2012-11-13T14:15:32-06:00 2011-12-31 381357951 PLANTE & MORAN PLLC 10 S RIVERSIDE PLAZA 9TH FLOOR CHICAGO IL 60606 990 2011-01-01 362110592 AMERICAN ACADEMY OF ORTHOPAEDIC SURGEONS AMER 8478237186 6300 NORTH RIVER ROAD ROSEMONT IL 600184262 KAREN L HACKETT 8478237186 2012-11-06 1 LU ANN TRAPP P01506476 3122071040 2012-11-06 2011 2016-02-24 21:20:13Z KAREN L HACKETT 6300 NORTH RIVER ROAD ROSEMONT IL 600184262 65337201 0 X WWW.AAOS.ORG X 1948 IL SERVE THE PROFESSION OF ORTHOPAEDIC SURGERY, CHAMPION THE INTERESTS OF PATIENTS, AND ADVANCE THE HIGHEST QUALITY MUSCULOSKELETAL HEALTH. 16 13 283 3405 2189335 364180 6105310 11432158 24634998 25682877 1906370 1736184 686512 1755560 33333190 40606779 482522 219023 0 0 14884197 16420521 0 0 77377 17023690 18618520 32390409 35258064 942781 5348715 81850244 85261000 16939985 17933318 64910259 67327682 X SERVE THE PROFESSION OF ORTHOPAEDIC SURGERY, CHAMPION THE INTERESTS OF PATIENTS, AND ADVANCE THE HIGHEST QUALITY MUSCULOSKELETAL HEALTH. 0 0 7411785 13378738 ANNUAL MEETING - PRESENTATION OF LECTURES AND SYMPOSIA ON ORTHOPAEDIC SURGERY AND RELATED TOPICS. 2011 ATTENDANCE: 29,166. 3911200 34023 3205792 COURSE EDUCATION - COURSES PROVIDED TO ORTHOPAEDIC PROFESSIONALS TO KEEP THEM ABREAST OF THE LATEST ADVANCES IN ORTHOPAEDIC SURGERY AND CARE AND TO PROVIDE CME. 39 COURSES OFFERED IN 2011. 2708976 2265040 SPECIALTY SOCIETY MANAGEMENT - PROVIDE MEETING MANAGEMENT SERVICES FOR ORTHOPAEDIC SPECIALTY SOCIETIES AND PROMOTE ORTHOPAEDIC UNITY AMONG SOCIETIES. 13 SPECIALTY SOCIETIES. 9674838 185000 2271504 OTHER PROGRAM SERVICES - INCLUDING PUBLIC RELATIONS, BOARD OF COUNCILORS, ADVOCACY, EDUCATION PROGRAMS, INTERNATIONAL ACTIVITIES, AND RESEARCH AND SCIENTIFIC AFFAIRS. 9674838 185000 2271504 23706799 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 1 0 0 1 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 181 0 283 1 1 1 0 0 0 0 0 0 0 0 0 X 16 13 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X MR RICHARD STEWART CFO 8478237186 6300 NORTH RIVER ROAD ROSEMONT IL 600184262 DANIEL J BERRY MD 15.00 X X 119807 0 0 JOHN R TONGUE MD 10.00 X X 79014 0 0 JOSHUA J JACOBS MD 10.00 X X 37714 0 0 FREDERICK M AZAR MD 5.00 X X 1532 0 0 JOHN J CALLAGHAN MD 3.00 X 47079 0 0 DAVID D TEUSCHER MD 2.00 X 1739 0 0 FRED C REDFERN MD 2.00 X 8053 0 0 WILFORD K GIBSON MD 2.00 X 2455 0 0 JEFFREY O ANGLEN MD 2.00 X 9975 0 0 GREGORY A MENCIO MD 2.00 X 946 0 0 STEVEN D K ROSS MD 2.00 X 764 0 0 KEVIN P BLACK MD 2.00 X 696 0 0 MININDER S KOCHER MD 2.00 X 0 0 0 NAOMI N SHIELDS MD 2.00 X 0 0 0 DANIEL W WHITE MD LTC MC 2.00 X 1556 0 0 WILLIAM J BEST 2.00 X 1053 0 0 KAREN L HACKETT 80.00 X 494196 0 51271 RICHARD J STEWART 60.00 X 269460 0 34771 MARK W WIETING 60.00 X 249974 0 34271 RICHARD N PETERSON JD 60.00 X 287494 0 34771 LEWIS W JENKINS 50.00 X 156457 0 25799 HOWARD MEVIS 50.00 X 207570 0 30621 SANDRA R GORDON 50.00 X 178460 0 27964 JAMES A OGLE 50.00 X 176469 0 27914 MARILYN L FOX 50.00 X 211641 0 31259 LYNNE DOWLING 50.00 X 143378 0 24147 MARITA POWELL 50.00 X 142672 0 24538 SUSAN MCSORLEY 50.00 X 142550 0 24476 JEFFREY KRAMER 50.00 X 133490 0 23203 TINA D SLAGER 50.00 X 129636 0 22940 JOSEPH D ZUCKERMAN MD 2.00 X 15141 0 0 3250971 0 417945 39 1 1 0 PRA DESTINATION MANAGEMENT 290 KING STREET SUITE 11 SAN FRANCISCO CA 94107 BUSING SERVICES 620039 MARTIN GROUP 949 NORTH PLUM GROVE ROAD SUITE C SCHAUMBURG IL 60173 GRAPHIC ARTS 554373 WELLS CAPITAL NW 5159 PO BOX 1450 MINNEAPOLIS MN 55485 INVESTMENT MANAGERS 320290 PHARMACEUTICAL MEDIA INC 30 EAST 33RD STREET 4TH FLOOR NEW YORK NY 10016 ADVERTISING CONSULTANT 276869 ELITE SHOW SERVICES 2878 CAMINO DEL RIO SOUTH SAN DIEGO CA 92108 SECURITY 168320 18 9250000 15000 2167158 11432158 ANNUAL MEETING 541900 15777168 15678032 99136 COURSE EDUCATION 541900 3205792 3205792 PUBLICATIONS 541900 2299294 570313 1728981 SPECIALTY SOCIETY MANA 541900 2265040 2265040 RENTAL INCOME FROM ORT 531120 1339123 5500 1333623 796460 440742 355718 25682877 1294153 1294153 2794405 2794405 15897136 15455105 442031 442031 442031 8236472 9275317 -1038845 -1038845 40606779 21121074 2189335 5864212 185000 185000 34023 34023 2857886 1163991 1693895 9519286 6388840 3125446 5000 893188 600557 292631 2316571 258919 2057652 833590 557985 275605 48008 5071 42937 68953 68953 369355 369355 1258280 458331 730272 69677 685048 637107 47941 854959 618437 236522 303735 174061 129674 678404 508803 169601 2669630 2019299 647881 2450 4982495 4708149 274346 1447799 1085849 361950 223475 95816 127659 UNRELATED BUSINESS INCO 209867 174832 35035 EQUIPMENT RENTAL 1956314 1866104 90210 OUTSIDE SERVICES 1585441 1233944 351497 PRINTING AND PUBLICATIO 830004 757708 72046 250 446753 173973 272780 35258064 23706799 11473888 77377 6367069 11080702 766183 1213672 2992004 2624301 742096 693357 2119645 2689270 26775542 13433994 13959592 13341548 54618404 53371049 285251 247101 81850244 85261000 5790924 6572697 11149061 11360621 16939985 17933318 X 63150442 65338122 1759817 1989560 64910259 67327682 81850244 85261000 X 5348715 -2931292 X 0 1 1 X 0 X 15649227 7247159 8603438 5869286 11872900 49242010 29471506 33121400 33435106 32698848 29385336 158112196 45120733 40368559 42038544 38568134 41258236 207354206 13900000 6000000 6000000 4250000 9250000 39400000 0 13900000 6000000 6000000 4250000 9250000 39400000 167954206 1874063 3547303 3165735 3184096 4088558 15859755 1874063 3547303 3165735 3184096 4088558 15859755 7089 60618 176618 266722 351904 862951 4498555 4498555 51500440 43976480 45380897 42018952 45698698 228575467 0.73480 0.73780 0.06940 0.06490 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 234722 234722 35023342 35258064 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 440831 463810 390139 234722 1529502 250000 250000 250000 250000 1000000 1500000 5254941 162871 48034 5369778 4743830 555647 44536 5254941 4169877 612509 38556 4743830 5076503 -862794 43832 4169877 1.00000 0 0 1148588 1148588 18496258 8702072 9794186 7130696 4731922 2398774 13341548 40606779 35258064 5348715 -2931292 -2931292 2417423 58656015 -2931292 30599883 27668591 30987424 369355 9250000 9619355 40606779 56402875 21514166 21514166 34888709 369355 369355 35258064 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE PURPOSE OF THE ENDOWMENT FUND IS TO FINANCE ORTHOPAEDIC MEDICAL EDUCATION. UP TO 5% OF THIS FUND CAN BE USED ANNUALLY TO PROVIDE DISCRETIONARY PROJECT FUNDS FOR THE COUNCIL ON EDUCATION AND THE COUNCIL ON RESEARCH AND QUALITY. ADDITIONALLY, IT IS USED TO FUND QUALITY INITIATIVE PROJECTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ACADEMY AND ASSOCIATION'S APPLICATION OF GAAPUSA REGARDING UNCERTAIN TAX POSITIONS HAD NO EFFECT ON ITS FINANCIAL POSITION AS MANAGEMENT BELIEVES THE ACADEMY AND ASSOCIATION HAS NO MATERIAL UNRECOGNIZED INCOME TAX BENEFITS, INCLUDING ANY POTENTIAL RISK OF LOSS OF ITS NOT-FOR-PROFIT TAX STATUS. THE ACADEMY AND ASSOCIATION WOULD ACCOUNT FOR ANY POTENTIAL INTEREST OR PENALTIES RELATED TO POSSIBLE FUTURE LIABILITIES FOR UNRECOGNIZED INCOME TAX BENEFITS AS INCOME TAX EXPENSE. THE ACADEMY IS NO LONGER SUBJECT TO EXAMINATION BY FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR PERIODS BEFORE 2008. PART XII, LINE 2D - OTHER ADJUSTMENTS: REVENUE OF AFFILIATES 21,324,566. COST OF GOODS SOLD 9,275,317. PART XII, LINE 4B - OTHER ADJUSTMENTS: CONTRIBUTION FROM AFFILIATE 9,250,000. PART XIII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF AFFILIATES 12,238,849. COST OF GOODS SOLD 9,275,317. 0 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 84280 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 6833 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 100 MIDDLE EAST AND NORTH AFRICA 0 0 GRANTS TO RECIPIENTS FROM THESE REGIONS SCHOLARSHIP 33717 NORTH AMERICA 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 936 CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES INTERNATIONAL EDUCATION PROGRAMS 53216 0 0 0 0 0 0 179082 0 179082 SCHOLARSHIP MIDDLE EAST AND NORTH AFRICA 12 33717 CASH 0 0 0 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: FOR SCHOLARSHIPS, THE ACADEMY PAYS THE EXPENSES DIRECTLY FOR EACH RECIPIENT RATHER THAN DISBURSE THE FUNDS TO THEM. 1 CALIFORNIA ORTHOPAEDIC ASSOCIATION 5380 ELVAS AVENUE STE 221 SACRAMENTO CA 95819 953141127 501(C)(6) 10000 STATE SOCIETY ASSISTANCE ORTHOPAEDIC LEARNING CENTER 6300 NORTH RIVER ROAD ROSEMONT IL 60018 363999836 501(C)(3) 20000 GENERAL SUPPORT UNITED STATES BONE & JOINT INITIATIVE 6300 NORTH RIVER ROAD ROSEMONT IL 60018 134223933 501(C)(3) 35000 GENERAL SUPPORT AMERICAN JOINT REPLACEMENT REGISTRY 6300 NORTH RIVER ROAD ROSEMONT IL 60018 270645591 501(C)(3) 50000 GENERAL SUPPORT UNIVERSITY OF CALIFORNIA IRVINE FOUNDATION 100 THEORY 250 IRVINE CA 92697 952540117 501(C)(3) 20000 GENERAL SUPPORT 4 1 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION MAKES CONTRIBUTIONS TO OTHER ENTITIES WITH SIMILAR ORTHOPAEDIC RELATED MISSIONS FOR THE GENERAL SUPPORT OF THESE ORGANIZATIONS. IF THE FUNDS ARE TO BE USED FOR THE GENERAL SUPPORT OF THEIR MISSION, WE DO NOT REQUIRE THESE ORGANIZATIONS TO SUBSTANTIATE THEIR EXPENDITURES RELATED TO THESE CONTRIBUTIONS. FOR SOME PROJECTS, HOWEVER A FINAL REPORT IS REQUIRED TO SUBSTANTIATE THE EXPENDITURES. X X X 1 1 X X X 0 1 0 0 0 0 0 0 0 KAREN L HACKETT 412340 0 80000 0 1856 0 41000 0 10271 0 545467 0 0 0 RICHARD J STEWART 249284 0 15000 0 5176 0 24500 0 10271 0 304231 0 0 0 MARK W WIETING 237859 0 7500 0 4615 0 24000 0 10271 0 284245 0 0 0 RICHARD N PETERSON JD 274745 0 7500 0 5249 0 24500 0 10271 0 322265 0 0 0 LEWIS W JENKINS 152971 0 500 0 2986 0 15528 0 10271 0 182256 0 0 0 HOWARD MEVIS 201157 0 2500 0 3913 0 20350 0 10271 0 238191 0 0 0 SANDRA R GORDON 177460 0 0 0 1000 0 17693 0 10271 0 206424 0 0 0 JAMES A OGLE 176469 0 0 0 0 0 17643 0 10271 0 204383 0 0 0 MARILYN L FOX 211641 0 0 0 0 0 20988 0 10271 0 242900 0 0 0 LYNNE DOWLING 138210 0 2500 0 2668 0 13876 0 10271 0 167525 0 0 0 MARITA POWELL 142672 0 0 0 0 0 14267 0 10271 0 167210 0 0 0 SUSAN MCSORLEY 139818 0 0 0 2732 0 14205 0 10271 0 167026 0 0 0 JEFFREY KRAMER 129003 0 1000 0 3487 0 12932 0 10271 0 156693 0 0 0 TINA D SLAGER 124700 0 2500 0 2436 0 12669 0 10271 0 152576 0 0 0 JOSEPH D ZUCKERMAN MD 0 0 0 0 15141 0 0 0 0 0 15141 0 0 0 PART I, LINE 1A AIRFARE ONE CLASS UP FROM COACH IS AVAILABLE TO THE PRESIDENTIAL LINE FOR ALL AAOS ACTIVITIES HOWEVER NO PERSON RECEIVED THIS BENEFIT IN 2011. AIRFARE ONE CLASS UP FROM COACH IS AVAILABLE TO THE BOARD OF DIRECTORS FOR ALL BOARD-RELATED ACTIVITIES AND TEN PEOPLE RECEIVED THIS BENEFIT. TRAVEL FOR COMPANIONS IS AVAILABLE TO THE BOARD OF DIRECTORS AND EXECUTIVE TEAM MEMBERS (CEO, CFO, CHIEF EDUCATION OFFICER, MEDICAL DIRECTOR, AND GENERAL COUNSEL) AND THE AMOUNT OF COMPANION TRAVEL WAS TREATED AS TAXABLE COMPENSATION TO ALL WHO RECEIVED THIS BENEFIT. (19 PEOPLE) THE BOARD OF DIRECTORS RECEIVES GROSS-UP PAYMENTS FOR THIS COMPENSATION AND THAT IS ALSO TREATED AS TAXABLE COMPENSATION. (17 PEOPLE) PART I, LINE 4B KAREN HACKETT, CHIEF EXECUTIVE OFFICER ACCRUED A 457F SUPPLEMENTAL RETIREMENT PAYMENT OF $16,500, WHICH IS INCLUDED IN SCHEDULE J, PART II DEFERRED COMPENSATION. FORM 990, PART VI, SECTION A, LINE 6 AS A MEMBERSHIP ASSOCIATION, THE ORGANIZATION CURRENTLY HAS 36,000 MEMBERS. ALL FELLOWS AND MEMBERS OF THE AMERICAN ACADEMY OF ORTHOPAEDIC SURGEONS (ACADEMY), SHALL ALSO BE CONSIDERED FELLOWS AND MEMBERS OF THE SAME CLASSIFICATION OF THE AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS (ASSOCIATION), A RELATED ORGANIZATION. THERE ARE TWO CATEGORIES OF MEMBERSHIP IN THE ACADEMY AND THE ASSOCIATION: FELLOWS AND MEMBERS. ONLY FELLOWS SHALL HAVE THE RIGHT TO VOTE AND HOLD OFFICE. FORM 990, PART VI, SECTION A, LINE 7A ELECTIONS OF THE OFFICERS AND THE AT-LARGE MEMBERS OF THE ASSOCIATION AND ACADEMY BOARD OF DIRECTORS SHALL BE DETERMINED BY THE ADOPTION OF THE REPORT OF THE NOMINATING COMMITTEE OR BY THE VOICE, WRITTEN, OR ELECTRONIC BALLOT OF THOSE FELLOWS PRESENT AT THE BUSINESS MEETING OF THE ANNUAL MEETING. EACH FELLOW WHO IS PRESENT AT THE BUSINESS MEETING OF THE ANNUAL MEETING SHALL BE ENTITLED TO ONE (1) VOTE FOR EACH OFFICER OF THE ASSOCIATION AND ACADEMY, MEMBER OF THE BOARD OF DIRECTORS, MEMBER OF THE MEMBERSHIP COMMITTEE, AND NOMINEES TO THE AMERICAN BOARD OF ORTHOPAEDIC SURGERY TO BE ELECTED. THOSE INDIVIDUALS RECEIVING THE GREATEST NUMBER OF VOTES SHALL BE CONSIDERED ELECTED, EVEN IF THEY DO NOT RECEIVE A MAJORITY OF THE VOTES CAST. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD RETAINS THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE THE ORGANIZATION'S FORM 990. MANAGEMENT REVIEWS THE COMPLETED FORM 990 AND PROVIDES A FULL COPY TO ALL VOTING MEMBERS OF THE GOVERNING BODY VIA A SECURE SECTION OF ITS WEBSITE PRIOR TO FILING. A CONFERENCE CALL IS SCHEDULED FOR THE CPA FIRM AND ORGANIZATION MANAGEMENT TO DISCUSS THE FORM 990 WITH THE FINANCE COMMITTEE AND TO ANSWER ANY QUESTIONS PRIOR TO FILING FORM 990 WITH THE IRS. THE FINANCE COMMITTEE HAS BEEN DELEGATED THE AUTHORITY TO REVIEW AND APPROVE THE FORM 990 BY THE VOTING MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS, KEY VOLUNTEERS, AND KEY STAFF ARE NOTIFIED IN WRITING TWICE A YEAR TO UPDATE THEIR WRITTEN DISCLOSURES. THE DISCLOSURE DATABASE IS MAINTAINED ELECTRONICALLY AND ANYONE WHO HAS NOT UPDATED THEIR RECORD IS NOTIFIED UNTIL THEY HAVE DONE SO. ADDITIONALLY, BEFORE EVERY BOARD AND COMMITTEE MEETING PARTICIPANTS ARE ASKED IF THEY HAVE ANYTHING NEW TO DISCLOSE. FORM 990, PART VI, SECTION B, LINE 15 A COMPENSATION COMMITTEE IS DESIGNATED BY THE VOTING MEMBERS OF THE GOVERNING BODY AND IS CHARGED WITH DEVELOPING AND NEGOTIATING THE TERMS OF EMPLOYMENT AND ESTABLISHING THE TOTAL COMPENSATION PACKAGE FOR DESIGNATED POSITIONS. AN EVALUATION PROCESS IS COMPLETED ANNUALLY AND A RECOMMENDATION IS MADE REGARDING COMPENSATION THAT IS THEN SENT TO THE BOARD FOR APPROVAL. THIS PROCESS INCLUDES THE CHIEF EXECUTIVE OFFICER, CHIEF OPERATING OFFICER/CHIEF FINANCIAL OFFICER, CHIEF EDUCATION OFFICER, MEDICAL DIRECTOR, AND GENERAL COUNSEL. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE WHICH IS OPEN TO THE PUBLIC. FINANCIAL STATEMENTS ARE AVAILABLE THROUGH THE APPLICABLE GOVERNMENTAL AGENCIES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -2,931,292. AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS 6300 N RIVER ROAD ROSEMONT IL 60018 364241052 ADVOCACY ACTIVITIES ON BEHALF OF PATIENTS AND PROFESSIONALS IL 501(C)6 0 CENTER FOR ORTHOPAEDIC ADVANCEMENT NFP (COA) 6300 N RIVER ROAD ROSEMONT IL 60018 263164922 SUPPORT EDUCATIONAL ACTIVITES OF AAOS IL 501(C)3 LINE 11A, I 0 AMERICAN JOINT REPLACEMENT REGISTRY NFP (AJRR) 6300 N RIVER ROAD ROSEMONT IL 60018 270645591 FOSTER A NATIONAL CENTER FOR DATA COLLECTION ON JOINT REPLACEMENTS IL 501(C)3 LINE 11A, I 0 0 1 1 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS C 9250000 COST AMERICAN ASSOCIATION OF ORTHOPAEDIC SURGEONS P 2725071 COST