2012-05-14T09:38:58-05:00 2011-06-30 McGladrey LLP One South Wacker Drive Suite 800 Chicago IL 60606 990 2010-07-01 362167823 Chicago Symphony Orchestra CHIC 3122943333 220 S Michigan Avenue Chicago IL 606042559 Deborah R Card 3122943210 2012-05-14 1 David Faje 3126343400 2010 2016-02-24 21:20:13Z Deborah R Card 220 S Michigan Avenue Chicago IL 606042559 97316802 0 X www.cso.org X 1890 IL To present classical music to Chicago, national and international audiences. 146 138 1127 850 -269811 -334630 32552630 25179692 27953888 26668722 8789873 10476634 328662 395709 69625053 62720757 615288 644120 0 0 38394807 40620403 498691 449250 3527542 29872511 29461146 69381297 71174919 243756 -8454162 422420740 454550299 203840344 192356024 218580396 262194275 X The central mission of the Chicago Symphony Orchestra Association is to present classical music through the Chicago Symphony Orchestra to Chicago, national and international audiences.The mission is supported by four mutually reinforcing elements:Artistic excellence: continued international preeminence in the field of orchestral excellenceAudience development: leading audience development initiativesEducation: superior education and community programsFinancial stability: fiscal responsibility for long-term stability 0 0 42547223 20686122 Chicago Symphony Orchestra Concerts -- A total of 159 concerts were presented during the fiscal year to an estimated audience of 385,000. In addition, nearly 110 pre- and post-concert lectures were presented to an estimated audience of 24,600.The CSO welcomed its 10th Music Director, Riccardo Muti, the first full season of the Judson and Joyce Green Creative Consultant, Yo-Yo Ma, and two new Mead Composers-in Residence, Mason Bates and Anna Clyne to its artistic family. Performances outside of Symphony Center include our summer residency at Ravinia Park, as contracted by the Ravinia Festival Association, three concerts at Carnegie Hall in New York City and one concert in Champaign, Naperville and Wheaton, IL. 4874902 3588245 Symphony Center Presents Concerts -- A total of 53 concerts were presented during the fiscal year to an estimated audience of 91,500.Highlights include the Great Performers Series of visiting orchestras, the Jazz at Symphony Center series, the Chamber Music series, the Piano series and other special and holiday performances by internationally renowned artists and ensembles. 2793477 471265 Education Concerts and Activities -- A total of 22 education concerts were presented to an estimated audience of 41,700.In addition to the education concerts offered at Symphony Center for school groups and families, other ongoing programs include teacher workshops, preparatory docent visits, in-class instrument demonstrations, community performances, free tickets and transportation, classroom materials and curricula, and open rehearsals. The Institute for Learning, Access and Training offered many diverse programs that touched the lives of more than 200,000 individuals each year. 1752549 644120 73599 Civic Orchestra Concerts -- A total of 6 concerts were presented to an estimated audience of 18,800. In additon, 6 pre-concert lectures were presented to an estimated audience of 1,000. 112960 Retail Sales - Music-related merchandise is available for purchase at The Symphony Store. 135859 27355 Rentals and Commissions - A Club is available to donors for dining prior to CSO concerts. 1019025 833453 Rentals and Commissions - Performance space provided to Chicagoland arts organizations. 316056 210125 Rentals and Commissions - Restaurant provided to donors for dining prior to or after concerts. 271598 445657 Rentals and Commissions - Parking lot provided for audiences convenience to attend concerts. 177705 83319 Rentals and Commissions - Concessions are provided for audiences attending concerts. 1425121 211625 Media and Royalty - Radio Broadcast series, In-house recording label, audio recordings in compact disc and digital download formats. 145078 37957 Other Program Services - Includes CSO Chamber concerts. 5355951 644120 1923090 55571553 1 1 0 1 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 1 204 1 1 1127 1 1 1 0 0 0 0 1 1 0 0 0 0 X 146 138 1 0 0 0 0 1 0 1 1 0 0 0 1 1 1 1 1 1 1 0 IL X VP and CFO 3122943301 220 S Michigan Avenue Chicago IL 606042559 Deborah R Card 40.00 X X 463009 0 31599 William A Osborn 2.40 X X 0 0 0 Chester A Gougis 0.60 X X 0 0 0 Joyce T Green 0.70 X X 0 0 0 Robert A Kohl 1.10 X X 0 0 0 Jane DiRenzo Pigott 1.00 X X 0 0 0 David B Speer 0.70 X X 0 0 0 Jay L Henderson 0.80 X X 0 0 0 Mrs Robert A Beatty 0.40 X 0 0 0 Marshall Bennett 0.20 X 0 0 0 Arnold M Berlin 0.30 X 0 0 0 Mrs William A Boone 0.10 X 0 0 0 William G Brown 0.20 X 0 0 0 Dean L Buntrock 0.10 X 0 0 0 Robert N Burt 0.10 X 0 0 0 Richard H Cooper 0.10 X 0 0 0 James S Crown 0.20 X 0 0 0 Mrs Robert Crown 0.10 X 0 0 0 Anthony T Dean 0.10 X 0 0 0 John A Edwardson 0.10 X 0 0 0 Sidney Epstein 0.10 X 0 0 0 Thomas J Eyerman 0.10 X 0 0 0 James B Fadim 0.30 X 0 0 0 David W Fox Sr 0.20 X 0 0 0 Richard J Franke 0.10 X 0 0 0 Cyrus F Freidheim Jr 0.20 X 0 0 0 H Laurance Fuller 0.10 X 0 0 0 Mrs Robert W Galvin 0.10 X 0 0 0 Paul C Gignilliat 0.30 X 0 0 0 Howard L Gottlieb 0.20 X 0 0 0 Mrs Richard H Gottlieb 0.20 X 0 0 0 Richard Gray 0.20 X 0 0 0 J Parker Hall III 0.10 X 0 0 0 Joan W Harris 0.20 X 0 0 0 Thomas C Heagy 0.30 X 0 0 0 Ben W Heineman 0.10 X 0 0 0 Debora de Hoyos 0.50 X 0 0 0 Mrs Roger B Hull 0.20 X 0 0 0 Judith W Istock 0.40 X 0 0 0 William R Jentes 0.50 X 0 0 0 Paul R Judy 0.10 X 0 0 0 Morris A Kaplan 0.10 X 0 0 0 Richard B Kapnick 0.50 X 0 0 0 Donald G Kempf Jr 0.20 X 0 0 0 George D Kennedy 0.10 X 0 0 0 Mrs John C Kern 0.10 X 0 0 0 John A Koten 0.10 X 0 0 0 Fred A Krehbiel 0.10 X 0 0 0 Charles A Lewis 0.30 X 0 0 0 Eva F Lichtenberg 0.30 X 0 0 0 John S Lillard 0.10 X 0 0 0 Donald G Lubin 0.10 X 0 0 0 James W Mabie 0.50 X 0 0 0 R Eden Martin 0.10 X 0 0 0 Arthur C Martinez 0.10 X 0 0 0 Judith W McCue 1.20 X 0 0 0 Lester H McKeever 0.10 X 0 0 0 William W McKittrick 0.10 X 0 0 0 Newton N Minow 0.10 X 0 0 0 John D Nichols 0.10 X 0 0 0 James J O'Connor 0.20 X 0 0 0 Mrs Albert Pawlick 0.20 X 0 0 0 Richard Pigott 0.20 X 0 0 0 Robert A Pritzker 0.10 X 0 0 0 Mrs Neil K Quinn 0.20 X 0 0 0 John M Richman 0.20 X 0 0 0 John W Rogers Jr 0.30 X 0 0 0 Mrs Ward C Rogers 0.10 X 0 0 0 Frank A Rossi 0.20 X 0 0 0 Cynthia M Sargent 0.20 X 0 0 0 John R Schmidt 0.10 X 0 0 0 Irving Seaman Jr 0.10 X 0 0 0 Thomas C Sheffield Jr 0.20 X 0 0 0 Rita Simo 0.20 X 0 0 0 Scott C Smith 0.50 X 0 0 0 Robert C Spoerri 0.10 X 0 0 0 William C Steinmetz 0.50 X 0 0 0 Carl W Stern 0.50 X 0 0 0 Richard J Stern 0.10 X 0 0 0 Roger W Stone 0.10 X 0 0 0 William H Strong 0.10 X 0 0 0 Louis C Sudler Jr 0.10 X 0 0 0 Richard L Thomas 0.30 X 0 0 0 Richard P Toft 0.20 X 0 0 0 James Weiss 0.10 X 0 0 0 William Adams IV 0.70 X 0 0 0 James L Alexander 0.50 X 0 0 0 Anthony K Anderson 0.50 X 0 0 0 Douglas J Bade 0.30 X 0 0 0 Melvyn Bergstein 0.10 X 0 0 0 Wayne D Boberg 0.10 X 0 0 0 Laurence O Booth 0.20 X 0 0 0 Matthew Bucksbaum 0.10 X 0 0 0 Gregory C Case 0.10 X 0 0 0 Frank M Clark 0.30 X 0 0 0 Bruce E Clinton 0.20 X 0 0 0 Richard Colburn 0.20 X 0 0 0 Michelle L Collins 0.40 X 0 0 0 Ellen M Costello 0.10 X 0 0 0 Charles Douglas 0.10 X 0 0 0 David W Fox Jr 0.10 X 0 0 0 Mark D Gerstein 0.10 X 0 0 0 Joseph B Glossberg 0.40 X 0 0 0 Richard C Godfrey 0.10 X 0 0 0 Thomas M Goldstein 0.40 X 0 0 0 William A Goldstein 0.40 X 0 0 0 Karen Goodyear 0.10 X 0 0 0 Mary Louise Gorno 0.50 X 0 0 0 Mary Winton Green 0.40 X 0 0 0 Joseph A Gregoire 0.30 X 0 0 0 Anne Dias Griffin 0.40 X 0 0 0 Dietrich Gross 0.30 X 0 0 0 David P Hackett 0.20 X 0 0 0 John H Hart 0.40 X 0 0 0 Cheryl Istvan 0.10 X 0 0 0 David A Kipper 0.10 X 0 0 0 Joseph Konen 0.50 X 0 0 0 Josef Lakonishok 0.10 X 0 0 0 Susan C Levy 0.30 X 0 0 0 John Livingston 0.80 X 0 0 0 CH Randolph Lyon 0.30 X 0 0 0 John F Manley 0.20 X 0 0 0 Ling Z Markovitz 0.60 X 0 0 0 Alan R May 0.30 X 0 0 0 Peter D McDonald 0.60 X 0 0 0 Alfred L McDougal 0.80 X 0 0 0 David E McNeel 0.10 X 0 0 0 John M Pratt 0.30 X 0 0 0 Dr Irwin Press 0.30 X 0 0 0 W Robert Reum 0.40 X 0 0 0 James Reynolds Jr 0.10 X 0 0 0 Norbert G Riedel 0.10 X 0 0 0 Alexander I Rorke 0.30 X 0 0 0 Jerry Rose 0.30 X 0 0 0 Earl J Rusnak Jr 0.90 X 0 0 0 Alejandro Silva 0.30 X 0 0 0 Raymond Skilling 0.10 X 0 0 0 Russ M Strobel 0.80 X 0 0 0 Peggy Y Thomson 0.10 X 0 0 0 Charles A Tribbett 0.50 X 0 0 0 Penny Van Horn 0.90 X 0 0 0 Frederick H Waddell 0.20 X 0 0 0 Sona Wang 0.30 X 0 0 0 Eric E Whitaker MD MPH 0.30 X 0 0 0 Paul Wiggin 0.70 X 0 0 0 Helen Zell 0.50 X 0 0 0 Isabelle Goossen 40.00 X 196012 0 15116 Peggy Titterington 40.00 X 176613 0 24205 Nicole Love 40.00 X 32310 0 9300 Karen Rahn 40.00 X 22711 0 7022 Kevin Giglinto 40.00 X 162636 0 29844 Martha Gilmer 40.00 X 189444 0 33373 Vanessa Moss 40.00 X 182333 0 32015 Ricardo Muti 40.00 X 333333 0 0 Robert Chen 40.00 X 430738 0 38704 John Sharp 40.00 X 254758 0 40124 Mathieu Dufour 40.00 X 260535 0 16532 Dale Clevenger 40.00 X 236717 0 59335 2941149 0 337169 128 0 1 0 SD&A Teleservices Inc 5757 W Century Blvd Los Angeles CA 90045 Telemarketing & Telefundraising 883700 Opus 3 Artists 470 Park Ave South 9th Floor North New York NY 10016 Artist Performances 843880 Gemini Graphics Inc 860 West Lake Street Roselle IL 601722891 Printing Services 618466 KIMCO Corporation 135 S LaSalle Chicago IL 606741607 Janitorial 617158 Allied Barton Security 161 Washington Street Conshohocken PA 19428 Security 601290 34 1987372 231000 22961320 2967640 25179692 Ticket Sales 711190 20563743 20563743 Performance Fees 711190 3700274 3700274 Facility Rental Revenu 711190 833453 833453 Other Program Related 711190 545079 545079 Parking Lot Rental Rev 711190 445657 445657 580516 71881 508635 26668722 4844199 4844199 164080 469591 -305511 -305511 -305511 38065070 32432398 237 5632672 -237 5632435 5586 5626849 1946274 1987372 1507078 439196 439196 13840 6122 7718 7718 434925 180619 254306 224192 30114 62720757 25938622 -269811 11872254 644120 644120 1670819 453239 1007373 210207 30013562 26504533 2138471 1370558 3268322 2972789 181428 114105 3622639 3111535 332876 178228 2045061 1665869 255012 124180 159822 87137 71838 847 112300 112300 449250 449250 47524 46123 1401 7764841 7052370 596310 116161 4766659 3956257 567657 242745 775554 534161 124079 117314 276001 94219 131550 50232 2397303 1913765 228249 255289 1036480 894480 89693 52307 230996 87707 48920 94369 5478868 5478868 3977459 3738603 238856 243605 243605 Equipment Rental & Main 885563 885479 84 Miscellaneous 683547 436596 96986 149965 Music & Instrument Rent 364798 278868 85630 300 Music License Fees 259826 259826 71174919 55571553 12075824 3527542 1887000 1069187 13412122 11990074 18841873 11337993 823512 518965 166471 186947 2689768 2662918 170088529 61580646 111200149 108507883 171565529 195075629 101834316 123200703 422420740 454550299 4665865 3008577 12615365 12422180 145515000 145515000 41044114 31410267 203840344 192356024 X 111199042 146111113 34316093 40423875 73065261 75659287 218580396 262194275 422420740 454550299 X -8454162 52068041 X 0 1 1 X 0 X 29079285 22408711 26094618 32552630 25179692 135314936 29079285 22408711 26094618 32552630 25179692 135314936 7786251 127528685 9926530 8488363 6054823 4692098 4811919 33973733 169288669 154038518 0.75330 0.74100 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 351 351 71174568 71174919 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 20448 421 274 351 21494 250000 250000 250000 250000 1000000 1500000 208656000 3964000 39706000 10987000 241339000 190895000 3503000 25481000 11223000 208656000 232001000 8476000 -38454000 11125000 3000 190895000 0.57590 0.31350 0.11060 1 0 25475169 25475169 124671091 50640985 74030106 355046 334991 20055 8755564 6722765 2032799 10831659 3881905 6949754 108507883 Alternative investments - Absolute return 39405805 F Alternative investments - Hedged equities 46279251 F Alternative investments - Other 13235609 F Real Assets 22213613 F Held in trust 2066401 F Other 24 F 123200703 Pension benefits 16425175 Other long-term liabilities 918427 Interest rate swap contracts 14066665 31410267 62720757 71174919 -8454162 42911751 9156290 52068041 43613879 118002091 42911751 1049646 9156290 53117687 64884404 -2163647 -2163647 62720757 74388212 1049646 1049646 73338566 -2163647 -2163647 71174919 Description of Intended Use of Endowment Funds: Part V, Line 4: The Investment Committee, which oversees all the Corporation's investments, operates under investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs, while seeking to maintain the purchasing power of the endowment assets. Under these policies, the endowment assets are invested in a manner that, over time, will meet the long-term objective of a 5% real return on assets. The Corporation's policy is to preserve the historical dollar value of permanently restricted contributions, and to use any of the investment returns as is prudent considering the Corporation's long- and short-term needs, resources, duration and preservation of donor-restricted endowment funds, donor restrictions, expected total return on its investments, price level trends, general economic conditions, and investment policies. Description of Uncertain Tax Positions Under FIN 48: Part X: Income Taxes The Corporation is exempt from federal and state income taxes under the provisions of Section 501(c)(3) of the Internal Revenue Code unless it has income from unrelated business activities. The Corporation follows the standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Corporation may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Corporation, continued tax exempt status of bonds payable, and various positions related to the potential sources of unrelated business taxable income. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition classification, interest and penalties on income taxes, and accounting in interim periods. At June 30, 2011 and 2010, there were no unrecognized tax benefits identified or recorded as liabilities. The Corporation files Form 990 in the U.S. federal jurisdiction and the State of Illinois. The Corporation is generally no longer subject to examination by the Internal Revenue Service for years before 2007. Part XI, Line 8 - Other Adjustments: Changes in pension plan assets and benefit obligations 5,631,411. Swap market value adjustment 3,524,879. Part XII, Line 2d - Other Adjustments: Interest rate swap fair value adjustment 3,524,879. Changes in pension plan assets and benefit obligations 5,631,411. Part XII, Line 4b - Other Adjustments: Rental expenses (Part VIII, Line 6b) -469,591. Gain on sale of other assets (Part VIII, Line 7c(ii)) -237. Fundraising event expenses (Part VIII, Line 8b + Line 9b) -1,513,200. Cost of goods sold (Part VIII, Line 10b) -180,619. Part XIII, Line 4b - Other Adjustments: Rental expenses (Part VIII, Line 6b) -469,591. Gain on sale of other assets (Part VIII, Line 7c(ii)) -237. Fundraising event expenses (Part VIII, Line 8b + Line 9b) -1,513,200. Cost of goods sold (Part VIII, Line 10b) -180,619. Central America and the Caribbean 0 0 Investments 70270770 0 0 0 0 0 0 70270770 0 70270770 1 0 1 0 0 0 X X X X X X X 1 SD&A Teleservices Inc 5757 W Century Los Angeles CA 90045 Telefundraising Campaigns 0 1771266 449250 1322016 1771266 449250 1322016 IL Symphony Ball 1959516 951607 1007909 218127 225884 26658 152746 Corporate Night 1274566 729509 545057 5390 32443 66938 194242 76406 13 699564 306256 393308 92174 12383 129056 31791 242840 3933646 1987372 1946274 97564 262953 421878 252691 471992 1507078 439196 1 Civic Orchestra Stipends 149 606570 Civic Orchestra Fellowships 6 37550 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: All regular members of the Civic Orchestra of Chicago receive a stipend. Associate members receive stipends if they perform as a sub or an extra player. Most Regular members receive an annual stipend of $6,300. Five string players who are assigned to principal positions via audition receive an additional $2,000 per season. Stipends offset the cost of living, allowing musicians more time to spend on their music studies. While the majority of Civic musicians are post-graduates, stipends may be applied to tuition expenses for students pursuing degrees in music. Six graduate string players, all of whom are Regular members, receive a fellowship (rather than the stipend) annually that is disbursed on an annual or semester basis directly to the academic institution they are attending. This is part of a cooperative agreement between the Civic Orchestra and area schools (Northwestern University, DePaul University and Chicago College of Performing Arts at Roosevelt University) to provide two years of tuition-free graduate study. The academic institution covers the portion of the tuition that the fellowship from the Civic Orchestra does not cover. Other Information: Part IV: Civic Membership: Members of the Civic Orchestra of Chicago are chosen by blind audition in February-March for the following season (September-May). Adjudicators are members of the Chicago Symphony Orchestra. Auditionees play a prepared list of orchestral excerpts and a solo work that has been selected by the CSO member, and are ranked by a number during the audition process. When the auditions are over, the numbers are placed in order and then matched with the name of the auditionee. From the list, Regular and Associate membership rosters are formed. Regular section membership is based on the number of players required in a given section on a regular basis. Subs and extras are drawn from the Associate membership roster as needed throughout the season. All ranking is guided by the artistic quality of the audition as determined by the adjudicator. X 1 1 X X X X X 0 0 0 0 0 0 0 0 0 Deborah R Card 409970 0 0 0 53039 0 14000 0 17599 0 494608 0 0 0 Isabelle Goossen 173246 0 0 0 22766 0 11816 0 3300 0 211128 0 0 0 Peggy Titterington 159873 0 0 0 16740 0 8520 0 15685 0 200818 0 0 0 Kevin Giglinto 146024 0 0 0 16612 0 8161 0 21683 0 192480 0 0 0 Martha Gilmer 168538 0 0 0 20906 0 14057 0 19316 0 222817 0 0 0 Vanessa Moss 166572 0 0 0 15761 0 10439 0 21576 0 214348 0 0 0 Ricardo Muti 333333 0 0 0 0 0 0 0 0 0 333333 0 0 0 Robert Chen 421340 0 0 0 9398 0 6546 0 32158 0 469442 0 0 0 John Sharp 237704 0 0 0 17054 0 13712 0 26412 0 294882 0 0 0 Mathieu Dufour 260174 0 0 0 361 0 4982 0 11550 0 277067 0 0 0 Dale Clevenger 212470 0 0 0 24247 0 38017 0 21318 0 296052 0 0 0 Part I, Line 1a Charter travel is provided for all employees during certain foreign and domestic tours when deemed more economical. Illinois Finance Authority 861091967 45200FGY9 2008-05-29 83015000 See Part V 0 0 0 83015000 81364393 722487 308120 620000 1997 1 0 1 1 0 1 0 0 0 1 Schedule K Supplental Information Part I, Line A, Column (f): The Bonds were issued to (i) refinance a line of credit to the Chicago Symphony Orchestra (the Symphony) from the Northern Trust Company (the Line of Credit) and pay or reimburse the Symphony for certain costs relating to the conversion of the interest rate mode (the Series 2002 Conversion) on the $80,650,000 original aggregate principal amount of the Illinois Educational Facilities Authority Revenue Refunding Bonds, Chicago Symphony Orchestra, Series 2002 (the Series 2002 Bonds) and (ii) pay a portion of the interest on the Bonds and certain costs of issuance of the Bonds (including credit enhancement). The proceeds of the Line of Credit were used to finance a portion of the costs of (i) financing the mandatory purchase of the Series 2002 Bonds by the Symphony in connection with the Series 2002 Conversion, (ii) paying certain costs and expenses related to (a) the incurrence and maintenance of the Line of Credit, and (b) the Series 2002 Conversion, and (iii) paying accrued interest on the Line of Credit. The Series 2002 Bonds were issued on December 19, 2002 to refund all of the $77,900,000 original aggregate principal amount of the Illinois Development Finance Authority Variable/Fixed Rate Demand Revenue Bonds, Series 1996 (Chicago Symphony Orchestra Project) (the Series 1996 Bonds), (ii) pay a portion of interest on the Series 2002 Bonds, and (iii) pay a portion of costs of issuance (including bond insurance premium). The 1996 Bonds were issued on June 12, 1996 to (i) finance, refinance and reimburse the Symphony for certain costs relating to the renovation and expansion of Orchestra Hall and surrounding properties, (ii) pay a portion of interest on the Series 1996 Bonds, (iii) pay or reimburse the Symphony for a portion of the interest on the $50,000,000 Illinois Development Finance Authority Variable/Fixed Rate Demand Revenue Bonds, Series 1994 (Chicago Symphony Orchestra Project), and (iv) pay certain costs relating to letters of credit and costs of issuance. Part II, Line 9, Column A: This amount was used to pay capitalized interest pursuant to Treas. Reg. Section 1.148-6(d)(3)(ii)(A)(3). Chicago Tribune William A. Osborn (Board Member), Helen Zell (Family relationship) 589126 Advertising - Print 0 The Northern Trust Company James S. Crown (Family relationship), Frederick H. Waddell (Chairman) 676748 Letter of Credit and other banking fees 0 Blue Cross Blue Shield of Illinois Michelle L. Collins (Board Member), Sona Wang (Director) 447587 Insurance premiums 0 JP Morgan James S. Crown (Board Member), David Fox, Jr. (Vice Chairman) 145834 Letter of Credit and other banking fees 0 Peter E Ellefson Deborah R. Card (Family Relationship) 15647 Substitute musician fees 0 X 92 2445206 FMV-stock gifts X Wine Sponsorship 1 35364 Fair Market Value X Cough Drops 1 28123 Fair Market Value X Event prizes 1 142684 Fair Market Value X Software 1 4175 Fair Market Value X Advertising 1 50904 Fair Market Value X Airfare miles & certificates 1 261184 Fair Market Value 0 0 1 Third Party Use: Part I, Line 32b: Publicly traded securites are sold via a stock brokerage account held at the corporation's primary banking relationship. Form 990, Part VI, Section A, line 2 Family Relationship: David W. Fox, Sr., David W. Fox, Jr. Business Relationship 1: Gregory C. Case, R. Eden Martin, John W. Rogers, Jr. Business Relationship 2: William A. Osborn, H. Laurence Fuller Business Relationship 3: Frank M. Clark, Ellen M. Costello Business Relationship 4: Michelle L. Collins, Sona Wang Business Relationship 5: Susan Crown (relative of James S. Crown), David B. Speer Business Relationship 6: Debora de Hoyos, Judith W. McCue, John R. Schmidt Business Relationship 7: John W. Rogers, Jr., Roger W. Stone Business Relationship 8: Michelle L. Collins, Frederick A. Krehbiel Business Relationship 9: James S. Crown, David W. Fox, Jr. Business Relationship 10: R. Eden Martin, Russ M. Strobel Business Relationship 11: Susan Crown (relative of James S. Crown), Frederick H. Waddell, William A. Osborn Business Relationship 12: Charles W. Douglas, Debora de Hoyos, R. Eden Martin, Richard B. Kapnick, Newton N. Minow Business Relationship 13: William A. Osborn, Helen Zell Business Relationship 14: James J. O'Connor, Peter D. McDonald Business Relationship 15: Frank M. Clark, Dean L. Buntrock Form 990, Part VI, Section A, line 7a At each annual meeting the fully ratified Governing Members elect regular and life trustees. Form 990, Part VI, Section B, line 11 CSO staff prepares Form 990, and it is reviewed by our tax advisor. Staff and the tax advisor discuss and review the entire Form 990 and Form 990-T with members of the CSO Audit Committee, who review and accept it before it is filed as set forth in the Committee Authority and Responsibility section of the Audit Committee charter. At its Spring meeting, the Board of Trustees was reminded of the Audit Committee's responsibility to review and approve the annual tax returns. The 2010 Form 990 and Form 990-T were reviewed and approved at the April 30, 2012 meeting of the Audit Committee. Form 990, Part VI, Section B, line 12c The CSO maintains a Conflict of Interest Policy that applies to all trustees, the Executive Committees of certain auxiliary operations operating under the CSO's bylaws, senior management and other designated staff members, and non-trustee members of Trustee committees. The Policy requires each person to whom the policy applies to complete an annual disclosure questionnaire that discloses any business or financial interest, which might reasonably be expected to give rise to a possible conflict between the interest of the CSO and the interest of such person. The Policy forbids such individuals from voting on or using their personal influence in connection with such business or financial issues. In the event the CSO does conduct business with a related party, the financial terms of those relationships are reported annually to the Audit Committee, whose members are independent per the terms of its charter. The CSO requires each non-union employee to conduct themselves in accordance with the code of Business Conduct and Ethics, approved by the Board of Trustees, and to sign an annual statement acknowledging their understanding of and compliance with the Code. Form 990, Part VI, Section B, line 15 The process for determining the compensation of the President included a meeting on October 12th, 2010, of the Administrative Personnel Committee, which was comprised of three independent trustees and two non-trustees. The Committee reviewed the compensation arrangements and peer benchmark data based on size of budget and scope of management responsibility. Published compensation surveys for non-profit organizations were also reviewed. Recommendations were made to the Committee and accepted, and the deliberations of the Committee were documented in the minutes of the meeting. The President's compensation is also discussed in executive session at a board meeting. The process for determining the compensation of other officers or key employees included a meeting on October 12th, 2010, of the Administrative Personnel Committee, which was comprised of three independent trustees and two non-trustees. The Committee reviewed the compensation arrangements and peer benchmark data based on size of budget and scope of management responsibility. Published compensation surveys for non-profit organizations were also reviewed. Recommendations were made to the Committee and accepted, and the deliberations of the Committee were documented in the minutes of the meeting. Form 990, Part VI, Section C, line 19 Financial statements, governing documents and conflict of interest policy are available to the public upon request. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 42,911,751. Changes in pension plan assets and benefit obligations 5,631,411. Swap market value adjustment 3,524,879. Total to Form 990, Part XI, Line 5: 52,068,041.