2017-11-15T17:11:49-06:00 2016-12-31 861065772 DELOITTE TAX LLP 555 MISSION STREET SAN FRANCISCO CA 94105 990 2016-01-01 941160950 SRI INTERNATIONAL SRII 6508592000 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 JAMES E DOYLE CFO & TREASURER 6508592000 2017-11-15 1 JOAN S MCMAHON P00966494 4157834000 167.219.0.140 2017-11-15 11:57:31 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 754C010071A143D37141E39A360692A300B594CC 2016 2017-02-10 21:41:12Z JAMES E DOYLE 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 472067809 0 X WWW.SRI.COM X 1946 CA WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, AND MORE PRODUCTIVE. 13 10 2304 0 45969458 0 64235380 65967499 422880621 344248157 5468685 19619441 20942613 17318472 513527299 447153569 0 0 0 0 280987995 263674206 0 0 0 229854957 177794305 510842952 441468511 2684347 5685058 306345000 325440000 126133000 138430000 180212000 187010000 X SRI INTERNATIONAL CREATES WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, AND MORE PRODUCTIVE. 0 0 116425520 116078018 The Advanced Technology and Systems Division (ATSD) manages complex projects for government and non-government clients from basic research to advanced systems and product development. The division advances scientific research 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.Scientists, engineers, and technicians, work on about 200 projects per year, and are organized around five centers: Energy and Environment, Ocean and Space Systems, Surveillance Systems, Cyber and Survivability Systems, and Robotic and Medical Systems. Each center comprises multiple programs and laboratories and is vertically integratedfrom science to product concepts and prototypes. 61570776 66505482 Information and Computing Sciences (ICS) performs scientific research creating solutions in artificial intelligence, speech and natural language, perception and visual sciences, computational biology, robotics, and cyber security. Pushing the boundaries of computing, ICS employs new technologies to solve client problems through contract research, technology licensing, and venture creation. Our staff members collaborate within SRI, and also with diverse university and industry partners. 55042398 52917390 SRI Biosciences works with academic, foundation, government, and other clients and partners to bring new medicines and devices to market through basic research, pharmaceutical discovery, preclinical development and clinical translation. Researchers solve important problems in prevention, diagnosis and treatment, targeting important unmet needs in healthcare and saving and improving lives worldwide.Our researchers strive to understand disease mechanisms, identify promising leads and translate 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 new biomarkers, drug delivery technologies, medical devices, and systems biology tools. 107780517 63011308 SRI engages in a broad range of other scientific research initiatives in furtherance of its exempt mission, including Education, Integrated Systems and Solutions, and Global Partnerships. The Education Division undertakes a research-based analysis of educational outcomes and reforms and the impacts of technology on learning. Researchers address problems posed by complex issues in education policy, technology in learning, and learning and development. Programs help identify trends, understand outcomes, and develop policy and practice solutions to the challenges posed by rapid social, technological and economic change. The Integrated Systems and Solutions Division develops and transitions technology intellectual property from lab demonstrations to fielded, supported systems by leveraging a disciplined system engineering approach integrated with certified structured development and quality processes. Global Partnerships encourages innovation and research around the world. 107780517 63011308 340819211 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 1 0 0 0 0 0 0 1 1 1 0 0 1 663 0 1 2304 1 1 1 1 JA GL 0 0 0 0 0 0 0 0 X 13 10 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 JAMES E DOYLE 6508592000 333 ravenswood avenue menlo park CA 94025 SAMUEL ARMACOST BOARD MEMBER 6.00 X 58500 0 0 VERNON E CLARK BOARD MEMBER 4.00 X 58500 0 0 CHARLES A HOLLOWAY BOARD MEMBER 6.00 X 73000 0 0 DAVID HOYT BOARD MEMBER 4.00 X 46500 0 0 ROBERT L JOSS BOARD MEMBER 6.00 X 65500 0 0 Leslie F Kenne BOARD MEMBER 6.00 X 64500 0 0 David E Liddle BOARD MEMBER 4.00 X 47000 0 0 Philip J Quigley BOARD MEMBER 4.00 X 57000 0 0 Wendell Wierenga BOARD MEMBER 4.00 X 58500 0 0 Laura Wright BOARD MEMBER 4.00 X 48000 0 0 John J Young Jr BOARD MEMBER 4.00 X 60000 0 0 Mariann Byerwalter BOARD CHAIR 12.00 X X 170000 0 0 William A Jeffrey CHIEF EXECUTIVE OFFICER 40.00 X X 1128270 0 36733 John P McIntire General Counsel & Secretary 40.00 X 396078 0 59999 John W Prausa CHIEF OPERATING OFFICER 40.00 X 405916 0 45179 Luther Lau CFO & Treasurer (Through October) 40.00 X 422819 0 46450 James E Doyle CFO & Treasurer (From December) 40.00 X 14654 0 889 Stephen J Ciesinski President 40.00 X 526539 0 60159 Donald S Seaton President, Adv Tech & Sys Div 40.00 X 437086 0 44435 Jean E Tooker V.P. Human Resources (Through Jan) 40.00 X 361807 0 11735 Erin Andre Chief People Officer (From April) 40.00 X 290012 0 26306 Mark A Clifton President, Products (Through August) 40.00 X 268567 0 44885 Steve Perna President, Integ Sys & Solutions 40.00 X 266313 0 44116 Gregory Kovacs President, Biosciences 40.00 X 300803 0 2695 William Mark President, Info & Comp Sciences 40.00 X 572950 0 70113 Denise Borders President, Education 40.00 X 479818 0 59190 Adolph Pfefferbaum Senior Director 40.00 X 441515 0 35302 Phillip Porras Program Director 40.00 X 438480 0 40085 Patrick Lincoln Laboratory Director 40.00 X 419750 0 68060 Michael Page Sr VP, Shared Services & CIO 40.00 X 411373 0 29775 Manish Kothari President, SRI Ventures 40.00 X 384048 0 50560 8773798 0 776666 890 0 1 0 ADVANTAGE TECHNICAL RESOURCING PO BOX 70107 LOS ANGELES CA 90074 STAFFING 2949766 ALLIEDBARTON SECURITY SERVICES PO BOX 828854 PHILADELPHIA PA 19182 SECURITY 1707641 REYNOLDS CLEANING SERVICES 1472 ODDSTAD DRIVE REDWOOD CA 94063 JANITORIAL 1487630 Dell Computer Corporation PO BOX 9100916 PASADENA CA 91110 Information Technology 1003371 M2 Construction LLC 11250 ROGER BACON DRIVE SUITE 13 RESTON VA 20190 CONSTRUCTION 955683 108 65967499 65967499 SCIENTIFIC RESEARCH 541700 298480382 298480382 COMMERICAL TECH SVCS 541900 45767775 45767775 344248157 1274566 18986 1255580 20012073 20012073 4236360 6961777 -2725417 -2725417 182697 -2908114 36141844 155494 17952463 0 18189381 155494 18344875 18344875 OTHER INCOME 900099 31816 31816 31816 447153569 298512198 45969458 36704414 X 7174938 292406 6882532 168922978 135423952 33499026 15264127 12038999 3225128 58217335 46022327 12195008 14094828 11116759 2978069 1880238 1880238 740133 8134 731999 10500 10500 88926608 72807057 16119551 807788 807788 16664015 13363608 3300407 11745657 3022683 8722974 16969737 11611097 5358640 7827945 7178216 649729 1583317 1338100 245217 501210 501210 14361584 11777716 2583868 1950668 3049 1947619 EQUIPMENT PURCHASES 9815214 9696784 118430 OTHER EXPENSES 3989559 5101408 -1111849 PRINTING/PUBLICATIONS 20132 16916 3216 441468511 340819211 100649300 0 188410 3013538 2380590 27771462 128067000 98841000 6655000 4201000 7681000 6453000 328485598 219903598 105712000 108582000 42769000 44468000 12892000 32110000 306345000 325440000 62185000 74735000 28092000 26535000 716000 35140000 37160000 126133000 138430000 X 179680000 186864000 532000 146000 180212000 187010000 306345000 325440000 X 5685058 -1748058 2861000 X 0 1 X 1 1 1 X 44879486 52041334 52523183 64235380 65967499 279646882 502896065 474808566 344176318 292770354 298480382 1913131685 547775551 526849900 396699501 357005734 364447881 2192778567 0 201342735 130975862 145352569 112866273 139624312 730161751 201342735 130975862 145352569 112866273 139624312 730161751 1462616816 17161390 20638558 21573581 25143876 25504013 110021418 17161390 20638558 21573581 25143876 25504013 110021418 995034 1515895 308823 3681717 31816 6533285 565931975 549004353 418581905 385831327 389983710 2309333270 0.63340 0.62870 0.04760 0.03690 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 2128 0 1 10500 12628 0 Part II-B, Line 1: THE AMOUNT REFLECTED IN LINE 1 (G) REPRESENTS THE EXPENSES ASSOCIATED WITH PAID STAFF OR MANAGEMENT. IN ADDITION, SRI INTERNATIONAL CONTRACTED WITH LOBBYING FIRMS TO MEET WITH MEMBERS OF CONGRESS AND THEIR STAFF TO EDUCATE THEM ON SRI-SPECIFIC INITIATIVES THAT WERE DETERMINED WOULD BE OF VALUE TO THE NATION. THESE INITIATIVES INCLUDED AREAS SUCH AS CYBER SECURITY, BIO DEFENSE, ECONOMIC DEVELOPMENT, EDUCATIONAL ENHANCEMENTS AND MILITARY PERSONNEL READINESS. PAYMENTS TO THESE LOBBYING FIRMS ARE REFLECTED ON LINE 1(I). 13488793 13488793 219465155 171368062 48097093 12628780 6994836 5633944 64399699 34766347 29633352 18503171 6774353 11728818 108582000 OTHER ASSETS 18977000 Investment in subsidiary 13133000 32110000 Client Advances & Credits 20795000 OTHER NON CURRENT LIABILITIES 16365000 37160000 East Asia 1 14 Program Services International Project Development 890000 Europe 1 9 Program Services NSF Atomospheric Research Facility 1876000 North America 0 1 Program Services International Project Development 26000 South America 0 1 Program Services International Project Development 20000 Middle East 0 1 Program Services International Project Development 52000 South Asia 0 1 Program Services Government Project Support 14000 2 27 0 0 2 27 2878000 0 2878000 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 CHIEF EXECUTIVE OFFICER 511538 0 609700 0 7032 0 28914 0 7819 0 1165003 0 0 0 John P McIntire General Counsel & Secretary 303423 0 62269 0 30386 0 28914 0 31085 0 456077 0 0 0 John W Prausa CHIEF OPERATING OFFICER 333662 0 36544 0 35710 0 28915 0 16264 0 451095 0 0 0 Luther Lau CFO & Treasurer (Through October) 270419 0 57231 0 95169 0 28915 0 17535 0 469269 0 0 0 Stephen J Ciesinski President 410000 0 108000 0 8539 0 28915 0 31244 0 586698 0 0 0 Donald S Seaton President, Adv Tech & Sys Div 337692 0 63097 0 36297 0 28915 0 15520 0 481521 0 0 0 Jean E Tooker V.P. Human Resources (Through Jan) 9581 0 0 0 352226 0 743 0 10992 0 373542 0 0 0 Erin Andre Chief People Officer (From April) 216711 0 52800 0 20501 0 4312 0 21994 0 316318 0 0 0 Mark A Clifton President, Products (Through August) 204458 0 35519 0 28590 0 20766 0 24119 0 313452 0 0 0 Steve Perna President, Integ Sys & Solutions 238596 0 12788 0 14929 0 25361 0 18755 0 310429 0 0 0 Gregory Kovacs President, Biosciences 242423 0 57351 0 1029 0 2031 0 664 0 303498 0 0 0 William Mark President, Info & Comp Sciences 406600 0 114600 0 51750 0 28915 0 41198 0 643063 0 0 0 Denise Borders President, Education 333846 0 120017 0 25955 0 28915 0 30275 0 539008 0 0 0 Adolph Pfefferbaum Senior Director 416279 0 15000 0 10236 0 28915 0 6387 0 476817 0 0 0 Phillip Porras Program Director 261521 0 65000 0 111959 0 28446 0 11639 0 478565 0 0 0 Patrick Lincoln Laboratory Director 309721 0 58000 0 52029 0 28915 0 39145 0 487810 0 0 0 Michael Page Sr VP, Shared Services & CIO 324231 0 69188 0 17954 0 28914 0 861 0 441148 0 0 0 Manish Kothari President, SRI Ventures 296923 0 79566 0 7559 0 28915 0 21645 0 434608 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 Jean Tooker - $290,617 as severance payments. Luther Lau - $52,462 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, two individuals received equity-based payments totaling $310, in the amounts of $11 and $299. 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, 15 INDIVIDUALS RECEIVED ROYALTY PAYMENTS TOTALING $477,568, WITH INDIVIDUAL AMOUNTS RANGING FROM $378 TO $114,571. 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. 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 1 0 0 B 0 0 0 0 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 07/13/12 REFERRING TO 08/24/2008 B 04/05/12 NICHOLAS CHAPIN FAMILY MEMBER OF CH 89607 EMPLOYMENT 0 Part V. Supplemental Information (A) Name of person: Nicholas Chapin(B) Relationship between interested person and the organization: Family member of Charles Holloway, director. 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 TAKES CORRECTIVE AND, AS WARRANTED, DISCIPLINARY ACTION. 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. SRI's conflict of interest policy is not made available to the public. Form 990, Part IX, line 11g OTHER FEES: Program service expenses 72,807,057. Management and general expenses 16,119,551. Fundraising expenses 0. Total expenses 88,926,608. Form 990, Part XI, line 9: Net Assets Released from Restrictions -386,000. Equity in Earnings from Subsidiary 3,247,000. 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 3247000 13133000 1.00000 1 1 1 1 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 RAVENSWOOD SOLUTIONS A 201683 BOOK VALUE RAVENSWOOD SOLUTIONS B 7801000 BOOK VALUE RAVENSWOOD SOLUTIONS L 747396 COST RAVENSWOOD SOLUTIONS O 916358 CASH VALUE