2016-11-15T19:31:54-06:00 2015-12-31 861065772 DELOITTE TAX LLP 555 MISSION STREET SAN FRANCISCO CA 94105 990 2015-01-01 941160950 SRI INTERNATIONAL SRII 6508592000 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 LUTHER LAU PRESIDENT 6508593422 2016-11-15 1 JOAN S MCMAHON P00966494 4157834000 2015 2017-02-10 21:41:12Z STEPHEN J CIESINSKI 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 540524214 0 X WWW.SRI.COM X 1946 CA WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, AND MORE PRODUCTIVE. 12 9 2534 0 133895094 -10329683 52523183 64235380 472030769 422880621 1769087 5468685 13091659 20942613 539414698 513527299 0 0 0 0 298442491 280987995 0 0 0 240885207 229854957 539327698 510842952 87000 2684347 294959000 306345000 114106000 126133000 180853000 180212000 X SRI INTERNATIONAL CREATES WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, AND MORE PRODUCTIVE. 0 0 116328997 108754369 Advanced Technology and Systems Division (ATSD) manages complex projects for government and commercial clients from basic research to advanced systems and product development. The division advances the state of the art 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 integrated from science to product concepts and prototypes. 60527022 67672124 Information and Computing Sciences (ICS) employ 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. 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. 56725773 50078440 SRI BIOSCIENCES WORKS WITH ACADEMIC, BIOPHARMACEUTICAL AND BIOTECHNOLOGY, FOUNDATION, AND GOVERNMENT 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. 186214009 156732647 SRI ENGAGES IN A BROAD RANGE OF OTHER RESEARCH 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 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. 186214009 156732647 419795801 1 1 0 1 0 0 0 0 0 0 1 0 0 0 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 1 673 0 1 2534 1 1 1 1 JA GL 0 0 0 0 0 0 0 0 X 12 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 CA OR X X STEPHEN J CIESINSKI 6508593422 333 ravenswood avenue menlo park CA 94025 CHARLES A HOLLOWAY BOARD MEMBER 6.00 X 71500 0 0 DAVID LIDDLE BOARD MEMBER 4.00 X 52500 0 0 HENRY KRESSEL BOARD MEMBER 4.00 X 55500 0 0 JOHN J YOUNG JR BOARD MEMBER 4.00 X 58500 0 0 LESLIE F KEENE BOARD MEMBER 6.00 X 61500 0 0 MARIANN BYERWALTER BOARD CHAIR 12.00 X 170000 0 0 PHILIP J QUIGLEY BOARD MEMBER 4.00 X 49500 0 0 ROBERT L JOSS BOARD MEMBER 6.00 X 65500 0 0 SAMUEL H ARMACOST BOARD MEMBER 6.00 X 58000 0 0 VERNON E CLARK BOARD MEMBER 4.00 X 52500 0 0 WENDELL WIERENGA BOARD MEMBER 4.00 X 55500 0 0 william A jeffrey President/CEO 40.00 X X 514206 0 26268 byron p rovegno Treasurer (through jan) 20.00 X 51661 0 1139 JOHN P MCINTIRE GENERAL COUNSEL (from apr) 40.00 X 294233 0 48877 john w prausa Chief Operating Officer 40.00 X 455457 0 45286 luther lau CFO & TREASURER 40.00 X 337824 0 42132 richard h abramson general counsel (through mar) 40.00 X 254524 0 18554 DONALD S SEATON PRESIDENT, ADV TECH & SYS DIV 40.00 X 361542 0 45322 JEAN E TOOKER V.P. HUMAN RESOURCES 40.00 X 288673 0 43550 MARK A CLIFTON PRESIDENT, PRODUCTS DIVISION 40.00 X 330854 0 65299 STEPHEN J CIESINSKI PRESIDENT, GLOBAL PARTNERSHIPS 40.00 X 381105 0 57058 WALTER H MOOS PRESIDENT, BIosciences 40.00 X 399609 0 42902 william mark President, Info & Comp Sciences 40.00 X 496972 0 67305 ADOLF PFEFFERBAUM SENIOR PROGRAM DIRECTOR 40.00 X 416052 0 35227 manish kothari president, sri ventures (from Aug) 40.00 X 371298 0 50151 NORMAN WINARSKY president, sri ventures (through jul) 40.00 X 412090 0 58629 PATRICK D LINCOLN Laboratory Director 40.00 X 397968 0 67339 PHILIP A PORRAS PROGRAM DIRECTOR 40.00 X 449949 0 51024 curtis R carlson FORMER PRESIDENT/CEO 0.00 X 200018 0 0 7164535 0 766062 916 1 1 0 ADVANTAGE TECHNICAL RESOURCING PO BOX 70107 LOS ANGELES CA 90074 STAFFING 3031707 FISH & RICHARDSON PC PO BOX 3295 BOSTON MA 02241 LEGAL 2893430 REYNOLDS CLEANING SERVICES 1472 ODDSTAD DRIVE REDWOOD CA 94063 JANITORIAL 1316543 ALLIEDBARTON SECURITY SERVICES PO BOX 828854 PHILADELPHIA PA 19182 SECURITY 1184439 NIELSEN BUILDERS INC 3588 EARLY ROAD HARRISONBURG VA 22801 CONSTRUCTION 799584 103 64235380 64235380 SCIENTIFIC RESEARCH 541700 288985527 288985527 COMMERICAL TECH SERVIC 541900 133895094 133895094 422880621 1518804 1518804 20465543 20465543 3159529 6364176 -3204647 -3204647 -3204647 24531635 50985 20632739 0 3898896 50985 3949881 3949881 OTHER INCOME 900099 3681717 3681717 3681717 513527299 292667244 133895094 22729581 X 5591718 350222 5241496 182404188 151675800 30728388 16370077 13458281 2911796 61775915 50815392 10960523 14846097 12205376 2640721 2147477 2147477 833318 261558 571760 38500 38500 111673487 95002094 16671393 499696 499696 20151114 17660544 2490570 10006764 2499662 7507102 18501192 12941738 5559454 12858548 12217224 641324 1422663 1155412 267251 572846 14158 558688 16900524 14838761 2061763 2053953 133085 1920868 EQUIPMENT PURCHASES 31991267 31923367 67900 reallocation EXPENSE 177647 2622372 -2444725 PRINTING/PUBLICATIONS 25961 20755 5206 510842952 419795801 91047151 0 1042757 188410 31340243 2380590 89045000 128067000 4666000 6655000 6658000 7681000 329270220 223558220 101792000 105712000 52412000 42769000 8003000 12892000 294959000 306345000 57612000 62185000 29912000 28092000 2110000 716000 24472000 35140000 114106000 126133000 X 179583000 179680000 1270000 532000 180853000 180212000 294959000 306345000 2684347 -166347 -3159000 0 X 0 1 X 1 1 1 X 38406936 44879486 52041334 52523183 64235380 252086319 539077064 502896065 474808566 344176318 292770354 2153728367 577484000 547775551 526849900 396699501 357005734 2405814686 0 238801140 201342735 130975862 145352569 112866273 829338579 238801140 201342735 130975862 145352569 112866273 829338579 1576476107 8103474 17161390 20638558 21573581 25143876 92620879 8103474 17161390 20638558 21573581 25143876 92620879 2723564 995034 1515895 308823 3681717 9225033 588311038 565931975 549004353 418581905 385831327 2507660598 0.62870 0.60910 0.03690 0.02980 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 170323 0 1 38500 208823 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). 13488800 13488800 212882000 165639578 47242422 9887000 6165659 3721341 72353000 45572372 26780628 20659420 6180611 14478809 105712000 Client Advances & Credits 23831000 Remediation reserve 7334000 Tenant Allowance 859000 environmental remediation 3116000 35140000 EUROPE 1 7 PROGRAM SERVICES NSF ATMOSPHERIC RESEARCH FACILITY 1738000 EAST ASIA 1 7 INTERNATIONAL PROJECT DEVELOPMENT INTERNATIONAL PROJECT DEVELOPMENT 698000 NORTH AMERICA 0 0 PROGRAM SERVICES NSF ATMOSPHERIC RESEARCH FACILITY 1327000 SOUTH AMERICA 0 2 INTERNATIONAL PROJECT DEVELOPMENT INTERNATIONAL PROJECT DEVELOPMENT 55000 MIDDLE EAST 0 1 INTERNATIONAL PROJECT DEVELOPMENT INTERNATIONAL PROJECT DEVELOPMENT 9000 2 17 0 0 2 17 3827000 0 3827000 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 President/CEO 500000 0 0 0 14206 0 18380 0 7888 0 540474 0 0 0 JOHN P MCINTIRE GENERAL COUNSEL (from apr) 264110 0 5000 0 25123 0 28988 0 19889 0 343110 0 0 0 john w prausa Chief Operating Officer 399200 0 0 0 56257 0 28915 0 16371 0 500743 0 0 0 luther lau CFO & TREASURER 325000 0 336 0 12488 0 28915 0 13217 0 379956 0 0 0 richard h abramson general counsel (through mar) 96692 0 0 0 157832 0 7503 0 11051 0 273078 0 0 0 DONALD S SEATON PRESIDENT, ADV TECH & SYS DIV 326308 0 0 0 35234 0 28915 0 16407 0 406864 0 0 0 JEAN E TOOKER V.P. HUMAN RESOURCES 249100 0 545 0 39028 0 26774 0 16776 0 332223 0 0 0 MARK A CLIFTON PRESIDENT, PRODUCTS DIVISION 312700 0 0 0 18154 0 28915 0 36384 0 396153 0 0 0 STEPHEN J CIESINSKI PRESIDENT, GLOBAL PARTNERSHIPS 354508 0 1000 0 25597 0 28914 0 28144 0 438163 0 0 0 WALTER H MOOS PRESIDENT, BIosciences 354100 0 0 0 45509 0 29187 0 13715 0 442511 0 0 0 william mark President, Info & Comp Sciences 406600 0 0 0 90372 0 28915 0 38390 0 564277 0 0 0 ADOLF PFEFFERBAUM SENIOR PROGRAM DIRECTOR 406890 0 0 0 9162 0 28914 0 6313 0 451279 0 0 0 manish kothari president, sri ventures (from Aug) 261421 0 105000 0 4877 0 28915 0 21236 0 421449 0 0 0 NORMAN WINARSKY president, sri ventures (through jul 351100 0 0 0 60990 0 28915 0 29714 0 470719 0 0 0 PATRICK D LINCOLN Laboratory Director 300476 0 40000 0 57492 0 28915 0 38424 0 465307 0 0 0 PHILIP A PORRAS PROGRAM DIRECTOR 254466 0 25000 0 170483 0 27497 0 23527 0 500973 0 0 0 curtis R carlson FORMER PRESIDENT/CEO 0 0 0 0 200018 0 0 0 0 0 200018 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: FORMER PRESIDENT/CEO CURTIS R. CARLSON WAS PAID $200,018 for accrued paid time off in 2015. PART I, LINE 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 AND EQUITY SHARING PROGRAM THAT WAS APPROVED BY THE IRS IN A PRIVATE LETTER RULING ISSUED IN 1999. OF THE 29 OFFICERS, DIRECTORS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A, 11 RECEIVED EQUITY-BASED PAYMENTS TOTALING $4,645, WITH INDIVIDUAL AMOUNTS RANGING FROM $1 TO $1,197. 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 ERQ], SRI SHARES WITH SRI INVENTORS AND OTHER CONTRIBUTORS ROYALTIES IN THE FORM OF CASH OR EQUITY WHICH IS RECEIVED FROM SPIN-OFF AND OTHER COMPANIES TO WHOM SRI INTELLECTUAL PROPERTY IS LICENSED OR TRANSFERRED. AS NOTED ABOVE, THE IRS APPROVED SRI'S INTELLECTUAL PROPERTY ROYALTY AND EQUITY SHARING PROGRAM IN A PRIVATE LETTER RULING ISSUED IN 1999. OF THE 29 OFFICERS, DIRECTORS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A, 17 RECEIVED ROYALTY PAYMENTS TOTALING $787,508 WITH INDIVIDUAL AMOUNTS RANGING FROM $1,200 TO $151,785. Part I, Line 7 THE AMOUNTS SHOWN IN COLUMN (ii) OF SECTION B OF PART II ON THE PRECEDING PAGE ALL REPRESENT PBC (PERFORMANCE BASED COMPENSATION). 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 C NOT YET NICHOLAS CHAPIN FAMILY MEMBER OF CHARLES HOLLOWAY, DIRECTOR 86258 EMPLOYMENT 0 RUTHANN QUINDLEN FAMILY MEMBER OF David Liddle, Director 12700 CONSULTING SERVICES 0 Form 990, Part VI, Section B, line 11 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, TRAINS ITS OFFICERS, DIRECTORS AND EMPLOYEES REGARDING, 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. TRAINING IN SRI'S CODE OF CONDUCT AND ITS ETHICS AND CONFLICTS-OF-INTEREST POLICIES IS PROVIDED THROUGH SRI'S LEGAL DEPARTMENT, AS WELL AS THROUGH ITS PROFESSIONAL CONTRACTS STAFF. 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. SRI REQUIRES ITS OFFICERS AND DIRECTORS TO COMPLETE AN ANNUAL DISCLOSURE FORM WHICH IS REVIEWED FOR POTENTIAL CONFLICTS. 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. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS AND APPROVES COMPENSATION LEVELS FOR SRI'S SENIOR STAFF AND CEO, 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, AND THE BASIS THEREOF, REACHED BY THE COMMITTEE, AND RECORDS RELATING TO THE 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 ORGANIZATION 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 95,002,094. Management and general expenses 16,671,393. Fundraising expenses 0. Total expenses 111,673,487. 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. AVERATEK 550 NUTTMAN STREET SANTA CLARA CA 95054 260836519 CIRCUIT COMPONENTS CA SRI C -843359 331029 0.25500 1 INNOVATIVE POLYMER TECHNOLOGIES LLC 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 HOLDING COMPANY DE SRI C 1.00000 1 RAVENSWOOD SOLUTIONS 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 TRAINING SYSTEMS DE SRI C -1965000 2085000 1.00000 1 SRI HOLDINGS 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 931201429 BUSINESS CONSULTANT CA SRI C 1.00000 1 1 1 0 0 0 0 0 0 1 0 0 1 0 0 1 0 0 0 0 AVERATEK - 26-0836519 B 68000 CASH VALUE AVERATEK - 26-0836519 O 95623 AVERAGE PERCENT OF TIME DEVOTED RAVENSWOOD SOLUTIONS B 4050000 CASH VALUE RAVENSWOOD SOLUTIONS A 14187 caSH VALUE RAVENSWOOD SOLUTIONS I 1800717 BOOK VALUE RAVENSWOOD SOLUTIONS L 1747678 COST