2016-11-15T07:59:46-06:00 2015-12-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2015-01-01 363992031 DAIRY MANAGEMENT INC % CAROLYN GIBBS CFO DAIR 8478032000 10255 W Higgins Road SUITE 900 Rosemont IL 60018 CAROLYN GIBBS CFO 2016-10-25 true TAMARA TARAZI P01266026 3128792000 2015 2017-02-10 21:41:12Z Thomas Gallagher 10255 W Higgins Road ste 900 Rosemont IL 60018 148169115 false X www.dairyinfo.com X 1995 DC To invest dairy producer checkoff funds in strategic, coordinated mark strategic, coordinated marketing programs designed to increase consumption of dairy products both domestically and internationally. 82 82 265 40 0 0 0 145039566 148169115 0 0 0 0 145039566 148169115 1000000 2785000 0 0 31753801 28151080 0 0 0 112285765 117233035 145039566 148169115 0 16937738 21804647 16937738 21804647 0 0 X DAIRY MANAGEMENT INC (DMI) WAS FORMED IN 1995 BY THE NATIONAL DAIRY PROMOTION AND RESEARCH BOARD (NDB) AND THE UNITED DAIRY INDUSTRY ASSOCIATION (UDIA). DMI IS A MANAGEMENT ORGANIZATION THAT INVESTS DAIRY PRODUCER CHECKOFF FUNDS IN STRATEGIC, COORDINATED MARKETING PROGRAMS DESIGNED TO INCREASE CONSUMPTION OF U.S. DAIRY PRODUCTS BOTH DOMESTICALLY AND INTERNATIONALLY. THE FORMATION OF DMI HAS CREATED EFFICIENCIES, GAINED THROUGH THE ELMINATION OF REDUNDANCIES AND THE POWER OF JOINT PLANNING. false false DMI PARTNERS WITH MARKETPLACE AND FOODSERVICE LEADERS TO HELP CREATE DAIRY-BASED INNOVATION TO DRIVE DAIRY SALES AND BUILD TRUST IN DAIRY PRODUCTS. DMI SUPPORTS A RANGE OF PROGRAMS AND INITIATIVES WITH THESE INFLUENTIAL AND GLOBAL INDUSTRY LEADERS. THE PROGRAMS FOCUS ON PROVIDING DAIRY EXPERTISE AND INVESTMENT IN THE AREAS OF CONSUMER INSIGHTS, NEW PRODUCT DEVELOPMENT, STORE AND MARKET LEVEL TESTS, PROMOTIONS AND CONSUMER COMMUNICATIONS. FURTHER, DMI PROVIDES ON-SITE SCIENTISTS AND/OR CULINARY EXPERTS WHO DELIVER SUPPORT IN THE DEVELOPMENT OF AND FORMULATION FOR DAIRY-BASED FOOD AND BEVERAGE PRODUCTS. DMI ALSO PROVIDES EXPERTISE AND CONSULTANTS IN THE AREAS OF NUTRITION, SUSTAINABILITY, ANIMAL CARE, FOOD SAFETY, REGULATORY ENVIRONMENT, AND DAIRY COMMUNICATIONS. SINCE THE START OF OUR PARTNERSHIPS IN 2009, OUR PARTNERS HAVE LAUNCHED MORE THAN 25 NEW DAIRY-BASED PRODUCTS. ADDITIONALLY, PARTNERS HAVE EXECUTED MORE THAN 25 NEW COMMERCIALS THAT HAVE INCLUDED DAIRY PRODUCTS. IN 2015, WE HAD FIVE MARKETPLACE PARTNERS: DOMINOS, PIZZA HUT, TACO BELL, MCDONALDS AND QUAKER. THESE PARTNERS, WITH THE HELP OF DMI, LAUNCHED SEVERAL PROGRAMS TO DRIVE SALES AND TRUST IN DAIRY. IN 2015 MCDONALDS CONVERTED FROM MARGARINE TO BUTTER. THE COMMERCIALIZATION AND TRANSITION FROM MARGARINE TO BUTTER WAS LED BY A DMI SCIENTIST. THE PROJECTED MILK IMPACT, AFTER CONVERTING THE BUTTER TO MILK POUNDS, IS AN ESTIMATED ANNUAL 500 MILLION POUNDS OF MILK. IN 2015 MCDONALDS ALSO INTRODUCED AN 'ALL DAY BREAKFAST' MENU. DMI SCIENTISTS HELPED THE MCDONALDS MENU INNOVATION TEAM TEST AND DEVELOP THE OPERATIONAL PROCEDURES FOR THE RESTAURANTS TO FOLLOW AS THEY MIGRATED TO THE NEW BREAKFAST MENU OFFERINGS. IN THEIR 'ALL DAY BREAKFAST' ADVERTISING MCDONALDS THEN HIGHLIGHTED AND CALLED OUT THE USE OF BUTTER ON THEIR EGG MCMUFFIN SANDWICH. DMI SCIENTISTS ALSO LED THE PRODUCT DEVELOPMENT AND COMMERCIALIZATION OF MCDONALDS MOZZARELLA STICKS, WHICH LAUNCHED IN LATE 2015. IN 2015 DMI INVESTED IN TECHNOLOGY INNOVATION PLATFORMS AT DOMINOS, INCLUDING NEW DIGITAL ORDERING APPLICATIONS AND A NEW LOYALTY PROGRAM. DMI ALSO INVESTED IN A 'BLACK FRIDAY' PROMOTION TO HELP ADD IMPACTFUL MEDIA PROVIDERS AND PROGRAMS AND EXTEND THE PROMOTIONAL DAYS. THE OUTCOME OF THESE INVESTMENTS WERE EVIDENT IN DOMINOS 2015 DAIRY IMPACT. AFTER CONVERTING CHEESE USAGE TO MILK POUNDS, DOMINOS EQUALIZED MILK SALES GREW BY 230 MILLION POUNDS IN 2015. DOMINOS AND DMI CONTINUED TO PARTNER ON ITS 'SMART SLICE' SCHOOL PIZZA PROGRAM. SMART SLICE IS NOW IN 47 STATES AND 6,500 SCHOOLS. DOMINOS ALSO SUPPORTS BUILDING TRUST IN THE DAIRY INDUSTRY, INCLUDING RUNNING DAIRY CREATIVE ELEMENTS SUCH AS 'ACRES AND AVENUES' THROUGH ITS MEDIA VEHICLES. TACO BELL AND PIZZA HUT BOTH CONTINUE TO EXPLORE USING DAIRY IN NEW WAYS AS PART OF OUR PARTNERSHIP LED BY DMI SCIENTISTS. IN 2015 PIZZA HUT INTRODUCED A CHEESE SAUCE TO USE WITH ITS TWISTED CRUST PIZZA. HISTORICALLY, THE TWISTED CRUST PIZZA ONLY USED A MARINARA SAUCE. SINCE THE TACO BELL PARTNERSHIP BEGAN, WE HAVE HELPED TACO BELL EVOLVE HOW THEY USE DAIRY, FROM INCORPORATING IT AS A 'GARNISH' TO EVOLVING INTO BEING MORE OF A KEY INGREDIENT TO DRIVE FLAVOR, PROTEIN AND/OR INNOVATION. TWO EXAMPLES IN 2015 INCLUDE CINNABON DELIGHTS COFFEE CREAMER AND THE BISCUIT TACO. THE COFFEE CREAMER, A LIMITED TIME COFFEE BEVERAGE, WAS THE FIRST DAIRY-CONTAINING BEVERAGE AT TACO BELL. THE CREAMER USED KEY DAIRY INGREDIENTS INSTEAD OF A NON-DAIRY CREAMER. THE BISCUIT TACO USED REAL BUTTER AND BUTTERMILK TO ENSURE A DELICIOUS TASTING BISCUIT. CURRENT NATIONAL VARIETIES ARE TOPPED WITH NATURAL CHEDDAR CHEESE. BASED UPON THESE EFFORTS, TACO BELL GREW ITS DAIRY VOLUME +6% IN 2015. LED BY DMIS ON-SITE SCIENTIST, QUAKER CREATED AND LAUNCHED REAL MEDLEYS GRANOLA & YOGURT BLENDS, WHICH IS 70% DAIRY WHEN PREPARED. DMIS DAIRY SCIENTIST IS LISTED AS CO-DEVELOPER ON THE PRODUCT PATENT. EXPORT DMI Implements marketing programs to facilitate the sales of U.S. produced dairy products in international markets and U.S. produced dairy ingredients within and outside the United States. DMI also provides trade policy and access support for exports into international markets. FUEL UP TO PLAY 60 (FUTP 60) IS DAIRY'S BEST SUCCESS STORY WHEN IT COMES TO ADVANCING HEALTH AND WELLNESS AMONG YOUTH. AT ITS CORE, FUTP 60 IS AN IN-SCHOOL HEALTH AND WELLNESS PROGRAM DESIGNED TO ENGAGE AND EMPOWER YOUTH TO TAKE ACTION FOR THEIR OWN HEALTH BY IMPLEMENTING LONG-TERM, POSITIVE CHANGES FOR THEMSELVES, THEIR SCHOOLS AND BEYOND. CUSTOMIZABLE AND NON-PRESCRIPTIVE PROGRAM COMPONENTS ARE GROUNDED IN RESEARCH WITH YOUTH, INCLUDING TOOLS AND RESOURCES, IN-SCHOOL PROMOTIONAL MATERIALS, A WEBSITE AND STUDENT ENGAGEMENT ACTIVITIES. FUTP 60 WAS FOUNDED BY THE NATIONAL DAIRY COUNCIL (NDC) AND THE NATIONAL FOOTBALL LEAGUE (NFL), IN COLLABORATION WITH THE U.S. DEPARTMENT OF AGRICULTURE. SINCE THAT TIME FUTP60 HAS BECOME THE LARGEST IN-SCHOOL HEALTH & WELLNESS PROGRAM IN THE UNITED STATES WITH OVER 73,000 SCHOOLS ENROLLED, REACHING 38 MILLION STUDENTS SINCE LAUNCHING NATIONALLY IN 2009. THE PROGRAM HAS HELPED TO CHANGE SCHOOL ENVIRONMENTS TO BETTER SUPPORT PROPER NUTRITION AND PHYSICAL ACTIVITY. THE PROGRAM HAS NOT ONLY BEEN WELL RECEIVED BY SCHOOLS AS IT HELPS THEM IMPROVE THE SCHOOL HEALTH AND WELLNESS ENVIRONMENT, BUT ALSO HAS BEEN EMBRACED BY THOSE OUTSIDE OF THE DAIRY INDUSTRY WHO SEE THE VALUE OF ENGAGING IN THE PROGRAM INCLUDING MANY OTHER HEALTH AND NUTRITION ORGANIZATIONS. OUR SUCCESS WITH FUTP 60 GOES BEYOND HEALTHY EATING AND PHYSICAL ACTIVITY IN SCHOOLS. IT IS ABOUT THE TOTAL HEALTH OF THE CHILD, FROM THE HUNGRY TO THE HEALTHY. false false false false false false false false false true false false true false false true false false false false false false false false false false true false true false false false false false false false false false false false true true true false true 103 0 true 265 true false false false false false false X 82 82 false false false false false false false true true false false false true true true true true true true false X CAROLYN GIBBS CFO 8476273272 10255 W HIGGINS RD SUITE 900 ROSEMONT IL 60018 MARILYN HERSHEY VICE CHAIR 1.0 0.0 X 0 0 0 AMBER HORN-LEITERMAN DIRECTOR 1.0 0.0 X 0 0 0 HAROLD J HOWRIGAN JR DIRECTOR 1.0 0.0 X 0 0 0 EDWARD JASURDA DIRECTOR 1.0 0.0 X 0 0 0 GEORGE E MARSH DIRECTOR 1.0 0.0 X 0 0 0 RONALD R MCCORMICK DIRECTOR 1.0 0.0 X 0 0 0 URBAN MESCHER DIRECTOR 1.0 0.0 X 0 0 0 KEN MEYERS DIRECTOR 1.0 0.0 X 0 0 0 ZACHARY H MYERS DIRECTOR 1.0 0.0 X 0 0 0 RAY S PROCK DIRECTOR 1.0 0.0 X 0 0 0 BRAD SCOTT DIRECTOR 1.0 0.0 X 0 0 0 LARRY SHOVER DIRECTOR 1.0 0.0 X 0 0 0 KIMA SIMONSON DIRECTOR 1.0 0.0 X 0 0 0 SANFORD STAUFFER DIRECTOR 1.0 0.0 X 0 0 0 SUSAN TROY DIRECTOR 1.0 0.0 X 0 0 0 ARLENE J VANDER EYK DIRECTOR 1.0 0.0 X 0 0 0 DAVE VEENHOUWER DIRECTOR 1.0 0.0 X 0 0 0 VICTOR BISSELL DIRECTOR 1.0 1.0 X 0 6000 0 BRYAN DAVIS DIRECTOR 1.0 1.0 X 0 4400 0 TOM DORSEY DIRECTOR 1.0 1.0 X 0 8600 0 STEVE GRAYBEAL DIRECTOR 1.0 1.0 X 0 1700 0 DONALD GURTNER DIRECTOR 1.0 1.0 X 0 3800 0 DAVID SKIP HARDIE SECRETARY 1.0 1.0 X 0 8800 0 JERREL HEATWOLE DIRECTOR 1.0 1.0 X 0 3500 0 VERNON HORST DIRECTOR 1.0 1.0 X 0 2600 0 ROBERT KRAN DIRECTOR 1.0 1.0 X 0 1800 0 ALLEN MERRIL DIRECTOR 1.0 1.0 X 0 3200 0 JERRY G MESSER DIRECTOR 1.0 1.0 X 0 5300 0 KEN NOBIS DIRECTOR 1.0 1.0 X 0 1300 0 LYNN RAMSEY DIRECTOR 1.0 1.0 X 0 2100 0 PAUL E ROVEY BOARD CHAIR 1.0 1.0 X 0 31000 0 PAUL DOTON DIRECTOR 1.0 1.0 X 0 4100 0 LARRY ALEXANDER DIRECTOR 1.0 1.0 X 0 4600 0 ELIZABETH ANDERSON DIRECTOR 1.0 1.0 X 0 4300 0 RYAN ANGLIN DIRECTOR 1.0 1.0 X 0 5000 0 AUDREY DONAHOE DIRECTOR 1.0 1.0 X 0 4600 0 GLEN EASTER DIRECTOR 1.0 1.0 X 0 0 0 BRIAN ESPLIN DIRECTOR 1.0 1.0 X 0 6000 0 DALE JONES DIRECTOR 1.0 1.0 X 0 0 0 JOHN M LARSON DIRECTOR 1.0 1.0 X 0 3100 0 JIM REID DIRECTOR 1.0 1.0 X 0 7500 0 ARIE ROELOFFS DIRECTOR 1.0 1.0 X 0 4200 0 CONNIE SEEFELDT DIRECTOR 1.0 1.0 X 0 9300 0 HAROLD SHAULIS DIRECTOR 1.0 1.0 X 0 3000 0 KATHLEEN SKIBA DIRECTOR 1.0 0.0 X 0 0 0 CHRISTINE SUKALSKI DIRECTOR 1.0 1.0 X 0 4400 0 DOUG NUTTELMAN DIRECTOR 1.0 1.0 X 0 0 0 JERRY TRUELOVE DIRECTOR 1.0 1.0 X 0 5000 0 TOM A WOODS DIRECTOR 1.0 1.0 X 0 4400 0 NEIL A HOFF DIRECTOR 1.0 1.0 X 0 21450 0 DAN DEGROOT DIRECTOR 1.0 1.0 X 0 2200 0 STEVE NEAHRING DIRECTOR 1.0 1.0 X 0 4200 0 CELESTE BLACKBURN DIRECTOR 1.0 0.0 X 0 0 0 DAVID P CROWL DIRECTOR 1.0 0.0 X 0 0 0 RENAE A DE JAGER DIRECTOR 1.0 0.0 X 0 0 0 MARK E ERDMAN DIRECTOR 1.0 0.0 X 0 0 0 LYNDA FOSTER DIRECTOR 1.0 0.0 X 0 0 0 PAUL A FRITSCHE DIRECTOR 1.0 0.0 X 0 0 0 CAROL AHLEM DIRECTOR 1.0 0.0 X 0 0 0 CHRISTOPHER BRAZIL DIRECTOR 1.0 0.0 X 0 0 0 CHERI CHAPIN DIRECTOR 1.0 0.0 X 0 0 0 JOE KELSAY DIRECTOR 1.0 0.0 X 0 0 0 SARAH LLOYD DIRECTOR 1.0 0.0 X 0 0 0 BRIAN MEDEIROS DIRECTOR 1.0 0.0 X 0 0 0 EDDIE SCHAAP DIRECTOR 1.0 0.0 X 0 0 0 PAM BOLIN DIRECTOR 1.0 1.0 X 0 3900 0 JOHN BRUBAKER DIRECTOR 1.0 1.0 X 0 6000 0 RICHARD BYMA DIRECTOR 1.0 1.0 X 0 1600 0 CRAIG CALLABERO DIRECTOR 1.0 1.0 X 0 7800 0 MIKE FERGUSON DIRECTOR 1.0 1.0 X 0 2200 0 RICK PODTBURG DIRECTOR 1.0 1.0 X 0 3400 0 LARRY HANCOCK treasurer 1.0 0.0 X 0 0 0 JEFFREY A HARDY DIRECTOR 1.0 0.0 X 0 0 0 LANETTE HARSDORF DIRECTOR 1.0 0.0 X 0 0 0 CHACE FULLMER DIRECTOR 1.0 1.0 X 0 3400 0 SIETO MELLEMA DIRECTOR 1.0 1.0 X 0 0 0 JAMES WEBB DIRECTOR 1.0 0.0 X 0 0 0 WILLIAM HERR DIRECTOR 1.0 0.0 X 0 0 0 DAN GILBERT DIRECTOR 1.0 1.0 X 0 1000 0 TIM HOOD DIRECTOR 1.0 1.0 X 0 2600 0 CORBY WERTH DIRECTOR 1.0 1.0 X 0 1000 0 LOWELL MUELLER DIRECTOR 1.0 1.0 X 0 1800 0 EARL STITZLEIN DIRECTOR 1.0 1.0 X 0 4600 0 DAVID JACKSON DIRECTOR 1.0 1.0 X 0 1600 0 MICHELLE SCHILTER DIRECTOR 1.0 1.0 X 0 2000 0 SUZANNE VOLD DIRECTOR 1.0 1.0 X 0 4100 0 TEJO WILLEMSEN DIRECTOR 1.0 1.0 X 0 0 0 STEVE BALLARD DIRECTOR 1.0 0.0 X 0 0 0 WARREN L CHAMBERLAIN DIRECTOR 1.0 0.0 X 0 0 0 RAYMOND L DIEDERICH DIRECTOR 1.0 0.0 X 0 0 0 KIM KORN DIRECTOR 1.0 0.0 X 0 0 0 RANDALL E KOLLER DIRECTOR 1.0 0.0 X 0 0 0 JESSICA TEKIPPE-SCHMITT DIRECTOR 1.0 0.0 X 0 0 0 PAULINE TJAARDA DIRECTOR 1.0 0.0 X 0 0 0 DEB A VANDER KOOI DIRECTOR 1.0 0.0 X 0 0 0 CYNDY A VANLIESHOUT DIRECTOR 1.0 0.0 X 0 0 0 LISA VANDER POEL DIRECTOR 1.0 0.0 X 0 0 0 THOMAS GALLAGHER CEO 40.0 10.0 X 1280190 0 81563 CAROLYN GIBBS CFO 40.0 1.0 X 399434 0 49858 KEVIN PONTICELLI SENIOR EXECUTIVE VP 40.0 1.0 X 352185 0 26441 BARBARA O'BRIEN SENIOR EXECUTIVE VP 40.0 10.0 X 481617 0 59228 DANIEL CHAVKA EXECUTIVE VICE PRESIDENT 40.0 1.0 X 339982 0 132973 THOMAS SUBER EXECUTIVE VICE PRESIDENT 40.0 1.0 X 1691414 0 210666 GREGORY MILLER EXECUTIVE VICE PRESIDENT 40.0 10.0 X 440585 0 215826 MOLLIE WALLER EXECUTIVE VICE PRESIDENT 40.0 1.0 X 377662 0 127879 MARC BECK EXECUTIVE VICE PRESIDENT 40.0 1.0 X 381394 0 136853 5744463 228450 1041287 102 false true false Daniel J Edelman Inc 21992 Network Place CHICAGO IL 60673 Agency services 13048769 MMS Education 105 Terry Drive Suite 120 NEWTOWN PA 18940 Agency Services 3769760 NTT Data Inc 100 City Square BOSTON MA 02129 Information Tech.svs 2915121 NFL Properties LLC PO Box 27278 NEW YORK NY 10087 promotion 2605000 Information Resources Inc 150 N Clinton Street CHICAGO IL 60661 AGENCY SERVICES 1506747 12 0 PROGRAM FUNDING REVENUE 900099 107132848 107132848 CORE FUNDING REVENUE 900099 36469017 36469017 CONTRACT SERVICE REVENUE 900099 4567250 4567250 148169115 0 0 0 0 0 0 0 0 0 0 0 148169115 148169115 2785000 0 0 0 2730516 0 18778147 3567723 1758498 1316196 0 626855 58346 0 0 0 88553 0 1375957 2863414 0 1742911 3542152 0 695228 0 0 386758 120462 DOMESTIC MARKETING 81086458 EXPORT 16394017 CONTRACT SERVICES 4567251 RESEARCH 6832092 -3147419 148169115 137247 1020827 0 0 0 0 1403148 1155753 0 0 0 0 0 0 0 0 8240101 1038494 5164392 3765426 1671051 1398966 0 0 0 0 0 0 0 0 5486191 17190607 16937738 21804647 16153921 21678286 0 0 200622 126361 0 0 0 0 0 0 0 0 0 0 583195 0 16937738 21804647 0 0 16937738 21804647 0 X false true X true false 1484511 627101 857410 1543921 1343060 200861 2135960 1795265 340695 1398966 DUE FROM AFFILIATES 17190607 17190607 148169115 148169115 148169115 148169115 148169115 148169115 true Youth Improved Inc 10255 WEST HIGGINS RD ROSEMONT IL 60018 270988546 501(C)(3) 1285000 ProgRam service Expenses NATIONAL DAIRY COUNCIL 10255 W HIGGINS ROAD SUITE 900 ROSEMONT IL 600185616 361522265 501(C)(3) 1500000 FUTP60 WEBSITE DEVELOPMENT SCHEDULE I, PART I, LINE 2 MANAGEMENT REVIEWS THE GRANTEES' PERIODIC FINANCIAL REPORTS TO MONITOR THE USE OF FUNDS AWARDED. X X X true true X X X X X true true false THOMAS GALLAGHER CEO 537500 0 75000 0 667690 0 67132 0 14431 0 1361753 0 0 0 DANIEL CHAVKA EXECUTIVE VICE PRESIDENT 312567 0 0 0 27415 0 109317 0 23656 0 472955 0 0 0 KEVIN PONTICELLI SENIOR EXECUTIVE VP 0 0 0 0 352185 0 27537 0 -1096 0 378626 0 0 0 THOMAS SUBER EXECUTIVE VICE PRESIDENT 365650 0 110000 0 1215764 0 170264 0 40402 0 1902080 0 1184176 0 GREGORY MILLER EXECUTIVE VICE PRESIDENT 312625 0 100000 0 27960 0 192710 0 23116 0 656411 0 0 0 BARBARA O'BRIEN SENIOR EXECUTIVE VP 350200 0 100000 0 31417 0 35764 0 23464 0 540845 0 0 0 MOLLIE WALLER EXECUTIVE VICE PRESIDENT 267800 0 90000 0 19862 0 118005 0 9874 0 505541 0 0 0 CAROLYN GIBBS CFO 278100 0 100000 0 21334 0 27843 0 22015 0 449292 0 0 0 MARC BECK EXECUTIVE VICE PRESIDENT 292584 0 14625 0 74185 0 114340 0 22513 0 518247 0 42414 0 Schedule J, Part I, Line 1a FIRST CLASS TRAVEL IS ONLY AVAILABLE TO THE CEO AS AUTHORIZED BY THE BOARD OF DIRECTORS. THE TRAVEL IS NOT TAXABLE SINCE IT IS PART OF AN ACCOUNTABLE PLAN. TAX INDEMNIFICATION IS AVAILABLE TO THE CEO ONLY AND IS INCLUDED IN TAXABLE WAGES. THE OFFICERS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES HAVE THE OPTION OF RECEIVING HEALTH CLUB BENEFITS UNDER THE EXECUTIVE FLEXIBLE BENEFITS ACCOUNT. Schedule J, Part I, Line 4a KEVIN PONTICELLI RECEIVED A SEVERANCE OF $348,960 IN 2015 AS PART OF A 2-YEAR SEVERANCE AGREEMENT. THIS AMOUNT IS INCLUDED ON SCHEDULE J, PART II, COLUMN B(III). Schedule J, Part I, Line 4b DMI EXECUTIVES MAY PARTICIPATE IN THE FOLLOWING SUPPLEMENTAL NONQUALIFIED PLANS: 1) DMI provides a supplemental defined contribution benefit for executives whose UDIA Thrift & Savings Plan benefits are affected by the IRS annual compensation limits. DMI will automatically defer on the behalf of a participant employer contributions "lost" under the Thrift & Savings Plan due to federal tax laws that place limits on the amount of compensation that a qualified plan can use in making benefit calculations. The IRS Code section 401(a)(17) annual compensation limit for 2015 is $265,000. The balance in each nonqualified plan account shall be credited annually with interest based on an average of the Wall Street Journal prime rates published on the first day of each calendar month. The balance vests as becomes payable at termination of employment. WHILE PARTICIPANTS ACCRUED AMOUNTS REPORTED ON SCHEDULE J, PART II, COLUMN C, NO AMOUNTS WERE PAID TO PARTICIPANTS IN 2015. 2) DMI provides a supplemental retirement benefit ("SERP") for executives whose UDIA Retirement Plan benefits are affected by the IRS annual compensation limits. This supplemental plan restores the portion of the Retirement Plan benefit that would otherwise be lost by considering the executive's pay as if no IRS compensation restrictions apply and provides a "make up" benefit for the difference. The benefit amount determined as the difference of the executive's benefit determined with and without the IRS compensation limits is the executive's "Defined Benefit Plan Restoration Benefit". In general, the Restoration Benefit becomes vested when the executive reaches age 62 and completes 7 years of service while still employed by DMI. The benefit automatically becomes vested if the executive is involuntarily terminated by DMI without "cause", becomes disabled or dies while still employed by DMI. THE FOLLOWING INDIVIDUALS PARTICIPATED IN THIS PLAN AND IN 2015 WERE PAID THE FOLLOWING AMOUNTS WHICH ARE INCLUDED ON SCHEDULE J, PART II, COLUMN B(III): MARC BECK: $42,414 THOMAS SUBER: $1,184,176 3) THOMAS GALLAGHER PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PROGRAM AND WAS PAID AN ACTUARIALLY DETERMINED SUPPLEMENTAL RETIREMENT PROGRAM BENEFIT OF $455,352 IN 2015 WHICH IS INCLUDED ON SCHEDULE J, PART II, COLUMN (B)(III). BENEFITS VEST AT YEAR END AND ARE PAID BY MARCH 15TH OF THE FOLLOWING YEAR. DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, LINE 11A FORM 990 IS AVAILABLE TO ALL BOARD MEMBERS FOR REVIEW UPON REQUEST. MANAGEMENT REVIEWS THE 990 DETAILS FOR COMPLIANCE WITH THE ORGANIZATION'S TAX SPECIALISTS FROM ITS AUDIT AND TAX FIRM. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, LINE 12C MANAGEMENT AND CORPORATE COUNSEL REVIEW THE POLICIES RELATED TO GOVERNANCE, MANAGEMENT AND DISCLOSURE TO ENSURE AND MONITOR COMPLIANCE WITHIN THE ORGANIZATION. THE CONFLICT OF INTEREST POLICY IS REVIEWED IN DETAIL WITH THE BOARD OF DIRECTORS, MANAGEMENT AND ANNUALLY BY THE ORGANIZATION'S CORPORATE ATTORNEYS, AND THERE ARE PERIODIC COMPLIANCE DISCUSSIONS BETWEEN THE OFFICERS OF THE BOARD OF DIRECTORS AND MANAGEMENT DURING THE YEAR. BOARD MEMBERS ARE ASKED TO RECUSE THEMSELVES FROM VOTING IF THEY ARE PERSONALLY INVOLVED IN A MATTER. OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FORM 990, PART VI, LINE 15A AND 15B COMPENSATION OF THE CEO IS DETERMINED BY INVOLVEMENT OF THE PERSONNEL COMMITTEE OF THE BOARD OF DIRECTORS AND FOR OTHER EMPLOYEES OF THE ORGANIZATION, THROUGH THE USE OF INDUSTRY SURVEYS, MARKET SALARY GUIDES AND OTHER COMPETITIVE COMPENSATION INFORMATION. AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, WHISTLE BLOWER POLICY, DOCUMENT RETENTION POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. United Dairy Industry Association 10255 W Higgins Road Ste 900 Rosemont IL 60018 362702849 PROMOTION IL 501(c)(6) N/A DMI true National Dairy Council 10255 W Higgins Road Ste 900 Rosemont IL 60018 361522265 EDUCATION IL 501(c)(3) 9 UDIA true Innovation Center for US Dairy 10255 W Higgins Road Ste 900 Rosemont IL 60018 263918900 PROMOTION IL 501(c)(6) N/A DMI true Youth Improved Inc 10255 W HIGGINS RD STE 900 Rosemont IL 60018 270988546 GRANTS IL 501(c)(3) PF DMI true false true false false false false false false false false false false true false false true false false UNITED DAIRY INDUSTRY ASSOCIATION n 1550226 CASH UNITED DAIRY INDUSTRY ASSOCIATION q 33875919 CASH Youth Improved Inc b 1285000 CASH NATIONAL DAIRY COUNCIL b 1500000 CASH