2012-11-13T15:15:54-06:00 2011-12-31 861065772 DELOITTE TAX LLP 550 SOUTH TRYON STREET SUITE 2500 CHARLOTTE NC 28202 990 2011-01-01 570931093 THE INSPIRATIONAL NETWORK INC INSP 8035781000 3000 WORLDREACH DRIVE INDIAN LAND SC 29707 ROBERT I BRACE 8035781000 2012-11-12 1 JOHN W SADOFF JR P00540589 7048871500 2011 2016-02-24 21:20:13Z C DAVID CERULLO 3000 WORLDREACH DRIVE INDIAN LAND SC 29707 92953059 0 X WWW.INSPIRATION.ORG X 1992 NC IMPACTING PEOPLE FOR CHRIST WORLDWIDE THROUGH MEDIA. 6 3 422 0 12617921 -14018586 57064680 48155136 39169158 42846151 49245 -328011 0 0 96283083 90673276 343426 12600 0 0 25912808 25222390 0 0 7137867 71053858 71354789 97310092 96589779 -1027009 -5916503 123727363 118147348 60369963 60706451 63357400 57440897 IMPACTING PEOPLE FOR CHRIST WORLDWIDE THROUGH MEDIA. 0 0 80502592 12600 29900219 THE PROMOTION, PRODUCTION, AND PROVISION OF RELIGIOUS, CHARITABLE, AND EDUCATIONAL PROGRAMMING COMMUNICATING THE GOSPEL TO PEOPLES OF THE WORLD ON LINEAR TELEVISION AND VARIOUS SERVER BASED PLATFORMS INCLUDING BROADBAND, VIDEO ON DEMAND AND WIRELESS. THE POTENTIAL AUDIENCE IS MORE THAN 1 BILLION HOUSEHOLDS DOMESTICALLY AND INTERNATIONALLY. THE MINISTRY ENHANCES THE RELIGIOUS DEVELOPMENT OF MEN, WOMEN AND CHILDREN. PROGRAMMING INCLUDES THE DISTRIBUTION OF DIRECT PREACHING AND BIBLE TEACHING, MUSIC SHOWS, AND VALUES BASED PROGRAMMING TO ENCOURAGE PEOPLE IN THEIR WALK OF FAITH WHILE MEETING THEIR DESIRE TO BE ENTERTAINED. THE MINISTRY DISTRIBUTES A MONTHLY MAGAZINE, DEVOTIONALS, BOOKS, CD'S, AND DVD'S DESIGNED TO TEACH AND ENCOURAGE. THE COUNSELING CENTER RESPONDS TO CALLS FOR PRAYER FROM PEOPLE WORLDWIDE. 80502592 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 0 1 229 0 1 422 1 1 1 1 UK 0 0 0 1 1 0 0 0 0 0 X 6 3 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 1 1 0 CA NC SC X THE CORPORATION 8035781000 3000 WORLDREACH DRIVE INDIAN LAND SC 29707 ARDIZZONE RAY 2.00 X 0 0 0 CERULLO BARBARA 50.00 X X 179331 0 7595 CERULLO DAVID 50.00 X X 1677399 0 394311 CLARKE MARTIN 2.00 X 0 0 0 MIGLIORE HENRY 2.00 X 0 0 0 PREUDHOMME DOUG 2.00 X 0 0 0 AIRY WILLIAM 50.00 X 497528 0 16243 ARDIZZONE DALE 50.00 X 301255 0 17052 BRACE ROBERT 50.00 X 215998 0 14429 BUTTS HAROLD 50.00 X 146925 0 16316 CERULLO BEN 50.00 X 118121 0 74595 CHOWNING KYLE 50.00 X 106798 0 15886 DEVOLL KENT 50.00 X 95983 0 16666 ELMORE CECIL 50.00 X 166904 0 77799 FAVARO MARC 50.00 X 490227 0 14204 GOSS JAMES 50.00 X 236354 0 646 HAWSE CAROLINE 50.00 X 104786 0 13414 HELMS DANA 50.00 X 83389 0 10376 HENDERSON REBEKAH 50.00 X 187891 0 14462 KANG MARK 50.00 X 98259 0 712 KINGSLEY THOMAS 50.00 X 155475 0 14204 KRAMER MARK 50.00 X 174222 0 14204 LAFFERTY FARLEY 50.00 X 56826 0 48408 LEGG CHRISTIE 50.00 X 108594 0 4816 NORD MARSHALL 50.00 X 116145 0 14274 RICHARDSON GREGORY 50.00 X 164638 0 14809 ROBERTSON DAVID 50.00 X 170498 0 12352 ROGERS BRACK 50.00 X 100803 0 15636 ROOS JOHN 50.00 X 184769 0 10522 SHAHEEN FRED 50.00 X 94090 0 14462 SMITH TIMOTHY 50.00 X 88389 0 44293 SOLOW MARK 50.00 X 167781 0 15750 WARDELL RICK 50.00 X 189913 0 15894 WILLIAMS BRIAN 50.00 X 119983 0 13576 WOODARD KEITH 50.00 X 279794 0 16510 YOUNG KYLE 50.00 X 125387 0 15290 BURKLIN TAMARA 50.00 X 165165 0 0 COOPER RUSSELL 50.00 X 224718 0 4983 MCCALL WILLIAM 50.00 X 157074 0 3714 MOSES ROBERT 50.00 X 159760 0 4886 RUSSO JOHN 50.00 X 173244 0 4886 7884416 0 1008175 39 0 1 0 NIELSEN MEDIA RESEARCH 770 BROADWAY NEW YORK NY 10003 DATA SERVICES 984001 DOT & CROSS LLC 7 IONIA AVE SW STE 300 GRAND RAPIDS MI 49503 FILM PRODUCTION 462486 LAUNCHPAD MEDIA ADVISORS 1127 AURARIA PARKWAY STE 103B DENVER CO 80204 CONSULTANTS 324582 K&L GATES LLP 210 SIXTH AVE PITTSBURGH PA 15222 LEGAL SERVICES 293426 CAPIN CROUSE 972 EMERSON PARKWAY STE A GREENWOOD IN 46143 ACCOUNTING SERVICES 135257 9 48155136 48155136 RELIGIOUS PROGRAMS 541800 26028777 26028777 TV ADVERTISING 541800 12920329 614303 12306026 MANAGEMENT FEES 561000 1885599 1661970 223629 MARK-TO-MARKET INTERES 900099 777603 777603 1233843 1169311 64532 42846151 23908 174 23734 1927864 2279783 -351919 -351919 -351919 90673276 29900219 12617921 0 12600 12600 7994161 5844739 1594791 554631 15887850 12547931 2913244 426675 8623 8623 1331756 1093403 209482 28871 474143 355607 118536 165384 15008 150376 1447083 1447083 845656 839998 5658 964998 240345 134477 590176 457423 374274 83149 892457 328952 539415 24090 1200846 1103921 71556 25369 247161 243339 3727 95 3461461 3002777 458684 14719477 14284845 434632 1642083 581808 1060275 DIGITAL SIGNAL SERVICE 29698270 26913054 0 2785216 CONTRACT SERVICE AND LA 9379313 6387591 935008 2056714 PRODUCTION, PRINTING, A 5166045 4506445 13617 645983 592989 370249 222693 47 96589779 80502592 8949320 7137867 X 1778755 2291017 1081530 563338 5688463 7049368 680301 468687 2215404 2906444 130877010 52337496 87058618 78539514 73061 62800 25151231 26266180 123727363 118147348 4419761 4071929 240147 374844 35151179 32166666 20558876 24093012 60369963 60706451 X 63357400 57440897 0 0 63357400 57440897 123727363 118147348 -5916503 0 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 44008 9296302 9340310 47138123 7480506 39657617 337999 298601 39398 21929807 19665633 2264174 52130771 24892756 27238015 78539514 NON-TRADE AFFILIATE RECEIVABLE 8780086 NETWORK LAUNCH FEES 1493146 CAPITALIZED FILM COSTS 3314986 ACQUIRED PROGRAM COSTS 12009414 TRADEMARKS AND COPYRIGHTS 498332 DEPOSITS 147198 OTHER ASSETS 23018 26266180 CAPITAL LEASE OBLIGATIONS 11208278 ACCRUED NETWORK LAUNCH FEES 916907 INTEREST RATE SWAP AGREEMENT 2112257 PROGRAM RIGHTS 9802939 OTHER LIABILITIES 52631 24093012 SCHEDULE D, PART X, LINE 2: ON JANUARY 1, 2009, THE COMPANY ADOPTED THE NEW PROVISIONS OF THE INCOME TAX TOPICS OF THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC). THESE PROVISIONS CLARIFY THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS AND PRESCRIBE GUIDANCE RELATED TO THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION IS ONLY RECOGNIZED IN THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION IF THE TAX POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED UPON AN EXAMINATION, BASED ON THE TECHNICAL MERITS OF THE POSITION. INTEREST AND PENALTIES, IF ANY, ARE INCLUDED IN EXPENSE IN THE CONSOLIDATED STATEMENTS OF ACTIVITIES. AS OF DECEMBER 31, 2011 AND 2010, THE COMPANY HAD NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. X X X 1 1 X X X X 1 0 0 1 0 0 0 0 0 CERULLO BARBARA 163752 0 0 0 15579 0 0 0 7595 0 186926 0 0 0 CERULLO DAVID 1483799 0 0 0 193600 0 22000 0 372311 0 2071710 0 0 0 AIRY WILLIAM 492966 0 0 0 4562 0 0 0 16243 0 513771 0 0 0 ARDIZZONE DALE 288943 0 0 0 12312 0 0 0 17052 0 318307 0 0 0 BRACE ROBERT 204033 0 0 0 11965 0 0 0 14429 0 230427 0 0 0 BUTTS HAROLD 140915 0 0 0 6010 0 0 0 16316 0 163241 0 0 0 CERULLO BEN 112637 0 0 0 5484 0 0 0 74595 0 192716 0 0 0 ELMORE CECIL 136741 0 0 0 30163 0 16480 0 61319 0 244703 0 0 0 FAVARO MARC 483054 0 0 0 7173 0 0 0 14204 0 504431 0 0 0 GOSS JAMES 229354 0 0 0 7000 0 0 0 646 0 237000 0 0 0 HENDERSON REBEKAH 177769 0 0 0 10122 0 0 0 14462 0 202353 0 0 0 KINGSLEY THOMAS 152898 0 0 0 2577 0 0 0 14204 0 169679 0 0 0 KRAMER MARK 171366 0 0 0 2856 0 0 0 14204 0 188426 0 0 0 RICHARDSON GREGORY 157293 0 0 0 7345 0 0 0 14809 0 179447 0 0 0 ROBERTSON DAVID 168147 0 0 0 2351 0 0 0 12352 0 182850 0 0 0 ROOS JOHN 161754 0 9016 0 13999 0 0 0 10522 0 195291 0 0 0 SOLOW MARK 161792 0 0 0 5989 0 0 0 15750 0 183531 0 0 0 WARDELL RICK 180841 0 0 0 9072 0 0 0 15894 0 205807 0 0 0 WOODARD KEITH 274716 0 0 0 5078 0 0 0 16510 0 296304 0 0 0 BURKLIN TAMARA 162162 0 0 0 3003 0 0 0 0 0 165165 0 0 0 COOPER RUSSELL 221171 0 0 0 3547 0 0 0 4983 0 229701 0 0 0 MCCALL WILLIAM 152625 0 0 0 4449 0 0 0 3714 0 160788 0 0 0 MOSES ROBERT 152195 0 0 0 7565 0 0 0 4886 0 164646 0 0 0 RUSSO JOHN 172005 0 0 0 1239 0 0 0 4886 0 178130 0 0 0 PART I, LINE 1A EXPENSES REIMBURSED ACCORDING TO WRITTEN TRAVEL AND ENTERTAINMENT POLICY STATEMENT AND/OR APPROVED IN BOARD MINUTES. PART I, LINE 4A JOHN BREWSTER (SEVERANCE), $21,013.80; THOMAS HOHMAN (SEVERANCE), $2,724.72; FARLEY LAFFERTY (SEVERANCE), $16,873.93; HUGH OSSIE MILLS (SEVERANCE), $74,578.07; RONALD SHUPING (SEVERANCE), $3,390.41 PART I, LINE 5 I. COMMISSION PAYMENTS - SALES COMMISSIONS ARE PAID TO THE COMMERCIAL AND MINISTRY SALES TEAMS BASED ON SALES OF NETWORK AIRTIME. SALES COMMISSIONS ARE PAID TO THE AFFILIATE SALES TEAMS BASED ON THE NUMBER OF NEW SUBSCRIBERS. II. PRESIDENT AND CHIEF EXECUTIVE OFFICER - PURSUANT TO A BOARD RESOLUTION, THE CORPORATION PAYS ITS PRESIDENT AN ANNUAL BASE SALARY. AN ADDITIONAL COMPONENT OF ANNUAL BASE COMPENSATION IS BASED ON GROSS RECEIPTS AND OPERATIONS OF THE CORPORATION, SUBJECT TO A CAP. DOUG PREUDHOMME DIRECTOR 3541575 DB SERVICES 0 FORM 990, PART VI, SECTION A, LINE 2 YES, DAVID CERULLO, PRESIDENT AND CEO, IS THE SPOUSE OF BARBARA CERULLO, EVP ORGANIZATIONAL DEVELOPMENT. DAVID CERULLO, PRESIDENT AND CEO, IS ALSO THE FATHER OF BEN CERULLO, PRESIDENT OF BEN CERULLO MINSTRIES AND STEELROOTS. DAVID CERULLO, PRESIDENT AND CEO, IS ALSO THE FATHER OF REBEKAH HENDERSON, EVP/GENERAL MANAGER OF HALOGEN. RAY ARDIZZONE, DIRECTOR, IS THE FATHER OF DALE ARDIZZONE, EVP BUSINESS AND LEGAL AFFAIRS. FORM 990, PART VI, SECTION B, LINE 11 THE COMPANY USES DELOITTE TAX, LLP AS ITS OUTSIDE TAX ADVISORS AND PAID PREPARER. INFORMATION FOR THE FORM 990 IS GATHERED BY THE EXECUTIVE VICE PRESIDENT OF FINANCE. FORM 990 IS REVIEWED BEFORE SUBMISSION BY THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER AS WELL AS THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY THROUGH A PROCESS OVERSEEN BY THE EVP OF BUSINESS AFFAIRS AND CHIEF LEGAL COUNSEL. ANY OFFICER, DIRECTOR OR KEY EMPLOYEE WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST, MUST DISCLOSE ALL MATERIAL FACTS. ANY INDIVIDUAL WITH A CONFLICT OF INTEREST IS PROHIBITED FROM PARTICIPATING IN THE GOVERNING BODY'S DELIBERATIONS AND DECISIONS IN THE TRANSACTION FOR WHICH HE/SHE HAS CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 15A. THE CEO'S COMPENSATION WAS ESTABLISHED AND PUT IN PLACE BY THE BOARD OF DIRECTORS AT THE INITIAL MEETING OF THE ORGANIZATION. ANNUALLY THE COMPENSATION IS SUBMITTED TO THE BOARD FOR APPROVAL TO ENSURE IT IS NOT EXCESSIVE. IN THE REVIEW OF COMPENSATION, AN EXECUTIVE COMPENSATION SURVEY IS COMPLETED BY AN INDEPENDENT OUTSIDE PARTY. A FOUR MEMBER INDEPENDENT COMPENSATION COMMITTEE AND INDEPENDENT BOARD MEMBER(S) REVIEW THE SURVEY AND APPROVE THE COMPENSATION. DURING THE REVIEW AND APPROVAL OF THE COMPENSATION, DOCUMENTATION OF THE DECISION IS RECORDED IN THE BOARD MINUTES. THE CEO IS NOT PRESENT WHEN COMPENSATION IS REVIEWED AND APPROVED. FORM 990, PART VI, SECTION B, LINE 15B: IN DETERMINING COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS AND KEY EMPLOYEES, THE PROCESS INCLUDED A REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. IN THE REVIEW OF COMPENSATION, AN EXECUTIVE COMPENSATION SURVEY IS COMPLETED BY AN INDEPENDENT OUTSIDE PARTY. THE SIX MEMBER WAGE AND SALARY COMPENSATION COMMITTEE AND INDEPENDENT BOARD MEMBER(S) REVIEW THE SURVEY AND APPROVE COMPENSATION. DURING THE REVIEW AND APPROVAL OF THE COMPENSATION, DOCUMENTATION OF THE DECISION IS RECORDED IN THE BOARD MINUTES. OTHER OFFICERS AND KEY EMPLOYEES ARE NOT PRESENT WHEN COMPENSATION IS REVIEWED AND APPROVED. FORM 990, PART VI, SECTION C, LINE 19 NO DOCUMENTS AVAILABLE TO THE PUBLIC. INSPIRATION CHURCH FELLOWSHIP INC 3000 WORLDREACH DRIVE INDIAN LAND SC 29707 263893515 CHURCH SC 501(C)(3) LINE 1: 170(B)(1)(A) THE INSPIRATIONAL NETWORK INC 0 INSPIRATION MINISTRIES UK ADMAIL 3905 LONDON UK W1A 1ZT BROADCASTING RELIGIOUS PROGRAMMING UK N/A N/A N/A 0 INSPIRATIONAL HOLDINGS INC & SUBSIDIARIES 9700 SOUTHERN PINES BLVD CHARLOTTE NC 28273 342018804 HOLDING COMPANY FOR BROADCASTING SUBSIDIARIES NC THE INSPIRATIONAL NETWORK INC C 283541 52669 1.00000 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 INSPIRATION MINISTRIES UK K 407096 ACCOUNTING RECORDS INSPIRATION MINISTRIES UK M 1254874 ACCOUNTING RECORDS INSPIRATIONAL HOLDINGS INC & SUBS M 223629 ACCOUNTING RECORDS