2016-08-10T13:08:08-05:00 2015-09-30 861065772 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2014-10-01 330435954 THE SCRIPPS RESEARCH INSTITUTE SCRI 8587841000 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 JARED MACHADO CFO 8587841000 2016-08-10 1 JOHN W SADOFF JR P00540589 6192326500 2014 2016-12-15 16:53:06Z STEVE KAY PETER SCHULTZ 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 426402130 0 X WWW.SCRIPPS.EDU X 1924 CA TSRI CONDUCTS BIOMEDICAL AND BIOCHEMICAL RESEARCH AND POSTGRADUATE TRAINING PROGRAMS. 20 17 2634 30 1557149 0 321259868 315512724 4443967 3853580 48324376 20222223 5702828 22874341 379731039 362462868 8745844 13848564 0 0 187814675 171574144 184484 223267 3149632 192581386 197296521 389326389 382942496 -9595350 -20479628 846527407 803333192 149873471 156143035 696653936 647190157 X THE SCRIPPS RESEARCH INSTITUTE ("TSRI") PERFORMS HIGH IMPACT BASIC BIOMEDICAL RESEARCH, IMPROVES THE HUMAN CONDITION BY FOSTERING TRANSLATION OF ITS DISCOVERIES INTO USEFUL PRODUCTS AND ENGAGES IN THE HIGHEST QUALITY GRADUATE SCIENTIFIC EDUCATION AND POST GRADUATE SCIENTIFIC TRAINING. TSRI IS KNOWN FOR ITS ENTREPRENEURIAL ENVIRONMENT AND ITS EMPHASIS IN RESEARCH RELATING TO SYNTHETIC CHEMISTRY, THE RELATIONSHIP BETWEEN MOLECULAR STRUCTURE AND ACTIVITY AND CHEMICAL BIOLOGY. 0 0 343431230 3853580 RESEARCH IS CONDUCTED IN LA JOLLA, CALIFORNIA AND JUPITER, FLORIDA WITH GRANTS, CONTRACTS AND FELLOWSHIPS THAT ARE RECEIVED FROM PUBLIC AND PRIVATE INSTITUTIONS AND INDIVIDUALS. THESE AWARDS FUND BIOMEDICAL RESEARCH AND THE DEVELOPMENT OF ANSWERS TO FUNDAMENTAL AND IMPORTANT QUESTIONS. WE BELIEVE THAT THE PURSUIT OF BASIC KNOWLEDGE IN CHEMISTRY AND BIOLOGY WILL INEVITABLY LEAD TO BENEFICIAL RESULTS APPLICABLE TO THE HUMAN CONDITION AND TREATMENT OF DISEASE. 21649332 13848564 TSRI RECOGNIZES THAT A ROBUST EDUCATION PROGRAM IS KEY TO THE SUCCESS OF ITS LABORATORY-BASED INVESTIGATIONS, AND OFFERS BOTH GRADUATE AND POST-GRADUATE EDUCATION PROGRAMS. POST-DOCTORAL EDUCATION PROGRAMS INCLUDE FELLOWSHIPS FOR FOCUSED AND SUPERVISED TRAINING ON PROBLEMS THAT WILL BECOME CENTRAL TO SUBSEQUENT INVESTIGATIONS AS THESE YOUNG SCIENTISTS BEGIN THEIR SCIENTIFIC CAREERS. TSRI'S GRADUATE PROGRAM SEEKS TO CREATE AN INDIVIDUALIZED CURRICULUM FOR STUDENTS STUDYING AT THE INTERFACE OF BIOLOGY AND CHEMISTRY - AREAS OF SCIENTIFIC INQUIRY FOR WHICH THE SCRIPPS RESEARCH INSTITUTE HAS EARNED ITS REPUTATION FOR EXCELLENCE. COURSES CAN BE CHOSEN FOR EITHER FOCUSED OR INTERDISCIPLINARY STUDIES. OPPORTUNITIES TO CRAFT A RESEARCH PROJECT AND AREA OF STUDY THAT ENCOMPASSES SEVERAL LABORATORIES OUTSIDE OF THE STUDENT'S MENTOR ARE NOT ONLY AVAILABLE BUT ENCOURAGED. ACCOMMODATIONS ARE MADE TO SUIT THE STUDENT'S SENSIBILITIES AND OBSTACLES ARE ROUTINELY OVERCOME TO KEEP THE BEST INTERESTS OF THE STUDENTS AT THE FOREFRONT OF THE PROGRAM. 365080562 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 245 0 1 2634 1 1 1 0 0 0 0 1 1 0 0 0 0 0 X 20 17 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA CT FL IL NJ NY PA X JARED MACHADO 8587849817 3301 NORTH TORREY PINES COURT LA JOLLA CA 92037 X JAMES C PAULSON PHD PRESIDENT & TRUSTEE (THRU 9/20/15) 40.00 X X 367915 0 66708 PETER SCHULTZ PH D TRUSTEE (CEO AS OF 9/20/2015) 24.00 X X 270890 0 66597 MARSHALL M CRISER III TRUSTEE 1.00 X 0 0 0 JOHN DAVIS TRUSTEE 1.00 X 0 0 0 RICHARD J ELKUS JR TRUSTEE 1.00 X 0 0 0 PETER C FARRELL PHD DSC TRUSTEE 1.00 X 0 0 0 DENNIS M FENTON PHD TRUSTEE 1.00 X 0 0 0 MARJORIE FINK TRUSTEE 1.00 X 0 0 0 RICHARD A GEPHARDT TRUSTEE 1.00 X 0 0 0 JAMES E LABELLE MD MBA TRUSTEE 1.00 X 0 0 0 CLAUDIA S LUTTRELL TRUSTEE 1.00 X 0 0 0 WILLIAM H MOLLOIE TRUSTEE 1.00 X 0 0 0 MARK PEARSON TRUSTEE 1.00 X 0 0 0 BERNARD SAINT-DONAT TRUSTEE 1.00 X 0 0 0 LYNN SCHENK TRUSTEE 1.00 X 0 0 0 MARK S SKAGGS TRUSTEE 1.00 X 0 0 0 A RICHARD SLOANE TRUSTEE 1.00 X 0 0 0 HORACIO VALEIRAS TRUSTEE 1.00 X 0 0 0 PATRICK R GRIFFIN PH D TRUSTEE 1.00 X 299474 0 68723 LINDA A SHERMAN PH D TRUSTEE 1.00 X 230574 0 64208 EDWARD J SANDERSON JR TRUSTEE 1.00 X 0 0 0 THOMAS E DEWEY JR TRUSTEE (THROUGH 02/18/15) 1.00 X 0 0 0 ALEXANDER W DREYFOOS TRUSTEE (THROUGH 02/18/15) 1.00 X 0 0 0 THOMAS H INSLEY TRUSTEE (THROUGH 08/05/15) 1.00 X 0 0 0 ALAN C MENDELSON ESQ TRUSTEE (THROUGH 09/21/15) 1.00 X 0 0 0 DONNA J WESTON SR. VP, CFO, TREASURER 40.00 X 368938 0 63409 THOMAS E NORTHRUP CHF BUS. CNSL, SECRETARY 40.00 X 255824 0 53091 PETER K VOGT EXEC VP & CHIEF SCI OFF 40.00 X 315639 0 64097 DOUGLAS A BINGHAM EXEC VP, COO, SECRETARY 40.00 X 0 0 0 STEVE KAY PRESIDENT (AS OF 09/20/15) 0.00 X 0 0 0 TAMARA L BARNAS EXEC ADMIN & ASTNT SECRETARY 40.00 X 86458 0 28555 CARY E THOMAS SR. VP. 40.00 X 359710 0 68887 KAYE L WYNNE VP. OSP 40.00 X 290420 0 66228 JAMES R WILLIAMSON VP OF ACAD. AFFAIRS (AS OF 9/21/15) 40.00 X 272520 0 65037 RICHARD A LERNER INSTITUTE PROFESSOR 40.00 X 605279 0 64513 KARL BARRY SHARPLESS PROFESSOR 40.00 X 370763 0 64870 WILLIAM R ROUSH PROFESSOR 40.00 X 417065 0 65345 ROY G SMITH CHAIRMAN, METABOLISM 40.00 X 394829 0 70824 PETER E WRIGHT PROFESSOR 40.00 X 371885 0 67574 MICHAEL A MARLETTA PAST PRESIDENT 0.00 X 1819610 0 67357 7097793 0 1076023 282 1 1 0 SCHWEGMAN LUNDBERG WOESSNER PA 1600 TCF TOWER 121 S 8TH STREET MINNEAPOLIS MN 554020000 LAWYER 598207 OLSON & CEPURITIS LTD 20 NORTH WACKER DRIVE 36TH FLOOR CHICAGO IL 606060000 LAWYER 444771 DELOITTE & TOUCHE LLP 655 W BROADWAY SUITE 700 SAN DIEGO CA 921018590 AUDIT & TAX 416980 KILPATRICK TOWNSEND & STO DEPT 34542 PO BOX 39000 SAN FRANCISCO CA 94139 LAWYER 291885 WILSON SONSINI GOODRICH PO BOX 742866 LOS ANGELAS CA 900742866 LAWYER 214904 9 432365 252012390 63067969 64693 315512724 PATENT OFFICE 900099 3853580 3853580 3853580 6685384 6685384 20335503 20335503 987039 1041078 -54039 -54039 -54039 59588558 16785717 59793512 3043924 -204954 13741793 13536839 13536839 60748 432365 60748 0 K-1 INCOME 531390 1557149 1557149 SHARED SERVICES - SCRIPPS HEALTH 900099 509119 509119 526609 526609 2592877 362462868 3853580 1557149 41539415 X 750000 750000 8955703 8955703 4142861 4142861 4227833 874568 3353265 125057412 119412677 3848490 1796245 7497017 7009042 390562 97413 26045134 25359950 496202 188982 8746748 8177428 455668 113652 110979 110979 223267 223267 66010732 62981233 2606169 423330 2785344 2532315 92774 160255 22915658 21994374 848846 72438 3806120 3671069 44762 90289 2058273 2058273 32448693 32308612 140081 3367732 3365179 868 1685 LAB SUPPLIES 36629784 35201016 1186912 241856 UTILITIES 15532287 15041057 0 491230 PROFESSIONAL SERVICES 14022731 12484960 1387784 149987 DISP OF EQUIP & OTHER -2391812 -1350734 0 -1041078 382942496 365080562 14712302 3149632 17930440 23681049 45674994 51558345 1011584 949407 2753883 3860331 12249 0 3696877 2838224 743107346 406910559 349042729 336196787 280638668 245674152 140593000 133901123 5172983 4673774 846527407 803333192 36241955 40875689 29011692 33089987 36520524 34106249 8150000 8150000 39949300 39921110 149873471 156143035 X 448954462 429856211 205954419 170446303 41745054 46887642 696653936 647190157 846527407 803333192 X -20479628 -28984154 3 X 0 1 X 1 1 1 X SCRIPPS HEALTH LA JOLLA CA RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 110979 110979 0 PART II-B, LINE 1: TSRI PAYS ANNUAL DUES TO THE ASSOCIATION OF INDEPENDENT RESEARCH INSTITUTES (AIRI), CALIFORNIA HEALTHCARE INSTITUTE (CHI), THE CALIFORNIA BIOMEDICAL RESEARCH ASSOCIATION, BIOFLORIDA, CALIFORNIA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS, AND FLORIDA RESEARCH CONSORTIUM, A PORTION OF WHICH IS USED FOR LOBBYING ACTIVITIES. TSRI ALSO USES THE SERVICES OF SOUTHERN STRATEGY GROUP FOR GOVERNMENTAL RELATIONS NEEDS. 65643081 5867557 -1511798 702755 69296085 65149149 323271 1679735 1509074 65643081 63414527 252501 2154224 672103 65149149 60599628 370091 3094947 650139 63414527 61045904 681736 484627 1612639 60599628 0.32000 0.68000 0 0 42645590 42645590 410355850 176436611 233919239 21210229 18089574 3120655 264257503 210437828 53819675 4638174 1946546 2691628 336196787 INVESTMENT IN LIMITED PARTNERSHIPS 133901123 F 133901123 PENSION LIABILITY 31262938 LEASES SCHEDULED RENT 7872144 UNITRUSTS 786028 39921110 335870526 -28984154 2391812 -26592342 362462868 0 362462868 385334308 2391812 2391812 382942496 0 382942496 PART V, LINE 4: INVESTMENT RETURN FROM THE ENDOWMENTS SUPPORTS SCIENTIFIC PROJECTS CONSISTENT WITH THE MISSION AND PRINCIPLES OF THE SCRIPPS RESEARCH INSTITUTE. PART X, LINE 2: TSRI ADOPTED FIN 48 DURING THE YEAR ENDED 9/30/08. NO LIABILITY FOR UNCERTAIN TAX POSITIONS HAS BEEN RECORDED ON THE FINANCIAL STATEMENTS FOR THE CURRENT YEAR. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES NETTED AGAINST RENT REVENUE 1,041,078. LOSS ON DISPOSAL OF EQUIPMENT 1,350,734. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES NETTED AGAINST RENT REVENUE 1,041,078. LOSS ON DISPOSAL OF EQUIPMENT 1,350,734. 1 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES LAB FOR TSRI SCIENTISTS & STUDENTS 1792636 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES LAB FOR TSRI SCIENTISTS & STUDENTS 1336820 NORTH AMERICA 0 0 PROGRAM SERVICES LAB FOR TSRI SCIENTISTS & STUDENTS 516433 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES LAB FOR TSRI SCIENTISTS & STUDENTS 496972 CENTRAL AMERICA AND CARIBBEAN 0 0 INVESTMENTS 71884881 SEE PART V 0 0 0 0 0 0 76027742 0 76027742 EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT 762461 ELECTRONIC FUND/WIRE 0 N/A N/A EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT 40379 ELECTRONIC FUND/WIRE 0 N/A N/A EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT 27000 ELECTRONIC FUND/WIRE 0 N/A N/A EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT 34893 ELECTRONIC FUND/WIRE 0 N/A N/A EAST ASIA AND THE PACIFIC LABORATORY FOR TSRI SCIENTIST & STUDENT 20830 ELECTRONIC FUND/WIRE 0 N/A N/A EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT 69677 ELECTRONIC FUND/WIRE 0 N/A N/A EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT 858226 ELECTRONIC FUND/WIRE 0 N/A N/A EAST ASIA AND THE PACIFIC LABORATORY FOR TSRI SCIENTIST & STUDENT 1315990 ELECTRONIC FUND/WIRE 0 N/A N/A NORTH AMERICA LABORATORY FOR TSRI SCIENTIST & STUDENT 484786 ELECTRONIC FUND/WIRE 0 N/A N/A NORTH AMERICA LABORATORY FOR TSRI SCIENTIST & STUDENT 31647 ELECTRONIC FUND/WIRE 0 N/A N/A MIDDLE EAST AND NORTH AFRICA LABORATORY FOR TSRI SCIENTIST & STUDENT 496792 ELECTRONIC FUND/WIRE 0 N/A N/A 1 10 1 0 1 0 0 0 PART I, LINE 2: TSRI MONITORS THE AMOUNTS PROVIDED TO THE FOREIGN ORGANIZATION BY ADHERENCE TO A GRANT CONTRACT FOR THE LAB PROVIDED FOR USE OF THE TSRI RESEARCHER AND MONITORS DETAILED BILLING STATEMENTS FOR STUDENT RESEARCH EXPENDITURES. TSRI HAS MANY SCIENTISTS THAT TRAVEL AROUND THE WORLD. GLOBAL TRAVEL IS REQUIRED BY THE SCIENTISTS TO ATTEND VARIOUS MEETINGS AND SPEAK ON THEIR AREAS OF SPECIALTY. IT IS NOT FEASIBLE TO GATHER THE DETAILED INFORMATION REGARDING EXPENDITURES FOR PART I. THERE ARE NO OFFICES OUTSIDE OF THE US OR EMPLOYEES WHO RESIDE OUTSIDE OF THE U.S. SCHEDULE F, PART IV TSRI HAS LESS THAN 10% OWNERSHIP IN A FOREIGN CORPORATION DURING THE TAX YEAR AND THEREFORE WAS NOT REQUIRED TO FILE FORM 5471. X X X X X X 1 SANKY COMMUNICATIONS INC 599 11TH AVENUE 6TH FLOOR NEW YORK NY 10036 E-PHILANTHROPY 0 162849 124528 38321 SANKY COMMUNICATIONS INC 599 11TH AVENUE 6TH FLOOR NEW YORK NY 10036 DIRECT MAIL DONOR ACQUSITION 0 80323 98739 -18416 243172 223267 19905 CA FL CT IL MI MA NJ NY PA WOMEN FOR CANCER RESEARCH 194307 188613 5694 5694 PGA WOMENS CANCER AWARENESS DAYS 148247 123474 24773 1383 13966 1750 7674 3 150559 120278 30281 19881 10400 493113 432365 60748 1383 33847 1750 23768 60748 0 SCHEDULE G, PART I, LINE 2B, COLUMN (V) EXPLANATION: THE SANKY DIRECT MAIL DONOR ACQUISITION PROGRAM IS AN OVERALL BUDGET, WHICH INCLUDES THE SANKY AGENCY FEE AND THE UPFRONT COSTS OF ALL PROJECT FEES WITH THIRD-PARTY VENDORS. ALL DIRECT EXPENSES SUCH AS LIST RENTALS, POSTAGE, ETC. ARE SUBSEQUENTLY PAID DIRECTLY TO THE VENDOR FOR EXPENSE REIMBURSEMENTS. THE SANKY E-PHILANTHROPY PROGRAM IS A FLAT RATE, WHICH INCLUDES THE SANKY AGENCY FEE AND ALL PROJECT FEES. THIS INCLUDES ALL DIRECT THIRD-PARTY VENDOR FEES SUCH AS THE MERCHANT ACCOUNT FOR PROCESSING ONLINE CONTRIBUTIONS. 1 UNIVERSITY OF CALIFORNIA - BERKELEY 2080 ADDISON STREET BERKELEY CA 94720 946002123 501(C)(3) 750000 BIO-MEDICAL RESEARCH 1 0 SCHOLARSHIPS, STIPENDS FOR KELLOGG GRADUATE SCHOOL 261 8955703 PART I, LINE 2: GRADUATE STUDENT STIPENDS ARE PROCESSED VIA PERSONNEL ACTION FORMS WHICH ARE APPROVED BY THE GRADUATE OFFICE AND HUMAN RESOURCES PRIOR TO BEING SENT TO THE PAYROLL OFFICE. ONCE APPROVED,GRADUATE STUDENTS ARE SET UP IN TSRI'S PAYROLL SYSTEM AND ARE DISPERSED ON THE 1ST AND 15TH OF EACH MONTH. MONITORING IS DONE VIA THE INTERACTION BETWEEN THE STUDENT AND FACULTY ADVISOR. AS LONG AS THE STUDENT IS PROGRESSING, S/HE WOULD CONTINUE TO BE PAID. TSRI MAKES LIMITED GRANTS TO ORGANIZATIONS IN ORDER TO FURTHER ITS MISSION, UPON REVIEW AND APPROVAL BY SENIOR EXECUTIVE MANAGEMENT. X 1 1 X X X X X 1 1 0 0 0 0 0 0 0 JAMES C PAULSON PHD PRESIDENT & TRUSTEE (THRU 9/20/15) 340359 0 0 0 27556 0 52000 0 14708 0 434623 0 0 0 PETER SCHULTZ PH D TRUSTEE (CEO AS OF 9/20/2015) 252799 0 0 0 18091 0 52000 0 14597 0 337487 0 0 0 PATRICK R GRIFFIN PH D TRUSTEE 296852 0 0 0 2622 0 52000 0 16723 0 368197 0 0 0 LINDA A SHERMAN PH D TRUSTEE 226092 0 0 0 4482 0 47760 0 16448 0 294782 0 0 0 DONNA J WESTON SR. VP, CFO, TREASURER 352622 0 0 0 16316 0 52000 0 11409 0 432347 0 0 0 THOMAS E NORTHRUP CHF BUS. CNSL, SECRETARY 247447 0 0 0 8377 0 38061 0 15030 0 308915 0 0 0 PETER K VOGT EXEC VP & CHIEF SCI OFF 292902 0 0 0 22737 0 52000 0 12097 0 379736 0 0 0 CARY E THOMAS SR. VP. 324742 0 0 0 34968 0 52000 0 16887 0 428597 0 0 0 KAYE L WYNNE VP. OSP 258014 0 0 0 32406 0 52000 0 14228 0 356648 0 0 0 JAMES R WILLIAMSON VP OF ACAD. AFFAIRS (AS OF 9/21/15) 270867 0 0 0 1653 0 52000 0 13037 0 337557 0 0 0 RICHARD A LERNER INSTITUTE PROFESSOR 589811 0 0 0 15468 0 52000 0 12513 0 669792 0 0 0 KARL BARRY SHARPLESS PROFESSOR 361691 0 0 0 9072 0 52000 0 12870 0 435633 0 0 0 WILLIAM R ROUSH PROFESSOR 409343 0 0 0 7722 0 52000 0 13345 0 482410 0 0 0 ROY G SMITH CHAIRMAN, METABOLISM 382961 0 0 0 11868 0 52000 0 18824 0 465653 0 0 0 PETER E WRIGHT PROFESSOR 364286 0 0 0 7599 0 52000 0 15574 0 439459 0 0 0 MICHAEL A MARLETTA PAST PRESIDENT 539281 0 0 0 1280329 0 52000 0 15357 0 1886967 0 0 0 PART I, LINE 1A THE SCRIPPS RESEARCH INSTITUTE ALLOWS FOR BUSINESS TRAVEL FOR CERTAIN KEY EMPLOYEES FOR LONG HAUL FLIGHTS. IN CERTAIN CIRCUMSTANCES, BUSINESS CLASS SERVICE IS NOT AVAILABLE ON SMALLER AIRCRAFT. IN THOSE CIRCUMSTANCES, TSRI ALLOWS FIRST CLASS TRAVEL. PART I, LINES 4A-B IN CONJUNCTION WITH HIM NO LONGER BEING PRESIDENT IN 2014, BEGINNING WITH THE LAST PAYROLL IN SEPTEMBER 2014, MICHAEL MARLETTA, WILL RECEIVE SEVERANCE OF $1,400,000 OVER TWO YEARS, WHICH WILL BE REPORTED ON HIS 2014 AND 2015 FORM W2. HE RECEIVED SEVERANCE OF $215,385 IN CALENDAR YEAR 2014. PART I, LINES 4A-B RICHARD LERNER, M.D. PARTICIPATED IN A DEFERRED COMPENSATION PLAN. NO PAYMENTS WERE MADE DURING THE YEAR. TOTAL TSRI LIABILITY AT 9/30/2015 WAS $6,291,000. MICHAEL MARLETTA, PH.D. PARTICIPATED IN A DEFERRED COMPENSATION PLAN UNTIL HE WAS NO LONGER PRESIDENT IN 2014. $544,758 OF DEFERRED COMPENSATION WAS PAID DURING CALENDAR YEAR 2014. A CALIFORNIA INFRASTRUCTUREECONOMIC DEVELOPMENT BANK 630304653 13033WRC9 2005-02-23 39547350 SEE PART VI 0 0 0 A 39547350 22905721 641629 16000000 2005 1 0 1 1 A 0 0 0 1 1 0.00000 0.00000 0.00000 1 0 1 A 0 0 1 0 0 0 0 0 0 A 0 SCHEDULE K, PART I, LINE A (F) DESCRIPTION OF PURPOSE: PURCHASE IMM BLDG & REFINANCE OS 1994 BONDS 1. TO ACQUIRE THE IMMUNOLOGY BUILDING AND TO REFINANCE THE 1994 ARNOLD AND MURIEL BECKMAN CHEMISTRY BUILDING CONSTRUCTION BONDS 2. TO PAY FOR A PORTION OF THE ISSUANCE COST OF BOTH ISSUES 3. TO PAY FOR CAPITALIZED INTEREST ON THE BONDS DURING THE CONSTRUCTION PERIOD X 10 64693 COST/SELLING PRICE 0 0 1 1 PART I, COLUMN (B): TSRI IS REPORTING THE NUMBER OF CONTRIBUTORS. PART I, LINE 32B: SHARES OF STOCK GIFTED TO TSRI ARE TRANSFERRED INTO OUR BROKERAGE ACCOUNT AT MORGAN STANLEY SMITH BARNEY AND THEY IN TURN SELL THE SHARES AND WIRE THE STOCK PROCEEDS TO TSRI. FORM 990, PART VI, SECTION A, LINE 2 TSRI BOARD OF TRUSTEE MEMBERS CLAUDIA S. LUTTRELL AND MARK S. SKAGGS HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE AMENDED TO SPECIFY THAT TSRI FACULTY MEMBERS MAY SERVE AS TRUSTEES ONLY SO LONG AS THEY REMAIN TSRI FACULTY. ADDITIONALLY, THE BYLAWS WERE AMENDED TO SPLIT THE POSITION OF PRESIDENT/CHIEF EXECUTIVE OFFICER INTO TWO SEPARATE POSITIONS: (1) CHIEF EXECUTIVE OFFICER, AND (2) PRESIDENT; AS WELL AS CREATING AN EXECUTIVE LEVEL POSITION OF CHIEF OPERATING OFFICER. FORM 990, PART VI, SECTION B, LINE 11 ON JUNE 22, 2016, THE AUDIT COMMITTEE REVIEWED A DRAFT OF THE FORM 990 (INCLUDING ALL SUPPLEMENTAL SCHEDULES.) THIS REVIEW INCLUDED A PRESENTATION OF THE STATEMENTS BY THE CHIEF FINANCIAL OFFICER WITH PARTICULAR EMPHASIS ON DISCLOSURES ABOUT GOVERNANCE AND ABOUT TRANSACTIONS WITH INTERESTED PERSONS. THE 990 WILL BE PROVIDED TO THE FULL BOARD OF TRUSTEES PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C TSRI'S CONFLICTS OF INTEREST POLICIES AND PROCEDURES APPLY TO MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS, KEY PERSONNEL, AND THEIR FAMILY MEMBERS, (ALTOGETHER COVERED INDIVIDUALS) TO PROTECT THE INTERESTS OF TSRI WHEN IT IS CONTEMPLATING ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT COULD, 1) BENEFIT THE PRIVATE INTEREST OF A COVERED INDIVIDUAL WITHIN THE MEANING OF TREASURY REGULATION SECTION 1.501(C)(3)-1(D)(1)(II), 2) RESULT IN A POSSIBLE EXCESS BENEFIT TRANSACTION WITHIN THE MEANING OF SECTION 4958(C) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; OR 3) BE A SELF-DEALING TRANSACTION WITHIN THE MEANING OF SECTION 5233 OF THE CALIFORNIA CORPORATIONS CODE (THE "CORPORATIONS CODE"). TSRI'S POLICIES AND PROCEDURES ARE INTENDED TO SUPPLEMENT, BUT NOT REPLACE, ANY STATE AND FEDERAL LAWS GOVERNING ACTUAL, POTENTIAL, OR APPARENT CONFLICTS OF INTEREST APPLICABLE TO TSRI. DISCLOSURE DOCUMENTS RESPONSIVE TO TSRI'S POLICIES ARE ANNUALLY SUBMITTED BY COVERED INDIVIDUALS, AND ARE REVIEWED BY TSRI ADMINISTRATION FOR PERTINENT RELATIONSHIPS. ANY TRANSACTIONS OR ARRANGEMENTS INVOLVING COVERED INDIVIDUALS THAT FALL WITHIN THE SCOPE OF THE POLICIES ARE THEN SUBJECT TO REVIEW AND CONSIDERATION BY NON-CONFLICTED BOARD OF TRUSTEE MEMBERS, WITH CONFLICTED MEMBERS BEING RECUSED FROM ANY VOTE TO APPROVE OR DISAPPROVE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES INITIALLY APPROVES THE COMPENSATION FOR THE CEO AND PRESIDENT; AND, ON A PERIODIC BASIS THE BOARD'S EXECUTIVE COMMITTEE (EC) SELECTS AND ENGAGES AN OUTSIDE COMPENSATION CONSULTANT TO REVIEW COMPENSATION OF THE CEO, PRESIDENT, COO, CFO, AND GENERAL COUNSEL. THE CONSULTANT MEETS WITH THE VP OF HR TO ENSURE IT HAS COMPLETE AND ACCURATE INFORMATION REGARDING THE INSTITUTE AND SCOPE OF EXECUTIVE RESPONSIBILITY. THE CONSULTANT DETERMINES PEER INSTITUTIONS FOR INCLUSION IN A COMPENSATION SURVEY. THE CONSULTANT CONDUCTS A COMPENSATION REVIEW USING SPECIALIZED AND PUBLISHED SURVEYS, AND SUBMITS A WRITTEN OPINION TO THE EC IN ACCORDANCE WITH THE PROVISIONS OF SECTION 53.4958-6(C)(2) AND SATISFIES THE PROFESSIONAL ADVICE REQUIREMENTS OF SECTION 53.4958-1(D)(III) OF THE INCOME TAX REGULATIONS. THE CONSULTANT THEN PRESENTS THE SURVEY TO THE EC FOR THEIR REVIEW. THE EC REVIEWS EXECUTIVE TRAVEL, BUSINESS EXPENSES, AND OUTSIDE PROFESSIONAL ACTIVITIES DISCLOSURE. THE EC THEN MAKES AN INDEPENDENT RECOMMENDATION TO THE BOARD OF TRUSTEES ON EXECUTIVE COMPENSATION, WHICH MUST BE APPROVED BY THE BOARD OF TRUSTEES. AFFECTED TRUSTEES ABSTAIN FROM PARTICIPATION IN THIS PROCESS. IN 2014 MICHAEL MARLETTA STEPPED DOWN FROM TSRI'S POSITION AS CEO AND PRESIDENT. HIS SEVERANCE AND DEFERRED COMPENSATION PACKAGE WAS REVIEWED BY THE EXTERNAL EXECUTIVE COMPENSATION CONSULTANTS, EXTERNAL TAX, AND EMPLOYMENT COUNSEL, AND APPROVED BY THE BOARD OF TRUSTEES. SUBSEQUENTLY JAMES PAULSON WAS APPOINTED ACTING PRESIDENT AND CEO BY THE EC. HIS COMPENSATION PACKAGE WAS REVIEWED BY THE EXTERNAL EXECUTIVE COMPENSATION CONSULTANTS AND EMPLOYMENT COUNSEL, AND APPROVED BY THE BOARD OF TRUSTEES. IN SEPTEMBER 2015, JAMES PAULSON STEPPED DOWN AND WAS REPLACED BY PETER SCHULTZ AS CEO AND STEVE KAY AS PRESIDENT. PETER SCHULTZ WAS APPOINTED AS CHIEF EXECUTIVE OFFICER IN SEPTEMBER 2015. PETER SCHULTZ IS ALSO CHIEF EXECUTIVE OFFICER OF AN UNRELATED ORGANIZATION AND A TSRI FACULTY MEMBER, THEREFORE, HIS HOURS REPORTED FOR THIS ENTITY ARE LESS THAN 40 PER WEEK. STEVE KAY WAS APPOINTED AS PRESIDENT IN SEPTEMBER 2015. AT THIS TIME, STEVE WAS TRANSITIONING INTO THE POSITION AND BEGAN WORKING PART-TIME AS OF 11/1/2015 AND FULL-TIME AS OF 1/2/2016. COMPENSATION FOR STEVE KAY WILL BE REPORTED ON THE 2015 TAX RETURN. TAMARA L. BARNAS WAS APPOINTED EXECUTIVE ADMINISTRATOR AND ASSISTANT SECRETARY ON FEBRUARY 18, 2015. JAMES WILLIAMSON IS A TSRI FACULTY MEMBER AND DEAN OF GRADUATE AND POSTGRADUATE STUDIES AND WAS APPOINTED VICE PRESIDENT OF ACADEMIC AFFAIRS IN SEPTEMBER 2015. IN ADDITION, DOUGLAS BINGHAM WAS APPOINTED AS EVP AND COO ON SEPTEMBER 23, 2015 AND PAID $0 COMPENSATION FOR TAX YEAR 2014. PATRICK GRIFFIN AND LINDA SHERMAN WERE APPOINTED TO THE BOARD OF TRUSTEES, HOWEVER THEY RECEIVED THE COMPENSATION FOR THEIR WORK AS FACULTY MEMBERS, NOT AS TRUSTEES. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. THE FINANCIAL STATEMENTS ARE AVAILABLE ON THE TSRI WEB-SITE AND ARE FILED WITH THE STATE OF FLORIDA BY THE SCRIPPS FLORIDA FUNDING CORPORATION. THE STATEMENTS ARE PROVIDED TO BOND HOLDERS THROUGH TSRI'S DISSEMINATION AGENT. THE ANNUAL INFORMATION RETURN IS PROVIDED UPON REQUEST. FORM 990, PART VII, SECTION B: TSRI PATENTS MANY OF ITS DISCOVERIES. FOR MOST OF THOSE DISCOVERIES, THE COST OF THESE PATENTS IS RECOVERED FROM THIRD PARTIES PURSUANT TO THE TERMS OF THE UNDERLYING LICENSE. FORM 990, PART IX, LINE 11G PURCHASED SERVICE AND MAINTENANCE: PROGRAM SERVICE EXPENSES 62,981,233. MANAGEMENT AND GENERAL EXPENSES 2,606,169. FUNDRAISING EXPENSES 423,330. TOTAL EXPENSES 66,010,732. FORM 990, PART XI, LINE 9: ROUNDING 3. FORM 990, TRANSACTIONS WITH INTERESTED PERSONS: RICHARD A. LERNER, M.D. TERM AS PRESIDENT AND CEO OF TSRI EXPIRED ON DECEMBER 31,2011. DR LERNER SERVES ON THE BOARD OF DIRECTORS AND IS THE CHAIR OF THE COMPENSATION COMMITTEE OF OPKO HEALTH, INC. OPKO IS A HEALTH CARE COMPANY FOCUSED ON THE DEVELOPMENT OF PHARMACEUTICALS, HAS A USE LICENSE WITH TSRI, AND MAY BE INVOLVED IN BUSINESS TRANSACTIONS WITH TSRI IN THE FUTURE. TSRI HAS LICENSES WITH SORRENTO THERAPEUTICS, AND OPKO IS AN INVESTOR IN SORRENTO THERAPEUTICS. 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