2018-08-06T13:49:24-05:00 2017-09-30 134008324 PRICEWATERHOUSECOOPERS LLP 600 13TH ST NW STE 1000 WASHINGTON DC 20005 990 2016-10-01 560686338 Research Triangle Institute RESE 9195416000 PO BOX 12194 Research Triangle Park NC 277092194 Michael H Kaelin Jr CFO Chief Financial Officer 9195416000 2018-08-06 1 TRAVIS L PATTON P00369623 2024141000 2016 2022-09-23 18:48:47Z RTI International E Wayne Holden PO BOX 12194 Research Triangle Park NC 277092194 1053325164 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 5,100 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. 15 7 3426 0 6908186 795622 0 0 884678966 972277037 -693451 8551200 1039004 -1965171 885024519 978863066 499883 475612 0 0 415653147 460353907 0 0 0 454440873 510253685 870593903 971083204 14430616 7779862 607944402 694689063 214567824 278270776 393376578 416418287 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 5,100 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 567492322 446310 653712900 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. 310426063 29302 319831318 INTERNATIONAL DEVELOPMENT: See Schedule O for description of program services, Part III Line 4b. 877918385 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 1912 0 3426 1 1 1 1 BN CH CG EC EG ES ET GH GT GV HA HK IN ID JO KE LI MI MO MZ NP NU NI RP SG SP SW TZ TH UG AE UK ZA ZI 0 0 0 0 0 0 0 0 X 15 7 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 J Gonzales Board Member 2.00 40.00 X 0 383083 0 W Mitchell Board Member 2.00 X 41500 0 0 A Rebar Board Member 2.00 40.00 X 25286 358870 0 B Entwisle Board Member 2.00 40.00 X 52500 237994 0 C Brown Board Member 2.00 40.00 X 41500 241346 0 T Darden Board Member 2.00 X 41500 0 0 H Martin Board Member 2.00 40.00 X 36000 365000 0 R Ingram Board Member 2.00 X 41851 0 0 P Wynn Jr Board Member 2.00 30.00 X 63500 215957 32284 H Pinnix-Ragland Board Member 2.00 X 58000 0 0 P Scott III Board Member 2.00 X 60750 0 0 P Lange Board Member 1.00 40.00 X 47577 451134 40040 J Moellering Board Member 2.00 X 58000 0 0 T Magnuson Board Member 2.00 40.00 X 0 534100 0 L Carin Board Member 2.00 40.00 X 41500 392677 44757 W Moore Jr Chairman 2.00 X 84000 0 0 E Holden President 40.00 X X 999271 0 114634 C Buchholtz Assistant Secretary 40.00 X 248000 0 43545 E Story Secretary 40.00 X 478637 0 84827 E Sax Treasurer 40.00 X 302967 0 50813 J Gibson Vice President 40.00 X 629075 0 97065 L May Vice President 40.00 X 428940 0 55143 D O'Brien Vice President 40.00 X 247105 0 45841 T Gabel Vice President 40.00 X 508380 0 76930 T Lomax Vice President 40.00 X 445157 0 63624 A Williams Vice President 40.00 X 289442 0 21440 A Mangel Vice President 40.00 X 470791 0 84677 C Cornwell Vice President 40.00 X 194739 0 25438 P Weisenfeld Vice President 40.00 X 451994 0 48393 M Kaelin Jr Vice President & CFO 40.00 X 503546 0 88365 L Gilliland Divisional Director 40.00 X 367643 0 43810 S Earnshaw Divisional Director 40.00 X 400044 0 33395 T Pierson Divisional Director 40.00 X 374245 0 35361 N Winebrenner Divisional Director 40.00 X 396811 0 17021 R Zerbonia Divisional Director 40.00 X 397196 0 36665 T Nagle Former Board Member 0.00 40.00 X 0 157449 0 J Siedow Former Board Member 0.00 40.00 X 0 109678 14839 M Vouk Former Board Member 2.00 40.00 X 0 275798 0 8827447 3723086 1198907 1099 1 1 0 Headway Corp Resources 421 Fayetteville St Raleigh NC 27601 Contract Labor 31224830 HR Directions 805 Spring Forest Road Raleigh NC 27609 Contract Labor 26397343 Interchurch Medical Assistance Inc 500 Main Street New Windsor MD 21776 International Health Care Services 13175506 AC Nielsen Corporation PO Box 88956 Chicago IL 606958956 Global Marketing Research Firm 8760412 Helen Keller International Inc 353 Park Avenue South New York NY 10010 International Health Care Services 8441593 388 Research 541700 652862017 645953831 6908186 0 International Development 541900 319415020 319415020 0 0 972277037 9432592 9432592 68439260 5141446 68439260 6022838 0 -881392 -881392 -881392 Foreign Currency Gain(Loss) 900099 1267182 1267182 0 0 Subsidiary Goodwill Impairment Lo 900099 -3232353 -3232353 -1965171 978863066 966636033 6908186 5318847 X 446310 446310 29302 29302 7854425 7854425 310341362 276896355 33445007 22797265 19050734 3746531 96991304 81051633 15939671 22369551 18693311 3676240 2065198 1212461 852737 189646 40159 149487 419146 419146 346159150 332285121 13874029 28129 3407 24722 16259103 14058111 2200992 25663786 24160829 1502957 522514 522514 19225351 30292060 -11066709 25170155 22236247 2933908 42902079 42377123 524956 1767426 1767426 14569501 3089092 11480409 1659053 652382 1006671 Miscellaneous 9723650 8314170 1409480 0 Memberships 1732325 1016388 715937 0 Taxes 1405999 890211 515788 0 Business Meals 791474 600465 191009 971083204 877918385 93164819 0 0 38572042 35219909 176716788 206187439 20371561 24941975 319908119 159908570 121977691 159999549 176532386 170712381 52906731 58186014 3275759 6678528 17591444 32763268 607944402 694689063 100939279 167393210 40901166 41816994 49216135 46431871 23511244 22628701 214567824 278270776 X 391221506 414124937 491762 541838 1663310 1751512 393376578 416418287 607944402 694689063 X 7779862 13733080 1528767 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 419146 0 0 419146 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 200750601 107337744 93412857 74927470 52570826 22356644 41555635 41555635 159999549 Global Endowment Fund II, LP 58186014 C 58186014 Other Accrued Expenses 22628701 22628701 X 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, during the current year, the Institute acquired International Resources Group Ltd. (IRG), a for-profit entity, subject to corporate income taxation. Income taxes associated with foreign operations, unrelated business income, and income generated by the acquired for-profit entity are not material for the Institute. All not-for-profit 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 an 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, 2017 and 2016, 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, 7 139 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 83090403 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, 39 229 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 52425926 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 4 88 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 18348426 Middle East and North Africa - Algeria, Bahrain, Djibouti, Egypt, 4 67 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 26666783 Russia and Neighboring States - Armenia, Azerbijan, Belarus, 1 15 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 61784 South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, 0 1 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health,Tech 2689794 South Asia - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, 1 250 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 36749377 Sub-Saharan Africa - Angola, Benin, Botswana, Burkina Faso, 37 873 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health 95994468 North America - Canada and Mexico, but not the United States 2 Program Services Research of Economic&Social,Education,Energy,Governance&Economics,Health,Stat 651095 Sub-Saharan Africa - Angola, Benin, Botswana, Burkina Faso, Grantmaking 12302 Central America and the Caribbean - Antigua & Barbuda, Aruba, Bahamas, Grantmaking 7500 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, Grantmaking 7500 South Asia - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Investments 1704228 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, Investments 100000 93 1662 0 2 93 1664 316026961 2482625 318509586 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 FY17 RTI contributed to the following communities: RTI contributed $1,500 to Afya Elimu CBO in Africa to empower community members to embrace people driven development initiatives in Education, Health and Agriculture. RTI contributed $3,750 to Fe y Alegria El Salvador in El Salvador, an International Movement of Integral Popular Education and Social promotion aimed at the most disadvantaged and excluded sectors of society to enhance their personal development and social participation based on Christian values, participation and solidarity. RTI contributed $3,750 to Fundacion Margarita Tejad in Guatemala to help improve the quality of life of people with Down Syndrome and their families, promoting health, education and social awareness. RTI contributed $1,500 to MAKLWETA, in Africa to provide mentorship camps and education to girls. RTI contributed $1,750 to Upendo Rescue Centre in Africa. Upendo Rescue Centre supports orphans by giving scholarships, education, housing, food and counseling to the children. RTI contributed $3,750 to Yayasa Galu Sepanjang Jasya in Indonesia. Yayasa Galu Sepanjang Jasya focuses on humanizing people with mental illness and to get society awareness so that they could be more accepted within that society. RTI contributed $3,750 to Yayasan Kasih Anak Kanker Indonesia to support the government program as well as complement the activities conducted by other organizations in the past by providing shelter homes, education, transportation and conducting public education for the society. 1 American Red Cross 2025 E Street NW Washington DC 20006 530196605 501(c)(3) 122653 General Support The Childrens Inn at NIH 7 West Drive Bethesda MD 20814 521638207 501(c)(3) 6500 General Support Triangle United Way 2400 Perimeter Park Drive Morrisville NC 27560 561949103 501(c)(3) 85434 62515 FMV Computer Equipment General Support Emily Krzyewski Family Life Center Inc 904 W Chapel Hill Street Durham NC 27701 562230469 501(c)(3) 10000 General Support MAGELLAN CHARTER SCHOOL 9324 BAILEYWICK ROAD RALEIGH NC 27615 562019202 501(c)(3) 10000 General Support TRIANGLE VOLLEYBALL CLUB 9301 GLOBAL CENTER DRIVE MORRISVILLE NC 27560 020647356 501(c)(3) 10000 General Support NATIONAL HUMANITIES CENTER PO BOX 12256 RESEARCH TRIANGLE PARK NC 277092256 591735367 501(c)(3) 25000 General Support CHILDREN'S MENTAL HEALTH 2201 WILSHIRE DRIVE DURHAM NC 27707 274658931 501(c)(3) 10000 General Support 8 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 the United Way's "Teaming 4 Technology" initiative, providing computers and equipment for donation to students, schools and parter agencies that could not otherwise afford to purchase computer equipment. Additionally, RTI contributed phone system components and TVs to local churches and items including chemical scrubber, autosamplers and collectors to NC State University. X X X X X 1 1 X X X X X X 0 1 0 0 0 0 0 1 1 0 J Gonzales Board Member 0 383083 0 0 0 0 0 0 0 0 0 383083 0 0 A Rebar Board Member 25286 358870 0 0 0 0 0 0 0 0 25286 358870 0 0 B Entwisle Board Member 52500 237994 0 0 0 0 0 0 0 0 52500 237994 0 0 C Brown Board Member 41500 241346 0 0 0 0 0 0 0 0 41500 241346 0 0 H Martin Board Member 36000 365000 0 0 0 0 0 0 0 0 36000 365000 0 0 P Wynn Jr Board Member 63500 215957 0 0 0 0 0 26190 0 6631 63500 248778 0 0 P Lange Board Member 47577 433134 0 0 0 18000 0 32411 0 8757 47577 492302 0 0 T Magnuson Board Member 0 534100 0 0 0 0 0 0 0 0 0 534100 0 0 L Carin Board Member 41500 262950 0 129727 0 0 0 32411 0 17791 41500 442879 0 0 E Holden President 685347 0 271942 0 41982 0 64031 0 50602 0 1113904 0 43904 0 C Buchholtz Assistant Secretary 212695 0 35000 0 305 0 0 0 43545 0 291545 0 0 0 E Story Secretary 344779 0 125119 0 8739 0 33427 0 51400 0 563464 0 23036 0 E Sax Treasurer 254865 0 47000 0 1102 0 0 0 50813 0 353780 0 0 0 J Gibson Vice President 451228 0 156974 0 20873 0 43681 0 53384 0 726140 0 31880 0 L May Vice President 307465 0 120750 0 725 0 19645 0 35498 0 484083 0 0 0 D O'Brien Vice President 200968 0 0 0 46137 0 0 0 45841 0 292946 0 0 0 T Gabel Vice President 357232 0 140527 0 10621 0 34445 0 42485 0 585310 0 25145 0 T Lomax Vice President 342998 0 92653 0 9506 0 30374 0 33249 0 508780 0 0 0 A Williams Vice President 225737 0 60654 0 3051 0 0 0 21440 0 310882 0 0 0 A Mangel Vice President 357431 0 101966 0 11394 0 34368 0 50309 0 555468 0 24913 0 C Cornwell Vice President 179500 0 15000 0 239 0 0 0 25438 0 220177 0 0 0 P Weisenfeld Vice President 347290 0 93393 0 11311 0 21842 0 26551 0 500387 0 0 0 M Kaelin Jr Vice President & CFO 358022 0 135418 0 10106 0 34797 0 53568 0 591911 0 24750 0 L Gilliland Divisional Director 303805 0 56400 0 7438 0 0 0 43810 0 411453 0 0 0 S Earnshaw Divisional Director 288256 0 109047 0 2741 0 0 0 33395 0 433439 0 0 0 T Pierson Divisional Director 296417 0 70670 0 7158 0 0 0 35361 0 409606 0 0 0 N Winebrenner Divisional Director 245596 0 99285 0 51930 0 0 0 17021 0 413832 0 0 0 R Zerbonia Divisional Director 231090 0 32503 0 133603 0 0 0 36665 0 433861 0 0 0 T Nagle Former Board Member 0 157449 0 0 0 0 0 0 0 0 0 157449 0 0 J Siedow Former Board Member 0 95069 0 0 0 14609 0 11038 0 3801 0 124517 0 0 M Vouk Former Board Member 0 275798 0 0 0 0 0 0 0 0 0 275798 0 0 Part I, Line 1a One officer traveled first class and was not included in taxable income. Two highly compensated employees 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 two highly compensated employees 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 2016 are as follows: E. Holden $122,570, J. Gibson $86,187, A. Mangel $67,586, T. Gabel $67,971, M. Kaelin $67,797, T. Lomax $30,374, G. Story $64,142, P. Weisenfeld $21,842, L. May $19,645. These amounts include payments totaling $173,628 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 2016 are as follows: E. Holden $213,403, J. Gibson $114,467, A. Williams $60,654, A. Mangel $68,748, T. Gabel $107,000, M. Kaelin $102,418, T. Lomax $92,653, G. Story $94,405, P. Weisenfeld $93,393, E. Sax $47,000, C. Buchholtz $35,000, L. May $85,750, C. Cornwell $15,000, S. Earnshaw $109,047, R. Zerbonia $32,503, N. Winebrenner $74,285, T. Pierson $70,670 and L. Gilliland $56,400. 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 2016 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 2016 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 0.00030 0.00300 0.00330 1 0 1 B 0 0 0 1 0 0.00310 0.00100 0.00410 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 Schedule K, Part II, Line 3 The difference in the issue price and total proceeds is investment earnings. 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. Mitchell - Business Relationship; T. Darden & W. Moore - Business Relationship; W. Moore & P. Scott - Business Relationship; W. Moore & W. Mitchell - 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 2016, 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, A. Williams, Executive Vice President, PR, Corporate Communication and Government Affairs, P. Weisenfeld, Executive Vice Preident, 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 244,323,920. Management and general expenses 1,458,495. Fundraising expenses 0. Total expenses 245,782,415. Other Services: Program service expenses 57,104,426. Management and general expenses 12,829,883. Fundraising expenses 0. Total expenses 69,934,309. Passthroughs: Program service expenses 30,856,691. Management and general expenses -424,178. Fundraising expenses 0. Total expenses 30,432,513. Insurance: Program service expenses 0. Management and general expenses 3,218. Fundraising expenses 0. Total expenses 3,218. Legal Services: Program service expenses 84. Management and general expenses 6,611. Fundraising expenses 0. Total expenses 6,695. Form 990, Part XI, line 9: Pension related changes 1,429,363. George Watts HIll Fund-Unrealized Gains(Permanently Restricted) 88,203. George Watts HIll Fund-Other Income( Temporarily Restricted) 50,077. Subsidiaries Foreign Exchange Gain/Loss -38,876. 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 944257 1.00000 1 Triangle Beijing Consulting Co Ltd Beijing Prosper Centre No 5 Guang Beijing CH 100020 Scientific research and development CH RTI Int'l (Hong Kong) Limited C 276569 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 478 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 985223 702955 0.99990 1 RTI Syntegrity Inc 3040 Cornwallis Road Research Triangle Park NC 27709 812649493 Business Services NC Research Triangle Institute C 550134 8933477 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 5272258 49305580 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 753652 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 23099 0.99990 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 0 0 Research Triangle Institute Global India Private Limited B 1704696 Cash Value Research Triangle Institute International (Hong Kong) Limited B 300000 Cash Value RTI Syntegrity Inc B 1000000 Cash Value RTI Post Retirement Health Benefits Trust RTI VEBA P 701695 Cash Value RTI Post Retirement Health Benefits Trust RTI VEBA Q 1810413 Cash Value Team Syntegrity Americas Inc M 113187 Cash Value Research Triangle Institute Global India Private Limited L 88873 Cash Value International Resources Group Ltd B 25504924 Cash Value International Resources Group Ltd L 895966 Cash Value