2011-11-14T16:01:48-06:00 2010-12-31 BLACKMAN KALLICK LLP 10 S RIVERSIDE PLAZA 9TH FLOOR CHICAGO IL 60606 990 2010-01-01 362110592 AMERICAN ACADEMY OF ORTHOPAEDIC SURGEONS AMER 8478237186 6300 NORTH RIVER ROAD ROSEMONT IL 600184262 KAREN L HACKETT 8478237186 2011-11-10 1 LU ANN TRAPP 3122071040 2011-11-10 2010 2016-02-24 21:20:13Z KAREN L HACKETT 6300 NORTH RIVER ROAD ROSEMONT IL 600184262 57289799 0 X WWW.AAOS.ORG X 1948 IL SERVE THE PROFESSION OF ORTHOPAEDIC SURGERY, CHAMPION THE INTERESTS OF PATIENTS, AND ADVANCE THE HIGHEST QUALITY MUSCULOSKELETAL HEALTH. 16 13 282 2708 2043626 266722 8603438 6105310 24404379 24634998 -174746 1906370 425420 686512 33258491 33333190 93448 482522 0 0 15321829 14884197 0 0 32012 17165637 17023690 32580914 32390409 677577 942781 74811570 81850244 15902612 16939985 58908958 64910259 X SERVE THE PROFESSION OF ORTHOPAEDIC SURGERY, CHAMPION THE INTERESTS OF PATIENTS, AND ADVANCE THE HIGHEST QUALITY MUSCULOSKELETAL HEALTH. 0 0 6661263 15123143 ANNUAL MEETING - PRESENTATION OF LECTURES AND SYMPOSIA ON ORTHOPAEDIC SURGERY AND RELATED TOPICS. 2010 ATTENDANCE: 27,211. 3950457 20000 3256676 COURSE EDUCATION - COURSES PROVIDED TO ORTHOPAEDIC PROFESSIONALS TO KEEP THEM ABREAST OF THE LATEST ADVANCES IN ORTHOPAEDIC SURGERY AND CARE AND TO PROVIDE CME. 41 COURSES OFFERED IN 2010. 2724053 2654953 SPECIALTY SOCIETY MANAGEMENT - PROVIDE MEETING MANAGEMENT SERVICES FOR ORTHOPAEDIC SPECIALTY SOCIETIES AND PROMOTE ORTHOPAEDIC UNITY AMONG SOCIETIES. 13 SPECIALTY SOCIETIES. 7358493 462522 360092 OTHER PROGRAM SERVICES - INCLUDING PUBLIC RELATIONS, BOARD OF COUNCILORS, ADVOCACY, EDUCATION PROGRAMS, INTERNATIONAL ACTIVITIES, AND RESEARCH AND SCIENTIFIC AFFAIRS. 7358493 462522 360092 20694266 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 1 0 0 1 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 160 0 282 1 1 1 0 0 0 0 0 0 0 0 0 X 16 13 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X MR RICHARD STEWART CFO 8478237186 6300 NORTH RIVER ROAD ROSEMONT IL 600184262 JOHN J CALLAGHAN MD 15.00 X X 118931 0 0 DANIEL J BERRY MD 10.00 X X 76373 0 0 JOHN R TONGUE MD 10.00 X X 34720 0 0 FREDERICK M AZAR MD 5.00 X X 1027 0 0 JOSEPH D ZUCKERMAN MD 3.00 X 33702 0 0 RICHARD J BARRY MD 2.00 X 7574 0 0 DAVID D TEUSCHER MD 2.00 X 4022 0 0 FRED C REDFERN MD 2.00 X 2221 0 0 M BRADFORD HENLEY MD 2.00 X 3877 0 0 JEFFREY O ANGLEN MD 2.00 X 9975 0 0 GREGORY A MENCIO MD 2.00 X 0 0 0 KEVIN P BLACK 2.00 X 1044 0 0 PAUL TORNETTA III MD 2.00 X 0 0 0 MICHAEL L PARKS MD 2.00 X 0 0 0 DANIEL W WHITE MD 2.00 X 944 0 0 G ZACHARY WILHOIT MS MBA 2.00 X 2310 0 0 KAREN L HACKETT 70.00 X 480714 0 50220 RICHARD J STEWART 60.00 X 249062 0 33720 MARK W WIETING 60.00 X 248389 0 33720 RICHARD PETERSON JD 60.00 X 278695 0 33720 WILLIAM R MARTIN MD 70.00 X 181935 0 27414 MARILYN L FOX 50.00 X 211802 0 30400 SANDRA R GORDON 50.00 X 177381 0 26958 LEWIS W JENKINS 50.00 X 160159 0 25236 DAVID A LOVETT JD 50.00 X 213201 0 30540 HOWARD MEVIS 50.00 X 208132 0 30033 JAMES A OGLE 50.00 X 180305 0 27251 CHARLES TURKELSON 50.00 X 152231 0 24443 LYNNE DOWLING 50.00 X 146421 0 23862 MARITA POWELL 50.00 X 145417 0 23762 SUSAN MCSORLEY 50.00 X 145195 0 23740 ALANNA PORTER 50.00 X 138313 0 23051 JEFFREY KRAMER 50.00 X 133461 0 22566 E ANTHONY RANKIN MD 2.00 X 26758 0 0 3774291 0 490636 33 1 1 0 MARTIN GROUP 949 N PLUM GROVE ROAD SUITE C SCHAUMBURG IL 60173 GRAPHIC ARTS 473948 WELLS FARGO BANK NW 5159 PO BOX 1450 MINNEAPOLIS MN 55845 INVESTMENT MANAGEMENT 300662 AUGUST LANG & HUSAK 4630 MONTGOMERY AVENUE SUITE 400 BETHESDA MD 20814 PUBLIC RELATIONS CONSULTANTS 256600 PHARMACEUTICAL MEDIA INC 30 EAST 33RD STREET 4TH FLOOR NEW YORK NY 10016 ADVERTISING CONSULTANT 194708 SECURITAS SECURITY SERVICES USA INC 12672 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 SECURITY SERVICES 145882 10 4250000 123000 1732310 6105310 ANNUAL MEETING 541900 15320594 15123143 197451 COURSE EDUCATION 541900 3256676 3256676 SPECIALTY SOCIETY MANA 541900 2654953 2654953 PUBLICATIONS ADVERTISI 541800 1672089 1672089 RENTAL INCOME FROM ORT 531120 1173800 11570 1162230 556886 394370 162516 24634998 1222321 1222321 2368448 2368448 15096618 14412569 684049 684049 684049 7862104 9544040 -1681936 -1681936 33333190 19747206 2043626 5437048 463731 463731 18791 18791 3412381 1791949 1620432 8175820 5517670 2650150 8000 781498 525540 255958 1743180 155341 1587839 771318 544194 227124 69956 98 69858 64772 64772 348058 348058 930110 371288 538410 20412 814738 766744 47994 736320 188160 548060 100 269445 153361 116084 790216 790216 2645187 1921031 721156 3000 4878245 4652578 225667 1402249 1402249 226849 35227 191622 UNRELATED BUSINESS INCO 48443 45844 2599 EQUIPMENT RENTAL 1783313 1783313 0 OUTSIDE SERVICES 1105803 1047935 57868 PRINTING AND PUBLICATIO 577985 571086 6399 500 REPAIRS AND MAINTENANCE 370651 370651 -38650 140385 -179035 32390409 20694266 11664131 32012 6254843 6367069 879810 766183 2541496 2992004 778908 742096 1973000 2119645 26203993 12244401 14260497 13959592 47659689 54618404 463327 285251 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612509 38556 4743830 5076503 -862794 43832 4169877 1.00000 0 0 1161007 1161007 18051790 7879416 10172374 6991196 4364985 2626211 13959592 33333190 32390409 942781 5058520 5058520 6001301 63510097 5058520 29716446 34774966 28735131 348059 4250000 4598059 33333190 53237605 21195255 21195255 32042350 348059 348059 32390409 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE PURPOSE OF THE ENDOWMENT FUND IS TO FINANCE ORTHOPAEDIC MEDICAL EDUCATION. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ACADEMY AND ASSOCIATION'S APPLICATION OF GAAPUSA REGARDING UNCERTAIN TAX POSITIONS HAD NO EFFECT ON ITS FINANCIAL POSITION AS MANAGEMENT BELIEVES THE ACADEMY AND ASSOCIATION HAS NO MATERIAL UNRECOGNIZED INCOME TAX BENEFITS, INCLUDING ANY POTENTIAL RISK OF LOSS OF ITS NOT-FOR-PROFIT TAX STATUS. THE ACADEMY AND ASSOCIATION WOULD ACCOUNT FOR ANY POTENTIAL INTEREST OR PENALTIES RELATED TO POSSIBLE FUTURE LIABILITIES FOR UNRECOGNIZED INCOME TAX BENEFITS AS INCOME TAX EXPENSE. THE ACADEMY AND ASSOCIATION ARE NO LONGER SUBJECT TO EXAMINATION BY FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR PERIODS BEFORE 2007. PART XII, LINE 2D - OTHER ADJUSTMENTS: REVENUE OF AFFILIATES 20,172,406. COST OF GOODS SOLD 9,544,040. PART XII, LINE 4B - OTHER ADJUSTMENTS: CONTRIBUTION FROM AFFILIATE 4,250,000. PART XIII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF AFFILIATES 11,651,215. COST OF GOODS SOLD 9,544,040. 1 ASIA 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 8876 EAST ASIA 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 37155 EUROPE 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 338 NORTH AMERICA 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 16948 SOUTH AMERICA 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 3951 EAST ASIA 0 0 GRANTS TO RECIPIENTS FROM THESE REGIONS SCHOLARSHIP 10335 NORTH AFRICA 0 0 GRANTS TO RECIPIENTS FROM THESE REGIONS SCHOLARSHIP 2782 NORTH AMERICA 0 0 GRANTS TO RECIPIENTS FROM THESE REGIONS SCHOLARSHIP 5674 0 0 0 86059 0 86059 SCHOLARSHIP EAST ASIA 4 10335 CASH SCHOLARSHIP NORTH AFRICA 1 2782 CASH SCHOLARSHIP NORTH AMERICA 2 5674 CASH 0 0 0 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: INTERNATIONAL SURGEONS ARE PROVIDED SCHOLARSHIPS TO ATTEND SURGICAL SKILLS COURSES AT THE AAOS HEADQUARTERS. APPLICANTS MUST BE OF A COUNTRY IDENTIFIED AS ONE OF "GREATEST NEED", HAVE COMPLETED ALL BASIC AND SPECIALTY ORTHOPAEDIC TRAINING, HAVE A HISTORY OF VOLUNTEERING IN THEIR COMMUNITY, AND DEMONSTRATED A COMMITMENT TO IMPROVING PATIENT CARE. RECIPIENTS ARE GRANTED UP TO $3,000 USD TO OFFSET TRAVEL COSTS. 1 ORTHOPAEDIC LEARNING CENTER 6300 N RIVER RD ROSEMONT IL 60018 363999836 501(C)(3) 20000 GENERAL SUPPORT UNITED STATES BONE & JOINT DECADE 6300 N RIVER RD ROSEMONT IL 60018 134223933 501(C)(3) 20000 GENERAL SUPPORT NORTH AMERICAN SPINE SOCIETY 7075 VETERANS BLVD BURR RIDGE IL 60527 363382069 501(C)(3) 12500 GENERAL SUPPORT HANDICAP INTERNATIONAL 6930 CARROLL AVENUE SUITE 240 TAKOMA PARK MD 20912 550914744 501(C)(3) 12500 GENERAL SUPPORT SURGICAL IMPLANT GENERATION 451 HILLS STREET SUITE B RICHLAND WA 99354 911952283 501(C)(3) 12500 GENERAL SUPPORT INTERNATIONAL MEDICAL CORPS 1919 SANTA MONICA BLVD SUITE 400 SANTA MONICA CA 90404 953949646 501(C)(3) 12500 GENERAL SUPPORT PARTNERS IN HEALTH 888 COMMONWEALTH AVENUE 3RD FLOOR BOSTON MA 02215 043567502 501(C)(3) 12500 GENERAL SUPPORT AMERICAN ASSOCIATION OF HIP AND KNEE SURGEONS 6300 N RIVER RD ROSEMONT IL 60018 363832205 501(C)(3) 20000 GENERAL SUPPORT AMERICAN JOINT REPLACEMENT REGISTRY 6300 N RIVER RD ROSEMONT IL 60018 270645591 501(C)(3) 325981 GENERAL SUPPORT 9 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION MAKES CONTRIBUTIONS TO OTHER 501(C)(3) ENTITIES WITH SIMILAR ORTHOPAEDIC RELATED MISSIONS FOR THE GENERAL SUPPORT OF THESE ORGANIZATIONS. SINCE THE FUNDS ARE TO BE USED FOR THE GENERAL SUPPORT OF THEIR MISSION, WE DO NOT REQUIRE THESE ORGANIZATIONS TO SUBSTANTIATE THEIR EXPENDITURES RELATED TO THESE CONTRIBUTIONS. X X X 1 1 X X X 1 1 0 0 0 0 0 0 0 KAREN L HACKETT 400000 0 80000 0 714 0 41000 0 9220 0 530934 0 0 0 RICHARD J STEWART 233470 0 10962 0 4630 0 24500 0 9220 0 282782 0 0 0 MARK W WIETING 232753 0 10996 0 4640 0 24500 0 9220 0 282109 0 0 0 RICHARD PETERSON JD 264488 0 9312 0 4895 0 24500 0 9220 0 312415 0 0 0 WILLIAM R MARTIN MD 176550 0 0 0 5385 0 18194 0 9220 0 209349 0 0 0 MARILYN L FOX 206335 0 5467 0 0 0 21180 0 9220 0 242202 0 0 0 SANDRA R GORDON 169002 0 8379 0 0 0 17738 0 9220 0 204339 0 0 0 LEWIS W JENKINS 150275 0 6985 0 2899 0 16016 0 9220 0 185395 0 0 0 DAVID A LOVETT JD 89721 0 0 0 123480 0 21320 0 9220 0 243741 0 0 0 HOWARD MEVIS 197105 0 7228 0 3799 0 20813 0 9220 0 238165 0 0 0 JAMES A OGLE 171949 0 8356 0 0 0 18031 0 9220 0 207556 0 0 0 CHARLES TURKELSON 143987 0 5406 0 2838 0 15223 0 9220 0 176674 0 0 0 LYNNE DOWLING 137803 0 6027 0 2591 0 14642 0 9220 0 170283 0 0 0 MARITA POWELL 139686 0 5731 0 0 0 14542 0 9220 0 169179 0 0 0 SUSAN MCSORLEY 136656 0 5887 0 2652 0 14520 0 9220 0 168935 0 0 0 ALANNA PORTER 131398 0 4223 0 2692 0 13831 0 9220 0 161364 0 0 0 JEFFREY KRAMER 126974 0 4073 0 2414 0 13346 0 9220 0 156027 0 0 0 E ANTHONY RANKIN MD 0 0 0 0 26758 0 0 0 0 0 26758 0 0 0 PART I, LINE 1A AIRFARE ONE CLASS UP FROM COACH IS AVAILABLE TO THE PRESIDENTIAL LINE FOR ALL AAOS ACTIVITIES AND ONE PERSON RECEIVED THIS BENEFIT. AIRFARE ONE CLASS UP FROM COACH IS AVAILABLE TO THE BOARD OF DIRECTORS FOR ALL BOARD-RELATED ACTIVITIES AND 16 PEOPLE RECEIVED THIS BENEFIT. TRAVEL FOR COMPANIONS IS AVAILABLE TO THE BOARD OF DIRECTORS AND EXECUTIVE TEAM MEMBERS (CEO, CFO, CHIEF EDUCATION OFFICER, MEDICAL DIRECTOR, AND GENERAL COUNSEL) AND THE AMOUNT OF COMPANION TRAVEL WAS TREATED AS TAXABLE COMPENSATION TO ALL WHO RECEIVED THIS BENEFIT. (21 PEOPLE) THE BOARD OF DIRECTORS RECEIVES GROSS-UP PAYMENTS FOR THIS COMPENSATION AND THAT IS ALSO TREATED AS TAXABLE COMPENSATION. (18 PEOPLE) PART I, LINES 4A-B KAREN HACKETT, CHIEF EXECUTIVE OFFICER ACCRUED A 457F SUPPLEMENTAL RETIREMENT BENEFIT OF $16,500 WHICH IS INCLUDED IN SCHEDULE J, PART II, DEFERRED COMPENSATION. DAVID LOVETT, DIRECTOR OF GOVERNMENT AFFAIRS, RECEIVED A SEVERANCE PAYMENT OF $123,480 WHICH IS INCLUDED IN SCHEDULE J, PART II, OTHER REPORTABLE COMPENSATION. FORM 990, PART VI, SECTION A, LINE 6 AS A MEMBERSHIP ASSOCIATION, THE ORGANIZATION CURRENTLY HAS 36,000 MEMBERS. ALL FELLOWS AND MEMBERS OF THE AMERICAN ACADEMY OF ORTHOPAEDIC SURGEONS (ACADEMY), SHALL ALSO BE CONSIDERED FELLOWS AND MEMBERS OF THE SAME CLASSIFICATION OF THE AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS (ASSOCIATION), A RELATED ORGANIZATION. THERE ARE TWO CATEGORIES OF MEMBERSHIP IN THE ACADEMY AND THE ASSOCIATION: FELLOWS AND MEMBERS. ONLY FELLOWS SHALL HAVE THE RIGHT TO VOTE AND HOLD OFFICE. FORM 990, PART VI, SECTION A, LINE 7A ELECTIONS OF THE OFFICERS AND THE AT-LARGE MEMBERS OF THE ASSOCIATION AND ACADEMY BOARD OF DIRECTORS SHALL BE DETERMINED BY THE ADOPTION OF THE REPORT OF THE NOMINATING COMMITTEE OR BY THE VOICE, WRITTEN, OR ELECTRONIC BALLOT OF THOSE FELLOWS PRESENT AT THE BUSINESS MEETING OF THE ANNUAL MEETING. EACH FELLOW WHO IS PRESENT AT THE BUSINESS MEETING OF THE ANNUAL MEETING SHALL BE ENTITLED TO ONE (1) VOTE FOR EACH OFFICER OF THE ASSOCIATION AND ACADEMY, MEMBER OF THE BOARD OF DIRECTORS, MEMBER OF THE MEMBERSHIP COMMITTEE, AND NOMINEES TO THE AMERICAN BOARD OF ORTHOPAEDIC SURGERY TO BE ELECTED. THOSE INDIVIDUALS RECEIVING THE GREATEST NUMBER OF VOTES SHALL BE CONSIDERED ELECTED, EVEN IF THEY DO NOT RECEIVE A MAJORITY OF THE VOTES CAST. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD RETAINS THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE THE ORGANIZATION'S FORM 990. MANAGEMENT REVIEWS THE COMPLETED FORM 990 AND PROVIDES A FULL COPY TO ALL VOTING MEMBERS OF THE GOVERNING BODY VIA A SECURE SECTION OF ITS WEBSITE PRIOR TO FILING. A CONFERENCE CALL IS SCHEDULED FOR THE CPA FIRM AND ORGANIZATION MANAGEMENT TO DISCUSS THE FORM 990 WITH THE FINANCE COMMITTEE AND TO ANSWER ANY QUESTIONS PRIOR TO FILING FORM 990 WITH THE IRS. THE FINANCE COMMITTEE HAS BEEN DELEGATED THE AUTHORITY TO REVIEW AND APPROVE THE FORM 990 BY THE VOTING MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS, KEY VOLUNTEERS, AND KEY STAFF ARE NOTIFIED IN WRITING TWICE A YEAR TO UPDATE THEIR WRITTEN DISCLOSURES. THE DISCLOSURE DATABASE IS MAINTAINED ELECTRONICALLY AND ANYONE WHO HAS NOT UPDATED THEIR RECORD IS NOTIFIED UNTIL THEY HAVE DONE SO. ADDITIONALLY, BEFORE EVERY BOARD AND COMMITTEE MEETING PARTICIPANTS ARE ASKED IF THEY HAVE ANYTHING NEW TO DISCLOSE. FORM 990, PART VI, SECTION B, LINE 15 A COMPENSATION COMMITTEE IS DESIGNATED BY THE VOTING MEMBERS OF THE GOVERNING BODY AND IS CHARGED WITH DEVELOPING AND NEGOTIATING THE TERMS OF EMPLOYMENT AND ESTABLISHING THE TOTAL COMPENSATION PACKAGE FOR DESIGNATED POSITIONS. AN EVALUATION PROCESS IS COMPLETED ANNUALLY AND A RECOMMENDATION IS MADE REGARDING COMPENSATION THAT IS THEN SENT TO THE BOARD FOR APPROVAL. THIS PROCESS INCLUDES THE CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, CHIEF EDUCATION OFFICER, MEDICAL DIRECTOR, AND GENERAL COUNSEL. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE WHICH IS OPEN TO THE PUBLIC. FINANCIAL STATEMENTS ARE AVAILABLE THROUGH THE APPLICABLE GOVERNMENTAL AGENCIES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 5,058,520. AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS 6300 N RIVER ROAD ROSEMONT IL 60018 364241052 ADVOCACY ACTIVITIES ON BEHALF OF PATIENTS AND PROFESSIONALS IL 501(C)6 0 CENTER FOR ORTHOPAEDIC ADVANCEMENT NFP (COA) 6300 N RIVER ROAD ROSEMONT IL 60018 263164922 SUPPORT EDUCATIONAL ACTIVITES OF AAOS IL 501(C)3 509(A)(3) 0 AMERICAN JOINT REPLACEMENT REGISTRY NFP (AJRR) 6300 N RIVER ROAD ROSEMONT IL 60018 270645591 FOSTER A NATIONAL CENTER FOR DATA COLLECTION ON JOINT REPLACEMENTS IL 501(C)3 509(A)(3) 1 1 1 1 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS P 4806387 COST AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS C 4250000 COST AMERICAN JOINT REPLACEMENT REGISTRY NFP (AJRR) A 9796 COST AMERICAN JOINT REPLACEMENT REGISTRY NFP (AJRR) B 325981 COST AMERICAN JOINT REPLACEMENT REGISTRY NFP (AJRR) P 103152 COST