2015-11-09T10:52:28-06:00 2014-12-31 861065772 Deloitte Tax LLP 2 Jericho Plaza Jericho NY 11753 990 2014-01-01 210634479 Educational Testing Service EDUC 6099219000 Rosedale Road MS 20-J Princeton NJ 08541 Jack Hayon SVP & Chief Financial Officer 6099219000 2015-11-04 Christine Kawecki P00743140 5169187000 2014 2016-03-07 17:11:31Z Jack Hayon Rosedale Road MS 20-J Princeton NJ 08541 1374948280 0 X www.ets.org X 1947 NY See Page 2, Part III, Question 1 20 19 26198 0 14725878 -11648720 11013107 9848829 1040969720 1086721635 3802266 52727076 82318061 88836608 1138103154 1238134148 2388720 2050663 0 0 386960688 401611854 0 0 0 721011862 765599552 1110361270 1169262069 27741884 68872079 941669696 1058074088 340298542 401978965 601371154 656095123 X Educational Testing Service (ETS) was incorporated in 1947 by the Board of Regents for the Education Department of the State of New York as an educational organization to engage in research, services and other activities in the field of educational testing.MISSIONOur mission is to help advance quality and equity in education by providing fair and valid assessments, research and related services. Our products and services measure knowledge and skills, promote learning and performance, and support education and professional development for all people worldwide.VISIONETS will be recognized as the global leader in providing fair and valid assessments, research and related products and services to help individuals make successful educational and career transitions throughout their lives, parents understand and use assessments and related products to help their children reach their full potential and teachers improve their practice through assessment and professional development. 0 0 370550022 675844 495812560 The Global Division is mainly responsible for the design, development, administration (primarily in a computer based testing environment), scoring and reporting of assessments for graduate and business school admissions, as well as delivery of English language tests. In 2014, approximately 756 thousand individuals took the graduate and business school assessments, while over 7.7 million test takers took the English language assessments. These English language testing programs support our mission primarily in markets outside the United States.In addition, the Division develops College Programs assessments that are used to support student success and measure student learning outcomes. These products are used in nearly 1,400 higher education institutions.The Division also provides products and services that: measure knowledge and skills; promote learning and performance; and support education and professional development. 447337904 229432 391146681 Teacher Licensure & Certification (TLC): TLC is primarily involved in assessing prospective teachers for licensure and/or certification. TLC manages three major licensure and certification assessment programs. Tests for all three major TLC programs are delivered in a computer-based environment. Paper and pencil testing is available, as needed, for candidates with special requirements who cannot test online.In 2014, approximately 800 thousand tests were administered.ETS provides services to the College Board that relate to the testing of pre-college students and assisting in the transition from high school to college and to advanced college degrees.In 2014, approximately 12.0 million tests were administered on behalf of the College Board. 255470694 1145387 199762394 Student and Teacher Assessments (K12 Student Assessment Programs): K12 Student Assessment Programs currently has large scale assessment contracts in several states in the US. These K12 assessments measure levels of student achievement in their respective public school system. K12 Student Assessment Programs also contracts with non-profit consortia of states, dedicated to the pursuit of educational excellence. The purpose is to develop and administer testing programs that are designed to measure and improve teaching and learning.Research and Development:Research & Development provides: educational measurement research and analysis; innovative assessment and product development; and informative policy studies to advance quality and equity in education for all people worldwide. Research & Development ensures the technical quality and fairness of ETS's assessments and assessment-related services through excellence in assessment design, development, analysis and psychometric research. Support for its research programs comes primarily from its own resources. Support also comes from national governments and agencies and various private foundations.National Assessment of Educational Progress (NAEP):Considered the Nations Report Card, NAEP is a continuing series of academic content assessments of samples of students, mandated by Congress, and implemented by the National Center for Education Statistics. ETS has held primary contracts for NAEP since 1983. ETS is responsible for the overall coordination, strategic planning, development of survey questionnaires, test development for printed books and technology-based assessments, assessment design, test book preparation, data and psychometric analysis, and report preparation in print and on the NAEP website.ETS Policy and Evaluation & Research Center (PERC):The Policy Evaluation and Research Center (PERC) conducts research and analyses that address challenging education policy issues in the United States. The focus of PERC's research and analyses are increasing overall educational achievement and closing opportunity and achievement gaps among population groups.PERC publishes and disseminates reports and designs and carries out research and evaluation studies that are designed to increase understanding of education challenges and probable solutions. PERC plans and convenes symposiums, seminars and conferences to address the most challenging education problems in the nation.Institute for Student Achievement (ISA):Working in partnership with districts and schools, the ISA Division of ETS uses a proven, research-based educational framework to transform underperforming public high schools into rigorous and supportive learning environments that prepare students to be college-ready.In 2014, ISA worked in collaboration with approximately 40 schools. Chauncey Conference Center:ETS operates a conference center. A portion of the revenue is classified as unrelated business income. 1073358620 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 0 1 0 0 0 0 1 1 1 0 0 0 0 0 1 1 0 0 0 0 0 1 1 1 1 0 0 1 X 104167 0 1 26198 1 1 1 1 AS BE CA CH FR GM IN EI IS IT JA JO LU MY MT NL PL SN SF KS TU AE UK 0 0 0 0 0 0 0 0 X 20 19 0 0 1 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ CA DC DE IN KS NJ NY OR X Michael J Freddo Vice President a 6099219000 Rosedale Road MS 20-J Princeton NJ 08541 Carstarphen Meria Trustee 2.00 X 57834 0 0 Colbert Isaac Trustee 2.00 X 73834 0 0 English Michela A Trustee 2.00 X 75751 0 0 Garcia Ofelia Trustee 2.00 X 57834 0 0 Henderson Wade N Trustee 2.00 X 76751 0 0 Johnson Melvin Trustee 2.00 X 57834 0 0 Kanter Martha Trustee - Partial Term 2.00 X 13000 0 0 Kapoor Vikas Trustee 2.00 X 41834 0 0 Levin Henry M Trustee 2.00 X 57834 0 0 Levine Arthur E Trustee 2.00 X 57834 0 0 Lewis Earl Trustee 2.00 X 57834 0 0 Lumpkins Robert Trustee - Partial Term 2.00 X 19500 0 0 Menezes Victor Trustee 2.00 X 70751 0 0 Murley Robert S Trustee 2.00 X 83668 0 0 Robertson Piedad F Trustee - Partial Term 2.00 X 26667 0 0 Rothkopf Arthur J Trustee 2.00 X 75751 0 0 Stewart Debra W Trustee 2.00 X 69834 0 0 Tatum Beverly Daniel Trustee 2.00 X 53834 0 0 Valdes Guadalupe Trustee 2.00 X 90751 0 0 Winckler Georg Trustee 2.00 X 49834 0 0 MacDonald Walter B President & CEO 40.00 X X 911023 0 43956 Bailey Diane A VP Teacher Licensure and Cert 40.00 X 368057 0 44842 Basehore John VP & Treasurer 40.00 X 347942 0 49065 Donado Yvette SVP & Chief Admin Officer 40.00 X 448611 0 57241 Draper Jr William C VP & COO College Board 40.00 X 406262 0 36473 Elliott Thomas J VP & CLO Strategic Workforce Systems 40.00 X 383626 0 46338 Farnum Marisa VP Assessment Development 40.00 X 396358 0 30294 Freddo Michael J VP & Controller 40.00 X 347744 0 46097 Gilbertson Bruce M VP Facilities & Real Estate 40.00 X 359780 0 30667 Hayon Jack SVP & Chief Financial Officer 40.00 X 634292 0 72676 Hernandez Sandra VP Finance 40.00 X 414356 0 42721 Hobson David VP & Corporate Secretary 40.00 X 307257 0 36117 House Naomi President ISA 40.00 X 634146 0 41063 Hunt David SVP Global Ed. & Workforce 40.00 X 516325 0 60567 Johnson-Gregory Sheree L VP Assoc. General Counsel 40.00 X 376524 0 56898 Kerins Nancy J SVP Production & Delivery 40.00 X 590665 0 38648 Lawrence Ida M SVP Research & Development 40.00 X 518747 0 65090 Lazer Stephen VP Student & Teacher Assessment 40.00 X 517219 0 63938 Mazzeo John VP Stat Analysis & Psych. Research 40.00 X 404445 0 33553 Miller George VP Strategic Workforce Solutions 40.00 X 346136 0 53755 Nelson Scott F SVP Marketing & Public Affairs 40.00 X 453338 0 62149 Nettles Michael T SVP - Ctr. for Policy Eval. & Research 40.00 X 440675 0 59416 Oswald John VP & COO K-12 Assessment 40.00 X 405587 0 38563 Paris Scott G VP Research 40.00 X 392427 0 38179 Payne David G VP & COO Global Education 40.00 X 426477 0 59239 Pfund Rebecca VP IT Production 40.00 X 355995 0 51025 Pote Stephen K VP & Chief Quality Officer 40.00 X 363610 0 47336 Powell George D VP & COO TLC & Nat ELL 40.00 X 444516 0 38266 Rockey Anne F VP Operations 40.00 X 363010 0 46407 Schroeder Glenn C SVP & General Counsel 40.00 X 566780 0 67338 Tyler Linda L VP New Product Development 40.00 X 330933 0 43100 Wakeman Daniel VP & Chief Information Officer 40.00 X 363019 0 56163 Weaver Scott V VP & Chief Strategy Officer 40.00 X 403305 0 59255 Bennett Randy E Frederiksen Chair Assessment Innov. 40.00 X 352979 0 36855 Mislevy Robert Lord Chair in Meas. & Statistic 40.00 X 354622 0 37423 Kirsch Irwin Tyler Chair LG Scale Assessment 40.00 X 378378 0 39772 Patanella Richard Chief Financial Advisor 40.00 X 342774 0 38835 Schmidt Amy General Manager, Stat Analysis 40.00 X 306299 0 39401 Landgraf Kurt M Former President & CEO 0.10 X 2647314 0 6646 Ramsey Paul A Former SVP Global Dev & Re 7.00 X 128116 0 0 20218433 0 1815367 1235 1 1 0 Accenture LLP 161 North Clark St Chicago IL 60601 Supply chain services 56487125 Computer Sciences Corporation 3170 Fairview Park Drive Falls Church VA 22042 Computer services 51395602 NCS Pearson Inc 5601 Green Valley Dr Bloomington MN 55437 Test administration services 24812977 McCann Relationship Marketing Inc dba 105 Carnegie Center Princeton NJ 08540 Marketing 19955186 Adecco Corporation 175 Broad Hollow Road Melville NY 11747 Temporary labor 19292355 253 8268443 1580386 9848829 Global Division 611710 495812560 495812560 Teacher Licensure & Co 611710 391146681 391146681 Student and Teacher As 611710 199762394 199762394 1086721635 44906871 44906871 74098659 74098659 20694 8623 12071 12071 12071 144220064 405650 136433019 372490 7787045 33160 7820205 7820205 Occupational & Prof Sk 611600 10017491 10017491 Chauncey Conf. Center 721000 4152755 4152755 Computerized Assessmen 611600 366500 366500 189132 189132 14725878 1238134148 1086721635 14725878 126837806 X 1589283 1589283 281212 281212 180168 180168 17673086 5790853 11882233 1553806 128116 1425690 300459389 275279167 25180222 26159145 23009754 3149391 33874868 29796555 4078313 21891560 19255959 2635601 8737971 4412835 4325136 3208063 3208063 94519 94519 890549 890549 490214300 467982967 22231333 26077974 26077974 148311295 142843931 5467364 1577218 1577218 16687144 16039824 647320 10862704 9414202 1448502 5097462 4127133 970329 200597 200597 38805248 34885788 3919460 2102039 2102039 Foreign & State Taxes 5356252 5348492 7760 Chauncey Conference Cen 3740868 3740868 Business licenses/fees 2958700 1145727 1812973 Memberships and Dues 676649 450594 226055 1169262069 1073358620 95903449 0 10309716 20646534 73028714 45927211 90919506 123847301 15603979 18133450 265005684 139063406 120400084 125942278 42578825 61042032 468831229 525813185 116225793 134109097 3771850 2613000 941669696 1058074088 159163440 154968645 61324513 66316399 119810589 180693921 340298542 401978965 X 601371154 656095123 601371154 656095123 941669696 1058074088 X 68872079 -3226269 -10921841 X 0 1 X 1 1 1 X 12889559 13420573 9316768 11378847 9848829 56854576 880691488 942813001 976442900 1040603980 1086721635 4927273004 893581047 956233574 985759668 1051982827 1096570464 4984127580 0 320175828 343101445 359923209 359048657 400936397 1783185536 320175828 343101445 359923209 359048657 400936397 1783185536 3200942044 51618196 60310105 69479111 66285663 119026224 366719299 51618196 60310105 69479111 66285663 119026224 366719299 7030 9505 7562 24097 945206273 1016553184 1055246341 1118268490 1215596688 5350870976 0.59820 0.65600 0.06850 0.05690 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 94519 94519 1145792952 1145887471 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 152599 62120 40851 94519 350089 250000 250000 250000 250000 1000000 1500000 Part II-A, Line 2, Lobbying Activities: Total ETS federal and state lobbying expenses were $94,519. The total lobbying expenditures of ETS were minimal in comparison to total revenues. 1970618 1970618 196143047 102595823 93547224 4896331 3231091 1665240 61995688 33236492 28759196 125942278 Investment in affiliated entities 414368404 F Non-publicly traded securities 111444781 F 525813185 Post-retirement medical benefits 118232803 Intercompany payable 28771875 Other liabilities 33689243 180693921 X Part X, Line 2: This summary reflects the ETS portion of the ASC 740-10(FIN 48) Note in the Consolidated Financial Statements. Educational Testing Service adopted ASC 740-10(FIN 48) on January 1, 2009 in accordance with U.S. Generally Accepted Accounting Procedures (US GAAP). In accordance with the US GAAP requirements, Educational Testing Service adjusted its net assets for its uncertain tax positions. It is reasonably possible that the tax liability recorded for these uncertain tax positions can change within the next twelve months. The tax liability has various open statutes which range from three to ten years. 1 East Asia and the Pacific 0 0 Grants to recipients located in the region. Grantmaking 180168 North America 0 1057 Program services Testing activities 2466134 Europe 0 494 Program services Testing activities 10928289 Central America and the Caribbean 0 539 Program services Testing activities 222742 East Asia and the Pacific 0 2063 Program services Testing activities 8628318 Middle East and North Africa 0 643 Program services Testing activities 1482494 Russia and Neighboring States 0 113 Program services Testing activities 41411 South America 0 407 Program services Testing activities 349237 South Asia 0 1025 Program services Testing activities 2395092 Sub-Saharan Africa 0 361 Program services Testing activities 300974 Europe 0 0 Investments 3081968 North America 0 0 Investments 483514 Central America and the Caribbean 0 0 Investments 16976199 0 5316 0 1386 0 6702 24298793 23237747 47536540 Scholarships for outstanding South Korean Students East Asia and the Pacific 24 72000 Scholarships are paid directly to student's schools for tuition. Scholarships for outstanding Japanese Students East Asia and the Pacific 6 42000 Scholarships are paid to third party who pays the student's tuition. Scholarships for outstanding South Korean Students East Asia and the Pacific 24 66168 Scholarships are paid to third party who pays the student's tuition. 1 0 1 0 0 1 Part I, Line 2: Educational Testing Service requires applicants for scholarships to provide transcripts and other information upon which they are evaluated. During 2014, scholarship funds were distributed in two manners: 1. Scholarship funds are made payable directly to the university or college that the awarded recipient attends. 2. Scholarship funds are paid directly to an independent third party who then was contractually obligated to disburse funds to the respective university or college. Scholarships awarded to recipients outside the United States are monitored at the university level, since the awards are for one year only. 1 American Assoc of Hispanics in Higher Education (AAHHE) 1120 S Cady Mall Suite B 275 Tempe AZ 85257 300150324 501(c)(3) 100500 4404 Fair Market Value Printing and Catering Support of local community educational programs. American Education Research Association (AERA) 1430 K Street NW Suite 1200 Washington DC 20005 237003537 501(c)(3) 5000 Support of local community educational programs. 100 Hispanic Women 413 East 120th Street New York NY 10035 133831889 501(c)(3) 5000 Support of local community educational programs. 50Can Inc 1112 16th St NW Suite 240 Washington DC 20036 273069592 501(c)(3) 50000 Support of local community educational programs. African American Chamber of Commerce of NJ 110 West State Street Suite 2B Trenton NJ 08608 061820423 501(c)(3) 10000 Support of local community educational programs. American Indian College Fund 8333 Greenwood Blvd Denver CO 80221 521573446 501(c)(3) 5000 Support of local community educational programs. Anchor House Foundation Inc 482 Centre Street Trenton NJ 08611 222229995 501(c)(3) 10000 Support of local community educational programs. Association of Public & Land Grant Universities 1307 New York Ave NW Washington DC 20005 530183246 501(c)(3) 10000 Support of local community educational programs. Boys & Girls Club of Trenton and Mercer County 212 Centre Street Trenton NJ 08611 731658119 501(c)(3) 1344 21318 Fair Market Value Catering Support of local community educational programs. Camden City Board of Education Foundation Inc (Camden Schools Foundation) 201 Front Street Camden NJ 08102 412177584 501(c)(3) 5000 Support of local community educational programs. Career Development Awards PO Box 2314 Princeton NJ 08542 236206954 501(c)(3) 5000 6032 Fair Market Value Catering Support of local community educational programs. Court Appointed Special Advocates (CASA) of Mercer County 180 Ewingville Road Ewing NJ 08638 223770968 501(c)(3) 5000 Support of local community educational programs. Council of Chief State School Officers (CCSSO) One Massachusetts Ave NW NO 700 Washington DC 20001 530198090 501(c)(3) 75080 Fair Market Value Catering and Supplies Support of local community educational programs. Children's Defense Fund 25 E Street NW Washington DC 20001 520895622 501(c)(3) 200000 Support of local community educational programs. Council for Adult and Experiential Learning 55 East Monroe Street Chicago IL 60603 132890752 501(c)(3) 7000 Support of local community educational programs. Communities in Schools of San Antonio 1616 E Commerce St Bldg 1 San Antonio TX 78205 742393714 501(c)(3) 5242 Support of local community educational programs CONTACT of Mercer County New Jersey Inc 60 South Main St Pennington NJ 08534 222320153 501(c)(3) 5100 Support of local community educational programs Committee for Hispanic Children and Families Inc 110 William St Suite 1802 New York NY 10038 112622003 501(c)(3) 11000 Support of local community educational programs. Council of Graduate Schools One Dupont Circle NW Washington DC 20036 522175852 501(c)(3) 5000 Support of local community educational programs. Dual Language Education of New Mexico (La Cosecha) 1309 Fourth Street SW Suite E Albuquerque NM 87102 850477820 501(c)(3) 7500 Support of local community educational programs. Education Commission of the States 700 Broadway Denver CO 85203 310722194 501(c)(3) 10000 Support of local community educational programs. Education Law Center 60 Park Place Newark NJ 07102 222104555 501(c)(3) 20000 Support of local community educational programs. Every Child Valued 175 Johnson Avenue Lawrenceville NJ 08648 264654078 501(c)(3) 50506 Support of local community educational programs. Ewing Public Education Foundation Inc PO Box 7033 Ewing NJ 08628 223347353 501(c)(3) 43770 1536 Fair Market Value Catering Support of local community educational programs. Fight for Children 1726 M Street NW Suite 202 Washington DC 20036 521706059 501(c)(3) 5000 Support of local community educational programs. Hispanic Association of Colleges and Universities 8415 Datapoint Drive Suite 400 San Antonio TX 78229 742466103 501(c)(3) 23200 Support of local community educational programs. Hispanics Inspiring Students' Performance and Achievement (HISPA) PO Box 702 Princeton NJ 08542 521825305 501(c)(3) 25460 1018 Fair Market Value Catering Support of local community educational programs. Hoboken Board of Education 158 4th Street Hoboken NJ 07030 Government 69339 3120 Fair Market Value Computer equipment Support of local community educational programs. Homefront 1880 Princeton Pike Lawrenceville NJ 08648 223165145 501(c)(3) 12000 2584 Fair Market Value Catering and Supplies Support of local community educational programs. Lawrence Township Community Foundation PO Box 6706 Lawrenceville NJ 08648 223835387 501(c)(3) 10000 Support of local community educational programs. Institute for Educational Leadership 4455 Connecticut Avenue NW Washington DC 20008 521198450 501(c)(3) 5000 Support of local community educational programs. The Latino Institute Inc 50 Park Place Suite 1539 Newark NJ 07102 201516874 501(c)(3) 11500 Support of local community educational programs. Junior Achievement of New Jersey 4365 Route 1 South Princeton NJ 08540 221774147 501(c)(3) 23268 Support of local community educational programs. Lawrence Township Education Foundation Inc 17 Phillips Ave Lawrenceville NJ 08648 223192024 501(c)(3) 80468 129 Fair Market Value Supplies Support of local community educational programs. Lawrenceville Fire Company 64 Phillips Avenue Lawrenceville NJ 08648 237330548 501(c)(3) 5000 Support of local community educational programs. Life Pieces to Masterpieces 5600 Eads Street NE 4th Floor Washington DC 20018 522076894 501(c)(3) 15000 Support of local community educational programs. Literacy Volunteers of Mercer County 3535 Quakerbridge Road Hamilton NJ 08619 223502495 501(c)(3) 10000 Support of local community educational programs. Mercer Street Friends 151 Mercer St Trenton NJ 08618 210733990 501(c)(3) 5100 Support of local community educational programs. National Alliance on Mental Illness (NAMI) Mercer County 3371 Brunswick Pike Suite 124 Lawrenceville NJ 08648 222587453 501(c)(3) 10000 731 Fair Market Value Catering Support of local community educational programs. Mercer County Office of Education 1075 Old Trenton Road Trenton NJ 08690 216000856 Government 12998 Fair Market Value Catering Support of local community educational programs. MillHill Child Family Development Center 101-A Oakland Street Trenton NJ 08618 223828387 501(c)(3) 5000 Support of local community educational programs. Minding Our Business 65 Livingston Avenue Roseland NJ 07068 461076647 501(c)(3) 12000 Support of local community educational programs. National Urban League 120 Wall Street 8th Floor New York NY 10005 131840489 501(c)(3) 25000 Support of local community educational programs. New Jersey Education Foundation Partnership Inc PO Box 908 Princeton Junction NJ 08550 364613556 501(c)(3) 15000 Support of local community educational programs. Parents Step Ahead Inc 2102 Empire Central Dallas TX 75235 262477378 501(c)(3) 35000 Support of local community educational programs. Princeton YWCA 59 Paul Robeson Place Princeton NJ 08540 210635056 501(c)(3) 13925 5266 Fair Market Value Catering and Supplies Support of local community educational programs. Rutgers University Foundation Winanta Hall 7 College Avenue New Brunswick NJ 08901 237318742 501(c)(3) 25100 Support of local community educational programs. Shiloh Community Development Corporation 340 Rev S Howard Woodson Jr Way Trenton NJ 08618 123799161 501(c)(3) 11042 Support of local community educational programs. Stony Brook Millstone Watershed Association 31 Titus Mill Road Pennington NJ 08534 210649717 501(c)(3) 9000 Support of local community educational programs. Morris Hall - St Lawrence Inc (StLawrence Rehabilitation Center) 2381 Lawrenceville Road Lawrenceville NJ 08648 522250044 501(c)(3) 12500 Support of local community educational programs. The College of New Jersey Foundation PO Box 7718 Ewing NJ 08628 222448189 501(c)(3) 12000 Support of local community educational programs. United Way of Greater Mercer County 3150 Brunswick Pike Lawrenceville NJ 08648 210683073 501(c)(3) 50595 Support of local community educational programs. Young Scholars Institute 349 West State Street Trenton NJ 08618 223051022 501(c)(3) 1680 5549 Fair Market Value Catering and Supplies Support of local community educational programs. Young Audiences of New Jersey Inc 200 Forrestal Road Princeton NJ 08540 237384991 501(c)(3) 7746 Support of local community educational programs. Ewing Public Schools 2099 Pennington Road Ewing NJ 08638 216000324 Government 16949 Fair Market Value Catering and Supplies Support of local community educational programs. New Jersey City University Foundation Inc 2039 Kennedy Blvd Jersey City NJ 07305 237261698 501(c)(3) 16500 Support of local community educational programs. New Jersey School Boards Association 413 West State Street Trenton NJ 08618 Government 53386 Fair Market Value Catering and Supplies Support of local community educational programs. New Jersey Seeds 494 Broad Street Suite 105 Newark NJ 07102 223181507 501(c)(3) 30000 Support of local community educational programs. Princeton Area Community Foundation 15 Princess Road Lawrenceville NJ 08648 521746234 501(c)(3) 1000 8448 Fair Market Value Catering and Supplies Support of local community educational programs. UCLA Foundation CARE Project 405 Hilgard Ave GSEIS Moore Hall Box 951521 Los Angeles CA 90095 952250801 501(c)(3) 50000 Support of local community educational programs. United States Hispanic Leadership 431 Dearborn Street Chicago IL 60605 363191740 501(c)(3) 7500 Support of local community educational programs. Trenton Board of Education 108 North Clinton Ave Trenton NJ 08609 216000326 Government 8307 Fair Market Value Catering Support of local community educational programs. New Venture Fund 1201 Connecticut Avenue Washington DC 20036 205806345 501(c)(3) 60000 Support of local community educational programs. Asian & Pacific Islander American Scholarship Fund 2025 M Street NW Ste 610 Washington DC 20036 571192973 501(c)(3) 15000 Support of local community educational programs. 64 Historically Black Colleges and Universities Presidential Scholarship 9 98879 Trenton Central High School Scholarship 7 152833 Research Fellowships 1 29500 Part I, Line 2: The ETS Center for Advocacy and Philanthropy, a division of ETS which manages ETS's contributions, has established criteria for making grants and other contributions. It also maintains records to substantiate the amount of grants or in-kind contributions, as well as the grantees eligibility for the grants. IRS Form W-9 is requested from all organizations to ascertain the legal name, EIN or Taxpayer Identification Number and address. ETS typically maintains close contact with its grantees to monitor their progress in the use of funds and, whenever feasible, the extent to which the funded program met its objectives. Small contributions (under $2,000) are sometimes made to 501(c)(3) organizations to promote volunteerism and philanthropy among employees at ETS. ETS monitors the use of funds in several ways: (1) requests written reports on the use of restricted funds and the organization's annual report when the grant is unrestricted; (2) for sponsored events, such as conferences and workshops, ETS requests programs and other materials prepared for the event; (3) staff members attend a number of sponsored events so that there is direct observation; (4) ETS remains in contact with grant recipients via email, phone calls and face-to-face meetings; and (5) ETS obtains copies of any research papers that might be developed as a result of the grant. X X X 1 1 X X X X 1 1 0 0 0 1 0 1 0 MacDonald Walter B President & CEO 478888 0 289313 0 142822 0 23400 0 20556 0 954979 0 0 0 Bailey Diane A VP Teacher Licensure and Cert 201687 0 110375 0 55995 0 29830 0 15012 0 412899 0 0 0 Basehore John VP & Treasurer 197902 0 108450 0 41590 0 31902 0 17163 0 397007 0 0 0 Donado Yvette SVP & Chief Admin Officer 256517 0 149625 0 42469 0 39578 0 17663 0 505852 0 0 0 Draper Jr William C VP & COO College Board 216585 0 140938 0 48739 0 33973 0 2500 0 442735 0 0 0 Elliott Thomas J VP & CLO Strategic Workforce Systems 205775 0 125500 0 52351 0 22995 0 23343 0 429964 0 0 0 Farnum Marisa VP Assessment Development 186458 0 119780 0 90120 0 20776 0 9518 0 426652 0 25872 0 Freddo Michael J VP & Controller 186091 0 113875 0 47778 0 30125 0 15972 0 393841 0 0 0 Gilbertson Bruce M VP Facilities & Real Estate 212904 0 115875 0 31001 0 30667 0 0 0 390447 0 0 0 Hayon Jack SVP & Chief Financial Officer 326713 0 258300 0 49279 0 48983 0 23693 0 706968 0 0 0 Hernandez Sandra VP Finance 212832 0 131725 0 69799 0 21929 0 20792 0 457077 0 18846 0 Hobson David VP & Corporate Secretary 178423 0 43034 0 85800 0 20178 0 15939 0 343374 0 0 0 House Naomi President ISA 344234 0 168300 0 121612 0 23400 0 17663 0 675209 0 0 0 Hunt David SVP Global Ed. & Workforce 289626 0 184845 0 41854 0 43811 0 16756 0 576892 0 0 0 Johnson-Gregory Sheree L VP Assoc. General Counsel 221730 0 131119 0 23675 0 33055 0 23843 0 433422 0 0 0 Kerins Nancy J SVP Production & Delivery 315089 0 210113 0 65463 0 23400 0 15248 0 629313 0 0 0 Lawrence Ida M SVP Research & Development 287429 0 180675 0 50643 0 43668 0 21422 0 583837 0 0 0 Lazer Stephen VP Student & Teacher Assessment 298732 0 154138 0 64349 0 42745 0 21193 0 581157 0 0 0 Mazzeo John VP Stat Analysis & Psych. Research 222231 0 129375 0 52839 0 33553 0 0 0 437998 0 0 0 Miller George VP Strategic Workforce Solutions 219233 0 112800 0 14103 0 31090 0 22665 0 399891 0 0 0 Nelson Scott F SVP Marketing & Public Affairs 265747 0 147125 0 40466 0 40806 0 21343 0 515487 0 0 0 Nettles Michael T SVP - Ctr. for Policy Eval. & Resear 246444 0 144500 0 49731 0 38223 0 21193 0 500091 0 0 0 Oswald John VP & COO K-12 Assessment 257321 0 120825 0 27441 0 23400 0 15163 0 444150 0 0 0 Paris Scott G VP Research 230207 0 120438 0 41782 0 23400 0 14779 0 430606 0 0 0 Payne David G VP & COO Global Education 245940 0 134516 0 46021 0 38046 0 21193 0 485716 0 0 0 Pfund Rebecca VP IT Production 205119 0 134400 0 16476 0 29682 0 21343 0 407020 0 0 0 Pote Stephen K VP & Chief Quality Officer 218816 0 121250 0 23544 0 32088 0 15248 0 410946 0 0 0 Powell George D VP & COO TLC & Nat ELL 229836 0 134888 0 79792 0 21018 0 17248 0 482782 0 0 0 Rockey Anne F VP Operations 227423 0 126425 0 9162 0 31173 0 15234 0 409417 0 0 0 Schroeder Glenn C SVP & General Counsel 321914 0 221163 0 23703 0 45155 0 22183 0 634118 0 0 0 Tyler Linda L VP New Product Development 171378 0 105064 0 54491 0 28088 0 15012 0 374033 0 0 0 Wakeman Daniel VP & Chief Information Officer 219498 0 119189 0 24332 0 32735 0 23428 0 419182 0 0 0 Weaver Scott V VP & Chief Strategy Officer 248786 0 135375 0 19144 0 35827 0 23428 0 462560 0 0 0 Bennett Randy E Frederiksen Chair Assessment Innov. 234985 0 64565 0 53429 0 23400 0 13455 0 389834 0 0 0 Mislevy Robert Lord Chair in Meas. & Statistic 273281 0 70571 0 10770 0 23400 0 14023 0 392045 0 0 0 Kirsch Irwin Tyler Chair LG Scale Assessment 252112 0 69338 0 56928 0 23400 0 16372 0 418150 0 0 0 Patanella Richard Chief Financial Advisor 191159 0 69715 0 81900 0 21475 0 17360 0 381609 0 0 0 Schmidt Amy General Manager, Stat Analysis 221383 0 62595 0 22321 0 31889 0 7512 0 345700 0 0 0 Landgraf Kurt M Former President & CEO 746548 0 531009 0 1369757 0 4902 0 1744 0 2653960 0 0 0 Ramsey Paul A Former SVP Global Dev & Re 128116 0 0 0 0 0 0 0 0 0 128116 0 0 0 Part I, Line 1a Part I, Line 1a: First-class or charter travel: Trustees (2) received this benefit during 2014. It was not treated as taxable compensation to the individual. This benefit is provided based on length of travel time required of the individual. Part I, Line 1a: Tax gross-up payments: Officers (25) received this benefit during 2014. It was treated as taxable compensation to the individual. Part I, Line 1a: Housing allowance or residence for personal use: Officer (1) received this benefit during 2014. It was treated as taxable compensation to the individual. Part I, Line 3 ETS engages an external executive independent compensation consultant organization to review and advise on excess benefit transaction law and to prepare an annual report and analysis of proposed compensation of ETS's CEO and officers. The analysis includes data on compensation for comparable organizations and similar occupations/functions in similarly situated organizations. The external executive independent compensation consultant also develops a Letter of Reasonableness regarding the analyses of Officers pay consistent with government guidelines which is presented to the Committee on Governance and Human Resources and the Board for review, comment and approval. Part I, Lines 4a-b Officer (1) received a severance payment from the organization in 2014. Kurt Landgraf - $708,000. The officers participated in a supplemental non-qualified retirement plan under 457(f). The non-vested portion of each officer's deferred compensation is reported in Column C. The vested portion of each officer's deferred compensation is reported in Columns B & F. In 2014, Kurt Landgraf received a $204,023 payment from the 457(f) plan. Part I, Lines 6a & 7: ETS incentive compensation programs are variable cash compensation programs to provide employees earnings opportunities in addition to base pay. These variable compensation components recognize and reward based on individual and ETS's performance. Payments under these programs are realized when ETS meets and achieves its annual performance targets for the year, as determined by holistic assessment of metrics from ETS's balanced scorecard objectives, including financial, operational, customer and growth goals. Teresa M Sanchez-Lazer see Part V 161215 see Part V 0 Paul Ramsey see Part V 128116 see part V 0 Part IV: (a)Name of person: Teresa M. Sanchez-Lazer(b)Relationship between interested person and the organization: family member of Stephen Lazer, Current Officer(d)Description of transaction: Salary and benefits(a)Name of person: Paul Ramsey(b)Relationship between interested person and the organization: Paul Ramsey is a former ETS officer who retired in 2009.(d)Description of transaction: In 2014 Paul Ramsey provided consulting services to ETS. Form 990, Part VI, Section A, line 4 The Corporate Bylaws were revised to change the financial year-end for years beginning after December 31, 2014. Form 990, Part VI, Section B, line 11 All Trustees received a copy of Form 990 for review and information prior to Board of Trustees meeting. Form 990 was reviewed by the Board of Trustees' Audit Committee and the full Board of Trustees prior to filing. Form 990, Part VI, Section B, line 12c The Trustees of Educational Testing Service, individually and collectively, are expected to act in accordance with the highest standards of ethical behavior. Annually, the Audit Committee reviews the ETS Code of Ethics for Members of the Board of Trustees. Subsequently, each Trustee receives a copy of the Code of Ethics and signs a statement agreeing to abide by the Code. The Code of Ethics states a clear policy on conflicts of interest. ETS also has a conflict of interest policy that is supplied to the Board of Trustees, officers and key employees. The Trustees annually complete a Trustee Disclosure Statement and a Trustee Affiliation Form. The Disclosure Statement requests if there are any Trustees with material financial interest to which ETS is a party. The Affiliation Form requests information regarding the Trustees employment as a staff member or as a consultant of ETS, as well as their affiliation with other organizations. The Corporate Secretary reviews these disclosures for potential conflicts or the potential appearance of a conflict. Should a situation be disclosed that presents a potential conflict, the Corporate Secretary would seek resolution with the involvement of the appropriate authority such as the Audit Committee or the ETS General Counsel and Chief Ethics Officer. Intrinsic to the policy is a Trustee recusing themselves on certain matters or resigning from the Board to prevent a conflict of interest or avoid an appearance of a conflict of interest. Failure to respond to the annual disclosure process would result in the requisite follow up by the Corporate Secretary. Candidates for Trustees receive receive general information on relevant ETS policies, such as the Code of Ethics and Conflict of Interest and are required to complete the Affiliations Form prior to standing for election. Trustees can obtain assistance with the interpretation or administration of the Code of Ethics conflicts policy or procedures from the Corporate Secretary or the General Counsel and Chief Ethics Officer. Trustees receive the complete policy statements upon their election. Educational Testing Service requires that employees, including officers, who are uncertain whether an outside activity comes within the scope of ETS's Code of Ethics or Conflict of Interest policy, discuss the matter with their supervisors. Employees wishing to engage in outside activities must submit an Outside Activities Report to their division director for review and approval prior to engaging in the activity. Employees must submit an amended report whenever the activity changes. The report is reviewed and the employee is informed whether the request is approved. The employee's division Vice President and the Vice President of Strategic Workforce Solutions (SWS)(ETS's Human Resources Department) receive a copy of all such reports regardless of whether the request is approved. Any situation involving a potential conflict of interest must be reviewed by SWS to verify that no conflict exists. Any employee who acquires information that gives the employee reason to believe that any employee, officer or trustee is engaged in conduct that is prohibited by ETS's Code of Ethics or subject to ETS's Conflict of Interest policy, or that any sales representative, distributor or other person or firm representing ETS in any transaction is engaged in the type of conduct (whether or not in connection with a transaction involving ETS or its products) which, if engaged in by an employee, would violate this policy is required to report this information immediately. All complaints regarding potential conflicts of interest are investigated promptly, and where necessary, immediate and appropriate action is taken to stop and remedy any such conduct. Any employee or officer, found in violation of this policy will be subject to disciplinary action, up to and including termination, depending upon the severity of the violation. This policy is reviewed on an annual basis by the Vice President of Strategic Workforce Solutions. All ETS employees receive a copy of the Code of Ethics on an annual basis. The annual review and signature indicating their agreement to comply with the policy is mandatory as part of employment with ETS. Form 990, Part VI, Section B, line 15 ETS's Board of Trustees ("Board") engages an independent external organization, a leading consultant in executive compensation, to review the structure and process of Officer compensation to ensure practices that are within IRS and not-for-profit guidelines. The external organization issues a letter to the Board that presents their expert opinion as to the reasonableness and comparability of the total remuneration of the executives. The Board has reviewed and agreed upon the analysis and the Opinion Letter as to the Reasonableness of the Total Compensation Provided for the executives working for ETS. The independent, external executive compensation consultant prepares a Letter of Reasonableness regarding the analysis of Officer pay consistent with government guidelines which is presented to the Board Committee on Governance and Human Resources and the full Board for review, comment and approval. Form 990, Part VI, Section C, line 19 Currently, ETS does not provide its governing documents, conflict of interest policy, or financial statements available to the public. This process is consistent with prior years. Form 990, Part IX, line 11g Test Admin and Consultants: Program service expenses 347,793,902. Management and general expenses 21,567,651. Fundraising expenses 0. Total expenses 369,361,553. Subcontracting Costs: Program service expenses 120,189,065. Management and general expenses 663,682. Fundraising expenses 0. Total expenses 120,852,747. Form 990, Part XI, line 9: Postretirement benefits -37,407,000. Equity earnings in affiliates 69,582,000. Disregarded entity loss included in Form 990 1,058,159. Dividend income from subsidiaries -44,155,000. ETS Tech LLC Rosedale Road Princeton NJ 08541 454054815 Holding company DE 0 11521106 Educational Testing Service Computerized Assessments and Learning LLC 1202 East 23rd Street Suite D Lawrence KS 66046 204973305 Educational services KS 5955258 21226705 Educational Testing Service Educational Testing Service Retiree Medical and Life Ins Plan Rosedale Road MS 20-J Princeton NJ 08541 223372287 Benefit Plan NJ 501(c)(9) Educational Testing Service 0 Educational Testing Service (ETS) Global BV Strawinskylaan 929 Amsterdam NL 1077 XX Educational services NL Educational Testing Service C 32702095 12647177 1.00000 1 Educational Testing Service Canada Inc 138B ch de la Grande-Cote Rosemere Quebec CA J7A 1H3 Educational services CA Educational Testing Service C 1485438 980070 1.00000 1 ETS Assessments (Beijing) Ltd No 3 Dongsanhuan Beilu Block B L Beijing CH 100027 Educational services CH Educational Testing Service (ETS) Global BV C 2132645 1450137 1.00000 1 ETS Educational Services (India) 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Cash Educational Testing Service (ETS) Global BV M 6632533 Fair market value Educational Testing Service Canada Inc M 40633 Fair market value Prometric Inc M 127109415 Fair market value Edusoft Ltd M 1189302 Fair market value