2014-11-14T12:03:31-06:00 2013-12-31 861065772 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2013-01-01 953797687 GEMOLOGICAL INSTITUTE OF AMERICA INC GEMO 7606034000 5345 ARMADA DRIVE CARLSBAD CA 920084602 DAVID J TEARLE SENIOR VP & CFO 7606034000 2014-11-14 1 SHARON ZORBACH P00125475 6192326500 2013 2015-11-30 17:44:51Z SUSAN JACQUES 5345 ARMADA DRIVE CARLSBAD CA 920084602 266857108 0 X WWW.GIA.EDU X 1931 CA SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT. 18 13 1236 24 652329 0 243742 463616 145128544 167113416 4065250 7812958 30859379 22598698 180296915 197988688 718959 714843 0 0 82358132 91188217 0 0 24913 74447564 65670209 157524655 157573269 22772260 40415419 414066168 399254206 114453334 40520808 299612834 358733398 X SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT. 0 0 26927982 714843 16489679 EDUCATION:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 111542090 150147702 LABORATORY:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 3724703 169348 RESEARCH & PUBLICATIONS:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 142194775 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 1 1 1 1 1 0 0 0 0 1 1 1 0 0 0 0 1 0 1 1 1 0 0 0 1 1 1 1 0 0 1 X 137 0 1 1236 1 1 1 1 HK IN IS UK JA SF TW AE TH BE BC 0 0 0 0 0 0 0 0 0 X 18 13 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AL AK AR CA CT FL GA IL KS KY MD MA MI MN MS NH NJ NY NC OH OK OR PA RI SC TN UT VA WV WI X DAVID J TEARLE VP AND CFO 7606034000 5345 ARMADA DRIVE CARLSBAD CA 920084602 X DONNA BAKER PRESIDENT - OUTGOING 39.00 1.00 X X 679383 0 709977 SUSAN JACQUES PRESIDENT 39.00 1.00 X X 221846 0 0 THOMAS MOSES SENIOR VICE PRESIDENT 39.00 1.00 X X 526347 0 36684 AMIT DHAMANI GOVERNOR 3.00 0.00 X 0 0 0 RODNEY C EWING GOVERNOR 3.00 0.00 X 6000 0 0 JEFFREY H FISCHER GOVERNOR 3.00 0.00 X 3000 0 0 JOHN A GREEN GOVERNOR 5.00 0.00 X 6000 0 0 THOMAS INSLEY GOVERNOR 3.00 0.00 X 6000 0 0 DIONE D KENYON GOVERNOR 4.00 0.00 X 0 0 0 PAUL KREUTZ GOVERNOR 3.00 0.00 X 6000 0 0 LISA LOCKLEAR GOVERNOR 4.00 0.00 X 6000 0 0 GLENN R NORD GOVERNOR 3.00 0.00 X 3000 0 0 BARBARA SAWREY GOVERNOR 3.00 0.00 X 6000 0 0 JAMES P SHINEHOUSE GOVERNOR 4.00 0.00 X 0 0 0 HANK B SIEGEL GOVERNOR 4.00 0.00 X 6000 0 0 ARON SUNA GOVERNOR 4.00 0.00 X 6000 0 0 ELLIOT TANNENBAUM GOVERNOR 3.00 0.00 X 3000 0 0 THOMAS YANG GOVERNOR 3.00 0.00 X 4500 0 0 EPHRAIM ZION GOVERNOR 3.00 0.00 X 3000 0 0 DAVID TEARLE VP & CFO 39.00 1.00 X 397228 0 39012 LINDA ELLIS VP, CHIEF ADVMT OFFICER 40.00 0.00 X 243609 0 22060 BEVERLY HORI VP, EDUCATION 40.00 0.00 X 367117 0 31149 KATHRYN KIMMEL VP, CHIEF MKTG OFFICER 40.00 0.00 X 299975 0 26776 MARK NECHITA VP, HUMAN RESOURCES - OUTGOING 40.00 0.00 X 268446 0 231245 CYNTHIA SANDERS VP, CORP SRVCS 40.00 0.00 X 211588 0 22755 RICHARD SUMMERS VP, CONT IMPROVEMENT - OUTGOING 40.00 0.00 X 281335 0 101443 PHILLIP YANTZER VP, LABORATORY SERVICES 40.00 0.00 X 223201 0 38371 JOHN M KING CHIEF QLTY OFFICER 40.00 0.00 X 237102 0 32387 SUSAN SCHINDELAR DIR., GLOBAL MKTG 40.00 0.00 X 228618 0 39209 CONNIE WEDEL DIR., GLOBAL HR 40.00 0.00 X 227939 0 20559 MARK JULIAR DIR., GLOBAL ED. COMP. 40.00 0.00 X 227179 0 8202 STEPHEN MORISSEAU DIR., PUBLIC RELATIONS 40.00 0.00 X 227017 0 38289 LINDA SCHOLL FORMER KEY EMPLOYEE 0.00 0.00 X 192480 0 4341 5124910 0 1402459 125 1 1 0 JT MAGEN & COMPANY 44 W 28TH ST NEW YORK NY 10001 CONSTRUCTION SERVICES 13088480 THE SHAND GROUP 1300 SANTA BARBARA ST SANTA BARBARA CA 93101 MARKETING 6042224 TCS AMERICA 12977 COLLECTION CENTER DR CHICAGO IL 60693 IT SERVICES 5540485 DLA PIPER US LLP 401 B STREET SUITE 1700 SAN DIEGO CA 921014297 LEGAL SERVICES 3045556 ORACLE 500 ORACLE PARKWAY REDWOOD SHORES CA 94065 IT SERVICES 2661091 45 463616 314946 463616 GEMOLOGICAL LABORATORY 541900 151171665 151171665 TUITION & FEES 611600 15772403 15772403 GEMOLOGY PUBLICATIONS 511120 169348 169348 167113416 5470555 5470555 22253056 22253056 69572365 9340 67026567 212735 2545798 -203395 2342403 2342403 2625188 1629118 996070 401405 594665 MISCELLANEOUS REVENUE 900099 321569 315871 5698 NET MANAGEMENT FEE 900099 52216 52216 FOREIGN EXCHANGE LOSS 900099 -1024213 -1023963 -250 -650428 197988688 166806729 652329 30066014 110434 110434 348412 348412 255997 255997 3787575 2421618 1365957 66773253 61412230 5339739 21284 5361340 4753817 605501 2022 10214733 8755075 1459658 5051316 4897883 151826 1607 3197656 2868266 329390 811655 159068 652587 658942 658942 15643998 13616037 2027961 6183674 6180944 2730 6698343 6526599 171744 4896037 4792218 103819 911750 911750 5301169 5177401 123768 2895814 2667128 228686 1684382 1289276 395106 7851150 6907258 943892 1762831 1336196 426635 FOREIGN WITHHOLDING TAX 3327372 3327372 0 0 MAINTENANCE 2959606 2810308 149298 0 885830 669488 216342 157573269 142194775 15353581 24913 18776106 17078928 39158823 11678414 18000 0 48458344 46216180 1877112 2897310 3001917 2567713 3096357 6257384 218296655 74637749 121300678 143658906 119083899 107092550 59294932 61806821 414066168 399254206 4573744 7744235 4311025 4697185 105568565 28079388 114453334 40520808 X 285455025 343344086 1892320 2982990 12265489 12406322 299612834 358733398 414066168 399254206 X 40415419 6075639 12629506 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 72894834 101175 10772013 662294 1199535 0 81906193 67150391 500 8319258 716466 1858849 0 72894834 67584620 172917 -410686 423921 -158244 -69217 67150391 61080217 50000 6827503 171078 39289 162733 67584620 53275261 268637 7754949 218630 61080217 0.81390 0.03460 0.15150 0 0 13227037 13227037 60657610 29116263 31541347 22904434 15099800 7804634 121507574 30421686 91085888 143658906 GEM COLLECTIONS 27114782 INVESTMENT IN SUBSIDIARIES 34192634 OTHER ASSETS 499405 61806821 ACCRUED PAYROLL 1804219 OTHER CURRENT LIABILITIES 5220750 SALES & USE TAX PAYABLE 7336 OTHER LONG TERM LIABILITIES 237626 ACCRUED PAID TIME OFF 8062204 ACCRUED PENSION EXPENSE 10339325 INTERCOMPANY ACCOUNTS 2407928 28079388 X PART V, LINE 4: GIA USES ENDOWMENT FUNDS FOR ACTIVITIES PURSUANT TO THE INSTITUTE'S MISSION, WHICH IS SUMMARIZED IN THE RESPONSE TO PART III, ITEM 1. PART X, LINE 2: THE INSTITUTE ADOPTED ASC NO. 740-10, ACCOUNTING FOR INCOME TAXES, ON JANUARY 1, 2007. AS OF THE DATE OF ADOPTION THROUGH DECEMBER 31, 2013, THE INSTITUTE HAD NO LIABILITY FOR UNRECOGNIZED TAX BENEFITS. THE INSTITUTE WOULD RECOGNIZE INTEREST AND PENALTIES RELATED TO UNCERTAIN TAX BENEFITS AS INCOME TAX EXPENSE WHEN ACCRUED. AS THE INSTITUTE HAD NO LIABILITIES FOR UNCERTAIN TAX POSITIONS, THERE HAS BEEN NO ACCRUAL FOR INTEREST AND PENALTIES FOR THE YEARS ENDED DECEMBER 31, 2013 OR 2012. SCHEDULE D, PART V, LINE 1E: THESE AMOUNTS INCLUDE CHANGES IN PRESENT VALUE FOR THE YEAR. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE INSTITUTE'S BROCHURES AND APPLICATIONS ALL INCLUDE STATEMENTS OF ITS RACIAL NONDISCRIMINATION POLICY. THE INSTITUTE CUSTOMARILY DRAWS A SUBSTANTIAL PERCENTAGE OF ITS STUDENTS NATIONWIDE OR WORLDWIDE AND FOLLOWS A RACIAL NONDISCRIMINATION POLICY. ACCORDINGLY, THE NEWSPAPER OR BROADCAST PUBLICATION REQUIREMENT IS SATISFIED BY ADHERENCE TO REV. PROC. 75-50, SECTION 4.02. SCHEDULE E, PART I, LINE 6 GIA IS ACCREDITED BY ACCSC, WHICH IS RECOGNIZED BY THE US DEPARTMENT OF EDUCATION. GIA PARTICIPATES IN TITLE IV PROGRAMS. GIA ALSO ACCEPTS VETERAN'S BENEFITS FOR PROGRAMS THAT QUALIFY. 1 EAST ASIA AND THE PACIFIC 0 0 SCHOLARSHIP GRANTS TO RECIPIENTS IN REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS 56201 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 SCHOLARSHIP GRANTS TO RECIPIENTS IN REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS 46105 MIDDLE EAST AND NORTH AFRICA 0 0 SCHOLARSHIP GRANTS TO RECIPIENTS IN REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS 13985 SOUTH ASIA 0 0 SCHOLARSHIP GRANTS TO RECIPIENTS IN REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS 71493 SUB-SAHARAN AFRICA 0 0 GRANT-MAKING EDUCATION DELIVERY 68213 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES SCIENTIFIC INSTRUMENT SALES 181 MIDDLE EAST AND NORTH AFRICA 0 0 INVESTMENT IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES -3371497 EUROPE 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES 2425154 EAST ASIA AND THE PACIFIC 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES 4998094 SOUTH ASIA 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES INDIRECT OWNERSHIP IN WHOLLY OWNED SUBSIDIARIES 30655217 SUB-SAHARAN AFRICA 0 0 INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES WHOLLY OWNED SUBSIDIARIES 772431 MIDDLE EAST AND NORTH AFRICA 1 80 PROGRAM SERVICES LAB AND RESEARCH SERVICES 4387611 0 0 1 80 1 80 -690165 40813353 40123188 SUB-SAHARAN AFRICA LIBRARY FUNDING 43503 ELECTRONIC FUND/WIRE SUB-SAHARAN AFRICA EDUCATION DELIVERY 17100 ELECTRONIC FUND/WIRE SUB-SAHARAN AFRICA EDUCATION DELIVERY 7610 CLASSROOM EQUIPMENT FMV 1 2 SCHOLARSHIP AWARDS EAST ASIA AND THE PACIFIC 8 56201 TUITION REDUCTION FMV SCHOLARSHIP AWARDS EUROPE (INCLUDING ICELAND & GREENLAND) 5 46105 TUITION REDUCTION FMV SCHOLARSHIP AWARDS MIDDLE EAST AND NORTH AFRICA 7 13985 TUITION REDUCTION FMV SCHOLARSHIP AWARDS SOUTH ASIA 16 71138 TUITION REDUCTION FMV 0 0 1 0 0 1 PART I, LINE 2: AFTER GIA RECEIVES THE SIGNED ACCEPTANCE FORM AND THE STUDENT ENROLLS, AN AWARD LINE IS SET UP IN PEOPLESOFT TO READY THE AWARD FOR DISBURSEMENT. THE AWARD IS DISBURSED THROUGH THE PEOPLESOFT SYSTEM AS A CREDIT TO THE STUDENT'S TUITION ACCOUNT. THE FUNDS ARE NOT DISBURSED DIRECTLY TO THE STUDENT UNLESS THE PROVISIONS OF THE SCHOLARSHIP INCLUDE LIVING EXPENSES; ANY SUCH AWARD IS DISBURSED THROUGH PEOPLESOFT IN THE SAME MANNER AS OTHER FINANCIAL AID DESIGNATED FOR LIVING EXPENSES. THE INTERNATIONAL SCHOOL MUST INITIATE THE PROCESS OF TRANSFERRING FUNDS FROM GIA CARLSBAD BY SUBMITTING A WRITTEN INVOICE TO THE SCHOLARSHIP COORDINATOR AT GIA CARLSBAD; EMAIL IS ACCEPTABLE. THE INVOICE MUST INCLUDE THE SCHOLARSHIP RECIPIENT'S NAME, STUDENT NUMBER, SCHOLARSHIP AWARD AMOUNT IN LOCAL CURRENCY, NAME OF THE SCHOLARSHIP, AND COURSE ENROLLMENT INFORMATION (START DATE, COURSE NAME AND NUMBER). GIA CARLSBAD TRANSFERS THE FUNDS TO THE SCHOOL WHEN THE SCHOLARSHIP RECIPIENTS BEGIN THEIR QUALIFIED COURSE OF STUDY AT GIA INDIA, GIA ENGLAND, GIA (INTERNATIONAL) COMPANY, LTD (AKA GIA THAILAND SCHOOL), GIA HONG KONG LIMITED, GIA INSTRUMENT (TAIWAN) CO. (AKA GIA TAIWAN SCHOOL) OR GIA MIDDLE EAST (L.C.C.). 1 VARIOUS LAW ENFORCEMENT AGENCIES GOVERNMENT 52499 FMV SEE SUPPLEMENTAL INFORMATION, PART IV SUPPORT LAW ENFORCEMENT FUNCTION OF REDUCING THEFT, FRAUD, AND MISREPRESENTATION; PROTECTING THE GEM-CONSUMING PUBLIC JEWELERS VIGILANCE COMMITTEE 25 WEST 45TH STREET 1406 NEW YORK NY 10036 131661424 501(C)(6) 14400 SPONSORSHIP DIAMOND DEALERS CLUB INC 580 FIFTH AVENUE NEW YORK NY 10036 130632945 501(C)(6) 10000 2590 FMV GEMOLOGICAL TOOLS SUPPORT OF ISRAEL DIAMOND WEEK DIAMOND MANUFACTURERS & IMPORTERS ASSOCIATION 580 FIFTH AVENUE SUITE 2000 NEW YORK NY 10036 N/A 8500 SPONSORSHIP JEWELERS OF AMERICA INC 120 BROADWAY NEW YORK NY 10271 530246294 501(C)(6) 6300 SPONSORSHIP WOMEN'S JEWELRY ASSOCIATION 80 WASHINGTON STREET 205 POUGHKEEPSIE NY 12601 133205392 501(C)(6) 4025 SPONSORSHIP AMERICAN GEM SOCIETY 8881 W SAHARA AVENUE LAS VEGAS NV 89117 951409272 501(C)(6) 3450 SPONSORSHIP JEWELERS FOR CHILDREN 120 BROADWAY NEW YORK NY 10271 133716474 501(C)(3) 1500 SPONSORSHIP, SCHOLARSHIP FUND SUPPORT AMERICAN JEWELRY DESIGN COUNCIL PO BOX 965 ASHEVILLE NC 28802 330815294 501(C)(3) 1350 SPONSORSHIP INDIAN DIAMOND & COLORSTONE ASSOCIATION 56 WEST 45TH STREET 705 NEW YORK NY 10036 133211019 501(C)(6) 1200 SPONSORSHIP MINERALOGICAL SOCIETY OF AMERICA 3635 CONCORDE PKWY 500 CHANTILLY VA 201511110 546044250 501(C)(3) 1000 CONTRIBUTION DIAMOND EMPOWERMENT FUND INC 1601 BROADWAY 12TH FLOOR NEW YORK NY 10017 205967103 501(C)(3) 585 SPONSORSHIP ARTSPLASH 7551 ESFERA STREET CARLSBAD CA 92009 200489191 501(C)(3) 500 CONTRIBUTION 24 KARAT CLUB OF SE US 10440 N CENTRAL EXPRESSWAY 210 DALLAS TX 75231 581342487 501(C)(3) 50 SCHOLARSHIP FUND FRIENDS OF HOPE SCHOOL 3010 TAMARACK AVENUE CARLSBAD CA 92008 412034367 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION FRIENDS OF KATE SESSIONS 2150 BERYL STREET SAN DIEGO CA 92109 330089369 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION CARLSBAD HIGH SCHOOL PTSA 3557 LANCER WAY CARLSBAD CA 92008 900893678 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION RIVER MONTESSORI PETALUMA 3880 CYPRESS DRIVE PETALUMA CA 94954 260748455 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION CALAVERA HILLS MIDDLE SCHOOL PTSA 4104 TAMARACK AVENUE CARLSBAD CA 92010 550871235 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION NORTHMINSTER PRESCHOOL 4324 CLAIREMONT MESA BLVD SAN DIEGO CA 92117 952240662 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION BOYS & GIRLS CLUB OF CYPRESS 10161 MOODY AVE CYPRESS CA 90630 952920990 501(C)(3) 355 FMV GEM LEARNING MATERIALS ADVANCE GEMOLOGICAL EDUCATION 14 7 SCHOLARSHIP AWARDS 184 0 348412 FMV TUITION REDUCTION PART I, LINE 2: SCHOLARSHIPS - AFTER GIA RECEIVES THE SIGNED ACCEPTANCE FORM AND THE STUDENT ENROLLS, AN AWARD LINE IS SET UP IN PEOPLESOFT TO READY THE AWARD FOR DISBURSEMENT. THE AWARD IS DISBURSED THROUGH THE PEOPLESOFT SYSTEM AS A CREDIT TO THE STUDENT'S TUITION ACCOUNT. THE FUNDS ARE NOT DISBURSED DIRECTLY TO THE STUDENT UNLESS THE PROVISIONS OF THE SCHOLARSHIP INCLUDE LIVING EXPENSES; ANY SUCH AWARD IS DISBURSED THROUGH PEOPLESOFT IN THE SAME MANNER AS OTHER FINANCIAL AID DESIGNATED FOR LIVING EXPENSES. OTHER GRANTS - GIA MAKES LIMITED GRANTS TO ORGANIZATIONS IN ORDER TO FURTHER ITS MISSION, UPON REVIEW AND APPROVED BY SENIOR EXECUTIVE MANAGEMENT. PART II, GRANTS AND OTHER ASSISTANCE: GIA REGULARLY ORGANIZES AND CONDUCTS SEMINARS FOR THE FBI AND OTHER LAW ENFORCEMENT OFFICIALS. IN 2013, THE SEMINARS WERE SCHEDULED AND PLANNED, BUT THE FEDERAL GOVERNMENT SEQUESTRATION PREVENTED OFFICIALS FROM ATTENDING, SO THE SEMINARS WERE RESCHEDULED TO 2014. ADDITIONALLY, GIA WORKS WITH LAW ENFORCEMENT OFFICIALS TO FLAG ITEMS REPORTED AS LOST OR STOLEN. IN 2013, WE FLAGGED 914 STOLEN GEMSTONES IN OUR DATABASE AT THE REQUEST OF LAW ENFORCEMENT AND RECOVERED 33 GEMSTONES IN CASES IN WHICH STONES WERE RESUBMITTED TO THE LABORATORY AFTER HAVE BEEN STOLEN. GIA GRADED 11 DIAMONDS AT THE REQUEST OF LAW ENFORCEMENT OFFICIALS IN CONNECTION WITH CRIMINAL INVESTIGATIONS. ADDITIONALLY, IN 2013, GIA AGREED TO HAVE GIA PERSONNEL SERVE AS AN EXPERT WITNESS AT THE REQUEST OF LAW ENFORCEMENT OFFICIALS FOR A PONZI SCHEME PROSECUTION IN GEORGIA, CONSULTED WITH CUSTOMS AND BORDER PROTECTION OFFICIALS AT ICE AND DEA OFFICIALS REGARDING RECOVERY OF STOLEN ITEMS, CONSULTED WITH THE INTERNAL REVENUE SERVICE REGARDING AN ALLEGATION THAT AN INDIVIDUAL WAS HIDING WEALTH IN THE FORM OF DIAMONDS AND JEWELRY, ASSISTED THE US ATTORNEY AND DEPARTMENT OF JUSTICE OFFICIALS IN RECOVERY OF STOLEN ITEMS, AND PRESENTED AT AN FBI CONFERENCE TO PROVIDE INFORMATION ON JEWELRY-RELATED CRIME AND TO DESCRIBE GIA'S LAW ENFORCEMENT SERVICES. GIA PARTICIPATED IN AN AGREEMENT WITH US CUSTOMS AND BORDER PROTECTION OFFICIALS AT ICE TO MAINTAIN A DATABASE OF GEMSTONES TO FACILITATE THE EFFORTS OF TRADE AND LAW ENFORCEMENT OFFICIALS RELATED TO IDENTIFICATION OF NATURAL, TREATED, AND SYNTHETIC STONES AND COUNTRIES OF ORIGIN. GIA ENCOURAGES LAW ENFORCEMENT PERSONNEL TO ENROLL IN GIA EDUCATIONAL COURSES RELATED TO THEIR OFFICIAL DUTIES AND DOES NOT CHARGE FOR SUCH ENROLLMENTS. X 1 1 X X X X X 1 0 0 0 0 0 0 1 0 DONNA BAKER PRESIDENT - OUTGOING 259856 0 0 0 419527 0 682740 0 27237 0 1389360 0 0 0 SUSAN JACQUES PRESIDENT 166846 0 55000 0 0 0 0 0 0 0 221846 0 0 0 THOMAS MOSES SENIOR VICE PRESIDENT 421593 0 100000 0 4754 0 20400 0 16284 0 563031 0 0 0 DAVID TEARLE VP & CFO 325958 0 70000 0 1270 0 20400 0 18612 0 436240 0 0 0 LINDA ELLIS VP, CHIEF ADVMT OFFICER 214620 0 23000 0 5989 0 19144 0 2916 0 265669 0 0 0 BEVERLY HORI VP, EDUCATION 304743 0 60000 0 2374 0 20400 0 10749 0 398266 0 0 0 KATHRYN KIMMEL VP, CHIEF MKTG OFFICER 256332 0 40000 0 3643 0 20400 0 6376 0 326751 0 0 0 MARK NECHITA VP, HUMAN RESOURCES - OUTGOING 249706 0 0 0 18740 0 204519 0 26726 0 499691 0 0 0 CYNTHIA SANDERS VP, CORP SRVCS 183971 0 25000 0 2617 0 16812 0 5943 0 234343 0 0 0 RICHARD SUMMERS VP, CONT IMPROVEMENT - OUTGOING 173685 0 0 0 107650 0 85769 0 15674 0 382778 0 0 0 PHILLIP YANTZER VP, LABORATORY SERVICES 192228 0 30000 0 973 0 18082 0 20289 0 261572 0 0 0 JOHN M KING CHIEF QLTY OFFICER 189482 0 27500 0 20120 0 18939 0 13448 0 269489 0 0 0 SUSAN SCHINDELAR DIR., GLOBAL MKTG 200198 0 26500 0 1920 0 18600 0 20609 0 267827 0 0 0 CONNIE WEDEL DIR., GLOBAL HR 161163 0 66000 0 776 0 18197 0 2362 0 248498 0 0 0 MARK JULIAR DIR., GLOBAL ED. COMP. 103281 0 25000 0 98898 0 7200 0 1002 0 235381 0 0 0 STEPHEN MORISSEAU DIR., PUBLIC RELATIONS 199499 0 26500 0 1018 0 18480 0 19809 0 265306 0 0 0 LINDA SCHOLL FORMER KEY EMPLOYEE 0 0 0 0 192480 0 0 0 4341 0 196821 0 0 0 PART I, LINE 1A AS PROVIDED IN THE GIA EMPLOYEE HANDBOOK, GIA PROVIDES TO ALL EMPLOYEES ON A ONE-TIME BASIS, REIMBURSEMENT UP TO $100 OF THE EMPLOYEE'S HEALTH CLUB OR FITNESS PROGRAM MEMBERSHIP FEE. GIA WILL ONLY REIMBURSE THE EMPLOYEE ONCE RECEIPTS ARE SUBMITTED. THIS REIMBURSEMENT IS AVAILABLE TO ALL EMPLOYEES. PART I, LINE 4A SEPARATION PAYMENTS WERE MADE IN 2013, BASED ON THE SEPARATION AGREEMENTS, AS FOLLOWS: DONNA BAKER: $287,660 LINDA SCHOLL: $192,480 RICHARD SUMMERS: $45,115 MARK NECHITA: $7,269 PART I, LINE 7 THE BOARD OF GOVERNORS HAS THE DISCRETION TO APPROVE SPECIAL AWARDS EACH YEAR IN RECOGNITION OF TEAM CONTRIBUTIONS TO ACHIEVING ORGANIZATIONAL GOALS. WITHIN EACH TEAM, AWARDS ARE ALLOCATED ACCORDING TO INDIVIDUAL EMPLOYEE PERFORMANCE MEASURES. THESE AMOUNTS ARE LISTED IN SCHEDULE J, PART II, COLUMN B(II). PART II, COLUMN B(III): THE 'OTHER REPORTABLE COMPENSATION' REPORTED IN COLUMN (B)(III) CONSISTS OF THE VALUE OF GROUP TERM LIFE INSURANCE IN EXCESS OF $50,000 AND A CASH-OUT OF EARNED PAID TIME OFF (BOTH OF WHICH WERE OFFERED TO ALL EMPLOYEES) AS WELL AS RELOCATION PAYMENTS AND SEPARATION PAYMENTS MADE FOR CERTAIN EMPLOYEES AS PROVIDED IN THEIR EMPLOYMENT AGREEMENTS. PART II, COLUMN C: DURING 2013, DONNA BAKER'S EMPLOYMENT AT GIA ENDED AFTER 13 YEARS AS VP & GENERAL COUNSEL AND THEN PRESIDENT & CEO. MS. BAKER'S SEPARATION AGREEMENT SPECIFIED SEPARATION PAYMENTS OVER AN 18-MONTH PERIOD. THE AMOUNT OF SUCH SEPARATION PAYMENTS WAS APPROVED BY DISINTERESTED MEMBERS OF GIA'S BOARD OF GOVERNORS, BASED ON THE REASONED WRITTEN OPINION OF AN EXPERT THAT SUCH PAYMENTS WERE REASONABLE UNDER THE CIRCUMSTANCES. THE PORTION OF SUCH SEPARATION PAYMENTS PAID TO MS. BAKER IN 2013 IS REPORTED IN COLUMN B(III). THE PORTION TO BE PAID IN FUTURE YEARS IS REPORTED IN COLUMN C, EVEN THOUGH SUCH PAYMENTS ARE SEPARATION PAY, RATHER THAN FORMAL DEFERRED COMPENSATION. GIA HAS NO NONQUALIFIED DEFERRED COMPENSATION PLANS OR ARRANGEMENTS WITH ANY OF ITS EMPLOYEES. 625 SCHOLARSHIPS TUITION ASST. SEE PART V 123154 0 SEE PART V 1385024 0 SEE PART V 277888 0 SCHEDULE L, PART III: BECAUSE OF THE FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT (FERPA), SCHOOLS ARE NOT REQUIRED TO IDENTIFY INTERESTED PERSONS TO WHOM THEY PROVIDE FINANCIAL ASSISTANCE ON FORM 990. IN 2013, A FAMILY MEMBER OF A LISTED PERSON QUALIFIED FOR FEDERAL FINANCIAL AID AND GIA PROVIDED A 25% MATCH AS REQUIRED UNDER THE FEDERAL FINANCIAL AID PROGRAM. THE FINANCIAL AID PROVIDED WAS THE SAME AS THAT PROVIDED TO ANY OTHER SIMILARLY-SITUATED STUDENT. SCHEDULE L, PART IV: (A) NAME OF PERSON: KELLY YANTZER - DIRECTOR, GLOBAL EDUCATIONAL STANDARDS (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION:FAMILY MEMBER OF PHILLIP YANTZER, KEY EMPLOYEE(C) AMOUNT OF TRANSACTION: $123,154(D) DESCRIPTION OF TRANSACTION: MS. YANTZER IS GIA'S DIRECTOR OF GLOBAL EDUCATION STANDARDS. HER COMPENSATION IS REASONABLE IN LIGHT OF THE VALUE OF HER SERVICES TO THE INSTITUTE. SHE IS SUPERVISED BY, AND HER COMPENSATION LEVEL IS SET BY, GIA'S VICE PRESIDENT OF EDUCATION.THE INSTITUTE STRIVES TO MAINTAIN A BOARD OF GOVERNORS COMPOSED OF OUTSTANDING INDIVIDUALS WITH VARIED BACKGROUNDS WHO ARE ABLE TO CONTRIBUTE IMPORTANTLY TO THE ACCOMPLISHMENT OF THE INSTITUTE'S EXEMPT PURPOSES. THESE INCLUDE EXPERTS FROM THE FIELDS OF SCIENCE, ACADEMIA, FINANCE AND BUSINESS. THE INSTITUTE IS ALSO FORTUNATE TO HAVE BEEN ABLE TO RECRUIT A NUMBER OF OUTSTANDING EXPERTS (BOTH RETIRED AND ACTIVE) IN THE VARIOUS ASPECTS OF GEMS AND JEWELRY. THEREFORE, IT IS NOT SURPRISING THAT FIRMS ASSOCIATED WITH SOME OF THESE GOVERNORS HAVE PARTICIPATED IN THE INSTITUTE'S THREE EXEMPT ACTIVITIES PREVIOUSLY REPORTED TO AND APPROVED BY THE IRS: EDUCATION, RESEARCH, AND GEM LABORATORY ACTIVITIES. (IN ADDITION, A RELATIVELY SMALL PORTION OF THE TRANSACTIONS INVOLVED SALES OF GEMOLOGICAL INSTRUMENTS, BOOKS AND SUPPLIES WHICH HAVE BEEN REPORTED AS NONEXEMPT ACTIVITIES.) SUCH PARTICIPATION BY THESE FIRMS, HOWEVER, BEGAN BEFORE THE ELECTION OF THESE INDIVIDUALS TO THE BOARD OF GOVERNORS AND REPRESENTS A TINY FRACTION OF THE TOTAL ACTIVITIES REPORTED ON FORM 990. OBVIOUSLY, TO BAR FIRMS AFFILIATED WITH BOARD MEMBERS FROM UTILIZING THE SERVICES OF THE INSTITUTE THEY HAD PREVIOUSLY ENJOYED WOULD LIKELY DEPRIVE GIA OF THE SERVICES OF COMMITTED AND TALENTED LEADERS SUCH AS THESE. IN 2013, ONE FIRM ASSOCIATED WITH A MEMBER OF THE BOARD OF GOVERNORS RECEIVED A PAYMENT RELATED TO GEM LABORATORY SERVICES. THE PAYMENT WAS APPROVED IN ADVANCE BY MANAGEMENT AND DISINTERESTED MEMBERS OF THE BOARD OF GOVERNORS BASED ON EXPERT OPINION THAT THE AMOUNT WAS REASONABLE. THIS FIRM ALSO PAID FEES RELATED TO LABORATORY SERVICES TO GIA. THE FEES PAID TO GIA WERE THE SAME AS THOSE PAID BY ANY OTHER SIMILARLY-SITUATED CLIENT. THIS FIRM WAS A CLIENT OF THE GIA LABORATORY BEFORE THE AFFILIATED INDIVIDUAL BECAME A MEMBER OF THE BOARD OF GOVERNORS.GOVERNOR: EPHRAIM ZIONAFFILIATED FIRM: DEHRES LIMITED AGGREGATE AMOUNT PAID BY GIA: $1,265,256AGGREGATE AMOUNT PAID TO GIA: $119,768GENERAL COMMENTSMR. ZION IS THE MANAGING DIRECTOR OF DEHRES LTD. THE INSTITUTE UNDERSTANDS THAT MR. ZION HAS AN INTEREST IN DEHRES LTD. THROUGH SHARES HELD BY A FAMILY TRUST. THE FOREGOING TRANSACTIONS DID NOT INVOLVE A SHARING OF THE INSTITUTE'S REVENUE.ALSO IN 2013, A FIRM AFFILIATED WITH A DIFFERENT MEMBER OF THE BOARD OF GOVERNORS PAID FEES RELATED TO LABORATORY SERVICES TO GIA. THE FEES PAID TO GIA WERE THE SAME AS THOSE PAID BY ANY OTHER SIMILARLY-SITUATED CLIENT. THIS FIRM WAS A CLIENT OF THE GIA LABORATORY BEFORE THEAFFILIATED INDIVIDUAL BECAME A MEMBER OF THE BOARD OF GOVERNORS.GOVERNOR: ELLIOT TANNENBAUMAFFILIATED FIRM: LEO SCHACHTER DIAMOND GROUPAGGREGATE AMOUNT PAID TO GIA: $277,888GENERAL COMMENTSMR. TANNENBAUM IS SENIOR PRINCIPAL OF LEO SCHACHTER DIAMOND GROUP. THE FOREGOING TRANSACTIONS DID NOT INVOLVE A SHARING OF THE INSTITUTE'S REVENUE. X 69 314946 SALE OF COMP. PROP. 4 0 1 0 PART I, COLUMN (B): GIA IS REPORTING THE NUMBER OF CONTRIBUTIONS. FORM 990, PART III, LINE 1, ORGANIZATION MISSION STATEMENT: THE INSTITUTE'S MISSION AND MOST SIGNIFICANT ACTIVITIES ARE (A) OPERATING A SCHOOL PROVIDING EDUCATION AND GRANTING DIPLOMAS IN GEMOLOGY AND RELATED AREAS; (B) PROTECTING THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS, DETERRING GEM THEFT, ASSISTING IN THE RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND PROMOTING STATE-OF-THE-ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY AND AS IMITATIONS OF GEMS; AND (C) SUPPORTING, PERFORMING, AND PUBLISHING SCIENTIFIC RESEARCH AND ANALYSIS RELATED TO GEMS AND GEMOLOGY AND LEARNING IN RELATED FIELDS. FORM 990, PAGE 1, ITEM L, YEAR OF FORMATION: THE GEMOLOGICAL INSTITUTE OF AMERICA WAS ESTABLISHED IN 1931 BY ROBERT M. SHIPLEY WHO INTRODUCED CORRESPONDENCE COURSES IN THE SAME YEAR. SUBSEQUENTLY, GIA CORPORATIONS WERE FORMED IN OHIO AND IN CALIFORNIA. THE CURRENT GEMOLOGICAL INSTITUTE OF AMERICA, INC. ("GIA" OR "THE INSTITUTE") IS A CALIFORNIA PUBLIC BENEFIT CORPORATION, WHICH IS THE SUCCESSOR TO THE CALIFORNIA CORPORATION INITIALLY INCORPORATED IN 1982, WHICH IN TURN IS THE SUCCESSOR TO THE OHIO CORPORATION INCORPORATED IN 1943. FORM 990, PAGE 1, LINE 1, ORGANIZATION MISSION STATEMENT: GIA IS THE WORLD'S LARGEST AND MOST RESPECTED NONPROFIT INSTITUTE OF GEMOLOGICAL LEARNING AND RESEARCH. THE INSTITUTE'S MISSION AND MOST SIGNIFICANT ACTIVITIES ARE (A) OPERATING A SCHOOL PROVIDING EDUCATION AND GRANTING DIPLOMAS IN GEMOLOGY AND RELATED AREAS; (B) PROTECTING THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS, DETERRING GEM THEFT, ASSISTING IN THE RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND PROMOTING STATE-OF-THE-ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY AND AS IMITATIONS OF GEMS; AND (C) SUPPORTING, PERFORMING, AND PUBLISHING SCIENTIFIC RESEARCH AND ANALYSIS RELATED TO GEMS AND GEMOLOGY AND LEARNING IN RELATED FIELDS. GIA OFFERS A COMPREHENSIVE GEMOLOGY CURRICULUM TAUGHT BY A FULL-TIME, PROFESSIONAL FACULTY TO REGULARLY ENROLLED STUDENTS AT ITS ON-CAMPUS FACILITIES IN CARLSBAD, CALIFORNIA AND NEW YORK CITY. GIA ALSO OFFERS EXTENSIVE DISTANCE EDUCATION. GIA'S RESEARCHERS UTILIZE SOPHISTICATED ANALYTICAL TECHNIQUES AND EQUIPMENT TO ADVANCE THE SCIENCE OF GEMOLOGY, AND TO DETECT SYNTHETIC AND ALTERED GEMS. ITS LIBRARY AND QUARTERLY PUBLICATION, GEMS & GEMOLOGY, COLLECT AND DISSEMINATE RESEARCH ON GEMS. THE GIA'S LABORATORY PROTECTS THE PUBLIC FROM MISREPRESENTATION ABOUT GEMS, DETERS GEM THEFT, AND HELPS LAW ENFORCEMENT BY TRACING STOLEN GEMS, WHILE PROMOTING STATE-OF-THE-ART RESEARCH. IN 2013 AND 2014, THE ETHISPHERE INSTITUTE, A LEADING INTERNATIONAL ORGANIZATION DEDICATED TO THE CREATION, ADVANCEMENT AND SHARING OF BEST PRACTICES IN BUSINESS ETHICS, NAMED GIA AS ONE OF THE "WORLD'S MOST ETHICAL COMPANIES". FORM 990, PART III, LINE 4A: EDUCATION: GIA OFFERS A COMPREHENSIVE GEMOLOGY CURRICULUM AT THE INSTITUTE'S CALIFORNIA AND NEW YORK CAMPUSES, AND THROUGH INTERNATIONAL SUBSIDIARIES IN INDIA, THAILAND, HONG KONG, ENGLAND, SOUTH AFRICA, BOTSWANA, UNITED ARAB EMIRATES, AND TAIWAN, AND LICENSEES IN JAPAN, KOREA, AND RUSSIA. DISTANCE EDUCATION COURSES ARE DISTRIBUTED DOMESTICALLY AND INTERNATIONALLY IN A VARIETY OF LANGUAGES. IN 2013, TOTAL ENROLLMENTS WERE 15,526, COMPRISING 3,201 ON-CAMPUS, AND 12,325 DISTANCE-EDUCATION ENROLLMENTS. GIA WAS AWARDED THE SCHOOL OF EXCELLENCE AWARD IN 2012 (CALIFORNIA) AND 2014 (NEW YORK) BY THE ACCREDITING COMMISSION OF CAREER SCHOOLS AND COLLEGES (ACCSC) AT THE CONCLUSION OF EACH CAMPUS' FIVE YEAR ACCREDITATION CYCLE. ONLY A HANDFUL OF SCHOOLS IN THE COUNTRY QUALIFY FOR THIS HIGH HONOR. GIA'S EDUCATIONAL OFFERINGS COVER THE GAMUT OF GEMOLOGY SUBJECTS, INCLUDING, BUT NOT LIMITED TO: (A) THE USE OF GEMOLOGICAL INSTRUMENTS, (B) THE OPTICAL AND PHYSICAL PROPERTIES OF DIAMONDS, GEMSTONES, PEARLS AND OTHER NATURAL ORGANIC GEM MATERIALS, (C) SYNTHETIC DIAMONDS AND DIAMOND SIMULANTS, (D) DETECTION OF FRACTURE-FILLED DIAMONDS AND SYNTHETIC DIAMONDS, (E) DETERMINATION OF COLOR, CLARITY, CUT, AND CARAT WEIGHT OF DIAMONDS, (F) APPLICATION OF FTC GUIDELINES FOR JEWELRY TRANSACTIONS, (G) DETECTION OF SYNTHETIC, TREATED, IMITATION OR ASSEMBLED COLORED GEM MATERIALS, AND (H) DETECTION OF CULTURED, IMITATION, ASSEMBLED AND TREATED PEARLS. A GRADUATE GEMOLOGIST (G.G.) DIPLOMA FROM GIA IS RECOGNIZED AROUND THE GLOBE AS A KEY CREDENTIAL IN THE GEMOLOGICAL WORLD. IN 2003, IN RESPONSE TO A GROWING NEED FOR QUALITY SCIENCE COURSES FOR CHILDREN, GIA CREATED THE JUNIOR GEMOLOGIST PROGRAM. THE JUNIOR GEMOLOGIST PROGRAM TEACHES GEMOLOGY, GEOLOGY AND MINERALOGY TO LOCAL STUDENTS AND YOUTH GROUPS, WITH INSTRUCTION PROVIDED BY THE INSTITUTE'S INSTRUCTORS AND MEMBERS OF THE GEM AND JEWELRY INDUSTRY. THE MATERIAL IS PRESENTED IN AN INTERACTIVE AND SCIENTIFIC WORKSHOP THAT INCLUDES HANDS-ON TRAINING WITH GEMOLOGICAL INSTRUMENTS AND EQUIPMENT. IN 2013, APPROXIMATELY 5,435 STUDENTS ATTENDED THE JUNIOR GEMOLOGIST PROGRAM. GIA HOSTS A JEWELRY CAREER FAIR AND OPEN HOUSE AT ITS CAMPUSES IN CALIFORNIA AND NEW YORK ON AN ANNUAL BASIS. THE EVENT IS FREE AND OPEN TO THE PUBLIC. AS THE JEWELRY INDUSTRY'S LARGEST JOB FAIR, THE EVENT ALWAYS ATTRACTS THE INDUSTRY'S TOP RETAILERS, MANUFACTURERS, LABORATORIES AND WHOLESALERS INTERESTED IN HIRING GIA STUDENTS AND GRADUATES. IN 2013, APPROXIMATELY 1,300 INDIVIDUALS ATTENDED THE CAREER FAIR AND OPEN HOUSE EVENTS, 500 IN CALIFORNIA AND 800 IN NEW YORK. THE MISSION OF THE INSTITUTE'S RICHARD T. LIDDICOAT GEMOLOGICAL LIBRARY AND INFORMATION CENTER IN CARLSBAD, CALIFORNIA IS TO CONTINUE AS THE WORLD'S PREMIER RESOURCE FOR INFORMATION IN THE FIELDS OF GEM AND JEWELRY-RELATED STUDIES. AS SUCH, THE INSTITUTE PROMOTES THE USE OF ITS RESOURCES FOR EDUCATION AND RESEARCH BY THE PUBLIC, THE GEM AND JEWELRY INDUSTRY, AND THE INSTITUTE'S STUDENTS, FACULTY AND ALUMNI. THE INSTITUTE'S LIBRARY HOUSES THE WORLD'S LARGEST COLLECTION OF DIAMOND, GEM AND JEWELRY RESOURCE MATERIALS. WHETHER BY PHONE, E-MAIL OR IN PERSON, THE LIBRARY STAFF SERVES SCIENTISTS, JEWELERS, GEMOLOGISTS AND STUDENTS FROM EVERY CORNER OF THE GLOBE. THE EXPERT LIBRARY STAFF DRAWS UPON A GROWING COLLECTION OF OVER 15,000 VOLUMES IN ITS CIRCULATING COLLECTION, 35,000 VOLUMES IN THE RENOWNED CARTIER RARE BOOK REPOSITORY AND ARCHIVES, OVER 140,000 PHOTOGRAPHIC IMAGES, 1,800 VIDEOS/DVDS, APPROXIMATELY 700 JOURNAL AND MAGAZINE TITLES, 250 CD-ROMS AND 130 AUDIO CDS TO PROVIDE READY REFERENCE IN THE FIELDS OF GEMOLOGY AND JEWELRY. THE INSTITUTE'S MUSEUM ALSO EDUCATES THE PUBLIC ON GEMS AND GEMOLOGY, DISPLAYING CUT GEMS, MINERAL SPECIMENS AND JEWELRY. THE MUSEUM HAS HOSTED A SERIES OF THEMED EXHIBITS. IN 2013, 8,373 GUESTS VISITED AND TOURED THE MUSEUM THROUGHOUT THE YEAR. AS DISCUSSED BELOW, THE INSTITUTE PUBLISHES "GEMS & GEMOLOGY," A PEER REVIEWED JOURNAL THAT EDUCATES ITS READERSHIP ABOUT THE LATEST DISCOVERIES IN GEMOLOGY. IN 2013, GIA AND THE NELSON MANDELA CENTRE OF MEMORY SIGNED A MEMORANDUM OF UNDERSTANDING TO PROVIDE FOUR ELEMENTARY SCHOOLS IN SOUTH AFRICA WITH MANDELA DAY LIBRARIES. THE NEW LIBRARIES ARE FUNDED BY THE GIA ENDOWMENT, WHICH SUPPORTS EDUCATION AND SCHOLARSHIP PROGRAMS. THIS COLLABORATION FURTHERS GIA'S MISSION TO PROMOTE THE HIGHEST QUALITY OF GLOBAL GEMOLOGICAL EDUCATION BY SUPPORTING CHILDHOOD LITERACY AND COMPLEMENTS GIA'S OTHER EDUCATIONAL INITIATIVES THAT TARGET OTHER AGE GROUPS. FORM 990, PART III, LINE 4B: LABORATORY: THE MISSION OF THE INSTITUTE'S LABORATORY IS TO PROTECT THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS (WHETHER INNOCENT, NEGLIGENT OR INTENTIONAL), TO DETER GEM THEFT, TO ASSIST IN RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND TO PROMOTE STATE-OF-THE-ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY. THE FBI'S JEWELRY AND GEM PROGRAM HAS DESIGNATED GIA AS A PARTNER LISTED ON THE FBI WEBSITE IN COMBATING GEM THEFT. IN 2013, THE LABORATORY FLAGGED 914 STOLEN GEMSTONES IN ITS DATABASE, AND RECOVERED 33 GEMSTONES IN CASES IN WHICH STONES WERE RESUBMITTED TO THE LABORATORY AFTER HAVING BEEN STOLEN. GIA ALSO REGULARLY ASSISTS OTHER GOVERNMENT AGENCIES. IN 2013, GIA ISSUED 11 DIAMOND GRADING REPORTS FOR LAW ENFORCEMENT AGENCIES. FURTHERMORE, GIA PROVIDED SUPPORT AND INFORMATION TO THE DEPARTMENT OF HOMELAND SECURITY. THE LABORATORY FULFILLS ITS MISSION BY EXAMINING AND CLASSIFYING INDIVIDUAL GEM MATERIALS SUBMITTED TO THE GIA LABORATORY AND ITS INTERNATIONAL SUBSIDIARIES' LABORATORIES. DIAMONDS AND SYNTHETIC DIAMONDS ARE IDENTIFIED AND GRADED, WITH REPORTS ISSUED ON THEIR PRECISE IDENTIFYING FEATURES AND WITH QUALITY ASSESSMENTS ON THE 4CS: COLOR, CLARITY, CUT AND CARAT WEIGHT. COLORED GEMSTONES, SYNTHETIC COLORED STONES, PEARLS AND CULTURED PEARLS ARE IDENTIFIED, WITH REPORTS ISSUED UPON CLIENT REQUEST. THE DISTINGUISHING CHARACTERISTICS AND FEATURES OF A GIVEN GEM ARE UNIQUE TO THAT GEM IN MUCH THE SAME WAY A FINGERPRINT IS UNIQUE TO AN INDIVIDUAL PERSON. ONCE A GEM HAS BEEN SUBMITTED FOR EXAMINATION, ITS CHARACTERISTICS AND FEATURES ARE RECORDED FOR FUTURE REFERENCE IN CASE IT IS EVER RESUBMITTED, EITHER IN THE NORMAL COURSE OF EVENTS OR IN QUESTIONABLE CIRCUMSTANCES, SUCH AS WITH LOST OR STOLEN ITEMS. ADDITIONALLY, IF REQUESTED BY THE CLIENT, AN IDENTIFICATION CODE CAN BE LASER INSCRIBED UPON THE GEM. THE SUBSTANTIAL AND CONTINUOUS VOLUME OF GEM MATERIALS THAT ARE SUBMITTED FOR EXAMINATION, TOGETHER WITH THE LARGE COLLECTION OF COMPARISON GEMS ACQUIRED BY GIA, CONSTITUTE AN INVALUABLE DATABASE FOR THE RESEARCH AND PUBLIC SERVICE CONDUCTED BY THE INSTITUTE. TO MAKE THIS PUBLIC SERVICE POSSIBLE, GIA CHARGES RELATIVELY MODEST FEES THAT VARY BY THE TYPE AND SIZE OF THE GEM MATERIAL. IT SHOULD BE NOTED THAT GIA DOES NOT APPRAISE ANY GEM MATERIALS OR OTHERWISE ESTABLISH THEIR MARKET VALUE. COMMERCE IN GEMS HAS BECOME MORE GLOBAL OVER THE PAST DECADE, WITH THE RESULT THAT MANY GEM MATERIALS ARE SOLD BY FOREIGN GEM OWNERS OR DEALERS BUT ULTIMATELY FIND THEIR WAY TO THE U.S. MARKET, EITHER THROUGH WHOLESALE DISTRIBUTION OR FUTURE RESALE. MOST DIAMONDS PURCHASED IN THE U.S. HAVE BEEN MINED AND PROCESSED OUTSIDE OF THIS COUNTRY. SOME PROPORTION OF THOSE DIAMONDS HAVE HISTORICALLY NOT BEEN SUBMITTED TO GIA'S LABORATORY BECAUSE OF THE GEOGRAPHIC DISTANCE BETWEEN GIA'S LABORATORY FACILITIES IN CALIFORNIA AND NEW YORK AND THE FAR FLUNG LOCATIONS OF MINES AND DEALERS. TO ENHANCE ITS ABILITY TO PURSUE THE MISSION OF PROTECTING THE GEM PURCHASING PUBLIC, DETERRING THEFT, AND ASSISTING IN RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, GIA OPERATES LABORATORIES THROUGH ITS BRANCHES AND WHOLLY-OWNED SUBSIDIARIES IN BOTSWANA, HONG KONG, INDIA, ISRAEL, JAPAN, SOUTH AFRICA, AND THAILAND; AND GIA OPERATES AN INTAKE OFFICE OFFERING LOGISTICAL SUPPORT THROUGH ITS WHOLLY-OWNED SUBSIDIARY IN UNITED ARAB EMIRATES. FORM 990, PART III, LINE 4C: RESEARCH & PUBLICATIONS: THE INSTITUTE'S RESEARCHERS UTILIZE SOPHISTICATED ANALYTICAL TECHNIQUES AND SCIENTIFIC EQUIPMENT TO ADVANCE THE SCIENCE OF GEMOLOGY, INCLUDING DETECTION OF SYNTHETIC GEMS, CULTURED PEARLS AND TREATED NATURAL GEMS. THE MISSION OF THE RESEARCH DEPARTMENT IS TO (1) CHARACTERIZE THE GEMOLOGICAL PROPERTIES OF GEM MATERIALS AND DEVELOP PRACTICAL WAYS TO IDENTIFY THEM; (2) UNDERSTAND THE CONDITIONS OF GEMSTONE FORMATION IN THE EARTH, AS WELL AS THE CONDITIONS OF GEM TREATMENT AND SYNTHESIS IN THE LABORATORY, AS A FURTHER BASIS FOR DEVELOPING MEANS OF GEM IDENTIFICATION; (3) INVESTIGATE THE FACTORS THAT ARE RESPONSIBLE FOR THE APPEARANCE OF DIAMONDS AND OTHER GEM MATERIALS, SO AS TO ESTABLISH METHODS TO EVALUATE THEIR QUALITY; AND (4) DESIGN AND IMPROVE INSTRUMENTS FOR GEM STONE TESTING. THE INSTITUTE IS THE WORLD LEADER IN RESEARCHING THE METHODS BY WHICH GEM MATERIALS CAN BE ENHANCED IN COLOR OR CLARITY OR SYNTHESIZED IN A LABORATORY. THIS RESEARCH HELPS PROTECT THE PUBLIC FROM POSSIBLE MISREPRESENTATIONS PERTAINING TO GEM MATERIALS. THE INSTITUTE ACTS AS A CONSUMER ADVOCATE TO ENSURE THAT CONSUMERS, ALONG WITH RETAILERS AND WHOLESALERS, ARE FULLY APPRISED OF THE TRUE CHARACTER - NATURAL, ENHANCED, OR SYNTHETIC - OF ANY SPECIFIC GEM. SINCE 2011, GIA HAS PARTICIPATED IN AN AGREEMENT WITH UNITED STATES CUSTOMS AND BORDER PROTECTION TO COLLABORATE ON ANALYSES OF GEMSTONES IN ORDER TO DETERMINE THEIR IDENTITY (NATURAL, TREATED-NATURAL OR SYNTHETIC), INDICATIONS OF COUNTRY OF ORIGIN, AND DEVELOP A DATABASE FOR INTERNATIONAL, FEDERAL, STATE, AND LOCAL LAW ENFORCEMENT THAT WILL FACILITATE TRADE AND LAW ENFORCEMENT. THIS COLLABORATION HELPS TO LESSEN THE BURDENS OF GOVERNMENT. TO DISSEMINATE THEIR FINDINGS, GIA RESEARCHERS SPEAK AT SEMINARS, POST DEVELOPMENTS ONLINE ON THE GIA RESEARCH WEB SITE, AND PUBLISH FREQUENTLY IN SCHOLARLY TEXTS AND JOURNALS, INCLUDING "GEMS & GEMOLOGY," GIA'S QUARTERLY SCIENTIFIC PUBLICATION. GEMS & GEMOLOGY, WHICH HAS BEEN IN CONTINUOUS PUBLICATION FOR 80 YEARS, PROVIDES INFORMATION ON NEW GEM MATERIALS, GEM LOCALITIES, TREATMENT AND SYNTHESIS TECHNIQUES, AND IDENTIFICATION METHODS. THE JOURNAL KEEPS STUDENTS AND PROFESSIONALS ALIKE UP-TO-DATE ON THE MOST CRITICAL TOPICS IN GEMOLOGY. IN RECENT YEARS, GIA HAS PUBLISHED THREE BOOKS CONTAINING ARTICLES FROM GEMS & GEMOLOGY, ON SYNTHETIC, COLORED AND TREATED DIAMONDS. THERE IS A CONSTANT DEMAND FOR BACK ISSUES BY STUDENTS, PROFESSIONALS AND HOBBYISTS RESEARCHING NUMEROUS GEMOLOGICAL SUBJECTS. IN ADDITION, GIA SUMMARIZES TECHNICAL ARTICLES PUBLISHED BY GIA RESEARCHERS IN GEMS & GEMOLOGY FOR REPUBLICATION IN TRADE JOURNALS NATIONALLY AND INTERNATIONALLY, SO THE INFORMATION CAN BE BROADLY DISSEMINATED. SINCE NOVEMBER 2008, THE JOURNAL HAS BEEN AVAILABLE ONLINE AS WELL AS IN PRINT. BEGINNING IN 2013, GIA MADE ALL OF ITS CURRENT AND BACK ISSUES OF GEMS & GEMOLOGY AVAILABLE ONLINE AT NO COST, AS WELL AS SUPPLEMENTAL MEDIA AND DATA. GIA ALSO LAUNCHED THE GEM ENCYCLOPEDIA IN 2013, WHICH MAKES DETAILED BUT USER-FRIENDLY INFORMATION ON A RANGE OF GEMSTONES AVAILABLE TO THE GENERAL PUBLIC ON ITS WEBSITE. WEBSITE PAGES VIEWS FOR THE YEAR 2013: GEMS & GEMOLOGY 218,015 RESEARCH & NEWS 47,487 PUBLICATION INFORMATION FOR THE YEAR 2013: ISSUES DISTRIBUTED TO SUBSCRIBERS: 4,107 CURRENT ISSUES ORDERED: 1,154 BACK ISSUES ORDERED: 622 TOTAL ISSUES: 5,883 FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF GOVERNORS DELEGATES THE DETAILED REVIEW AND APPROVAL OF FORM 990 TO A 990 REVIEW TEAM. THE 990 REVIEW TEAM CONSISTS OF: GIA PRESIDENT / CEO AND GOVERNOR; ITS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER; ITS SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER; ITS VICE PRESIDENT AND CORPORATE COUNSEL; GIA'S OUTSIDE COUNSEL SPECIALIZING IN NON-PROFIT AND TAX MATTERS; VICE PRESIDENT/CHIEF COMPLIANCE & ETHICS OFFICER; AND GLOBAL TAX DIRECTOR OF GIA. THE 990 REVIEW TEAM SCHEDULES A MEETING WITH THE FIRM THAT PREPARES THE FORM 990 TO CONDUCT A DETAILED REVIEW. THE FIRM RESPONDS TO ANY OUTSTANDING QUESTIONS OR CONCERNS RAISED BY THE 990 REVIEW TEAM. ONCE THE REVIEW TEAM COMPLETES ITS DETAILED REVIEW, THE FORM 990 IS AVAILABLE TO THE BOARD OF GOVERNORS PRIOR TO ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE INSTITUTE REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICIES THROUGH ANNUAL CIRCULATION OF A CONFLICT OF INTEREST QUESTIONNAIRE, WHICH IS COMPLETED AND SIGNED BY ALL MEMBERS OF THE BOARD OF GOVERNORS, OFFICERS, AND MEMBERS OF EXECUTIVE MANAGEMENT. IN ADDITION, GIA REQUIRES ALL EMPLOYEES (INCLUDING THOSE OF GIA AND ITS INTERNATIONAL AFFILIATES) TO REVIEW ITS CODE OF CONDUCT, AS IT MAY BE AUGMENTED BY GIA FROM TIME TO TIME, AND TO ACKNOWLEDGE BY SIGNATURE ADHERENCE TO ITS ETHICAL STANDARDS, INCLUDING ITS CONFLICT OF INTEREST POLICIES, AS A CONDITION OF EMPLOYMENT. THE LEGAL DEPARTMENT REVIEWS CONTRACTUAL RELATIONSHIPS ENTERED INTO BY THE ORGANIZATION AND IS RESPONSIBLE FOR MONITORING CONFLICTS OF INTEREST AS REPORTED THROUGH DISCLOSURES AND BY OTHER MEANS. FURTHER, IT IS INCUMBENT UPON ALL OF THE AFOREMENTIONED PARTIES TO DISCLOSE ANY CONFLICTS OF INTEREST IN THE COURSE OF THE YEAR. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF GOVERNORS EXECUTIVE COMMITTEE MEETS ANNUALLY IN NOVEMBER TO REVIEW THE OFFICER COMPENSATION AND TO SET THE PAY RATE FOR THE SUBSEQUENT YEAR. GIA HAS RETAINED THE SERVICES OF THE HAY GROUP, INTERNATIONAL COMPENSATION AND BENEFITS CONSULTANTS, WHICH DISTRIBUTES PERIODIC MARKET PAY COMPARISONS OF COMPARABLE JOBS TO THOSE OF GIA OFFICERS. THIS INFORMATION IS PROVIDED TO THE BOARD EXECUTIVE COMMITTEE FOR REVIEW AND USE. IN THE INTERIM YEARS BETWEEN COMPREHENSIVE MARKET STUDIES, GIA OBTAINS SUCH MARKET DATA AS AVERAGE MERIT INCREASES FROM THE HAY GROUP AND ALSO TAKES THE CPI INTO CONSIDERATION. FORM 990, PART VI, SECTION C, LINE 19 GIA'S EMPLOYEE CODE OF CONDUCT, WHICH INCLUDES A SECTION ON CONFLICTS OF INTEREST, IS POSTED ON GIA'S WEBSITE. THIS CODE GOVERNS EMPLOYEES OF GIA AND ITS GLOBAL SUBSIDIARIES. FINANCIAL STATEMENTS ARE INCORPORATED INTO THE FORM 990, WHICH, OF COURSE, IS AVAILABLE TO THE PUBLIC. THE INSTITUTE'S GOVERNING DOCUMENTS ARE ALSO AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, SECTION A: IN 2013 BOARD MEMBERS RECEIVED A STIPEND BASED ON THE NUMBER OF MEETINGS THEY ATTENDED. HOWEVER, EACH GOVERNOR HAS THE OPTION TO DECLINE THIS STIPEND. FORM 990, PART XI, LINE 9: UNREALIZED FOREIGN EXCHANGE LOSS -534,392. PENSION LIABILITY ADJUSTMENT 11,513,190. EQUITY EARNINGS OF SUBS 3,908,737. DIVIDENDS FROM FOREIGN SUBS -2,258,029. GIA INSTRUMENTS UK LIMITED 35 VINE STREET LONDON, ECN 2AA UK GEMOLOGICAL INSTRUMENT SALES UK 52 16640 GEMOLOGICAL INSTITUTE OF AMERICA INC GIA (ISRAEL) 21 TUVAL ST HAYAHALOM BLDG 1ST FL RAMAT GAN 52522 IS LABORATORY SERVICES IS 3974170 3315798 GEMOLOGICAL INSTITUTE OF AMERICA INC GIA HOLDINGS INC 5345 ARMADA DRIVE CARLSBAD CA 92008 330990032 TITLE HOLDING COMPANY FOR TAX-EXEMPT PARENT CA 501(C)(2) GEMOLOGICAL INSTITUTE OF AMERICA INC 1 GIA ENGLAND 104 GREAT RUSSELL STREET LONDON, WC1B 3LA UK EDUCATIONAL SERVICES UK GEMOLOGICAL INSTITUTE OF AMERICA INC 1 GIA (INTERNATIONAL) COMPANY LTD U-CHU-LIANG BLDG 2ND FL 968 RAMA SILOM, BANGRAK, BANGKOK 10500 TH EDUCATIONAL SERVICES TH GEMOLOGICAL INSTITUTE OF AMERICA INC 1 GIA INDIA 10TH FL TRADE CENTRE BANDRA KURLA BANDRA (EAST), MUMBAI, 400 051 IN EDUCATIONAL SERVICES IN GIA HOLDINGS INC 1 GIA INSTRUMENT (TAIWAN) CO 3F 270 NANJING EAST ROAD SEC 3 TAIPEI, 105, ROC TW EDUCATIONAL SERVICES TW GEMOLOGICAL INSTITUTE OF AMERICA INC C 2447792 1872777 1.00000 1 GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD U-CHU-LIANG BLDG 10TH FL 968 RAM SILOM, BANGRAK, BANGKOK 10500 TH LIMITED LABORATORY SERVICE TH GEMOLOGICAL INSTITUTE OF AMERICA INC C 7592419 4050679 1.00000 1 GIA HONG KONG LIMITED ROOM 301 3/F AON CHINA BUILDING 29 QUEEN'S ROAD CENTRAL HK EDUCATIONAL SERVICES HK GEMOLOGICAL INSTITUTE OF AMERICA INC C 2751674 3374968 1.00000 1 GIA HONG KONG LABORATORY SERVICES CENTER LIMITED C/O ROOM 1411 NEW WORLD TOWER 16-18 QUEEN'S ROAD CENTRAL HK LOGISTICAL SUPPORT HK GEMOLOGICAL INSTITUTE OF AMERICA INC C 1 GIA BELGIUM NV LANGE HERENTALSESTRAAT 20-26 B-2018 ANTWERP BE RESEARCH SERVICES BE GEMOLOGICAL INSTITUTE OF AMERICA INC C 755667 907699 0.78770 1 GIA EDUCATION AND LABORATORY LIMITED SUITE 106 THE ATRIUM DIAMOND TECHN PT 67782, BL 8 INDUSTRIAL GABORONE BC EDUCATIONAL AND LABORATORY SERVICES BC GEMOLOGICAL INSTITUTE OF AMERICA INC C 3333949 2376332 1.00000 1 GEMOLOGICAL INSTITUTE INTERNATIONAL INC 5345 ARMADA DR CARLSBAD CA 92008 263688898 EDUCATIONAL AND TRAINING SERVICES CA GEMOLOGICAL INSTITUTE OF AMERICA INC C 4133174 2234641 1.00000 1 GIA INDIA LABORATORY PRIVATE LIMITED 10TH FLOOR TRADE CENTRE BANDRA KUR BANDRA (EAST), MUMBAI, 400 051 IN LABORATORY SERVICES IN GIA HOLDINGS INC C 51700403 58992208 1.00000 1 GIA MIDDLE EAST (LLC) BUILDING 6WA OFFICE 801 DUBAI AIRPORT FREE ZONE P.O. BOX 293800, DUBAI AE EDUCATION AND LOGISTIC SUPPORT AE GEMOLOGICAL INSTITUTE OF AMERICA INC C 523630 2901096 1.00000 1 GIA EDUCATION AND LABORATORY (PTY) LTD 512 5TH FL SA DIAMOND CENTRE JOHANNESBURG, 2001 SF EDUCATION AND LAB SERVICES SF GEMOLOGICAL INSTITUTE OF AMERICA INC C 5164539 3243171 1.00000 1 GIA HONG KONG LABORATORY LIMITED ROOM 1411 NEW WORLD TOWER 16-18 QUEEN'S ROAD CENTRAL HK LABORATORY SERVICE HK GEMOLOGICAL INSTITUTE OF AMERICA INC C 7989793 4450670 1.00000 1 GIA TOKYO GODO KAISHA YAMAGUCHI BLDG 7 11TH FL 19-9 TAI 4-CHOME TAITO-KU, TOKYO JA LABORATORY SERVICE JA GEMOLOGICAL INSTITUTE OF AMERICA INC C 1597685 3244193 1.00000 1 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 1 1 GIA EDUCATION AND LABORATORY (PTY) LTD A 449386 FMV GIA INDIA LABORATORY PRIVATE LIMITED A 22577817 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD A 1209051 FMV GIA TOKYO GODO KAISHA D 1039429 FMV GIA INSTRUMENT (TAIWAN) CO F 375476 FMV GIA HONG KONG LIMITED G 167192 FMV GIA INSTRUMENT (TAIWAN) CO G 119155 FMV GIA (INTERNATIONAL) COMPANY LTD G 75188 FMV GIA INDIA G 254746 FMV GIA HONG KONG LABORATORY LIMITED G 274633 FMV GIA EDUCATION AND LABORATORY LTD G 97271 FMV GIA EDUCATION AND LABORATORY (PTY) LTD G 150306 FMV GIA INDIA LABORATORY PRIVATE LIMITED G 1318002 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD G 93003 FMV GIA INSTRUMENT (TAIWAN) CO Q 985932 FMV GIA (INTERNATIONAL) COMPANY LTD Q 392969 FMV GIA ENGLAND Q 288449 FMV GIA HONG KONG LIMITED Q 1196893 FMV GIA INDIA Q 238956 FMV GIA HONG KONG LABORATORY LIMITED Q 214391 FMV GIA EDUCATION AND LABORATORY (PTY) LTD Q 113138 FMV GIA INDIA LABORATORY PRIVATE LIMITED Q 669024 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD Q 1651130 FMV GIA BELGIUM NV R 617836 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD R 601087 FMV GIA EDUCATION AND LABORATORY (PTY) LTD S 865573 FMV GIA INDIA LABORATORY PRIVATE LIMITED S 30902263 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD S 819793 FMV SCHEDULE R, PART V: THE TRANSACTIONS REPORTED BETWEEN GIA AND THE RELATED ORGANIZATIONS LISTED ON LINES 2(1)-2(3) OF PART V INVOLVE THE PAYMENT OF ROYALTIES BY THE RELATED ORGANIZATIONS TO GIA FOR THE USE OF CERTAIN INTELLECTUAL PROPERTY. THESE RELATED ORGANIZATIONS ARE NOT TAX EXEMPT UNDER SECTION 501(C)(3) OF THE CODE, BECAUSE THEY ARE NOT LOCATED OR OPERATING IN THE UNITED STATES. HOWEVER, IF THESE ORGANIZATIONS WERE TAX EXEMPT UNDER SECTION 501(C)(3) OF THE CODE WITH THE SAME EXEMPT PURPOSES AS GIA, THESE ORGANIZATIONS WOULD HAVE NO UNRELATED BUSINESS INCOME, SINCE ALL OF THEIR INCOME AND ACTIVITIES ARE IDENTICAL IN CHARACTER TO GIA'S TAX-EXEMPT INCOME AND ACTIVITIES. ACCORDINGLY, THESE ROYALTY PAYMENTS ARE NOT TREATED AS UNRELATED BUSINESS INCOME FOR GIA UNDER SECTION 512(B)(13) OF THE CODE. THE TRANSACTIONS REPORTED BETWEEN GIA AND THE RELATED ORGANIZATIONS LISTED WITH TRANSACTION TYPE S ARE ASSOCIATED WITH THE PROVISION OF GRADING AND MANAGEMENT SERVICES BY GIA. THESE GRADING SERVICES ARE PERFORMED IN GIA'S ORDINARY COURSE OF BUSINESS AS DESCRIBED IN SCHEDULE O, PART III, LINE 4B. THE TRANSACTIONS REPORTED BETWEEN GIA AND THE RELATED ORGANIZATIONS LISTED WITH TRANSACTION TYPE R ARE ASSOCIATED WITH RESEARCH SERVICES.