2381 Lawrenceville Road Lawrenceville NJ 08648 522250044 501-c-3 10202 Support of local community educational programs The College Board 45 Columbus Avenue New York NY 10023 131623965 501-c-3 5000 Support of local community educational programs The Liberty USO of Pennsylvania and Southern New Jersey Philadelphia International Airport Terminal A East Philadelphia PA 19153 231426011 501-c-3 5000 Support of local community educational programs Trenton Public Education Foundation Inc PO Box 22545 Trenton NJ 08607 562463017 501-c-3 10000 Support of local community educational programs United Way of Greater Mercer County 3131 Princeton Pike Bldg 4 Lawrenceville NJ 08648 210683073 501-c-3 55030 Support of local community educational programs US Hispanic Leadership Institute 431 S Dearborn Ste 1203 Chicago IL 60605 363191740 501-c-3 10000 Support of local community educational programs Young Audiences of New Jersey Inc 200 Forrestal Road Princeton NJ 08540 237384991 501-c-3 20000 Support of local community educational programs Teal Tea Foundation PO Box 6645 Lawrenceville NJ 08648 264050794 501-c-3 6120 3035 Fair Market Value Printing Support of local community educational programs Boys & Girls Club of Trenton and Mercer County 212 Centre Street Trenton NJ 08611 731658119 501-c-3 1000 16976 Fair Market Value Venue and Catering 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 66765 Fair Market Value Venue and Catering Support of local community educational programs Ewing Township Board of Education PO Box 7033 Ewing NJ 08628 216000324 Government 0 10925 Fair Market Value Venue and Catering Support of local community educational programs Ewing Township 2 Jake Garzio Drive Ewing NJ 08628 216000557 Government 2000 9206 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 0 17961 Fair Market Value Venue and Catering Support of local community educational programs Princeton Area Community Foundation 15 Princess Road Lawrenceville NJ 08648 521746234 Government 0 5514 Fair Market Value Venue and Catering Support of local community educational programs Trenton Central High School 400 Chambers Street Trenton NJ 08609 216000032 Government 0 5503 Fair Market Value Venue and Catering Support of local community educational programs 57 0 Historically Black Colleges and Universities Presidential Scholarship 9 79768 Trenton Central High School Scholarship 4 108184 Research Fellowships 4 104026 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 1 0 0 1 0 1 0 1 0 Landgraf Kurt M 599155 0 478750 0 114457 0 22050 0 13060 0 1227472 0 0 0 Bailey Diane A 185475 0 81520 0 22748 0 24349 0 0 0 314092 0 0 0 Basehore John 175993 0 110725 0 55554 0 29354 0 9342 0 380968 0 0 0 Cascio Charles E 144832 0 92450 0 193205 0 15381 0 7032 0 452900 0 0 0 Donado Yvette 253425 0 137500 0 19590 0 36452 0 8686 0 455653 0 0 0 Draper Jr William C 174010 0 0 0 26600 0 25031 0 0 0 225641 0 0 0 Elliott Thomas J 192720 0 118250 0 42409 0 30786 0 13060 0 397225 0 0 0 Farnum Marisa 176890 0 44000 0 21826 0 26273 0 9342 0 278331 0 0 0 Gatti Frank R 351358 0 187063 0 52251 0 22050 0 9342 0 622064 0 0 0 Gilbertson Bruce M 198073 0 87278 0 25285 0 28736 0 13060 0 352432 0 0 0 Hayon Jack 182122 0 110731 0 40779 0 29731 0 13060 0 376423 0 0 0 Hunt David 228297 0 117063 0 30466 0 33234 0 12468 0 421528 0 0 0 Johnson-Gregory Sheree L 212201 0 38000 0 15084 0 30434 0 13060 0 308779 0 0 0 Kerins Nancy J 279723 0 143000 0 47236 0 38396 0 13060 0 521415 0 0 0 Lawrence Ida M 247034 0 121669 0 27886 0 35838 0 13060 0 445487 0 0 0 Lazer Stephen 208385 0 100733 0 24951 0 30857 0 13060 0 377986 0 0 0 MacDonald Walter B 320992 0 155000 0 12479 0 43900 0 13060 0 545431 0 0 0 Mazzeo John 213910 0 54000 0 34408 0 31509 0 0 0 333827 0 0 0 Nelson Scott F 202004 0 118250 0 41245 0 29458 0 8996 0 399953 0 0 0 Nettles Michael T 242564 0 120726 0 28081 0 35561 0 13060 0 439992 0 0 0 Oswald John 235114 0 108923 0 12859 0 32495 0 9342 0 398733 0 0 0 Pote Stephen K 204734 0 99328 0 17270 0 26797 0 13060 0 361189 0 0 0 Powell George D 224846 0 122259 0 38311 0 22050 0 9342 0 416808 0 0 0 Rockey Anne F 176295 0 40000 0 40505 0 25902 0 9142 0 291844 0 0 0 Schroeder Glenn C 299005 0 140771 0 16346 0 41465 0 13060 0 510647 0 0 0 Tabbiner Phillip S 258182 0 121050 0 31303 0 35885 0 13060 0 459480 0 0 0 Wakeman Daniel 194396 0 88267 0 17836 0 29062 0 13060 0 342621 0 0 0 Weaver Scott V 229238 0 87500 0 17185 0 33138 0 13060 0 380121 0 0 0 Payne David G 189843 0 112900 0 40005 0 30314 0 12080 0 385142 0 0 0 Tyler Linda L 159992 0 88200 0 43609 0 24971 0 8686 0 325458 0 0 0 Pfund Rebecca 191949 0 55000 0 22931 0 27567 0 13060 0 310507 0 0 0 Kirsch Irwin 223571 0 56600 0 25116 0 22050 0 8096 0 335433 0 0 0 Patanella Richard 166266 0 60000 0 40284 0 27430 0 9066 0 303046 0 0 0 Chan Peter 185918 0 55765 0 31979 0 18619 0 12080 0 304361 0 0 0 Cano Diana 195712 0 22200 0 99834 0 19562 0 13060 0 350368 0 0 0 Bennett Randy 203640 0 42400 0 23071 0 20943 0 13060 0 303114 0 0 0 Ramsey Paul A 0 0 0 0 131483 0 0 0 0 0 131483 0 0 0 Part I, Line 1a First class and charter travel: Trustees (3) and Officers (12), received this benefit during 2010. 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 2010. 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 2010. It was treated as taxable compensation to the listed person. Housing allowance or residence for personal use: Officers (2) received this benefit during 2010. It was treated as taxable compensation to the listed person. Part I, Line 4a Charles E. Cascio received a severance payment of $119,445. 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. Gloria Pote see Part V 43736 see Part V 0 Teresa M Sanchez-Lazer see Part V 200604 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 Form 990, Part VI, Section B, line 11 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 recusing 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 activites 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 Workfoce 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 ETSs 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 gains on investments: 7,641,094. Dividend received from ETS Canada -300,000. Increase to post-retirement medical benefits obligation -3,656,103. Goodwill impairment -455,977. Equity earnings in affiliates 33,543,383. Miscellaneous -39,467. Total to Form 990, Part XI, Line 5: 36,732,930. 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 Capstar LLC Rosedale Road Princeton NJ 08541 820582786 Holding company DE -2124 82817 Educational Testing Service ETS Tech LLC Rosedale Road Princeton NJ 08541 Holding company DE 0 2377290 Educational Testing Service Computerized Assessments and Learning LLC 1202 East 23rd Street Suite B Lawrence KS 66046 204973305 Educational services KS 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 27115862 10804837 1.00000 Educational Testing Service Canada Inc 212-133 Princess St Kingston Ontario CA K7L 1A8 Educational services CA Educational Testing Service C 2099624 1037495 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 2027780 1143359 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 15132 1.00000 Prometric Holdings Inc 1501 South Clinton Street Baltimore MD 21224 260416543 Holding company DE Educational Testing Service C 119962511 1.00000 Prometric Inc 1501 South Clinton Street Baltimore MD 21224 260416596 Educational services DE Prometric Holdings Inc C 248796855 581121835 1.00000 Prometric Japan Company Limited Kayabacho Tower Bldg 15F 1-21-2 Shi Tokyo JA 104-0033 Educational services JA Prometric Inc C 33810950 23531223 1.00000 Prometric Limited 6th Fl 1 Exchange Quay Salford Q Manchester UK M5 3EA 980561896 Educational services UK Prometric Inc C 18915305 10175190 1.00000 Ireland Test Center Delivery Limited 25/28 North Wall Quay Dublin EI 100027 980561894 Holding company EI Prometric Inc C -23429 13050001 1.00000 Australia Test Centre Pty Limited Suite 14 Level 2 37 Bligh Street Sydney NSW AS 2000 980561893 Holding company AS Prometric Inc C -31727 11352002 1.00000 The Netherlands Test Center Holding BV Strawinskylaan 913 Amsterdam NL 1077 980561890 Holding company NL Prometric Inc C -17579 54392202 1.00000 Prometric Ireland Ltd 25/28 North Wall Quay Dublin EI 1 Educational services EI Ireland Test Center Delivery Limited C 7191911 4684532 1.00000 Prometric Pty Ltd Suite 14 Level 2 37 Bligh Street Sydney NSW AS 2000 Educational services AS Australia Test Centre Pty Limited C 811940 1548044 1.00000 Prometric I BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL The Netherlands Test Center Holding BV C 23059569 47606085 1.00000 Prometric BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 8386846 47759635 1.00000 Prometric II BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 6622487 3973516 1.00000 Prometric III BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 5083841 2187316 1.00000 Prometric Korea Limited Yoon-Ik Building 8 Fl 706-13 Yeok Seoul KS Educational services KS Prometric BV C 1790457 566520 1.00000 Prometric (Pty) Ltd Block C Empire Park 55 Empire Roa Johannesburg SF 2193 Educational services SF Prometric BV C 850836 530446 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 9557737 7689578 1.00000 Prometric Technology (Beijing) Co Ltd Unit 406 Raycom InfoTech Tower A Beijing CH 100080 Educational services CH Prometric BV C 2009579 660455 1.00000 Prometric Ltd 22 Rivlin Street Jerusalem IS 94240 Educational services IS Prometric BV C 22910 59970 1.00000 Prometric Technology SDN Bhd Suite 21A-15-1 Farber Imperial CRT Kuala Lumpur MY 50250 Educational services MY Prometric BV C 5049582 1494623 1.00000 Prometric GmbH Tortrasse 49 Berlin GM 10119 Educational services GM Prometric II BV C 673958 341332 1.00000 Prometric Pte Ltd 77 Robinson Road 15-01 SN 068898 Educational services SN Prometric II BV C 2533552 296800 1.00000 Prometric Thomson Learning Sp Zoo Room 307 UI Nowogrodzka 84/86 Warsaw PL Educational services PL Prometric II BV C 1.00000 Prometric FZ LLC Dubai Knowledge Village Office 108 Dubai AE Educational services AE Prometric I BV C 1296870 199650 1.00000 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 4742099 Fair market value Educational Testing Service (ETS) Global BV A 2371773 Cash Educational Testing Service (ETS) Global BV R 3277730 Cash Educational Testing Service Medical and Dental Benefits Plan O 17531464 Cash ETS Canada Inc L 478199 Fair market value ETS Canada Inc K 99114 Fair market value ETS Canada Inc A 206369 Cash ETS Canada Inc R 300000 Cash Prometric Inc L 100067245 Fair market value Prometric Inc K 1611928 Fair market value