2013-11-12T10:58:52-06:00 2012-12-31 861065772 Deloitte Tax LLP 2 Jericho Plaza Jericho NY 11753 990 2012-01-01 210634479 Educational Testing Service EDUC 6099219000 Rosedale Road MS 56D Princeton NJ 08541 Jack Hayon 6099219000 2013-11-12 Christine Kawecki P00743140 5169187000 2012 2016-02-24 21:20:13Z Jack Hayon Rosedale Road MS 56D Princeton NJ 08541 1142415469 0 X www.ets.org X 1947 NY See Page 2, Part III, Question 1 20 19 20678 0 17586904 -5252300 13420573 9316768 942813001 976384468 2981345 1831921 78408437 86158673 1037623356 1073691830 2102608 2414313 0 0 329076624 353788403 0 0 0 679879355 701394744 1011058587 1057597460 26564769 16094370 731362873 845364858 347326292 351445293 384036581 493919565 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 443863350 522638067 Higher EducationHigher Education Division: This division of ETS is responsible for the test development, test administration (primarily in a computer based testing environment)and scoring and reporting services for a graduate admissions testing program and College Programs assessments that are used to support student success and measure student learning outcomes. The Graduate Records Examination (GRE) tests verbal and quantitative reasoning and writing skills as well as selected subject areas, which are used to supplement the college records of students applying for admissions to graduate departments. ETS has established the GRE Advisory Board made up of public academic leaders and graduate school deans to provide direction for the program. The GRE test is also used for admission purposes by over 1,000 business schools and MBA programs worldwide. The College Programs products are used in nearly 1,400 higher education institutions. In 2012, approximately 655 thousand applicants took the GRE test and/or services.Teacher Licensure & Certification (TLC): TLC is significantly involved in the assessment, teaching and certification of teachers through its innovative PRAXIS Series. PRAXIS I measures a candidate's basic skills in reading, writing and math, while PRAXIS II involves the assessment of teaching and performance skills in the classroom. In addition, ETS is responsible for the development and delivery of assessments on behalf of the Texas Education Agency (TEA). These tests are delivered in a computer-based environment with some continuing paper& pencil testing.In 2012, approximately 850 thousand applicants took these tests and/or these services (PRAXIS Series and TEA assessments).ETS Services Provided to the College Board: 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. Such services include designing, developing, administering, scoring and reporting for the SAT Reasoning and Subject tests (SAT I and SAT II), the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT), the Advanced Placement Program (AP), and the College Level Examination Program (CLEP). The SAT and PSAT tests are designed to measure verbal and mathematical reasoning ability, as well as to assess knowledge in subject specific test areas. Along with high school records, these tests are used by colleges and universities as part of their admission evaluations as key predictors of likely academic success. The AP Program offers detailed course descriptions and examinations for introductory advanced placement or credit when students enter college. CLEP is a college-by-credit examination program for persons of any age to demonstrate college level knowledge. In 2012, approximately 11.1 million tests were administered on behalf of the College Board.All of the activities described within Higher Education are classified as related activities. 211896752 350536184 GlobalThe Global Division is responsible for ETS's (educational) mission primarily in markets outside the United States by providing products and services that measure knowledge and skills, promote learning and performance, and support education and professional development. Its primary focus is the design, development and delivery of English Language tests and assessments.A college-level testing program developed and administered by ETS is the Test of English as a Foreign Language (TOEFL), a test designed to measure the academic English proficiency of students whose native language is not English. The test is required by many universities to evaluate the degree to which international students have sufficient English language proficiency to pursue higher education in an English-speaking campus. The program is primarily administered in a computer-based environment with some paper-based testing. Other TOEFL assessments include TOEFL ITP, an institutional, two-skill test designed for use with adult learners, and the paper-based, 3-skills, TOEFL Junior Standard test, as well as the computer-based, 4-skills, TOEFL Junior Comprehensive test, and the paper-based, 2-skills Listening and Reading(L&R), TOEFL Primary test, as well as the TOEFL Primary computer-based speaking test, all of which are academic English proficiency tests for younger students.The Global Division is also responsible for the development and administration of the Test of English for International Communication (TOEIC), a test of the ability of non-native English-speaking people to use English in everyday work activities. TOEIC Listening & Reading (L&R) is delivered mainly in a paper-based format and TOEIC Speaking & Writing (S&W) is delivered in a computer-based environment.Each family of tests also offers test prep products. Both the TOEIC and the TOEFL tests are used by immigration officials in the UK to evaluate certain visa applicants in support of their requirements. The TOEFL test is similarly used in Australia. The Global Division utilizes a global distribution network of independent entities referred to as the ETS Preferred Network (EPN), which has responsibility for marketing, sales, and administration of various testing products. The Client Relations Group manages relationships with TOEFL score user institutions. The division also is responsible for the Global Institute, which provides instruction on assessment development and usage to education leaders, college and university staff, government officials and representatives of testing agencies worldwide. 258618504 103210217 Elementary and Secondary Education (K12 Student Assessment Programs f/k/a K12 Assessments), Research & Development, National Assessment of Educational Progress, English Language Learning, Policy Evaluation & Research Center and other supported activities.Elementary and Secondary Education (K12 Student Assessment Programs) K12 Student Assessment Programs current large scale assessment business contracts in California include the High School Exit Examination (CAHSEE), the California Standardized Testing and Reporting (STAR) Program including additional alternative assessments for students with English Language learning challenges or of lesser abilities California Alternate Performance Assessment (CAPA), Standards-based Tests in Spanish (STS) and California Modified Assessment (CMA) assessment batteries, in addition to the regular California Standards Test (CST). These K12 assessments measure levels of student achievement in the California public school system. K12 Student Assessment Programs also has a subcontract in the state of California to perform psychometric work for the California English Language Development Test (CELDT). In addition, ETS provides the English Placement Test (EPT), Entry Level Mathematics Test (ELM) and Early Assessment Program (EAP) programs for the California State University System. K12 Student Assessment Programs has also been awarded assessment contracts in other states to measure the educational achievement and progress of K-12 students. Those contracts include: Maryland High School Assessment Program, three Wyoming statewide testing programs, a test development and psychometric contract with the state of Washington, and a small research contract with the state of New York. K12 Student Assessment Programs also has subcontracts for state assessments in Texas, Tennessee, Virginia, Mississippi, Florida and Colorado. In addition to the State assessment contracts, ETS is the prime contractor or subcontractor for several components of the work of Smarter Balanced and PARCC consortia, who are developing next-generation assessment systems to measure the Common Core State Standards.K12 Student Assessment Programs also contracts with the Southern Regional Educational Board, a non-profit consortium of states, dedicated to the pursuit of educational excellence, to develop and administer the High Schools That Work testing program that is designed to measure and improve educational instruction.All of the activities within K12 Student Assessment Programs are classified as related activities, due to their role in educational assessment.Research and DevelopmentResearch & 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 analysis that address challenging education issues in the United States. The primary focus of PERC's research and analysis are increasing overall educational achievement; and closing achievement gaps in representation, achievement and attainment between advantaged and disadvantaged groups. PERC publishes and disseminates reports through its Policy Information Center reports and studies designed to increase understanding of education challenges and promote improvement of education and education policy and teaching practice. Chauncey Conference CenterETS operates a conference center, the revenues from which are classified as unrelated business income. 2414313 2414313 0 Grants and other assistance to organizations and individuals inside and outside of the United States. 2414313 2414313 916792919 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 1 0 0 0 0 1 1 1 1 0 0 1 X 20243 0 1 20678 1 1 1 1 FR UK NL JO BE PL KS CH IS IN CA 0 0 0 0 0 0 0 0 X 20 19 0 0 0 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 56D Princeton NJ 08541 Carstarphen Meria 2.00 X 48000 0 0 Clarkeson John S 2.00 X 24333 0 0 Colbert Isaac 2.00 X 44000 0 0 Eisgruber Christopher 2.00 X 40500 0 0 English Michela A 2.00 X 66750 0 0 Flores Roy 2.00 X 48000 0 0 Garcia Ofelia 2.00 X 44000 0 0 Henderson Wade N 2.00 X 70750 0 0 Johnson Melvin 2.00 X 44000 0 0 Kapoor Vikas 2.00 X 46333 0 0 Levin Henry M 2.00 X 44000 0 0 Levine Arthur E 2.00 X 40000 0 0 Lewis Earl 2.00 X 13000 0 0 Menezes Victor 2.00 X 54000 0 0 Murley Robert S 2.00 X 73000 0 0 Robertson Piedad F 2.00 X 44000 0 0 Rothkopf Arthur J 2.00 X 64500 0 0 Stewart Debra W 2.00 X 50500 0 0 Valdes Guadalupe 2.00 X 80500 0 0 Landgraf Kurt M 40.00 X X 1281907 0 40872 Bailey Diane A 40.00 X 311626 0 40155 Basehore John 40.00 X 359848 0 45036 Donado Yvette 40.00 X 415669 0 56251 Draper Jr William C 40.00 X 347863 0 36625 Elliott Thomas J 40.00 X 358369 0 54396 Farnum Marisa 40.00 X 315915 0 42831 Freddo Michael J 40.00 X 269223 0 42546 Gilbertson Bruce M 40.00 X 325129 0 29511 Hayon Jack 40.00 X 516915 0 70025 Hernandez Sandra 40.00 X 297770 0 52253 Hunt David 40.00 X 426380 0 58482 Johnson-Gregory Sheree L 40.00 X 357724 0 53444 Kerins Nancy J 40.00 X 512202 0 58832 Lawrence Ida M 40.00 X 440267 0 60194 Lazer Stephen 40.00 X 389007 0 53992 MacDonald Walter B 40.00 X 651656 0 45872 Mazzeo John 40.00 X 367928 0 32892 Nelson Scott F 40.00 X 409811 0 51086 Nettles Michael T 40.00 X 415687 0 60273 Oswald John 40.00 X 414956 0 35825 Paris Scott G 40.00 X 359226 0 35292 Payne David G 40.00 X 417518 0 54020 Pfund Rebecca 40.00 X 284446 0 47171 Pote Stephen K 40.00 X 337429 0 48041 Powell George D 40.00 X 484145 0 36908 Rockey Anne F 40.00 X 329275 0 43611 Schroeder Glenn C 40.00 X 496692 0 62312 Tabbiner Philip S 40.00 X 486410 0 43632 Tyler Linda L 40.00 X 274727 0 40470 Wakeman Daniel 40.00 X 349415 0 51510 Weaver Scott V 40.00 X 385016 0 53851 Bennett Randy E 40.00 X 302605 0 34825 Kirsch Irwin 40.00 X 319122 0 36760 Moss Jeffrey 40.00 X 399543 0 36140 Mislevy Robert 40.00 X 336909 0 34696 Leon Abel 40.00 X 300625 0 24083 Ramsey Paul A 7.00 X 105406 0 0 16094527 0 1704715 939 1 1 0 Accenture LLP 161 North Clark St Chicago IL 60601 Supply chain services 51553549 NCS Pearson Inc 5601 Green Valley Dr Bloomington MN 55437 Test administration services 45105793 Computer Sciences Corporation (CSC) 3170 Fairview Park Drive Fall Church VA 22042 Computer services 44538134 Adecco USA Inc 175 Broad Hollow Rd Melville NY 11747 Temporary labor services 18641474 McCann Relationship Marketing Inc dba 105 Carnegie Center Princeton NJ 08540 Marketing 17497588 231 4035 7655916 1656817 4035 9316768 Higher Education 611710 522638067 522638067 Global 611710 350536184 350536184 ESE and Other 611710 103210217 103210217 976384468 804209 804209 15895 15895 68458352 68458352 200655 72874 127781 127781 127781 69588023 1763 68303307 274662 1284716 -272899 1011817 1011817 50870 4035 71671 -20801 -20801 7562 1125 6437 6437 Occupational & Prof Sk 611600 9422412 9422412 Computerized Assessmen 611600 3901699 3901699 Chauncey Conf. Center 721000 2484909 2484909 1777884 1777884 17586904 1073691830 976384468 17586904 70403690 X 1509496 1509496 391117 391117 513700 513700 17693833 4699500 12994333 105406 105406 259838353 222251995 37586358 22521774 17504675 5017099 34768138 19175802 15592336 18860899 14659321 4201578 5920929 5920929 2779752 2779752 62120 62120 393377 393377 445473792 404633181 40840611 16069517 16069517 139942922 136191903 3751019 1068155 1068155 11611722 9783950 1827772 9213695 7403151 1810544 130980 130980 2046731 1692282 354449 161720 161720 48797125 45460406 3336719 2039204 2039204 Miscellaneous 7561318 5037098 2524220 Foreign & State Taxes 4517814 4433938 83876 Chauncey Conf Center 3159497 3159497 Memberships and Dues 444374 362752 81622 1057597460 916792919 140804541 0 34783 6461925 76158373 95971029 95472582 109364072 2169366 16406202 15690023 209627755 124145155 69968834 85482600 353531795 415409225 115389730 116476130 2231208 509854 731362873 845364858 128768538 145388940 77374513 74599721 141183241 131456632 347326292 351445293 X 384036581 493919565 384036581 493919565 731362873 845364858 X 16094370 7519401 10329 86258884 X X 0 1 X 1 1 1 X 7448670 5746388 12889559 13420573 9316768 48821958 835128581 851511617 880691488 942813001 976442900 4486587587 842577251 857258005 893581047 956233574 985759668 4535409545 0 293846372 283748345 279286338 294059142 286153574 1437093771 293846372 283748345 279286338 294059142 286153574 1437093771 3098315774 34538223 38561274 51618196 60310105 69479111 254506909 34538223 38561274 51618196 60310105 69479111 254506909 8795 7030 9505 7562 32892 877115474 895828074 945206273 1016553184 1055246341 4789949346 0.64680 0.62440 0.05310 0.04810 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 62120 62120 1040212060 1040274180 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 218163 114801 152599 62120 547683 250000 250000 250000 250000 1000000 1500000 Part IV, Supplemental Information: Total lobbying expenses of $62,120 were used for the following Federal and State lobbying activities: Federal Lobbyists: Penn Hill Group: $20,000 Workforce development, ESEA - testing, accountability, teacher evaluation. Higher Education- teacher quality measurements, institutional quality and accreditation, and higher education regulatory activities Education Research - definition of scientifically based research Association of Test Publishers (ATP): $2,999 ATP provides trade association support and 5.9% of the trade association dues are attributable to lobbying expenses Total Federal Lobbying $22,999 State Lobbyists: CA Capitol Advocacy: $2,000 Met with legislative members and staff regarding The California Standardized Testing And Reporting (STAR) reauthorization; Worked to build relationships with Latino Legislative Caucus; Worked with legislators on amending statutory language to allow for ETS GED alternative NY Whiteman Osterman: $33,888 SAT Test Impersonation Case. Communication with NYS Senate [LaValle/Staff]. Coverage of NYS Senate Higher Education Hearings. Lobbied on Senator LaValle's Pre and Post Reporting Requirements Bill - SB 7199. PA Gmerek GR, Inc.: $3,233 Lobbying efforts focused on changes to PA educator certification system and changes to PA mandatory professional development requirements for educators; General lobbying efforts regarding PA items related to proposed changes to the GED exam and efforts to identify successful programs focusing on the topic of high school dropouts. Total State Lobbying $39,121. Total Federal and State Lobbying $62,120 1970618 1970618 156529539 93226583 63302956 4804095 3651528 1152567 46323503 27267044 19056459 85482600 Investment in affiliated entities 326190852 F Non publicly traded securities 89218373 F 415409225 Post-retirement medical benefits 74620683 Intercompany payable 22246731 Other liabilities 34589218 131456632 X Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: Note: 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 Grantmaking Grantmaking 493500 South Asia 0 0 Grantmaking Grantmaking 15000 Europe (Including Iceland & Greenland) 0 0 Grantmaking Grantmaking 5200 North America 0 1 Program services Testing activities 259193 Europe 0 1 Program services Testing activities 6116873 North America 0 0 Investments 279020 Europe (Including Iceland & Greenland) 0 0 Investments 1622000 0 2 0 0 0 2 8790786 0 8790786 Scholarships for outstanding Korean Students East Asia and the Pacific 46 378000 Checks sent to students schools for tuition Scholarships for outstanding Chinese Students East Asia and the Pacific 35 61000 Checks sent to students schools for tuition Scholarships for outstanding Japanese Students East Asia and the Pacific 3 24000 Checks sent to students schools for tuition Scholarships for outstanding Taiwanese Students East Asia and the Pacific 7 28000 Checks sent to students schools for tuition Scholarships for outstanding Indian Students South Asia 2 15000 Checks sent to students schools for tuition Costs for Educational International Conference East Asia and the Pacific 1 2500 Checks sent to students schools for tuition Costs for Educational International Conference Europe (Including Iceland & Greenland) 1 5200 Checks sent to institutions 0 0 1 0 0 1 Procedure for Monitoring Grants Outside the U.S.: Schedule F, Part I, Line 2: Educational Testing Service requires applicants for scholarships to provide transcripts and other information upon which they are evaluated. Scholarship funds are made payable to both the recipient and the university that the recipient attends. 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 PO Box 877905 Tempe AZ 85257 300150324 501(c)(3) 100500 4735 Fair Market Value Venue and Catering Support of local community educational programs American Educational Research Association 1430 K Street NW Suite 1200 Washington DC 20005 237003537 501(c)(3) 7000 Support of local community educational programs American Red Cross of Central New Jersey 707 Alexander Road Suite 101 Princeton NJ 08540 530196605 501(c)(3) 7744 Support of local community educational programs Anchor House Foundation Inc 482 Center Street Trenton NJ 08611 222229995 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) 2630 17580 Fair Market Value Catering Support of local community educational programs Career Development Awards PO Box 2314 Princeton NJ 08542 236206954 501(c)(3) 5000 4919 Fair Market Value Venue and Catering Support of local community educational programs CASA of Mercer County 180 Ewingville Road Ewing NJ 08638 223770968 501(c)(3) 5000 Support of local community educational programs Children's Defense Fund 25 E Street NW Washington DC 20001 520895622 501(c)(3) 217250 Support of local community educational programs Children's Memorial Foundation (aka Children's Memorial Medical Center) 2300 Childrens Plaza Box 4 Chicago IL 60614 363357006 501(c)(3) 10000 Support of local community educational programs Committee for Economic Development 2000 L Street NW Suite 700 Washington DC 20036 131623973 501(c)(3) 10000 0 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) 4862 0 Support of local community educational programs CONTACT of Mercer County New Jersey Inc 60 S Main St Pennington NJ 08534 222320153 501(c)(3) 5000 0 Support of local community educational programs Council of Chief State School Officers (CCSSO) One Massachusetts Avenue NW Suite 700 Washington DC 20001 530198090 501(c)(3) 0 74073 Fair Market Value Venue and Catering Support of local community educational programs Education Commission of the States 700 Broadway Suite 810 Denver CO 80203 310722194 501(c)(3) 10000 0 Support of local community educational programs Education Law Center 60 Park Place Newark NJ 07102 222104555 501(c)(3) 10000 0 Support of local community educational programs The Education Trust Inc 1250 H Street NW Suite 700 Washington DC 20005 523636158 501(c)(3) 10000 0 Support of local community educational programs Every Child Valued 175 Johnson Avenue Lawrenceville NJ 08648 264654078 501(c)(3) 48968 178 Fair Market Value Security Support of local community educational programs Ewing Public Education Foundation Inc PO Box 7033 Ewing NJ 08628 223347353 501(c)(3) 70286 1208 Fair Market Value Venue, Catering and Printing Support of local community educational programs Fight for Children Inc 1726 M Street NW Suite 202 Washington DC 20036 521706059 501(c)(3) 6500 0 Support of local community educational programs Hispanics Association of Colleges and Universities 8415 Datapoint Dr Ste 400 San Antonio TX 78229 742466103 501(c)(3) 12500 0 Support of local community educational programs Hispanics Inspiring Students' Performance and Achievement (HISPA) 3587 Highway 9n - 145 Freehold NJ 07728 521825305 501(c)(3) 5236 1106 Fair Market Value Venue and Catering Support of local community educational programs HomeFrontInc 632 Brunswick Avenue Trenton NJ 08638 223165145 501(c)(3) 5000 6076 Fair Market Value Fully depreciated office furniture Support of local community educational programs Huston Tillotson University 900 Chicon Street Austin TX 78702 741180151 501(c)(3) 5125 0 Support of local community educational programs Institute for Educational Leadership 4455 Connecticut Avenue NW Washington DC 20008 521198450 501(c)(3) 5000 0 Support of local community educational programs Institute for Student Achievement One Old Country Rd Suite 250 Carle Place NY 11514 112995109 501(c)(3) 60000 0 Support of local community educational programs Junior Achievement of New Jersey 4365 Route 1 South Princeton NJ 08540 221774147 501(c)(3) 13236 0 Support of local community educational programs Lawrence Township Education Foundation Inc 17 Phillips Ave Lawrenceville NJ 08648 223192024 501(c)(3) 80549 0 Support of local community educational programs Lawrenceville Fire Company 64 Phillips Avenue District 3 Lawrenceville NJ 08648 237330548 501(c)(3) 10000 0 Support of local community educational programs Life Pieces to Masterpieces 1600 Otis Street NE Washington DC 20018 522076894 501(c)(3) 5200 0 Support of local community educational programs Literacy Volunteers of Mercer County 3535 Quakerbridge Road Suite 104 Lawrenceville NJ 08619 223502495 501(c)(3) 10000 0 Support of local community educational programs Mercer Street Friends 151 Mercer St Trenton NJ 08618 210733990 501(c)(3) 10000 0 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 10701 Fair Market Value Venue, Catering and Printing Support of local community educational programs National Center for Higher Education Management Systems 3035 Ctr Green Dr Ste 150 Boulder CO 80301 741894594 501(c)(3) 30000 0 Support of local community educational programs National Center for Learning Disabilities 381 Park Ave South Suite 1401 New York NY 10016 132899381 501(c)(3) 13400 0 Support of local community educational programs National Urban League 120 Wall Street New York NY 10005 131840489 501(c)(3) 25000 0 Support of local community educational programs New Jersey Association of State Colleges and Universities 150 West State Street Trenton NJ 08608 222681317 501(c)(3) 50000 0 Support of local community educational programs New Jersey Education Foundation Partnership Inc PO Box 908 Princeton Junction NJ 08550 364613556 501(c)(3) 20000 2413 Fair Market Value Venue and Catering Support of local community educational programs Parents Step Ahead Inc 2102 Empire Central Dallas TX 75235 262477378 501(c)(3) 20200 0 Support of local community educational programs Princeton Community Housing 1 Holly House Princeton NJ 08540 133026182 501(c)(3) 0 6072 Fair Market Value Venue and Catering Support of local community educational programs Princeton YWCA 59 Paul Robeson Place Princeton NJ 08540 210635056 501(c)(3) 10280 3785 Fair Market Value Venue and Catering Support of local community educational programs Rutgers Universtiy Foundation Winants Hall 7 College Avenue New Brunswick NJ 08901 237318742 501(c)(3) 10150 268 Fair Market Value Food Support of local community educational programs Shiloh Community Development Corp 340 Rev S Howard Woodson Jr Way Trenton NJ 08618 123799161 501(c)(3) 10000 0 Support of local community educational programs Stony Brook Millstone Watershed Association 31 Titus Mill Road Pennington NJ 08534 210649717 501(c)(3) 5292 0 Support of local community educational programs Morris Hall - St Lawrence Inc (StLawrence Rehabilitation Center) 2381 Lawrenceville Road Lawrenceville NJ 08648 522250044 501(c)(3) 13000 0 Support of local community educational programs Team Pennsylvania Foundation 100 Pine Street Harrisburg PA 17101 232876177 501(c)(3) 5000 0 Support of local community educational programs The College Board 2099 Gateway Place Suite 550 San Jose CA 95110 131623965 501(c)(3) 15000 0 Support of local community educational programs United Way of Greater Mercer County 3131 Princeton Pike Bldg 4 Lawrenceville NJ 08648 210683073 501(c)(3) 50335 4026 Fair Market Value Food and Venue Support of local community educational programs Woodrow Wilson National Fellowship Foundation 5 Vaughn Drive Suite 300 Princeton NJ 08543 210703075 501(c)(3) 150000 0 Support of local community educational programs Young Audiences of New Jersey Inc 200 Forrestal Road Princeton NJ 08540 237384991 501(c)(3) 18000 0 Support of local community educational programs Ewing Public School 220 Ewingville Road Ewing NJ 08618 216000324 Government 0 7070 Fair Market Value Supplies Support of local community educational programs Ewing Township 2 Jake Garzio Drive Ewing NJ 08628 216000557 Government 2500 3850 Fair Market Value Venue and Catering Support of local community educational programs Mercer County Department of Education Admin Bldg 640 South Broad Box 8068 8068 Trenton NJ 08618 216000856 Government 0 11404 Fair Market Value Venue and Catering Support of local community educational programs Perth Amboy Public School District 178 Barracks St Perth Amboy NJ 08861 226002208 Government 43542 0 Support of local community educational programs Princeton Area Community Foundation 15 Princess Road Lawrenceville NJ 08648 521746234 Government 0 5282 Fair Market Value Venue and Catering Support of local community educational programs Trenton Board of Education 108 North Clinton Ave Trenton NJ 08609 216000326 Government 0 16934 Fair Market Value Venue and Catering Support of local community educational programs 55 0 Historically Black Colleges and Universities Presidential Scholarship 15 72497 Trenton Central High School Scholarship 5 209421 Research Fellowships 8 109199 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, 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 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 phone calls and meetings and (5) ETS obtains copies of any research papers that might be developed as a result of the grant. X X 1 1 X X X X X 0 0 0 0 0 0 0 1 0 Landgraf Kurt M 643817 0 516798 0 121292 0 22500 0 18372 0 1322779 0 0 0 Bailey Diane A 190279 0 97295 0 24052 0 28107 0 12048 0 351781 0 0 0 Basehore John 195589 0 129215 0 35044 0 30542 0 14494 0 404884 0 0 0 Donado Yvette 248995 0 131287 0 35387 0 37927 0 18324 0 471920 0 0 0 Draper Jr William C 198769 0 101250 0 47844 0 31625 0 5000 0 384488 0 0 0 Elliott Thomas J 202251 0 112906 0 43212 0 32617 0 21779 0 412765 0 0 0 Farnum Marisa 193348 0 99189 0 23378 0 28655 0 14176 0 358746 0 0 0 Freddo Michael J 190275 0 51888 0 27060 0 28200 0 14346 0 311769 0 0 0 Gilbertson Bruce M 204510 0 90804 0 29815 0 29511 0 0 0 354640 0 0 0 Hayon Jack 306693 0 167500 0 42722 0 46425 0 23600 0 586940 0 0 0 Hernandez Sandra 201055 0 70050 0 26665 0 30355 0 21898 0 350023 0 0 0 Hunt David 228988 0 153264 0 44128 0 36226 0 22256 0 484862 0 0 0 Johnson-Gregory Sheree L 227123 0 121792 0 8809 0 31666 0 21778 0 411168 0 0 0 Kerins Nancy J 291016 0 171772 0 49414 0 40601 0 18231 0 571034 0 0 0 Lawrence Ida M 278492 0 129078 0 32697 0 41131 0 19063 0 500461 0 0 0 Lazer Stephen 239832 0 122400 0 26775 0 35360 0 18632 0 442999 0 0 0 MacDonald Walter B 339154 0 205920 0 106582 0 22500 0 23372 0 697528 0 0 0 Mazzeo John 213517 0 113858 0 40553 0 32892 0 0 0 400820 0 0 0 Nelson Scott F 217949 0 156445 0 35417 0 32714 0 18372 0 460897 0 0 0 Nettles Michael T 246349 0 140928 0 28410 0 36641 0 23632 0 475960 0 0 0 Oswald John 230600 0 143978 0 40378 0 22501 0 13324 0 450781 0 0 0 Paris Scott G 221678 0 100000 0 37548 0 22500 0 12792 0 394518 0 0 0 Payne David G 214503 0 161814 0 41201 0 33888 0 20132 0 471538 0 0 0 Pfund Rebecca 196968 0 65523 0 21955 0 28393 0 18778 0 331617 0 0 0 Pote Stephen K 208020 0 106400 0 23009 0 30828 0 17213 0 385470 0 0 0 Powell George D 222249 0 120155 0 141741 0 22500 0 14408 0 521053 0 0 0 Rockey Anne F 192320 0 104246 0 32709 0 30115 0 13496 0 372886 0 0 0 Schroeder Glenn C 312833 0 165938 0 17921 0 43144 0 19168 0 559004 0 0 0 Tabbiner Philip S 272147 0 158484 0 55779 0 22500 0 21132 0 530042 0 0 0 Tyler Linda L 166997 0 62987 0 44743 0 27294 0 13176 0 315197 0 0 0 Wakeman Daniel 198086 0 127508 0 23821 0 30138 0 21372 0 400925 0 0 0 Weaver Scott V 243069 0 119351 0 22596 0 34479 0 19372 0 438867 0 0 0 Bennett Randy E 218860 0 61245 0 22500 0 20449 0 14376 0 337430 0 0 0 Kirsch Irwin 233512 0 61439 0 24171 0 20712 0 16048 0 355882 0 0 0 Moss Jeffrey 184008 0 209496 0 6039 0 17620 0 18520 0 435683 0 0 0 Mislevy Robert 260166 0 67500 0 9243 0 22500 0 12196 0 371605 0 0 0 Leon Abel 300625 0 0 0 0 0 12500 0 11583 0 324708 0 0 0 Ramsey Paul A 105406 0 0 0 0 0 0 0 0 0 105406 0 0 0 Part I, Line 1a Tax gross-up payments: Officers (26) and Highest Compensated Employees (1) person received this benefit during 2012. It was treated as taxable compensation to the individual. Part I, Line 1a: Housing allowance or residence for personal use: Officers (2) received this benefit during 2012. It was treated as taxable compensation to the individual. Supplemental Information Part III Part I, Line 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. Gloria Nelson see Part V 72049 see Part V 0 Teresa M Sanchez-Lazer see Part V 210468 see Part V 0 Mary Louise Lennon see Part V 116061 see Part V 0 Sara Kirsch see Part V 36802 see Part V 0 Charles E Cascio see Part V 221643 see Part V 0 Part IV: Relationship between interested person and the organization: (a)Name of person: Gloria Nelson(b)Relationship between interested person and the organization: family member of Stephen K. Pote, Current Officer(d)Description of transaction: Salary and benefits(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: Mary Louise Lennon(b)Relationship between interested person and the organization: family member of Randy Bennett, currently one of the five Highest Compensated Employees(d)Description of transaction: Salary and benefits(a)Name of person: Sara Kirsch(b)Relationship between interested person and the organization: family member of Irwin Kirsch, currently one of the five Highest Compensated Employees(d) Description of transaction: Salary and benefits(a)Name of person: Charles E. Cascio(b)Relationship between interested person and the organization: Charles E. Cascio is a former ETS officer who retired in 2010.(d)Description of transaction: In 2012 Charles E. Cascio through his limited liability company, Cascio Communications and Consulting LLC, provided consulting services to ETS. Form 990, Part VI, Section B, line 11 All active Trustees received a copy of Form 990 for review 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 sign a statement agreeing to abide by the Code. The Code includes a policy on Conflict of Interest. 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 might be in contrast with the Code of Ethics, 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 rescuing 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 the Code of Ethics 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 or procedures from the Corporate Secretary or the General Counsel and Chief Ethics Officer. 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 policy, which contains its Conflict of Interest Policy, to 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 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 the Board a letter 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. Other Fees Form 990, Part IX, line 11g Test Admin and Consultants: Program service expenses 310,108,466. Management and general expenses 20,388,013. Fundraising expenses 0. Total expenses 330,496,479. Subcontracting Costs: Program service expenses 94,524,715. Management and general expenses 20,452,598. Fundraising expenses 0. Total expenses 114,977,313. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Equity earnings in affiliates 63,105,000. Other LT Liabilities & Accum Other Comprehensive Loss 21,810,739. ETS Tech disregarded entity income 1,772,000. Reclassification of consolidating elimination -428,855. PART XII Line 2c The organization has a committee that assumes responsibility for oversight of the audit review, or compilation of its financial statements and selection of an independent accountant. The process has not changed from prior year. Capstar LLC Rosedale Road Princeton NJ 08541 820582786 Inactive DE 0 87456 Educational Testing Service ETS Tech LLC Rosedale Road Princeton NJ 08541 454054815 Holding company DE 0 13793000 Educational Testing Service Computerized Assessments and Learning LLC 1202 East 23rd Street Suite D Lawrence KS 66046 204973305 Educational services KS 8529000 22699000 Educational Testing Service Likelive LLC Rosedale Road Princeton NJ 08541 383860534 Educational services DE 51679 3632045 Educational Testing Service Educational Testing Service Retiree's Benefit Trust Rosedale Road MS 56-D Princeton NJ 08541 223372287 Benefit Plan NJ 501(c)9 Educational Testing Service 0 Educational Testing Service Medical and Dental Benefits Plan Rosedale Road MS 56-D Princeton NJ 08541 222680630 Benefit Plan NJ 501(c)9 Educational Testing Service 0 Educational Testing Service (ETS) Global BV World Trade Center Amsterdam Strawi Amsterdam NL 1077 XX Educational services NL Educational Testing Service C 40137891 11994074 1.00000 1 Educational Testing Service Canada Inc 212-133 Princess St Kingston Ontario CA K7L 1A8 Educational services CA Educational Testing Service C 1885834 1084938 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 1457445 1070133 1.00000 1 ETS Educational Services (India) Private Limited 12-2-417/A/15 Jayanagar Colony Hyderabad IN 500 082 Educational services IN Educational Testing Service C 1.00000 1 Prometric Holdings Inc 1501 South Clinton Street Baltimore MD 21224 260416543 Holding company DE Educational Testing Service C 160942355 1.00000 1 Prometric Inc 1501 South Clinton Street Baltimore MD 21224 260416596 Educational services DE Prometric Holdings Inc C 266358581 483781688 1.00000 1 Prometric Japan Company Limited Kayabacho Tower Bldg 15F 1-21-2 Shi Tokyo JA 104-0033 Educational services JA Prometric Inc C 39911840 28086099 1.00000 1 Prometric Limited 6th 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services AS Australia Test Centre Pty Limited C 538200 1.00000 1 Prometric I BV Noorderwagenplein 6 Lelystad NL 8223 AL 981071324 Educational services NL The Netherlands Test Center Holding BV C 47562537 1.00000 1 Prometric BV Noorderwagenplein 6 Lelystad NL 8223 AL 981071416 Educational services NL Prometric I BV C 5631178 1.00000 1 Prometric II BV Noorderwagenplein 6 Lelystad NL 8223 AL Educational services NL Prometric I BV C 7146945 6067764 1.00000 1 Prometric III BV Noorderwagenplein 6 Lelystad NL 8223 AL 981084319 Educational services NL Prometric I BV C 4351337 1.00000 1 Prometric Korea Limited Yoon-Ik Building 8 Fl 706-13 Yeok Seoul KS Educational services KS Prometric BV C 2051340 2452788 1.00000 1 Prometric (Pty) Ltd Block C Empire Park 55 Empire Roa Johannesburg SF 2193 Educational services SF Prometric BV C 841687 500139 1.00000 1 Prometric Testing Services Private Ltd 2nd Floor DLF Infinity Tower-A Sec Gurgaon, Haryana IN 122-002 Educational services IN Prometric BV C 9336195 7702960 1.00000 1 Prometric Technology (Beijing) Co Ltd Unit 406 Raycom InfoTech Tower A Beijing CH 100080 Educational services CH Prometric BV C 1698417 883384 1.00000 1 Prometric Limited Israel 22 Rivlin Street Jerusalem IS 94240 Educational services IS Prometric BV C 74180 1.00000 1 Prometric Technology SDN Bhd Suite 21A-15-1 Farber Imperial CRT Kuala Lumpur MY 50250 Educational services MY Prometric BV C 5830138 2539775 1.00000 1 Prometric GmbH Tortrasse 49 Berlin GM 10119 Educational services GM Prometric II BV C 360448 987104 1.00000 1 Prometric Pte Ltd 77 Robinson Road 15-01 Singapore SN 068898 Educational services SN Prometric II BV C 2630255 1534405 1.00000 1 Prometric FZ LLC Dubai Knowledge Village Office 108 Dubai AE Educational services AE Prometric I BV C 1332603 484316 1.00000 1 Educational Testing Service International Holdings Limited 25/28 North Wall Quay Dublin EI 1 Educational services EI Educational Testing Service C 38000 11688517 1.00000 1 Edusoft Ltd 16 Hamelacha St North Industrial P Rosh Ha'Ayin IS 48091 Educational services IS Educational Testing Service International Holdings Limited C 5075341 17146902 1.00000 1 SpeakingPal Ltd 6 HaNehoshet Street Tel Aviv IS 69710 Educational services IS Edusoft Ltd C 20579 17822 0.26500 0 Edustar America Inc c/o Tax Dept Rosedale Road Ms-56D Princeton NJ 08541 593125818 Educational services DE Educational Testing Service International Holdings Limited C 3790 29304 1.00000 1 1 0 0 1 0 0 0 0 0 0 0 1 1 0 0 1 0 0 1 Educational Testing Service (ETS) Global BV M 6116873 Fair market value Educational Testing Service (ETS) Global BV A 5260259 Cash Educational Testing Service (ETS) Global BV S 2285523 Cash Educational Testing Service (ETS) Global BV D 3169366 Cash Educational Testing Service Medical and Dental Benefits Plan P 21377455 Cash ETS Canada Inc M 259193 Fair market value ETS Canada Inc S 52439 Fair market value ETS Canada Inc A 275407 Cash Prometric Inc M 112240651 Fair market value Prometric Inc L 822907 Fair market value Prometric Inc S 156469 Fair market value Edusoft Ltd M 475000 Fair market value Edusoft Ltd L 6000 Fair market value Computerized Assessments and Learning LLC L 166000 Fair market value Computerized Assessments and Learning LLC M 4103800 Fair market value Name and Address of New Related Organization Part IV, Identification of Related Organizations Taxable as Corp or Trust: Prometric Luxembourg S.A.R.L 5, Rue Guillaume Kroll Luxembourg, Luxembourg L-1882 Name Change of Related Organization Part IV, Identification of Related Organizations Taxable as Corp or Trust: The Netherlands Test Center Holding B.V. has changed its name to Prometric Netherlands B.V. Change in parent Part IV, Identification of Related Organizations Taxable as Corp or Trust: Ireland Test Center Delivery Limited is now a subsidiary of the newly formed entity Prometric Luxembourg S.A.R.L