2020-08-12T07:39:50-05:00 2019-09-30 134008324 PRICEWATERHOUSECOOPERS LLP 600 13TH ST NW STE 1000 WASHINGTON DC 20005 990 2018-10-01 560686338 Research Triangle Institute RESE 9195416000 PO BOX 12194 Research Triangle Park NC 277092194 Michael H Kaelin Jr CFO Chief Financial Officer 9195416000 2020-08-12 1 TRAVIS L PATTON P00369623 2024141000 161.69.122.15 2020-08-12 07:39:43 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 18226018ED4F29DB87156D150B1B4775EFDC9A3B 2018 2020-09-22 18:59:49Z RTI International E Wayne Holden PO BOX 12194 Research Triangle Park NC 277092194 1026219607 0 X www.rti.org X 1958 NC Research Triangle Institute is one of the world's leading research institutes, dedicated(see Sch O) to improving the human condition by turning knowledge into practice. Our staff of more than 5,800 provides research and technical expertise to governments and businesses in more than 75 countries in the areas of health and pharmaceuticals, education and training, surveys and statistics, advanced technology, international development, economic and social policy, energy and the environment and laboratory and chemistry services. 14 8 4146 0 8614781 829782 0 0 957734627 962871402 17709214 2865057 -9561307 1715034 965882534 967451493 519917 574895 0 0 501207077 508549845 0 0 0 465378778 451437059 967105772 960561799 -1223238 6889694 707333261 682393309 292491524 273090585 414841737 409302724 X Research Triangle Institute is one of the world's leading research institutes, dedicated to improving the human condition by turning knowledge into practice. Our staff of more than 5,800 provides research and technical (continued on Schedule O, Part III, Line 1) expertise to governments and businesses in more than 75 countries in the areas of health and pharmaceuticals, education and training, surveys and statistics, advanced technology, international development, economic and social policy, energy and the environment and laboratory and chemistry services. 0 0 610015096 557138 687029004 RESEARCH: Multidisciplinary research & development and the application of science & technology in the areas of Health Research; Drug Discovery & Development; Education & Training Research; Survey Research Services; Statistics Research; Economic & Social Research; Advanced Technology Research & Development; Energy Research; Environmental Research Services; and Laboratory & Chemistry Services; See Schedule O for expanded description of these program services. 233073665 17757 276007980 INTERNATIONAL DEVELOPMENT: See Schedule O for description of program services, Part III Line 4b. 843088761 1 0 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 X 1168 0 4146 1 1 1 1 BN CB CH CS CG EC EG ES ET GH GT GV HA HK IN ID JO KE LI MI MY MO MZ NP NU NI OC PE RP RW SG SO SP SW TZ TH UG UP AE UK ZA ZI 0 0 0 0 0 0 0 0 0 0 X 14 8 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA GA MA X Michael H Kaelin Jr Chief Financial Officer 9195416000 PO BOX 12194 Research Triangle Park NC 277092194 X W Mitchell Board Member 2.00 X 41500 0 0 A Rebar Separated 123118 Board Member 2.00 40.00 X 41500 390125 0 T Darden Board Member 2.00 X 41500 0 0 H Martin Board Member 2.00 40.00 X 36000 394000 0 R Ingram Board Member 2.00 X 41500 0 0 H Pinnix-Ragland Board Member 2.00 X 66250 0 0 P Scott III Chairman 2.00 X 100500 0 0 P Lange Board Member 1.00 40.50 X 47000 143476 21103 J Moellering Board Member 2.00 X 58000 0 0 T Magnuson Board Member 2.00 40.00 X 36000 634688 0 L Carin Board Member 2.00 40.00 X 41500 415274 46548 W Moore Jr Board Member 2.00 X 90000 0 0 E Holden President 40.00 X X 1303890 0 173015 C Shaffer Board Member 2.00 X 12500 0 0 W Arden New 31919 Board Member 2.00 40.00 X 0 454555 0 C Carter New 112018 Board Member 2.00 40.00 X 0 280000 0 C Buchholtz Assistant Secretary 40.00 X 306476 0 53465 G Story Secretary 40.00 X 558702 0 99437 E Sax Treasurer 40.00 X 337869 0 37854 J Gibson Vice President 40.00 X 714615 0 133603 L May Vice President 40.00 X 512706 0 90653 T Gabel Vice President 40.00 X 568968 0 109104 A Mangel Vice President 40.00 X 586334 0 114357 C Cornwell Vice President 40.00 X 271044 0 30027 P Weisenfeld Vice President 40.00 X 558731 0 81194 M Kaelin Jr Vice President & CFO 40.00 X 591479 0 105266 T Piccione New 121718 Vice President 40.00 X 14536 0 6790 L Gilliland Divisional Director 40.00 X 405687 0 47208 S Earnshaw Divisional Director 40.00 X 398968 0 34449 T Pierson Divisional Director 40.00 X 400106 0 26410 C Simmons Divisional Director 40.00 X 387481 0 43367 R Zerbonia Divisional Director 40.00 X 434700 0 29074 J Gonzales Former Board Member 2.00 40.00 X 20750 383083 0 P Wynn Jr Former Board Member 0.00 0.00 X 55875 134268 18911 T Lomax Former Vice President 40.00 X 402648 0 5730 9485315 3229469 1307565 1361 1 1 0 Headway Corp Resources 421 Fayetteville St Raleigh NC 27601 Contract Labor 31605983 HR Directions 805 Spring Forest Road Raleigh NC 27609 Contract Labor 20442741 DPR Construction A General Partnership 2000 Aerial Center Pkwy Morrisville NC 27560 Construction Labor 12883230 Telligen 1776 West Lakes Parkway West Des Moines IA 502667771 Health Management 11685476 IMA World Health 500 Main Street New Windsor MD 21776 Health Management 10141250 328 Research 541700 686910878 678436812 8474066 International Development 541900 275960524 275960524 962871402 4188737 4188737 50350455 7093979 50350455 8417659 0 -1323680 -1323680 -1323680 Adoption of 606 Revenue 900099 1549452 0 0 1549452 Foreign Currency Gain(Loss) 900099 165582 165582 0 0 1715034 967451493 954562918 8474066 4414509 X 557138 557138 17757 17757 10337544 10337544 339360801 289186721 50174080 23789771 18054651 5735120 111380269 84529268 26851001 23681460 17972451 5709009 1779336 140473 1638863 368071 27390 340681 507228 507228 299588076 294403766 5184310 14800663 11604842 3195821 25871772 23692365 2179407 1126831 727031 399800 19591632 39585756 -19994124 29530575 27397880 2132695 27091400 25955877 1135523 3584038 3584038 17556322 2720216 14836106 1988686 896410 1092276 Miscellaneous 5648958 4704035 944923 Memberships 1055174 428064 627110 Business Meals 761722 486417 275305 Taxes 586575 253 586322 960561799 843088761 117473038 0 19958138 15378289 201449554 200202064 20437054 18926764 364663005 184781256 184223989 179881749 175594576 155961612 67187616 69452272 6313541 0 32168793 42590559 707333261 682393309 155366611 142644920 46425610 40471325 67575003 61815841 3000000 3000000 20124300 25158499 292491524 273090585 X 412531611 406998660 603277 673550 1706850 1630515 414841737 409302724 707333261 682393309 X 6889694 -8923526 -3505181 X 0 1 X 1 1 1 X X 2 Duke University 560532129 2 1 0 0 The University of North Carolina(UNC System) 566001393 2 1 0 0 2 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 Schedule A, Part I, Line 12g(i) General Explanation: Three North Carolina Universities; Duke University in Durham, The University of North Carolina in Chapel Hill and North Carolina State University in Raleigh, incorporated RTI in 1958. We are a separately operated affiliate of these schools and maintain our own staff and offices. We work with their scientists on research programs and projects and maintain such universities and businesses in the Microelectronics Center of North Carolina and North Carolina Biotechnology Center. Schedule A, Part IV, Line 6 RTI grants money to needy organizations based on its community-oriented mission. 0 1 0 0 0 0 1 507228 0 0 507228 0 Schedule C, Part II-B, Line 1 - Research Triangle Institute communicates the results of its independent objective research with government officials; protects its reputation for independence, objectivity and quality and seeks sufficient federal budgets for certain fields of research and development. 2674413 2674413 264992546 118923699 146068847 91569585 65857557 25712028 5426461 5426461 179881749 Global Endowment Fund II, LP 69452272 C 69452272 Other Accrued Expenses 25158499 25158499 X 0 0 0 Schedule D, Part X, Line 2 - As provided by Section 501(c)(3) of the IRC and the Internal Revenue Service's determination, the Institute's charitable, scientific, and educational operations are exempt from corporate income taxes and no provision for corporate income taxes is generally required. However, this tax exemption does not pertain to activities unrelated to the Institute's exempt purposes. The Institute's presence in certain foreign countries results in income taxation in these countries. Additionally, the Institute has several for-profit entities subject to corporate income taxation. These for-profit entities' operating losses, a deemed asset acquisition, and goodwill impairments have primarily contributed to a $4.2 million deferred tax asset that has been offset with a full valuation allowance, as of the years ended September 30, 2019 and 2018. Income taxes associated with foreign operations, unrelated business income, and income generated by our for-profit entities are not material for the Institute. All not-for-profit (NFP) organizations, including the Institute, are subject to the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740, Income Taxes, related to the accounting for uncertainty in tax positions, including the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is only recognized in the consolidated balance sheets if the tax position is more likely than not to be sustained upon examination, based on the technical merits of the position. Interest and penalties, if any, are included in tax expense in the consolidated statements of revenue, costs, and changes in Institute net assets. As of September 30, 2019, and 2018, the Institute had no uncertain tax positions that qualify for recognition or disclosure in the consolidated financial statements. 1 Central America and the Caribbean - Antigua & Barbuda, Aruba, Bahamas, 8 99 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 70936012 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, 26 281 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 27198657 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 4 93 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 13951801 Middle East and North Africa - Algeria, Bahrain, Djibouti, Egypt, 4 37 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 20547330 Russia and Neighboring States - Armenia, Azerbijan, Belarus, 1 0 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, 0 1 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health,Tech South Asia - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, 1 142 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 33854119 Sub-Saharan Africa - Angola, Benin, Botswana, Burkina Faso, 38 882 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 93596994 North America - Canada and Mexico, but not the United States 0 3 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 201219 Sub-Saharan Africa - Angola, Benin, Botswana, Burkina Faso, Grantmaking 6507 Central America and the Caribbean - Antigua & Barbuda, Aruba, Bahamas, Grantmaking 7500 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, Grantmaking 3750 South Asia - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Investment 2906977 North America - Canada and Mexico, but not the United States Investment 1775000 East Asia and the Pacific Investment 5000 82 1535 0 3 82 1538 260084913 4905953 264990866 1 0 1 0 0 1 Schedule F, Part I, Line 1 RTI's International development program services are not in the nature of grantmaking. See Part III, line 4(b) of the Form 990. Schedule F, Part I, Line 2 RTI is committed to improving the human condition and helping people by giving back to the communities where we are located. As described in Schedule I, RTI seeks recommendations for worthy charitable causes. During FY19 RTI contributed to the following communities: RTI contributed $1,000 to Afya Elimu CBO in Africa to empower community members to embrace people-driven development initiatives in Education, Health and Agriculture. RTI contributed $1,000 to Breath of Heaven Children's Home to provide shelter, protection, and education with necessary facilities for their day to day activities. RTI contributed $1,000 to The House of Hope Children's Home in Africa to provide a safe haven for orphans and other needy children in a loving, caring Christian family home. RTI contributed $1,000 to the Kenya Women and Children Wellness Center in Africa to assist with providing the society with integrated programs that promotes quality of life through research, capacity building, empowerment, advocacy and service delivery. RTI Contributed $1,000 to Morning Star Children's Home in Africa to give less fortunate children hope and a joy for a brighter future. RTI contributed $1,500 to Tuuru Children Home in Africa to help restitute autonomy for the physically and mentally challenged. RTI contributed $1,000 to Zama Zama Dance Development Centre in Africa where they empower children and youth to take charge of their lives through dance, health, hygiene, education and environmental awareness. RTI contributed $2,500 to Operation Smile in Guatemala to provide comprehensive, specialized and free medical care and reconstructive surgeries to needy people who suffer from cleft lip and palate, transforming their lives and their family's lives, one smile at a time. RTI contributed $3,750 to Louts Petal Foundation in India to help children in the urban slums of India lead better lives and get access to quality education and healthcare. RTI contributed $3,750 to Yayasan ISCO in Indonesia to enable children who live in poverty to receive an education and achieve their full potential as productive, responsible and caring citizens of Indonesia. RTI contributed $2,500 to the Fundacin Coatepeque in Latin America to help restore, recover, protect and conserve Coatepeque Lake. RTI contributed $2,500 to Fundacin Margarita Tejada for children with Down Syndrome in Latin America to help improve the quality of life of people with Down Syndrome and their families, promoting health, education, and social awareness. 1 American Red Cross 2025 E ST NW Washington DC 20006 530196605 501(c)(3) 214082 General Support The Childrens Inn at NIH 7 West Drive Bethesda MD 20814 521638207 501(c)(3) 25000 General Support United Way of Greater Triangle 2400 Perimeter Park Drive Morrisville NC 27560 561949103 501(c)(3) 118346 General Support Durham Jazz Workshop Inc 4608 Industry Lane Durham NC 27713 454956498 501(c)(3) 10000 General Support United Way of Larimer County 424 Pine Street Suite 102 Fort Collins CO 80524 846031503 501(c)(3) 5293 General Support Kramden Institute 4915 Prospectus Dr Suite J Durham NC 27713 743108814 501(c)(3) 78765 FMV Computer Equipment General Support NC State University 1020 Main Campus Drive Raleigh NC 27695 472469472 10000 FMV Computer Equipment General Support 6 1 Schedule I, Part I, Line 2 Consistent with our mission, RTI is committed to helping people by giving back to the communities where we are located, when possible. RTI has a process for making annual contributions at the corporate level to charitable causes. The process, governed by annual budget and consistent giving criteria, seeks staff recommendations for worthy recipient organizations. The Community Partnerships Board reviews the contributions proposed by the staff and makes a recommendation to the CEO and CFO who make the final decisions. The decisions are reported to the staff, thereby setting the program for the fiscal year. In the fourth quarter of the fiscal year, the CEO and CFO, in consultation with the Corporate Affairs, review the programs, lessons learned and prospects for its evolution. RTI also supports the United Way's mission to improve people's lives by mobilizing the caring power of communities. As part of this effort, RTI holds an annual United Way campaign in the fall, grants an annual corporate contribution to Triangle United Way, as well as, regional United Way offices, provides year round donor education and comunication and participates in local United Way efforts when possible. In addition, RTI supports educational initiatives related to our exempt purpose through the corporate sponsorship program. Schedule I, Part II, Line I RTI Contributed to "Kramden Tech Scholars and NC State University initiatives by providing computers and equipment. X X X X 1 1 X X X X X X 0 1 0 0 0 0 0 1 1 0 A Rebar Separated 123118 Board Member 41500 390125 0 0 0 0 0 0 0 0 41500 390125 0 0 H Martin Board Member 36000 394000 0 0 0 0 0 0 0 0 36000 394000 0 0 P Lange Board Member 47000 124976 0 0 0 18500 0 17863 0 3588 47000 164927 0 0 T Magnuson Board Member 36000 634688 0 0 0 0 0 0 0 0 36000 634688 0 0 L Carin Board Member 41500 278316 0 136958 0 0 0 33548 0 18201 41500 467023 0 0 E Holden President 872597 0 379568 0 51725 0 131219 0 41796 0 1476905 0 77447 0 W Arden New 31919 Board Member 0 454555 0 0 0 0 0 0 0 0 0 454555 0 0 C Carter New 112018 Board Member 0 280000 0 0 0 0 0 0 0 0 0 280000 0 0 C Buchholtz Assistant Secretary 240925 0 65000 0 551 0 0 0 53465 0 359941 0 0 0 G Story Secretary 384943 0 162721 0 11038 0 57057 0 42380 0 658139 0 39541 0 E Sax Treasurer 273420 0 63000 0 1449 0 0 0 37854 0 375723 0 0 0 J Gibson Vice President 494105 0 198553 0 21957 0 74965 0 58637 0 848217 0 51598 0 L May Vice President 352967 0 151589 0 8150 0 51281 0 39372 0 603359 0 34942 0 T Gabel Vice President 392542 0 164388 0 12038 0 59546 0 49558 0 678072 0 40791 0 A Mangel Vice President 390932 0 180143 0 15259 0 58525 0 55833 0 700692 0 40808 0 C Cornwell Vice President 225552 0 45000 0 492 0 0 0 30027 0 301071 0 0 0 P Weisenfeld Vice President 376174 0 172005 0 10552 0 55824 0 25369 0 639924 0 39004 0 M Kaelin Jr Vice President & CFO 404645 0 174857 0 11977 0 60180 0 45086 0 696745 0 41143 0 L Gilliland Divisional Director 322127 0 77000 0 6560 0 0 0 47208 0 452895 0 0 0 S Earnshaw Divisional Director 305800 0 90034 0 3134 0 0 0 34449 0 433417 0 0 0 T Pierson Divisional Director 318571 0 73000 0 8535 0 0 0 26410 0 426516 0 0 0 C Simmons Divisional Director 300346 0 83772 0 3363 0 0 0 43367 0 430848 0 0 0 R Zerbonia Divisional Director 251652 0 60085 0 122963 0 0 0 29074 0 463774 0 0 0 J Gonzales Former Board Member 20750 383083 0 0 0 0 0 0 0 0 20750 383083 0 0 P Wynn Jr Former Board Member 55875 133383 0 885 0 0 0 16229 0 3084 55875 153581 0 0 T Lomax Former Vice President 388436 0 13392 0 820 0 0 0 5730 0 408378 0 0 0 Part I, Line 1a One highly compensated employee received tax gross up payments related to their international assignment in addition to payment for housing which was included in taxable income. Personal services for tax preparation was provided to one highly compensated employee and it was included in taxable income. Exclusively for its business purposes, RTI maintains memberships to two business clubs, where leaders in industry and business gather. No taxable income has been imputed to the senior executives who use these RTI club memberships exclusively for RTI business purposes. Part I, Line 4b The Institute implemented a long term incentive plan designed to reward executives to ensure the organization's finances are strong and to retain executives. This plan recognizes that the executives' total compensation is below market. Rather than increasing salaries, annual incentives or supplemental retirement benefits, the Board implemented a cash based retention plan which is dependent on the Institute's continued strong performance. Amounts paid and accrued during the calendar year 2018 are as follows: E. Holden $311,930, J. Gibson $195,360, M. Kaelin $156,180, T. Gabel $154,726, A. Mangel $153,743, G. Story $149,320, P. Weisenfeld $146,833, L. May $132,811, T. Piccione $6,619. These amounts include payments totaling $365,273 which were accrued and reported in prior years as deferred compensation. Part I, Line 7 RTI maintains variable compensation plans which are reviewed and approved annually by the Compensation Committee of the Board, as well as the full Board, to establish appropriate measurable targets and objectives along with incentive amounts. Actual performance under the plans is reviewed after the performance period and approved by the Compensation Committee and full Board as well. Amounts paid under these plans during the calendar year 2018 are as follows: E. Holden $276,305, A. Mangel $110,732, J. Gibson 119,756, M. Kaelin $100,000, T. Gabel $95,000, G. Story $100,000, L. May $95,000 , P. Weisenfeld $100,000, E. Sax $63,000, C. Buchholtz $57,000, C. Cornwell $40,000, S. Earnshaw $77,534, C. Simmons 83,772, L. Gilliland $74,000, T. Pierson $58,000, and R. Zerbonia $50,085. Part I, Line 8 RTI recruits its executive leadership from the national labor market, and this practice can introduce variability into each executive's initial compensation package. Accordingly, amounts were paid and accrued during the 2018 calendar year that emanated from RTI's offer of employment to certain executives and these items were included in the executive's employment agreement with RTI. Amounts paid were reported as taxable income and are included in the 2018 bonus or other compensation columns for each executive that received such payment. Any unpaid accruals are included in the deferred compensation column. A Durham County Industrial Facilities & Pollution Control Financing Authority 561379535 266711AA8 2007-11-29 40560000 Finance construction of office buildings and parking deck 0 0 0 B Durham County Industrial Facilities & Pollution Control Financing Authority 561379535 266711AC4 2010-02-18 24999384 Finance construction of office buildings and parking deck 0 0 0 A 41187495 333770 40853725 2008 0 0 1 1 B 25000732 340956 24659776 2011 0 0 1 1 A 0 1 0 1 0 0.00000 0.00520 0.00520 1 0 1 B 0 0 0 1 0 0.00000 0.00260 0.00260 1 0 1 A 0 0 1 0 1 0 0 0 1 B 0 0 1 0 0 0 0 0 1 A 1 B 1 Form 990, Part III, Line 4a HEALTH RESEARCH is our largest single field of study, encompassing research that ranges from studies of the human genome and the development of new drug compounds to national surveys of health behaviors and the implementation of global health programs. Our activities in DRUG DISCOVERY AND DEVELOPMENT include working with pharmaceutical companies and government agencies to bring new medicines to market, and to ensure the safety and efficacy of those in the marketplace. As part of a comprehensive EDUCATION AND TRAINING RESEARCH program, our experts conduct rigorous studies used to assess and improve the quality of early development, education, and employment programs in the United States and many other countries. We also provide training solutions for forensic scientists and law enforcement. RTI is a leader in SURVEY RESEARCH and SURVEY STATISTICS. With a staff of highly skilled researchers using advanced data collection systems and techniques, we offer broad-based survey services for public and private sector studies. Our SURVEY RESEARCH SERVICES include study design, instrument development and evaluation, pretests and pilot studies, mail surveys, telephone surveys, face-to-face field surveys, Web surveys, records abstraction, collection of biological specimens, mixed-mode surveys, subject tracing, focus groups, and health registries. Our STATISTICS RESEARCH experts conduct complex statistical analyses to support wide ranging research programs in both laboratory and social sciences as well as ensure the quality, validity, and reliability of our research products and results by applying quality control and assurance procedures from sampling design through data collection and analysis. Our multidisciplinary ECONOMIC & SOCIAL RESEARCH team includes experts in economics, demography, health, education, urban planning, and public financing. We provide independent, objective information and analyses that help to inform and improve public policy discourse and advance economic and social development decision making in technology, economics and policy, crime and justice, and food and nutrition policy. We provide ADVANCED TECHNOLOGY RESEARCH & DEVELOPMENT services through the identification, development, application, and transfer of leading-edge technologies in areas including Materials Science; Electronics; Microfabrication; Information Technology; Innovation Advising; and Technology Economics & Policy. Our ENERGY RESEARCHERS develop advanced energy technologies to address today's significant energy challenges, such as climate change, energy security, energy efficiency, sustainability, and water conservation. Our research supports national and worldwide goals of reliable, sustainable, economically viable, and secure energy supplies. We are a leading provider of ENVIRONMENTAL RESEARCH SERVICES for the U.S. Environmental Protection Agency and other government agencies. We conduct large-scale environmental management projects for both government and industry, helping them make critical policy and regulatory decisions. Our LABORATORY & CHEMISTRY SERVICES support RTI research with state-of-the-art instrumentation, technologies, and processes. Our lab specifications and procedures emphasize quality control and excellence at every level of activity to meet the expectations and needs of our clients. Form 990, Part III, Line 4b INTERNATIONAL DEVELOPMENT Our experts in international development are dedicated to improving the human condition in developing countries. With more than 200 international development staff members based around the world, we deliver advisory and training services at the national, sub-national, and local government levels, providing institutional development through the transfer of analytical tools and methods. We often work in multidisciplinary teams that cut across traditional sector boundaries. Our clients include the United States Agency for International Development, Asian Development Bank, World Bank, Inter-American Development Bank, and several agencies of the United Nations, as well as foundations and other regional and international organizations. Our INTERNATIONAL DEVELOPMENT service areas include Governance & Stabilization; International Education; International Environmental Services; Global Health; Information & Communication Technology; and Monitoring & Evaluation. Form 990, Part VI, Section A, line 2 T. Darden & R. Ingram - Business Relationship; T. Darden & W. Moore, Jr. - Business Relationship; T. Darden & C. Shaffer - Business Relationship; W. Moore, Jr. & P. Scott - Business Relationship; W. Moore, Jr. & W. Mitchell - Business Relationship; W. Moore, Jr. & T. Darden - Business Relationship; C. Shaffer & R. Ingram - Business Relationship; P. Scott, III & W. Mitchell - Business Relationship; P. Lange & Pinnix-Ragland - Business Relationship; C. Carter & T. Magnuson - Business Relationship; C. Carter & W. Arden - Business Relationship; C. Carter & H. Martin, Sr. - Business Relationship Form 990, Part VI, Section A, line 6 Research Triangle Institute is a non-profit corporation incorporated under the laws of the State of North Carolina. The Members of the corporation include the persons who at the time occupy the following positions: President, The University of North Carolina, Duke University: one member of the Board of Trustees of Duke University, appointed by the Chair of the Board of Trustees of Duke University, for one or more terms of three years; and one member of the Board of Governors of the University of North Carolina, appointed by the Chair of the Board of Governors of the University of North Carolina, for one or more terms of three years. The members shall elect the Governors, review and act on fundamental corporate transactions approved by the Governors, and take such other actions as may be required by law. No part of the earnings of the corporation shall insure to the benefit of any member or individual. Form 990, Part VI, Section A, line 7a The members shall elect the Governors as described in the Bylaws of the Corporation. Form 990, Part VI, Section A, line 7b The members shall review and act on fundamental corporate transactions approved by the Governors and take such other actions as may be required by law. Fundamental corporate transactions are described in the Articles of Incorporation. Form 990, Part VI, Section B, line 11b The Form 990 with required schedules was provided to the full Board of Governors prior to filing via posting on RTI's hosted board communication solution, Director's Desk. In addition, RTI management reviewed the process and steps undertaken in completing the form with the Audit and Compensation Committees of the Board, including a review of the full Form 990 with the Audit committee prior to dissemination to the full Board. Form 990, Part VI, Section B, line 12c Members of the Board of Governors, Officers and Key Employees are required to complete an annual conflict of interest disclosure in accordance with the organization's policies and procedures. Each disclosure is reviewed by the Audit Committee Chair, Chair of the Board of Governors, or the Chief Ethics Officer to determine whether a conflict of interest exists and if so, whether it appears to be significant and may warrant further review according to the standards and guidelines of the policy. Form 990, Part VI, Section B, line 15 Each year, Research Triangle Insititute (the Institute) management seeks the review and approval of the Institute's Compensation Committee and Board of Governors (Board) to ensure that the total compensation packages for its Chief Executive Officer (CEO) and other senior executives listed below are reasonable. The CEO and other senior executives are not involved in the Compensation Committee and Board's decision regarding reasonableness of the executive compensation packages. The Compensation Committee and the Board use independent compensation surveys conducted by nationally recognized independent firms. The independent survey includes compensation paid by comparable institutions (taxable as well as non-taxable) for functionally comparable positions and in comparable positions and in comparable geographic labor markets. The Compensation Committee and Board also uses an independent executive compensation consulting firm to review the survey data and provide comments opining on the reasonableness of the compensation for the Institute's senior executives. In 2018, the study covered the following executive positions: E. Holden, President and CEO, J. Gibson, Chief Operating Officer, T. Gabel, Executive Vice President, Social Statistical and Environmental Services, A. Mangel, Executive Vice President, Health Solutions, G. Story, Chief Legal Counsel and Government Affairs, L. May, Senior Vice President, Human Resources, Facilities, Safety and Security, M. Kaelin, Chief Financial Officer, P. Weisenfeld, Executive Vice President, International Development Group, T. Lomax, Executive Vice President, Discovery Sciences Technology. Also included in the independent review were the following positions: C. Cornwell, Vice President and Corporate Controller and E. Sax, Senior Vice President and Treasurer. Form 990, Part VI, Section C, line 19 The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request. Form 990, Part VI, Section B, Line 16b RTI and its staff belong to and participate in consortiums and associations that are consistent with RTI's mission to improve the human condition. These affiliations are neither in form nor substance a joint venture for federal income taxation. While RTI has not entered into a joint venture with a taxable entity, RTI has adopted a joint venture policy in order to evaluate its participation for federal income tax purposes. Additionally, certain federal contracts are awarded on a cost share basis whereby a cost share subcontractor reimburses RTI for a percentage of the total contract costs. Cost share arrangements exist primarily with unrelated taxable entities. Form 990, Part VII, Section A, Line 1b RTI was established in 1958 by Duke University and the University of North Carolina System as the founding tenant of Research Triangle Park in North Carolina. It has grown into one of the world's leading independent nonprofit research organizations and is dedicated to conducting research and development that improves the human condition by turning knowledge into practice. Based on RTI's corporate governance structure, compensation of those Board Members employed by supported organizations (i.e. Duke and UNC System) is reported in column (E) and was obtained from the 990 information request questionnaire that was distributed to these listed persons and Duke University. These amounts were paid by either Duke Universiy or The University of North Carolina (UNC System). Given the supporting relationship with these universities, RTI is requested to report these amounts; however, RTI has no influence over this compensation. Form 990, Part IX, line 11g Subcontractors & Consultants: Program service expenses 190,178,641. Management and general expenses 887,031. Fundraising expenses 0. Total expenses 191,065,672. Other Services: Program service expenses 83,169,924. Management and general expenses 4,297,279. Fundraising expenses 0. Total expenses 87,467,203. Passthroughs: Program service expenses 21,055,201. Management and general expenses 0. Fundraising expenses 0. Total expenses 21,055,201. Form 990, Part XI, line 9: Pension related changes -1,943,620. George Watts HIll Fund-Unrealized Gains (Permanently Restricted) -70,335. George Watts HIll Fund-Other Income (Temporarily Restricted) 70,273. Subsidiaries Foreign Exchange Gain/Loss -10,247. Adoption of 606 -1,551,252. Duke University 2138 Campus Drive Durham NC 27708 560532129 University NC 501(c)(3) Line 2 0 The University of North Carolina University of North Carolina Chapel Hill NC 27599 566001393 University NC 501(c)(3) Line 2 0 RTI Post Retirement Health Benefits Trust RTI VEBA PO Box 12194 Research Triangle Park NC 27709 561855400 Retiree Health Benefits NC 501(c)(9) Research Triangle Institute 1 Research Triangle Institute International (Hong Kong) Limited 15 Queens Road Central Central HK Investment Company HK Research Triangle Institute C 949102 1.00000 1 Triangle Beijing Consulting Co Ltd Beijing Prosper Centre No 5 Guang Beijing CH 100020 Scientific research and development CH Research Triangle Institute C 266605 1.00000 1 Research Triangle Institute Global Inc 3040 Cornwallis Road Research Triangle Park NC 27709 472500213 Scientific research and development NC Research Triangle Institute C 1016 1.00000 1 Research Triangle Institute Global India Private Limited F22 667 IIND Floor Ganesh Nagar II New Delhi IN 110092 Scientific research and development IN Research Triangle Institute C 2116933 1448266 0.99990 1 RTI Syntegrity Inc 3040 Cornwallis Road Research Triangle Park NC 27709 812649493 Business Services NC Research Triangle Institute C 964182 12364203 1.00000 1 Team Syntegrity Americas Inc 181 Bay Street Suite 2425 Toronto Ontario CA M5J 2T3 981017378 Consulting CA RTI Syntegrity Inc C 1.00000 1 International Resources Group Ltd 3040 Cornwallis Road Research Triangle Park NC 27709 112777542 Consulting NC Research Triangle Institute C 12259576 7897233 1.00000 1 Grupo Internacional de Recursos del Sur I R G Socidedad Anonima De La Emhajada Americana Un Kilomet San Jose Rohrmose CS Services CS International Resources Group Ltd C 1.00000 1 International Resources Group Philippines Inc 32A Rufino Tower VA Rufino St Makati City Manila RP Services RP International Resources Group Ltd C 0.99990 1 0 1 0 1 0 0 0 0 0 0 0 1 1 1 1 0 1 0 0 Research Triangle Institute Global India Private Limited B 2906977 Cash Value Team Syntegrity Americas Inc B 2650000 Cash Value RTI Post Retirement Health Benefits Trust RTI VEBA Q 1800501 Cash Value Research Triangle Institute Global India Private Limited L 116696 Cash Value International Resources Group Ltd L 185734 Cash Value Team Syntegrity Americas Inc D 800000 Cash Value Team Syntegrity Americas Inc L 74988 Cash Value