2018-11-12T13:52:31-06:00 2017-12-31 861065772 DELOITTE TAX LLP 555 MISSION STREET SAN FRANCISCO CA 94105 990 2017-01-01 941160950 SRI INTERNATIONAL SRII 6508592000 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 BARRY BROADUS CFO & TREASURER 6508592000 2018-11-11 1 JOAN S MCMAHON P00966494 4157834000 98.210.220.228 2018-11-11 10:59:28 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C0FC449091F106828C355C51A397BB907BE276C2 2017 2019-02-21 02:37:17Z BARRY BROADUS 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 432882228 0 X WWW.SRI.COM X 1946 CA WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, & MORE PRODUCTIVE THROUGH SCIENTIFIC R&D 10 8 2061 0 36969490 0 65967499 64945209 344248157 335976272 19619441 2975159 17318472 1884302 447153569 405780942 0 0 0 0 263674206 248399218 0 0 0 177794305 156125827 441468511 404525045 5685058 1255897 325440000 304618000 138430000 114532621 187010000 190085379 X SRI INTERNATIONAL CREATES WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, AND MORE PRODUCTIVE THROUGH SCIENTIFIC RESEARCH & DEVELOPMENT. 0 0 109732765 109997792 ADVANCED TECHNOLOGY AND SYSTEMS DIVISION (ATSD) MANAGES COMPLEX SCIENTIFIC RESEARCH PROJECTS FOR GOVERNMENT AND OTHER ORGANIZATIONS FROM BASIC RESEARCH TO ADVANCED SYSTEMS AND PRODUCT DEVELOPMENT. THE DIVISION ADVANCES STATE OF THE ART SCIENTIFIC RESEARCH AND DEVELOPMENT IN DIVERSE AREAS SUCH AS CHEMISTRY, PHYSICS, AND MATERIALS SCIENCE; GEOSPACE STUDIES AND SPACE AND MARINE TECHNOLOGY; SURVEILLANCE AND REMOTE SENSING; APPLIED OPTICS AND SECURE CIRCUITS; AND ROBOTICS, MEDICAL DEVICES, AND NANOTECHNOLOGY. 70082731 75037233 INFORMATION AND COMPUTING SCIENCES (ICS) EMPLOY NEW TECHNOLOGIES TO SOLVE PROBLEMS THROUGH CONTRACT RESEARCH, TECHNOLOGY LICENSING, AND VENTURE CREATION. MULTIDISCIPLINARY TEAMS DEVELOP CUTTING-EDGE COMPUTING CAPABILITIES FOR PROJECTS RANGING FROM BASIC AND APPLIED RESEARCH TO DEVELOPING AND TESTING ADVANCED SYSTEMS. OUR STAFF MEMBERS COLLABORATE WITHIN SRI, AND ALSO WITH DIVERSE UNIVERSITY, GOVERNMENT, AND INDUSTRY PARTNERS. PUSHING THE BOUNDARIES OF COMPUTING TO CREATE SOLUTIONS IN ARTIFICIAL INTELLIGENCE, SPEECH AND NATURAL LANGUAGE, PERCEPTION AND VISUAL SCIENCES, COMPUTATIONAL BIOLOGY, ROBOTICS, AND CYBER SECURITY. 60661153 58371005 SRI BIOSCIENCES WORKS WITH ACADEMIC, BIOPHARMACEUTICAL AND BIOTECHNOLOGY, FOUNDATION, AND GOVERNMENT ORGANIZATIONS AND PARTNERS TO BRING NEW MEDICINES, DRUG DELIVERY TECHNOLOGY DEVICES TO MARKET THROUGH SCIENTIFIC RESEARCH AND DEVELOPMENT, PHARMACEUTICAL DISCOVERY, PRECLINICAL DEVELOPMENT AND CLINICAL TRANSLATION. RESEARCHERS SOLVE IMPORTANT PROBLEMS IN PREVENTION, DIAGNOSIS AND TREATMENT, TARGETING IMPORTANT UNMET NEEDS IN HEALTHCARE AND BIODEFENSE TO SAVE AND IMPROVE LIVES WORLDWIDE. OUR RESEARCHERS STRIVE TO UNDERSTAND DISEASE TREATMENT FROM THE MOLECULAR AND CELLULAR LEVEL TO THE GLOBAL IMPACT OF A BIOLOGICAL THREAT BY IDENTIFYING PROMISING LEADS AND TRANSLATING PRECLINICAL CANDIDATES INTO CLINICAL DEVELOPMENT. CORE AREAS OF THERAPEUTIC EXPERTISE INCLUDE CANCER, IMMUNOLOGY AND INFLAMMATION, INFECTIOUS DISEASES AND NEUROSCIENCE. SRI ALSO CONDUCTS BIOSCIENCE R&D TO PRODUCE NEWBIOMARKERS AND SYSTEMS BIOLOGY TOOLS. 87434535 55633162 SRI ENGAGES IN A BROAD RANGE OF OTHER SCIENTIFIC RESEARCH AND DEVELOPMENT INITIATIVES IN FURTHERANCE OF ITS EXEMPT MISSION, INCLUDING EDUCATION RESEARCH, PRODUCT ENGINEERING AND SYSTEM DEVELOPMENT, AND GLOBAL PARTNERSHIPS THAT ENCOURAGE INNOVATION AND RESEARCH AROUND THE WORLD. THE EDUCATION DIVISION FOCUSES ON SYSTEMATIC, TECHNOLOGY-RICH ASSESSMENT DESIGN TO MEASURE LEARNING OUTCOMES AND COMPETENCIES, HOW TO ENHANCE LEARNING WITH TECHNOLOGY, INTEGRATE RESEARCH, EVALUATION, TECHNICAL ASSISTANCE, AND STRATEGIC CONSULTING TO ILLUMINATE HOW AND WHY EDUCATION REFORMS WORK, AND ADDRESS LEARNING DIFFERENCES.PROGRAMS HELP IDENTIFY TRENDS, UNDERSTAND OUTCOMES, AND DEVELOP POLICY AND PRACTICE SOLUTIONS TO THE CHALLENGES POSED BY RAPID SOCIAL, TECHNOLOGICAL AND ECONOMIC CHANGE. 87434535 55633162 327911184 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 537 0 1 2061 1 1 1 1 JA GL 0 0 0 0 0 0 0 0 X 10 8 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 CA OR NH NY X BARRY BROADUS 6508592000 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 MARIANN BYERWALTER BOARD CHAIR 6.00 X X 170000 0 0 DAVID HOYT BOARD MEMBER 2.00 X 54000 0 0 LESLIE F KENNE BOARD MEMBER 3.00 X 61500 0 0 DAVID E LIDDLE BOARD MEMBER 3.00 X 60000 0 0 PHILIP J QUIGLEY BOARD MEMBER 2.00 X 54000 0 0 WENDELL WIERENGA BOARD MEMBER 2.00 X 48500 0 0 LAURA WRIGHT BOARD MEMBER 3.00 X 64000 0 0 JOHN J YOUNG JR BOARD MEMBER 3.00 X 61500 0 0 ISAAC STEIN FROM 0217 BOARD MEMBER 2.00 X 55500 0 0 WILLIAM A JEFFREY CEO 40.00 X X 1231579 0 37794 JOHN P MCINTIRE CHIEF LEGAL OFFICER 40.00 X 464239 0 68514 JAMES E DOYLE CFO & TREASURER 40.00 X 388781 0 34490 STEPHEN J CIESINSKI PRESIDENT 40.00 X 737255 0 61904 WILLIAM MARK DIVISION PRESIDENT 40.00 X 736671 0 72249 DONALD SEATON DIVISION PRESIDENT 40.00 X 625731 0 46492 GREGORY KOVACS CHIEF TECHNOLOGY OFFICER 40.00 X 514357 0 20763 STEVE PERNA DIVISION PRESIDENT 40.00 X 495205 0 49946 DENISE BORDERS DIVISION PRESIDENT 40.00 X 482175 0 62432 MICHAEL PAGE CHIEF INFORMATION OFFICER 40.00 X 492449 0 29995 ERIN ANDRE CHIEF PEOPLE OFFICER 40.00 X 380840 0 51474 ADOLPH PFEFFERBAUM SENIOR DIRECTOR 40.00 X 530990 0 35518 PHILLIP PORRAS PROGRAM DIRECTOR 40.00 X 447297 0 41554 PATRICK LINCOLN LABORATORY DIRECTOR 40.00 X 488837 0 72313 MANISH KOTHARI PRESIDENT, SRI VENTURES 40.00 X 617138 0 53717 KAREN MYERS SR DIRECTOR, COMPUTER SCIENCE 40.00 X 448583 0 58289 9711127 0 797444 905 0 1 0 ADVANTAGE TECHNICAL RESOURCING PO BOX 70107 LOS ANGELES CA 90074 STAFFING 2432363 ALLIEDBARTON SECURITY SERVICES PO BOX 828854 PHILADELPHIA PA 19182 SECURITY 1332652 CUSTOMIZED PERFORMANCE INC 780 MONTAGUE EXPRESSWAY STREET 201 SAN JOSE CA 95131 CUSTODIAL 1002943 CHARLES RIVER LABS INC PO BOX 27812 NEW YORK NY 10087 LABORATORIES 956528 INTERNATIONAL POWER TECHNOLOGY INC 1042 W HEDDING STREET 100 SAN JOSE CA 95126 CONSULTANT 741827 105 64945209 64945209 SCIENTIFIC RESEARCH 541700 299018513 299018513 COMMERICAL TECH SVCS 541900 36957759 36957759 335976272 1142397 1142397 5020485 5020485 4469640 7626502 -3156862 -3156862 11731 -3168593 21307546 19383825 90959 1923721 -90959 1832762 1832762 OTHER INCOME 900099 20679 20679 20679 405780942 299039192 36969490 4827051 X 8354618 7210 8347408 157256512 134140208 23116304 13741828 11453162 2288666 56001236 46761239 9239997 13045024 10872409 2172615 2631896 2631896 593931 212781 381150 78262934 69669475 8593459 517253 517253 14098455 12415646 1682809 9103892 2091270 7012622 17472150 12096544 5375606 5849176 5698448 150728 1544628 1373980 170648 496162 496162 13525286 10635029 2890257 1969572 8249 1961323 EQUIPMENT PURCHASES 10048339 10465300 -416961 PRINTING/PUBLICATIONS 12153 10234 1919 404525045 327911184 76613861 0 3013538 3326418 27771462 1157697 98841000 115969703 4201000 3916351 6453000 7563711 329781088 226140283 108582000 103640805 44468000 33742198 32110000 35301117 325440000 304618000 74735000 55852053 26535000 24968489 37160000 33712079 138430000 114532621 X 186864000 139428629 146000 50656750 187010000 190085379 325440000 304618000 X 1255897 -5144897 6964379 X 0 1 X 1 1 1 X 52041334 52523183 64235380 65967499 64945209 299712605 474808566 344176318 292770354 298480382 299018513 1709254133 526849900 396699501 357005734 364447881 363963722 2008966738 0 130975862 145352569 112866273 139624312 166038756 694857772 130975862 145352569 112866273 139624312 166038756 694857772 1314108966 20638558 21573581 25143876 25504013 10632522 103492550 20638558 21573581 25143876 25504013 10632522 103492550 1515895 308823 3681717 31816 20679 5558930 549004353 418581905 385831327 389983710 374616923 2118018218 0.62040 0.63340 0.04890 0.04760 X 0 0 0 0 0 0 1 257 0 1 257 0 PART II-B, LINE 1: THE AMOUNT REFLECTED IN LINE 1 (G) REPRESENTS THE EXPENSES ASSOCIATED WITH PAID STAFF OR MANAGEMENT. 13488793 13488793 223010647 176339764 46670883 13834782 7949170 5885612 62037828 34484451 27553377 17409038 7366898 10042140 103640805 OTHER ASSETS 14922215 INVESTMENT IN SUBSIDIARY 15010102 DEFERRED INCOME TAXES 5368800 35301117 CLIENT ADVANCES & CREDITS 18268741 OTHER NON CURRENT LIABILITIES 15443338 33712079 EAST ASIA 1 13 PROGRAM SERVICES INTERNATIONAL PROJECT DEVELOPMENT 1040295 EUROPE 1 9 PROGRAM SERVICES NSF ATOMOSPHERIC RESEARCH FACILITY 2528000 NORTH AMERICA 0 1 PROGRAM SERVICES INTERNATIONAL PROJECT DEVELOPMENT 8000 MIDDLE EAST 0 1 PROGRAM SERVICES INTERNATIONAL PROJECT DEVELOPMENT 5000 SOUTH ASIA 0 1 PROGRAM SERVICES GOVERNMENT PROJECT SUPPORT 15000 2 25 0 0 2 25 3596295 0 3596295 0 0 0 0 0 1 X X 1 1 X X X X X 1 0 1 0 0 0 1 1 0 MARIANN BYERWALTER BOARD CHAIR 170000 0 0 0 0 0 0 0 0 0 170000 0 0 0 WILLIAM A JEFFREY CEO 540750 0 610500 0 80329 0 5400 0 32394 0 1269373 0 0 0 JOHN P MCINTIRE CHIEF LEGAL OFFICER 323115 0 76000 0 65124 0 5400 0 63114 0 532753 0 0 0 JAMES E DOYLE CFO & TREASURER 392404 0 0 0 -3623 0 6437 0 28053 0 423271 0 0 0 STEPHEN J CIESINSKI PRESIDENT 444615 0 214000 0 78640 0 5400 0 56504 0 799159 0 0 0 WILLIAM MARK DIVISION PRESIDENT 419111 0 172000 0 145560 0 5400 0 66849 0 808920 0 0 0 DONALD SEATON DIVISION PRESIDENT 358308 0 167000 0 100423 0 5400 0 41092 0 672223 0 0 0 GREGORY KOVACS CHIEF TECHNOLOGY OFFICER 345231 0 143468 0 25658 0 5400 0 15363 0 535120 0 0 0 STEVE PERNA DIVISION PRESIDENT 291279 0 71000 0 132926 0 5400 0 44546 0 545151 0 0 0 DENISE BORDERS DIVISION PRESIDENT 346596 0 116000 0 19579 0 5400 0 57032 0 544607 0 0 0 MICHAEL PAGE CHIEF INFORMATION OFFICER 348923 0 119000 0 24526 0 5400 0 24595 0 522444 0 0 0 ERIN ANDRE CHIEF PEOPLE OFFICER 310885 0 56000 0 13955 0 5400 0 46074 0 432314 0 0 0 ADOLPH PFEFFERBAUM SENIOR DIRECTOR 427156 0 40000 0 63834 0 5400 0 30118 0 566508 0 0 0 PHILLIP PORRAS PROGRAM DIRECTOR 276456 0 50000 0 120841 0 5318 0 36236 0 488851 0 0 0 PATRICK LINCOLN LABORATORY DIRECTOR 327639 0 70000 0 91198 0 5400 0 66913 0 561150 0 0 0 MANISH KOTHARI PRESIDENT, SRI VENTURES 315000 0 231000 0 71138 0 5400 0 48317 0 670855 0 0 0 KAREN MYERS SR DIRECTOR, COMPUTER SCIENCE 293872 0 122000 0 32711 0 5400 0 52889 0 506872 0 0 0 PART I, LINE 1A SRI'S TRAVEL POLICY IS STRUCTURED FOR COMPLIANCE WITH FAR 31 205-46. UNDER SUB-SECTION (D) OF THIS PROVISION, AIRLINE COSTS IN EXCESS OF THE LOWEST CUSTOMARY STANDARD ARE ALLOWABLE IN SITUATIONS TO ACCOMMODATE THE PHYSICAL OR MEDICAL NEEDS OF THE TRAVELER. THE DECISION TO PERMIT SUCH TRAVEL, SOLELY FOR MEDICAL REASONS ON AN INDIVIDUAL BASIS, WAS ISSUED FROM THE CONTROLLER'S OFFICE WITHIN THE AUSPICES OF THE CHIEF FINANCIAL OFFICER (CFO). A TEMPORARY HOUSING SUBSIDY IS OCCASIONALLY INCLUDED AS PART OF THE RELOCATION PACKAGE OFFERED TO QUALIFIED EMPLOYEES. PART I, LINES 4A-C PART I, LINE 4A: KATHRYN KEATING RECEIVED $85,833 AS SEVERANCE PAYMENTS. PART I, LINES 4C: LIKE MOST UNIVERSITIES AND OTHER RESEARCH INSTITUTIONS, AND CONSISTENT WITH THE REQUIREMENTS OF THE BAYH-DOLE ACT [35 U S C 200 ET SEQ], SRI SHARES WITH SRI INVENTORS AND OTHER CONTRIBUTORS ROYALTIES IN THE FORM OF CASH OR EQUITY RECEIVED FROM SPIN-OFF AND OTHER COMPANIES TO WHOM SRI INTELLECTUAL PROPERTY IS LICENSED OR TRANSFERRED. THE TERMS AND CONDITIONS UNDER WHICH SRI SHARES SUCH EQUITY ARE LAID OUT IN DETAIL IN SRI'S INTELLECTUAL PROPERTY ROYALTY AND EQUITY SHARING PROGRAM THAT WAS APPROVED BY THE IRS IN A PRIVATE LETTER RULING ISSUED IN 1999. OF THE OFFICERS, DIRECTORS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A, FIVE RECEIVED EQUITY-BASED PAYMENTS TOTALING $172,246, WITH INDIVIDUAL AMOUNTS RANGING FROM $8,194 TO $51,630. PART I, LINE 6 LIKE MOST UNIVERSITIES AND OTHER RESEARCH INSTITUTIONS, AND CONSISTENT WITH THE REQUIREMENTS OF THE BAYH-DOLE ACT [35 U S C 200 ET SEQ], SRI SHARES WITH SRI INVENTORS AND OTHER CONTRIBUTORS ROYALTIES IN THE FORM OF CASH OR EQUITY RECEIVED FROM SPIN-OFF AND OTHER COMPANIES TO WHOM SRI INTELLECTUAL PROPERTY IS LICENSED OR TRANSFERRED. THE TERMS AND CONDITIONS UNDER WHICH SRI SHARES SUCH EQUITY ARE LAID OUT IN DETAIL IN SRI'S INTELLECTUAL PROPERTY ROYALTY AND EQUITY SHARING PROGRAM THAT WAS APPROVED BY THE IRS IN A PRIVATE LETTER RULING ISSUED IN 1999. OF THE OFFICERS, DIRECTORS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A, 17 INDIVIDUALS RECEIVED ROYALTY PAYMENTS TOTALING $701,155, WITH INDIVIDUAL AMOUNTS RANGING FROM $2,910 TO $108,291. PART I, LINE 7 THE AMOUNTS SHOWN IN COLUMN (II) OF SECTION B OF PART (II) INCLUDE PERFORMANCE BASED COMPENSATION (PBC). PBC IS A FINANCIAL INCENTIVE POOL OF FUNDS THAT IS PRE-APPROVED BY THE BOARD OF DIRECTORS ANNUALLY. PBC PAYOUT IS BASED ON THE FOLLOWING FACTORS THAT ARE DESIGNED TO ALIGN INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE WITH THE NON-PROFIT MISSION OF SRI: GROWTH IN ORDER BOOKINGS, GROWTH IN CONTRACT LABOR REVENUE, MEETING THRESHOLD INCOME FROM RESEARCH CONTRACTS, GENERATING ROYALTY INCOME, GENERATING NEW EQUITY ASSETS RESULTING FROM SPIN-OFF COMPANIES, GENERATING NEW PATENTS, PUBLISHING RESEARCH RESULTS, AND OTHER SUCH METRICS AS DEEMED RELEVANT BY MANAGEMENT FOR THE FISCAL YEAR, AS APPROVED BY THE BOARD. A CA INFRASTRUCTURE AND DEVELOPMENT 630304653 13033W3N1 2010-03-10 15000000 RESEARCH FACILITIES UPGRADE 0 0 0 B CA INFRASTRUCTURE AND DEVELOPMENT 630304653 SEEPARTVI 2012-06-28 18590000 REFINANCING 2003 ISSUE 0 0 0 A 15000000 603000 14397000 2011 0 0 1 1 B 18590000 185000 2012 1 0 1 1 A 0 0 0 0 0.00000 0.00000 1 0 0 B 0 0 0 0 0.00000 0.00000 1 0 0 A 0 0 0 1 1 0 0 0 1 B 0 0 0 1 0 0 0 0 1 A 1 B 1 PART I ROW B COLUMN C CUSIP MATURITY DATE PRINCIPAL 13034ABN9 09/01/2013 $1,075,000 13034ABP4 09/01/2014 $1,110,000 13034ABQ2 09/01/2015 $1,145,000 13034ABR0 09/01/2016 $ 890,000 13034ABS4 09/01/2017 $ 925,000 13034ABT6 09/01/2018 $ 960,000 13034ABU3 09/01/2019 $1,000,000 13034ABV1 09/01/2020 $1,040,000 13034ABW9 09/01/2021 $1,095,000 13034ABX7 09/01/2022 $1,150,000 13034ABX7 09/01/2028 $8,200,000 TOTAL $18,590,000 PART IV 2 C A 7/13/2012 REFERRING TO 8/24/08 B 4/5/2012 FORM 990, PART VI, SECTION A, LINE 2 WILLIAM JEFFREY AND LAURA WRIGHT BOTH SERVE ON THE BOARD OF DIRECTORS OF TE CONNECTIVITY LTD., AN ENTITY UNRELATED TO SRI INTERNATIONAL. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY SRI STAFF (TAX MANAGER, CFO, CEO), OUTSIDE LEGAL COUNSEL, AND THE AUDIT COMMITTEE. A COPY OF THE FINAL VERSION OF THE FORM 990 IS FURNISHED TO THE EACH MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C SRI MAINTAINS AND ENFORCES STANDARDS OF CONDUCT AND CONFLICT-OF-INTEREST POLICIES WHICH, AMONG OTHER THINGS, REQUIRE SUCH PERSONS TO IDENTIFY, DISCLOSE, AND AVOID INTERESTS THAT COULD GIVE RISE TO ETHICAL CONFLICTS. SRI'S LEGAL DEPARTMENT TRAINS ITS OFFICERS, DIRECTORS, AND EMPLOYEES IN SRI'S CODE OF CONDUCT, ETHICS, AND CONFLICTS-OF-INTEREST POLICIES. THE ETHICS AND CONFLICT-OF-INTEREST POLICIES ARE POSTED ON SRI'S INTERNAL WEBSITE. SRI'S ETHICS OFFICER IS REACHABLE BY ALL EMPLOYEES THROUGH SRI'S ETHICS "HOTLINE". SRI'S INTERNAL AUDIT STAFF ASSIST THE ETHICS OFFICER IN INVESTIGATING POTENTIAL VIOLATIONS AND RECOMMENDING REMEDIAL MEASURES. SENIOR MANAGEMENT OVERSEES THESE PERSONNEL AND POLICIES AND ENFORCES CORRECTIVE AND DISCIPLINARY ACTION AS WARRANTED. IN THE EVENT OF POTENTIAL CONFLICTS, THE PERSONS INVOLVED ARE BARRED FROM PARTICIPATING IN THE DELIBERATIONS AND DECISIONS REGARDING THE MATTER WHICH IS THE SUBJECT OF THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 AMONG THE COMMITTEES OF THE SRI BOARD OF DIRECTORS IS THE COMPENSATION AND MANAGEMENT DEVELOPMENT COMMITTEE (THE "COMMITTEE"), WHICH IS COMPOSED OF FOUR INDEPENDENT DIRECTORS. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION LEVELS FOR SRI'S SENIOR STAFF AND CEO ON AN ANNUAL BASIS, BASED ON COMPARABLE COMPENSATION INFORMATION FOR SIMILARLY-SITUATED COMPANIES. THIS COMPARABLE COMPENSATION INFORMATION IS DEVELOPED OR OBTAINED BY A QUALIFIED, EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTANT, WHO PROVIDES A REPORT AND OPINION TO THE COMMITTEE REGARDING THE REASONABLENESS OF THE PROPOSED COMPENSATION LEVELS IN LIGHT OF THE EXTERNAL DATA. THE MINUTES OF THE COMMITTEE REFLECT AND DOCUMENT THE DECISIONS, INCLUDING THE ANALYSIS AND DATA CONSIDERED BY THE COMMITTEE. THE MINUTES OF THE COMMITTEE'S MEETINGS ARE MAINTAINED BY THE VP OF HUMAN RESOURCES AND THE GENERAL COUNSEL. FORM 990, PART VI, SECTION C, LINE 19 SRI'S ORGANIZATIONAL DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. COPIES OF THE FINANCIAL STATEMENTS CAN ALSO BE OBTAINED FROM THE OFFICE OF THE CALIFORNIA SECRETARY OF STATE, WHERE A COPY IS FILED ANNUALLY. SRI'S CONFLICT OF INTEREST POLICY IS NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G OTHER FEES: PROGRAM SERVICE EXPENSES 69,669,475. MANAGEMENT AND GENERAL EXPENSES 8,593,459. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 78,262,934. FORM 990, PART XI, LINE 9: NET ASSETS RELEASED FROM RESTRICTIONS -90,621. EQUITY IN EARNINGS FROM SUBSIDIARY 1,877,000. INCOME TAX BENEFIT 5,178,000. TANGIBLE PROPERTY ELECTION FOOTNOTE: TAXPAYER IS MAKING THE DE MINIMIS SAFE HARBOR ELECTION UNDER TREAS. REG. 1.263(A)-1(F) FOR ALL ELIGIBLE AMOUNTS PAID OR INCURRED DURING THE TAXABLE YEAR. TAXPAYER HEREBY ELECTS TO CAPITALIZE REPAIR AND MAINTENANCE COSTS UNDER TREAS. REG. 1.263(A)-3(N). THE COSTS WERE INCURRED DURING THE TAXABLE YEAR IN THE ELECTING TAXPAYER'S TRADE OR BUSINESS AND THE ELECTING TAXPAYER TREATS SUCH COSTS AS CAPITAL EXPENDITURES ON ITS BOOKS AND RECORDS. RAVENSWOOD SOLUTIONS 3065 SKYWAY COURT FREMONT CA 94539 472893226 TRAINING SYSTEMS DE SRI INTERNATIONAL C 1877000 15010000 1.00000 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 RAVENSWOOD SOLUTIONS A 11731 BOOK VALUE RAVENSWOOD SOLUTIONS L 591469 COST RAVENSWOOD SOLUTIONS O 15566 CASH VALUE