2011-11-01T17:13:38-05:00 2010-12-31 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2010-01-01 953797687 GEMOLOGICAL INSTITUTE OF AMERICA INC GEMO 7606034000 5345 ARMADA DRIVE CARLSBAD CA 92008 DAVID J TEARLE 7606034000 2011-11-01 1 SHARON ZORBACH 6192326500 2010 2016-03-07 17:11:31Z DONNA M BAKER 5345 ARMADA DRIVE CARLSBAD CA 92008 205381953 0 X WWW.GIA.EDU X 1931 CA SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT. 18 15 1078 19 1246192 -1732127 777916 268910 102085839 139629427 -3843624 6872108 1312771 13906415 100332902 160676860 373026 178278 0 0 59687213 69715631 0 0 12044 37326880 41233748 97387119 111127657 2945783 49549203 240303843 287033716 63859430 46824553 176444413 240209163 X SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT. 0 0 15891790 178278 12565528 EDUCATION:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 81686971 126680268 LABORATORY:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 3228241 383631 RESEARCH & PUBLICATIONS:SEE SCHEDULE O FOR DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS. 100807002 1 1 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 1 0 1 0 1 0 0 0 0 1 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 0 1 X 125 0 1078 1 1 1 1 TW IN HK UK BE TH SZ SF BC AE 0 0 0 0 0 0 0 0 X 18 15 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AK AR CA FL GA HI KY ME MD MA MI MS NH NJ NM NY OK OR PA WV X DAVID J TEARLE 7606034000 5345 ARMADA DRIVE CARLSBAD CA 920084602 X DONNA M BAKER 40.00 X X 509713 0 45998 RODNEY C EWING 1.00 X 6000 0 0 JEFFREY H FISCHER 1.00 X 6000 0 0 JOHN A GREEN 1.00 X 3000 0 0 SUSAN JACQUES 1.00 X 6000 0 0 DIONE D KENYON 1.00 X 0 0 0 FREDERICK N LEVINGER 1.00 X 6000 0 0 ANNA MARTIN 1.00 X 3000 0 0 ROLAND NAFTULE 1.00 X 6000 0 0 GLENN R NORD 1.00 X 6000 0 0 JAMES P SHINEHOUSE 1.00 X 6000 0 0 HANK B SIEGEL 1.00 X 3000 0 0 ARON SUNA 1.00 X 6000 0 0 EPHRAIM ZION 1.00 X 3000 0 0 MATTHEW G STULLER 1.00 X 0 0 0 PAUL KREUTZ 1.00 X 6000 0 0 STEVE RELYEA 1.00 X 6000 0 0 THOMAS YANG 1.00 X 3000 0 0 THOMAS MOSES 40.00 X 404212 0 31733 DAVID TEARLE 40.00 X 312728 0 30091 LINDA ELLIS 40.00 X 200370 0 16896 LINDA L SCHOLL 40.00 X 231779 0 16955 KATHRYN KIMMEL 40.00 X 223383 0 18049 TAWFIC E FARAH 40.00 X 241098 0 23525 PHILLIP M YANTZER 40.00 X 192873 0 29658 BRUCE F LANZL 40.00 X 192882 0 15812 CYNTHIA SANDERS 40.00 X 178397 0 14509 BEVERLY HORI 40.00 X 216808 0 10864 DONALD FOSTER 40.00 X 186480 0 25730 SABRA NORRIS 40.00 X 216123 0 16735 TIMOTHY THOMAS 40.00 X 178321 0 21965 JOHN KING 40.00 X 170986 0 20116 DUNCAN L PAY 40.00 X 158540 0 24346 ROBERT BUSCHER 40.00 X 301092 0 17560 4190785 0 380542 68 1 1 0 DLA PIPER US LLP 401 B STREET SUITE 1700 SAN DIEGO CA 92101 LEGAL 1608864 WEXLER WASSERMAN & ASSOCIATES 1120 PONCE DE LEON BLVD CORAL GABLES FL 33134 INSURANCE 799073 ADECCO EMPLOYMENT SERVICES 175 BROAD HOLLOW RD MELVILLE NY 11747 STAFFING SERVICES 524865 DELOITTE TAX LLP 655 W BROADWAY SUITE 700 SAN DIEGO CA 92101 ACCOUNTING AND TAX 448673 THE RADZINS GROUP 9 RALEIGH COURT COTO DE CAZA CA 92679 CONSULTING 255839 10 268910 169188 268910 GEMOLOGICAL LABORATORY 541900 126680268 126680268 TUITION & FEES 611600 12565528 12565528 GEMOLOGY PUBLICATIONS 511120 383631 383631 139629427 5191474 5191474 12335653 12335653 43335398 886332 41632110 908986 1703288 -22654 1680634 2747 1677887 3353271 2163997 1189274 1189274 MISCELLANEOUS INCOME 900099 228337 2366 225971 FOREIGN EXCHANGE GAIN 900099 101346 101346 NET MANAGEMENT FEE 900099 51805 51805 381488 160676860 139629427 1246192 19532331 7200 7200 132433 132433 38645 38645 2979243 1840713 1138530 51354918 49658568 1685846 10504 4249812 2716391 1532921 500 6700682 6502551 198131 4430976 3939822 490114 1040 1861751 1861751 60191 13566 46625 537948 537948 10141141 8763837 1377304 3109500 3109500 5899693 5802398 97295 3698 3698 4897056 4897056 1494876 1096680 398196 394158 362739 31419 773095 773095 5533972 5512073 21899 1141582 1014764 126818 FURNITURE AND EQUIPMENT 2214521 2214097 424 FOREIGN W/H TAX UNRECOV 1631370 1631370 MAINTENANCE 650915 650915 TOOLS & INSTRUMENTS 142331 142331 PRINTING & PHOTO 141064 140156 908 604886 615499 -10613 111127657 100807002 10308611 12044 5838460 4621371 8032063 29735444 1554949 538929 39597648 56749231 3643581 2877469 1212518 2279846 128403135 64523397 68687550 63879738 72677020 78694388 39060054 47657300 240303843 287033716 4110142 3769797 5283374 5797579 29885000 24580914 37257177 63859430 46824553 X 163017211 227079234 1448382 1262843 11978820 11867086 176444413 240209163 240303843 287033716 X 49549203 14215547 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 61080217 50000 6827503 171078 39289 162733 67584620 53275261 268637 7754949 218630 61080217 70869286 145033 -17502143 236915 53275261 0.80990 0.17560 0.01450 0 0 13227037 13227037 57202470 21787575 35414895 20719196 14474855 6244341 37254432 28260967 8993465 63879738 GEM COLLECTIONS 23483348 INVESTMENT IN SUBSIDIARIES 23778922 OTHER ASSETS 395030 47657300 ACCRUED PAYROLL 855032 OTHER CURRENT LIABILITIES 2877709 SALES TAX PAYABLE 27288 OTHER LONG TERM LIABILITES 873468 ACCRUED PAID TIME OFF 5930151 ACCRUED PENSION EXPENSE 10579994 INTERCOMPANY ACCOUNTS 16113535 37257177 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: GIA USES ENDOWMENT FUNDS FOR ACTIVITIES PURSUANT TO THE INSTITUTE'S MISSION, WHICH IS SUMMARIZED IN THE RESPONSE TO PART III, ITEM 1. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE INSTITUTE ADOPTED FASB ASC NO. 740-10 ON JANUARY 1, 2007. AS OF THE DATE OF ADOPTION THROUGH DECEMBER 31, 2010, THE INSTITUTE HAD NO LIABILITY FOR UNRECOGNIZED TAX BENEFITS. THE INSTITUTE WOULD RECOGNIZE INTEREST AND PENALTIES RELATED TO UNCERTAIN TAX BENEFITS AS INCOME TAX EXPENSE WHEN ACCRUED. AS THE INSTITUTE HAD NO LIABILITIES FOR UNCERTAIN TAX POSITIONS, THERE HAS BEEN NO ACCRUAL FOR INTEREST AND PENALTIES FOR THE YEAR ENDED DECEMBER 31, 2009. PART V, LINE 1F: THIS AMOUNT REPRESENTS A CHANGE IN PRESENT VALUE FOR THE CURRENT YEAR. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 SEE PART II FOR DESCRIPTION OF NONDISCRIMINATION POLICY. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 GIA IS ACCREDITED BY ACCSC, WHICH IS RECOGNIZED BY THE US DEPARTMENT OF EDUCATION. GIA PARTICIPATES IN TITLE IV PROGRAMS. GIA ALSO ACCEPTS VETERAN'S BENEFITS FOR PROGRAMS THAT QUALIFY. SCHEDULE E, LINE 3, DESCRIPTION OF NONDISCRIMINATION POLICY: THE INSTITUTE'S BROCHURES AND APPLICATIONS ALL INCLUDE STATEMENTS OF RACIAL NONDISCRIMINATION POLICY. THE INSTITUTE CUSTOMARILY DRAWS A SUBSTANTIAL PERCENTAGE OF ITS STUDENTS NATIONWIDE OR WORLDWIDE AND FOLLOWS A RACIALLY NONDISCRIMINATION POLICY. ACCORDINGLY, THE NEWSPAPER OR BROADCAST PUBLICATION REQUIREMENT IS SATISFIED BY ADHERENCE TO REV. PROC. 75-50, SECTION 4.02. 1 NORTH AMERICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 750 MIDDLE EAST AND NORTH AFRICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 1500 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 9795 EAST ASIA AND THE PACIFIC 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. 26600 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 WHOLLY OWNED SUBSIDIARIES 279869 EAST ASIA AND THE PACIFIC 0 0 WHOLLY OWNED SUBSIDIARIES 5257321 SOUTH ASIA 0 0 INDIRECT OWNERSHIP IN WHOLLY OWNED SUBSIDIARIES 21666423 SUB-SAHARAN AFRICA 0 0 WHOLLY OWNED SUBSIDIARIES -1530720 MIDDLE EAST AND NORTH AFRICA 0 0 WHOLLY OWNED SUBSIDIARIES -1190197 0 0 0 25711538 -1190197 24521341 SCHOLARSHIP AWARDS EUROPE (INCLUDING ICELAND AND GREENLAND) 3 9795 SCHOLARSHIP TO PARTICIPATE IN THE SCHOOL'S PROGRAMS. FMV SCHOLARSHIP AWARDS EAST ASIA AND THE PACIFIC 6 26600 SCHOLARSHIP TO PARTICIPATE IN THE SCHOOL'S PROGRAMS. FMV SCHOLARSHIP AWARDS NORTH AMERICA 1 750 SCHOLARSHIP TO PARTICIPATE IN THE SCHOOL'S PROGRAMS. FMV SCHOLARSHIP AWARDS MIDDLE EAST AND NORTH AFRICA 1 1500 SCHOLARSHIP TO PARTICIPATE IN THE SCHOOL'S PROGRAMS. FMV 1 0 1 0 0 1 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: AFTER GIA RECEIVES THE SIGNED ACCEPTANCE FORM AND THE STUDENT ENROLLS, AN AWARD LINE IS SET UP IN PEOPLESOFT TO READY THE AWARD FOR DISBURSEMENT. THE AWARD IS DISBURSED THROUGH THE PEOPLESOFT SYSTEM AS A CREDIT TO THE STUDENTS TUITION ACCOUNT. THE FUNDS ARE NOT DISBURSED DIRECTLY TO THE STUDENT UNLESS THE PROVISIONS OF THE SCHOLARSHIP INCLUDE LIVING EXPENSES; ANY SUCH AWARD IS DISBURSED THROUGH PEOPLESOFT IN THE SAME MANNER AS OTHER FINANCIAL AID DESIGNATED FOR LIVING EXPENSES. THE INTERNATIONAL SCHOOL MUST INITIATE THE PROCESS OF TRANSFERRING FUNDS FROM GIA CARLSBAD BY SUBMITTING A WRITTEN OR ELECTRONIC INVOICE OR EMAIL TO THE SCHOLARSHIP COORDINATOR AT GIA CARLSBAD. THE INVOICE MUST INCLUDE THE SCHOLARSHIP RECIPIENT'S NAME, STUDENT NUMBER, SCHOLARSHIP AWARD AMOUNT IN LOCAL CURRENCY, NAME OF THE SCHOLARSHIP, AND COURSE ENROLLMENT INFORMATION (START DATE, COURSE NAME AND NUMBER). GIA CARLSBAD TRANSFERS THE FUNDS TO THE SCHOOL WHEN THE SCHOLARSHIP RECIPIENTS BEGIN THEIR QUALIFIED COURSE OF STUDY AT GIA INDIA, GIA LONDON OR GIA THAILAND. 1 X SCHOLARSHIP AWARDS 7 0 95658 FMV SCHOLARSHIPS TO PARTICIPATE IN THE INSTITUTE'S SCHOOL PROGRAMS. PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: AFTER GIA RECEIVES THE SIGNED ACCEPTANCE FORM AND THE STUDENT ENROLLS, AN AWARD LINE IS SET UP IN PEOPLESOFT TO READY THE AWARD FOR DISBURSEMENT. THE AWARD IS DISBURSED THROUGH THE PEOPLESOFT SYSTEM AS A CREDIT TO THE STUDENT'S TUITION ACCOUNT. THE FUNDS ARE NOT DISBURSED DIRECTLY TO THE STUDENT UNLESS THE PROVISIONS OF THE SCHOLARSHIP INCLUDE LIVING EXPENSES; ANY SUCH AWARD IS DISBURSED THROUGH PEOPLESOFT IN THE SAME MANNER AS OTHER FINANCIAL AID DESIGNATED FOR LIVING EXPENSES. X 1 1 X X X X X 1 0 0 0 0 0 0 0 0 DONNA M BAKER 342807 0 125000 0 41906 0 12250 0 33748 0 555711 0 0 0 THOMAS MOSES 297743 0 100000 0 6469 0 12250 0 19483 0 435945 0 0 0 DAVID TEARLE 271458 0 40000 0 1270 0 12251 0 17840 0 342819 0 0 0 LINDA ELLIS 173176 0 21000 0 6194 0 9819 0 7077 0 217266 0 0 0 LINDA L SCHOLL 199899 0 30007 0 1873 0 11549 0 5406 0 248734 0 0 0 KATHRYN KIMMEL 185833 0 31916 0 5634 0 11019 0 7030 0 241432 0 0 0 TAWFIC E FARAH 195747 0 42500 0 2851 0 12097 0 11428 0 264623 0 0 0 PHILLIP M YANTZER 160722 0 23500 0 8651 0 9798 0 19860 0 222531 0 0 0 BRUCE F LANZL 147743 0 26500 0 18639 0 10424 0 5388 0 208694 0 0 0 CYNTHIA SANDERS 153344 0 23660 0 1393 0 8924 0 5585 0 192906 0 0 0 BEVERLY HORI 145621 0 20000 0 51187 0 8298 0 2566 0 227672 0 0 0 DONALD FOSTER 168960 0 16802 0 718 0 9390 0 16340 0 212210 0 0 0 SABRA NORRIS 161410 0 15000 0 39713 0 8977 0 7758 0 232858 0 0 0 TIMOTHY THOMAS 166129 0 10850 0 1342 0 5351 0 16614 0 200286 0 0 0 JOHN KING 151144 0 18500 0 1342 0 8529 0 11587 0 191102 0 0 0 DUNCAN L PAY 146372 0 11700 0 468 0 8006 0 16340 0 182886 0 0 0 ROBERT BUSCHER 1508 0 0 0 299584 0 0 0 17560 0 318652 0 0 0 PART I, LINE 1A AS PROVIDED IN THE GIA EMPLOYEE HANDBOOK, GIA PROVIDES TO ALL EMPLOYEES ON A ONE-TIME BASIS, REIMBURSEMENT UP TO $100 OF THE EMPLOYEE'S HEALTH CLUB OR FITNESS PROGRAM MEMBERSHIP FEE. GIA WILL ONLY REIMBURSE THE EMPLOYEE ONCE RECEIPTS ARE SUBMITTED. THIS REIMBURSEMENT IS AVAILABLE TO ALL EMPLOYEES. PART I, LINE 4A THE PAYMENT IN THE AMOUNT OF $215,000 WAS SEVERANCE PAY FOR ROBERT BUSCHER, FORMER VP AND CFO. THE PAYMENT WAS MADE BASED ON THE SEPARATION AGREEMENT. SEE PART V 212652 0 SEE PART V 921985 0 SCHEDULE L, PART IV: THE INSTITUTE STRIVES TO MAINTAIN A BOARD OF GOVERNORS COMPOSED OF OUTSTANDING INDIVIDUALS WITH VARIED BACKGROUNDS WHO ARE ABLE TO CONTRIBUTE IMPORTANTLY TO THE ACCOMPLISHMENT OF THE INSTITUTE'S EXEMPT PURPOSES. THESE INCLUDE EXPERTS FROM THE FIELDS OF SCIENCE, ACADEMIA, FINANCE AND BUSINESS. THE INSTITUTE IS ALSO FORTUNATE TO HAVE BEEN ABLE TO RECRUIT A NUMBER OF OUTSTANDING EXPERTS (BOTH RETIRED AND ACTIVE) IN THE VARIOUS ASPECTS OF GEMS AND JEWELRY. THEREFORE, IT IS NOT SURPRISING THAT FIRMS ASSOCIATED WITH SOME OF THESE GOVERNORS HAVE PARTICIPATED IN THE INSTITUTE'S THREE EXEMPT ACTIVITIES PREVIOUSLY REPORTED TO AND APPROVED BY THE IRS: EDUCATION, RESEARCH AND GEM LABORATORY ACTIVITIES. (IN ADDITION, A RELATIVELY SMALL PORTION OF THE TRANSACTIONS INVOLVED SALES OF GEMOLOGICAL INSTRUMENTS, BOOKS AND SUPPLIES WHICH HAVE BEEN REPORTED AS NONEXEMPT ACTIVITIES.) SUCH PARTICIPATION BY THESE FIRMS, HOWEVER, BEGAN BEFORE THE ELECTION OF THESE INDIVIDUALS TO THE BOARD OF GOVERNORS AND REPRESENTS A TINY FRACTION OF THE TOTAL ACTIVITIES REPORTED ON FORM 990. OBVIOUSLY, TO BAR FIRMS AFFILIATED WITH BOARD MEMBERS FROM UTILIZING THE SERVICES OF THE INSTITUTE THEY HAD PREVIOUSLY ENJOYED WOULD LIKELY DEPRIVE GIA OF THE SERVICES OF COMMITTED AND TALENTED LEADERS SUCH AS THESE. EDUCATIONEMPLOYEES OF FIRMS INVOLVED WITH GEMS AND JEWELRY, AS WELL AS INDIVIDUALS WHO ASPIRE TO SUCH POSITIONS AND THOSE WHO ARE COLLECTORS OR HOBBYISTS, REGULARLY ENROLL IN GEMOLOGY CLASSES AT THE INSTITUTE. ALL STUDENTS PAY THE SAME TUITION FOR THE SAME CURRICULA, EXCEPT THAT THERE IS A MULTIPLE ENROLLMENT DISCOUNT OF TEN PERCENT TO ALL ORGANIZATIONS ENROLLING MANY STUDENTS. EMPLOYERS MAY OR MAY NOT PAY THE TUITION FOR EMPLOYEES OR REIMBURSE STUDENTS FOR SUCH COST. FOR USE IN ITS EDUCATIONAL PROGRAMS, THE INSTITUTE PAID A REPORTABLE AMOUNT (UNDER SCHEDULE L OF FORM 990) FOR THE PURCHASE OF VARIOUS SUPPLIES FROM A VENDOR AFFILIATED WITH ONE OF ITS GOVERNORS. THE INSTITUTE CHOSE THOSE MATERIALS BASED UPON THEIR QUALITY. THE PRICES PAID FOR SUPPLIES PURCHASED FROM SUCH VENDOR WERE MARKET PRICES COMPARABLE TO THE PRICES CHARGED BY SUCH VENDOR TO ITS OTHER CUSTOMERS AND WERE COMPARABLE TO OR MORE ATTRACTIVE THAN PRICES FOR SUPPLIES OF SIMILAR QUALITY AVAILABLE FROM OTHER VENDORS. GOVERNOR: MATTHEW STULLERAFFILIATED FIRM: STULLER, INC. AGGREGATE AMOUNT PAID BY GIA: $72,532LABORATORYIN 2010, APPROXIMATELY 10,507 CLIENTS SUBMITTED GEMSTONES TO THE GIA LABORATORY, WHILE TWO FIRMS ASSOCIATED WITH MEMBERS OF THE BOARD OF GOVERNORS AVAILED THEMSELVES OF THIS SERVICE AND PAID THE REPORTABLE AMOUNTS (UNDER SCHEDULE L OF FORM 990). IN THE AGGREGATE, THE FEES FROM TRANSACTIONS WITH SUCH FIRMS WERE APPROXIMATELY 0.81 PERCENT OF THE TOTAL TRANSACTIONS OF THIS TYPE. FIRMS ASSOCIATED WITH A MEMBER OF THE BOARD OF GOVERNORS PAID THE SAME FEES AS PAID BY ANY OTHER SIMILARLY-SITUATED CLIENT. THE FIRMS WERE ALL CLIENTS OF THE GIA LABORATORY BEFORE THE AFFILIATED INDIVIDUALS BECAME MEMBERS OF THE BOARD OF GOVERNORS.GOVERNOR: MATTHEW STULLERAFFILIATED FIRM: STULLER, INC. AGGREGATE AMOUNT PAID TO GIA: $99,268GOVERNOR: EPHRAIM ZION AFFILIATED FIRM: DEHRES LIMITEDAGGREGATE AMOUNT PAID TO GIA: $921,985GEMOLOGICAL INSTRUMENTSIN THE COURSE OF ITS RESEARCH ACTIVITIES, THE INSTITUTE HAS DEVELOPED VARIOUS TYPES OF UNIQUE EQUIPMENT NEEDED TO APPLY GLOBAL GEMOLOGICAL STANDARDS. THE INSTRUMENTS DIVISION SELLS SUCH EQUIPMENT TO ITS STUDENTS, ALUMNI, AND THE PUBLIC. THESE SALES ARE REPORTED ON FORM 990-T AS NON-EXEMPT TRANSACTIONS. IN 2010, GIA'S INSTRUMENTS DIVISION MADE SALES OF GEMOLOGICAL EQUIPMENT, BOOKS AND SUPPLIES TO FIRMS AFFILIATED WITH ONE GOVERNOR IN REPORTABLE AGGREGATE AMOUNTS (UNDER SCHEDULE L OF FORM 990). IN TOTAL, SUCH SALES CONSTITUTE THREE PERCENT OF INSTRUMENTS DIVISION SALES.GOVERNOR: MATTHEW STULLERAFFILIATED FIRM: STULLER, INC.AGGREGATE AMOUNT PAID TO GIA: $40,852ABOVE TRANSACTION REPRESENTED WHOLESALE SALES MADE TO A FIRM AFFILIATED WITH ONE GOVERNOR UNDER A DISTRIBUTORSHIP AGREEMENT THAT WAS REVIEWED IN DETAIL WITH AND APPROVED BY DISINTERESTED MEMBERS OF THE BOARD OF GOVERNORS (DURING WHICH DISCUSSION THE PERTINENT GOVERNOR WAS EXCUSED FROM THE MEETING) AFTER SPECIFIC FINDINGS THAT THE AGREEMENT WAS VERY BENEFICIAL TO GIA, THAT THE VALUE OF THE SERVICES AND BENEFITS RECEIVED BY GIA UNDER THE AGREEMENT EXCEEDED THE VALUE OF THE PROPERTY AND ECONOMIC BENEFIT PROVIDED TO THE DISTRIBUTOR, THAT THE AGREEMENT WAS A BETTER CONTRACT FOR GIA THAN HAD EXISTED WITH OTHER DISTRIBUTORS IN THE PAST, AND THAT IT WAS HIGHLY UNLIKELY THAT A MORE FAVORABLE ARRANGEMENT COULD BE FOUND. THE AGREEMENT ALSO ALLOWED GIA TO CONTINUE TO SELL INSTRUMENTS DIRECTLY TO RETAIL PURCHASERS IN THE SAME MARKETS. THE BOARD ALSO RELIED ON THE WRITTEN OPINION OF EXPERT COUNSEL THAT THE AGREEMENT AND THE BOARD'S PROCEDURES AND FINDINGS WOULD QUALIFY THE ARRANGEMENT FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS DESCRIBED IN THE SECTION 4958 REGULATIONS.GENERAL COMMENTSTHE AFFILIATION OF THE GOVERNORS IDENTIFIED ABOVE WITH THEIR FIRMS IS AS FOLLOWS: EPHRAIM ZION IS MANAGING DIRECTOR OF DEHRES LTD AND MR. STULLER IS THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STULLER INC. THE INSTITUTE BELIEVES THAT MR. ZION OWNS LESS THAN 35 PERCENT OF DEHRES LTD AND MR. STULLER OWNS AT LEAST 35 PERCENT OF HIS RESPECTIVE FIRM. NONE OF THE FOREGOING TRANSACTIONS INVOLVED A SHARING OF THE INSTITUTE'S REVENUE. X 5 169188 FMV 3 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF GOVERNORS DELEGATES THE DETAILED REVIEW AND APPROVAL OF FORM 990 TO A 990 REVIEW TEAM. THE 990 REVIEW TEAM CONSISTS OF: GIA PRESIDENT / CEO AND GOVERNOR; ITS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER; ITS VICE PRESIDENT AND CHIEF MARKETING OFFICER; GIA'S OUTSIDE COUNSEL SPECIALIZING IN NON-PROFIT TAX; DIRECTOR OF GLOBAL CORPORATE COMPLIANCE; AND TAX DIRECTOR OF GIA. THE 990 REVIEW TEAM SCHEDULES A MEETING WITH THE FIRM THAT PREPARES THE FORM 990 TO CONDUCT A DETAILED REVIEW. THE FIRM RESPONDS TO ANY OUTSTANDING QUESTIONS OR CONCERNS RAISED BY THE 990 REVIEW TEAM. ONCE THE REVIEW TEAM COMPLETES ITS DETAILED REVIEW, THE FORM 990 IS AVAILABLE TO THE BOARD OF GOVERNORS PRIOR TO ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE INSTITUTE REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICIES THROUGH ANNUAL CIRCULATION OF A CONFLICT OF INTEREST QUESTIONNAIRE WHICH IS COMPLETED AND SIGNED BY ALL MEMBERS OF THE BOARD OF GOVERNORS, OFFICERS, AND MEMBERS OF EXECUTIVE MANAGEMENT. IN ADDITION, GIA REQUIRES ALL EMPLOYEES (INCLUDING THOSE OF GIA AND ITS INTERNATIONAL AFFILIATES) TO REVIEW ITS CODE OF CONDUCT, AS IT MAY BE AUGMENTED BY GIA FROM TIME TO TIME, AND TO ACKNOWLEDGE BY SIGNATURE ADHERENCE TO ITS ETHICAL STANDARDS, INCLUDING ITS CONFLICT OF INTEREST POLICIES, AS A CONDITION OF EMPLOYMENT. THE LEGAL DEPARTMENT REVIEWS CONTRACTUAL RELATIONSHIPS ENTERED INTO BY THE ORGANIZATION AND IS RESPONSIBLE FOR MONITORING CONFLICTS OF INTEREST AS REPORTED THROUGH DISCLOSURES AND BY OTHER MEANS. FURTHER, IT IS INCUMBENT UPON ALL OF THE AFOREMENTIONED PARTIES TO DISCLOSE ANY CONFLICTS OF INTEREST IN THE COURSE OF THE YEAR. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF GOVERNORS EXECUTIVE COMMITTEE MEETS ANNUALLY IN NOVEMBER TO REVIEW THE OFFICER COMPENSATION AND TO SET THE PAY RATE FOR THE SUBSEQUENT YEAR. GIA RETAINED THE SERVICES OF THE HAY GROUP, INTERNATIONAL COMPENSATION AND BENEFITS CONSULTANTS, WHICH DISTRIBUTE PERIODIC MARKET PAY COMPARISONS OF COMPARABLE JOBS TO THOSE OF GIA OFFICERS. THIS INFORMATION IS PROVIDED TO THE BOARD EXECUTIVE COMMITTEE FOR REVIEW AND USE. IN THE INTERIM YEARS BETWEEN COMPREHENSIVE MARKET STUDIES, GIA OBTAINS SUCH MARKET DATA AS AVERAGE MERIT INCREASES FROM THE HAY GROUP AND ALSO TAKES THE CPI INTO CONSIDERATION. FORM 990, PART VI, SECTION C, LINE 19 GIA'S EMPLOYEE CODE OF CONDUCT, WHICH INCLUDES A SECTION ON CONFLICTS OF INTEREST, IS POSTED ON GIA'S WEBSITE. THIS CODE GOVERNS EMPLOYEES OF GIA AND ITS GLOBAL SUBSIDIARIES. FINANCIAL STATEMENTS ARE INCORPORATED INTO THE FORM 990, WHICH, OF COURSE, IS AVAILABLE TO THE PUBLIC. THE INSTITUTE'S GOVERNING DOCUMENTS ARE ALSO AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, SECTION A: IN 2010 BOARD MEMBERS RECEIVED A STIPEND BASED ON THE NUMBER OF MEETINGS THEY ATTENDED. HOWEVER, EACH GOVERNOR HAS THE OPTION TO DECLINE THIS STIPEND. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: UNREALIZED GAINS 4,393,182. INTEREST-RATE RISK MITIGATION TRANSACTION -126,066. BOOK/TAX DIFFERENCE ON EQUITY EARNINGS OF SUBSIDIARIES 14,244,097. LOSS ON DISCONTINUED OPERATIONS -1,136,702. INVESTMENT INCOME FROM SUBSIDIARY -2,810,773. UNREALIZED FOREIGN EXCHANGE LOSS -348,191. TOTAL TO FORM 990, PART XI, LINE 5: 14,215,547. FORM 990, PAGE 1, LINE 1, ORGANIZATION MISSION STATEMENT: GIA IS THE WORLD'S LARGEST AND MOST RESPECTED NONPROFIT INSTITUTE OF GEMOLOGICAL RESEARCH AND LEARNING. THE INSTITUTE'S MISSION AND MOST SIGNIFICANT ACTIVITIES ARE (A) OPERATING A SCHOOL PROVIDING EDUCATION AND GRANTING DIPLOMAS IN GEMOLOGY AND RELATED AREAS; (B) PROTECTING THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS, DETERRING GEM THEFT, ASSISTING IN THE RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND PROMOTING STATE OF THE ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY AND AS IMITATIONS OF GEMS; AND (C) SUPPORTING, PERFORMING, AND PUBLISHING SCIENTIFIC RESEARCH AND ANALYSIS RELATED TO GEMS AND GEMOLOGY AND LEARNING IN RELATED FIELDS. GIA OFFERS A COMPREHENSIVE GEMOLOGY CURRICULUM TAUGHT BY A FULL-TIME, PROFESSIONAL FACULTY TO REGULARLY ENROLLED STUDENTS AT ITS ON-CAMPUS FACILITIES IN CARLSBAD, CALIFORNIA AND NEW YORK CITY. GIA ALSO OFFERS EXTENSIVE DISTANCE EDUCATION. GIA'S RESEARCHERS UTILIZE SOPHISTICATED ANALYTICAL TECHNIQUES AND EQUIPMENT TO ADVANCE THE SCIENCE OF GEMOLOGY, AND TO DETECT SYNTHETIC AND ALTERED GEMS. ITS LIBRARY AND QUARTERLY PUBLICATION, GEMS & GEMOLOGY, COLLECT AND DISSEMINATE RESEARCH ON GEMS. THE GIA'S LABORATORY PROTECTS THE PUBLIC FROM MISREPRESENTATION ABOUT GEMS, DETERS GEM THEFT, AND HELPS LAW ENFORCEMENT BY TRACING STOLEN GEMS, WHILE PROMOTING STATE-OF-THE-ART RESEARCH. FORM 990, PAGE 1, ITEM L, YEAR OF FORMATION: THE GEMOLOGICAL INSTITUTE OF AMERICA WAS ESTABLISHED IN 1931 BY ROBERT M. SHIPLEY WHO INTRODUCED CORRESPONDENCE COURSES IN THE SAME YEAR. SUBSEQUENTLY, GIA CORPORATIONS WERE FORMED IN OHIO AND IN CALIFORNIA. THE CURRENT GEMOLOGICAL INSTITUTE OF AMERICA, INC., WHICH IS A CALIFORNIA PUBLIC BENEFIT CORPORATION, IS THE SUCCESSOR TO THE CALIFORNIA CORPORATION INITIALLY INCORPORATED IN 1982, WHICH IN TURN IS THE SUCCESSOR TO THE OHIO CORPORATION INCORPORATED IN 1943. FORM 990, PART III, LINE 1, ORGANIZATION MISSION STATEMENT: THE INSTITUTE'S MISSION AND MOST SIGNIFICANT ACTIVITIES ARE (A) OPERATING A SCHOOL PROVIDING EDUCATION AND GRANTING DIPLOMAS IN GEMOLOGY AND RELATED AREAS; (B) PROTECTING THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS, DETERRING GEM THEFT, ASSISTING IN THE RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND PROMOTING STATE OF THE ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY AND AS IMITATIONS OF GEMS; AND (C) SUPPORTING, PERFORMING, AND PUBLISHING SCIENTIFIC RESEARCH AND ANALYSIS RELATED TO GEMS AND GEMOLOGY AND LEARNING IN RELATED FIELDS. FORM 990, PART III, LINES 4A: EDUCATION: GIA OFFERS A COMPREHENSIVE GEMOLOGY CURRICULUM AT THE INSTITUTE'S CALIFORNIA AND NEW YORK CAMPUSES, AND THROUGH INTERNATIONAL SUBSIDIARIES IN INDIA, THAILAND, HONG KONG, ENGLAND, SOUTH AFRICA, BOTSWANA, DUBAI, AND TAIWAN, AND LICENSEES IN ITALY, JAPAN, KOREA, AND RUSSIA. DISTANCE EDUCATION COURSES ARE DISTRIBUTED DOMESTICALLY AND INTERNATIONALLY IN A VARIETY OF LANGUAGES. IN 2010, TOTAL ENROLLMENTS WERE 13,370, COMPRISING 3,418 ON-CAMPUS, AND 9,952 DISTANCE-EDUCATION ENROLLMENTS. GIA'S EDUCATIONAL OFFERINGS COVER THE GAMUT OF GEMOLOGY SUBJECTS, INCLUDING, BUT NOT LIMITED TO: (A) THE USE OF GEMOLOGICAL INSTRUMENTS, (B) THE OPTICAL AND PHYSICAL PROPERTIES OF DIAMONDS, GEMSTONES, PEARLS AND OTHER NATURAL ORGANIC GEM MATERIALS, (C) SYNTHETIC DIAMONDS AND DIAMOND SIMULANTS, (D) DETECTION OF FRACTURE-FILLED DIAMONDS AND SYNTHETIC DIAMONDS, (E) DETERMINATION OF COLOR, CLARITY, CUT, AND CARAT WEIGHT OF DIAMONDS, (F) APPLICATION OF FTC GUIDELINES FOR JEWELRY TRANSACTIONS, (G) DETECTION OF SYNTHETIC, TREATED, IMITATION OR ASSEMBLED COLORED GEM MATERIALS, AND (H) DETECTION OF CULTURED, IMITATION, ASSEMBLED AND TREATED PEARLS. A GRADUATE GEMOLOGIST (G.G.) DIPLOMA FROM GIA IS RECOGNIZED AROUND THE GLOBE AS A KEY CREDENTIAL IN THE GEMOLOGICAL WORLD. IN 2003, IN RESPONSE TO A GROWING NEED FOR QUALITY SCIENCE COURSES FOR CHILDREN, GIA CREATED THE JUNIOR GEMOLOGIST PROGRAM. THE JUNIOR GEMOLOGIST PROGRAM TEACHES GEMOLOGY, GEOLOGY AND MINERALOGY TO LOCAL STUDENTS AND YOUTH GROUPS, WITH INSTRUCTION PROVIDED BY THE INSTITUTE'S INSTRUCTORS AND MEMBERS OF THE GEM AND JEWELRY INDUSTRY. THE MATERIAL IS PRESENTED IN AN INTERACTIVE AND SCIENTIFIC WORKSHOP THAT INCLUDES HANDS-ON TRAINING WITH GEMOLOGICAL INSTRUMENTS AND EQUIPMENT. IN 2010, APPROXIMATELY 3,343 STUDENTS ATTENDED THE JUNIOR GEMOLOGIST PROGRAM. GIA HOSTS A JEWELRY CAREER FAIR AND OPEN HOUSE AT ITS CAMPUS IN CALIFORNIA ON AN ANNUAL BASIS. THE EVENT IS FREE AND OPEN TO THE PUBLIC. AS THE JEWELRY INDUSTRY'S LARGEST JOB FAIR, THE EVENT ALWAYS ATTRACTS THE INDUSTRY'S TOP RETAILERS, MANUFACTURERS, LABORATORIES AND WHOLESALERS INTERESTED IN HIRING GIA STUDENTS AND GRADUATES. IN 2010, APPROXIMATELY 700 INDIVIDUALS ATTENDED THE CAREER FAIR AND OPEN HOUSE EVENT. THE MISSION OF THE INSTITUTE'S RICHARD T. LIDDICOAT GEMOLOGICAL LIBRARY AND INFORMATION CENTER IN CARLSBAD, CALIFORNIA IS TO CONTINUE AS THE WORLD'S PREMIER RESOURCE FOR INFORMATION IN THE FIELDS OF GEM AND JEWELRY-RELATED STUDIES. AS SUCH, THE INSTITUTE PROMOTES THE USE OF ITS RESOURCES FOR EDUCATION AND RESEARCH BY THE PUBLIC, THE GEM AND JEWELRY INDUSTRY, AND THE INSTITUTE'S STUDENTS, FACULTY AND ALUMNI. THE INSTITUTE'S LIBRARY HOUSES THE WORLD'S LARGEST COLLECTION OF DIAMOND, GEM AND JEWELRY RESOURCE MATERIALS. WHETHER BY PHONE, E-MAIL OR IN PERSON, THE LIBRARY STAFF SERVES SCIENTISTS, JEWELERS, GEMOLOGISTS AND STUDENTS FROM EVERY CORNER OF THE GLOBE. THE EXPERT LIBRARY STAFF DRAWS UPON A GROWING COLLECTION OF OVER 13,000 VOLUMES IN ITS CIRCULATING COLLECTION, 25,000 VOLUMES IN THE RENOWNED CARTIER RARE BOOK REPOSITORY AND ARCHIVES, OVER 100,000 PHOTOGRAPHIC IMAGES, 1,500 VIDEOS/DVDS, APPROXIMATELY 300 JOURNAL AND MAGAZINE TITLES, 200 CD-ROMS AND 120 AUDIO CDS TO PROVIDE READY REFERENCE IN THE FIELDS OF GEMOLOGY AND JEWELRY. THE INSTITUTE'S MUSEUM ALSO EDUCATES THE PUBLIC ON GEMS AND GEMOLOGY, DISPLAYING CUT GEMS, MINERAL SPECIMENS AND JEWELRY. THE MUSEUM HAS HOSTED A SERIES OF THEMED EXHIBITS. IN 2010, THERE WERE 4,063 GUESTS VISITED AND TOURED THE MUSEUM THROUGHOUT THE YEAR. AS DISCUSSED BELOW, THE INSTITUTE PUBLISHES GEMS & GEMOLOGY, WHICH EDUCATES ITS READERSHIP ABOUT THE LATEST DISCOVERIES IN GEMOLOGY. FORM 990, PART III, LINE 4B: LABORATORY: THE MISSION OF THE INSTITUTE'S LABORATORY IS TO PROTECT THE PUBLIC FROM MISREPRESENTATION PERTAINING TO GEMS (WHETHER INNOCENT, NEGLIGENT OR INTENTIONAL), TO DETER GEM THEFT, TO ASSIST IN RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, AND TO PROMOTE STATE-OF-THE-ART RESEARCH INTO THE TECHNIQUES BY WHICH GEMS ARE MODIFIED TECHNOLOGICALLY OR MANUFACTURED SYNTHETICALLY. THE FBI'S JEWELRY AND GEM PROGRAM HAS DESIGNATED GIA AS A PARTNER LISTED ON THE FBI WEBSITE IN COMBATING GEM THEFT. IN 2010, THE LABORATORY FLAGGED 1,753 STOLEN GEMSTONES IN ITS DATABASE, AND RECOVERED 71 GEMSTONES IN 27 CASES THAT WERE RESUBMITTED TO THE LABORATORY AFTER HAVING BEEN STOLEN. GIA ALSO REGULARLY ASSISTS OTHER GOVERNMENT AGENCIES. IN 2010, GIA ISSUED 1 DIAMOND GRADING REPORT AND 4 STONE IDENTIFICATION REPORTS FOR LAW ENFORCEMENT AGENCIES. THE LABORATORY FULFILLS ITS MISSION BY EXAMINING AND CLASSIFYING INDIVIDUAL GEM MATERIALS SUBMITTED TO THE GIA LABORATORY AND ITS INTERNATIONAL SUBSIDIARIES' LABORATORIES. DIAMONDS AND SYNTHETIC DIAMONDS ARE IDENTIFIED AND GRADED, WITH REPORTS ISSUED ON THEIR PRECISE IDENTIFYING FEATURES AND WITH QUALITY ASSESSMENTS ON THE 4CS: COLOR, CLARITY, CUT AND CARAT WEIGHT. COLORED GEMSTONES, SYNTHETIC COLORED STONES, PEARLS AND CULTURED PEARLS ARE IDENTIFIED, WITH REPORTS ISSUED UPON CLIENT REQUEST. THE DISTINGUISHING CHARACTERISTICS AND FEATURES OF A GIVEN GEM ARE UNIQUE TO THAT GEM IN MUCH THE SAME WAY A FINGERPRINT IS UNIQUE TO AN INDIVIDUAL PERSON. ONCE A GEM HAS BEEN SUBMITTED FOR EXAMINATION, ITS CHARACTERISTICS AND FEATURES ARE RECORDED FOR FUTURE REFERENCE IN CASE IT IS EVER RESUBMITTED, EITHER IN THE NORMAL COURSE OR IN QUESTIONABLE CIRCUMSTANCES, SUCH AS WITH LOST OR STOLEN ITEMS. ADDITIONALLY, IF REQUESTED BY THE CLIENT, AN IDENTIFICATION CODE CAN BE LASER INSCRIBED UPON THE GEM. THE SUBSTANTIAL AND CONTINUOUS VOLUME OF GEM MATERIALS THAT ARE SUBMITTED FOR EXAMINATION, TOGETHER WITH THE LARGE COLLECTION OF COMPARISON GEMS ACQUIRED BY GIA, CONSTITUTE AN INVALUABLE DATABASE FOR RESEARCH AND PUBLIC SERVICE CONDUCTED BY THE INSTITUTE. TO MAKE POSSIBLE THIS PUBLIC SERVICE, GIA CHARGES RELATIVELY MODEST FEES THAT VARY BY THE TYPE AND SIZE OF THE GEM MATERIAL. IT SHOULD BE NOTED THAT GIA DOES NOT APPRAISE ANY GEM MATERIALS OR OTHERWISE ESTABLISH THEIR MARKET VALUE. COMMERCE IN GEMS HAS BECOME MORE GLOBAL OVER THE PAST DECADE, WITH THE RESULT THAT MANY GEM MATERIALS ARE SOLD BY FOREIGN GEM OWNERS OR DEALERS BUT ULTIMATELY FIND THEIR WAY TO THE U.S. MARKET, EITHER THROUGH WHOLESALE DISTRIBUTION, OR FUTURE RESALE. MOST DIAMONDS PURCHASED IN THE U.S. HAVE BEEN MINED AND PROCESSED OUTSIDE OF THIS COUNTRY. SOME PROPORTION OF THOSE DIAMONDS HAVE HISTORICALLY NOT BEEN SUBMITTED TO GIA'S LABORATORY BECAUSE OF THE GEOGRAPHIC DISTANCE BETWEEN GIA'S LABORATORY FACILITIES IN CALIFORNIA AND NEW YORK AND THE FAR FLUNG LOCATIONS OF MINES AND DEALERS. TO ENHANCE ITS ABILITY TO PURSUE THE MISSION OF PROTECTING THE GEM PURCHASING PUBLIC, DETERRING THEFT, AND ASSISTING IN RECOVERY OF STOLEN PROPERTY AND PROSECUTION OF CRIMINALS, GIA OPERATES LABORATORIES THROUGH ITS WHOLLY-OWNED SUBSIDIARIES IN BOTSWANA, HONG KONG, INDIA, SOUTH AFRICA, AND THAILAND; AND GIA OPERATES TAKE-IN WINDOWS OFFERING LOGISTICAL SUPPORT THROUGH ITS WHOLLY-OWNED SUBSIDIARY IN DUBAI. FORM 990, PART III, LINE 4C: RESEARCH & PUBLICATIONS: THE INSTITUTE'S RESEARCHERS UTILIZE SOPHISTICATED ANALYTICAL TECHNIQUES AND SCIENTIFIC EQUIPMENT TO ADVANCE THE SCIENCE OF GEMOLOGY, INCLUDING DETECTION OF SYNTHETIC GEMS, CULTURED PEARLS AND TREATED NATURAL GEMS. THE MISSION OF THE RESEARCH DEPARTMENT IS TO (1) CHARACTERIZE THE GEMOLOGICAL PROPERTIES OF GEM MATERIALS AND DEVELOP PRACTICAL WAYS TO IDENTIFY THEM; (2) UNDERSTAND THE CONDITIONS OF GEMSTONE FORMATION IN THE EARTH, AS WELL AS THE CONDITIONS OF GEM TREATMENT AND SYNTHESIS IN THE LABORATORY, AS A FURTHER BASIS FOR DEVELOPING MEANS OF GEM IDENTIFICATION; (3) INVESTIGATE THE FACTORS THAT ARE RESPONSIBLE FOR THE APPEARANCE OF DIAMONDS AND OTHER GEM MATERIALS, SO AS TO ESTABLISH METHODS TO EVALUATE THEIR QUALITY; AND (4) DESIGN AND IMPROVE INSTRUMENTATIONS FOR GEM STONE TESTING. THE INSTITUTE IS THE WORLD LEADER IN RESEARCHING THE METHODS BY WHICH GEM MATERIALS CAN BE "ENHANCED" IN COLOR OR CLARITY OR SYNTHESIZED IN A LABORATORY. THIS RESEARCH HELPS PROTECT THE PUBLIC FROM POSSIBLE MISREPRESENTATIONS PERTAINING TO GEM MATERIALS. THE INSTITUTE ACTS AS A CONSUMER ADVOCATE TO ENSURE THAT CONSUMERS, ALONG WITH RETAILERS AND WHOLESALERS, ARE FULLY APPRISED OF THE TRUE CHARACTER-NATURAL, ENHANCED, OR SYNTHETIC-OF ANY SPECIFIC GEM. TO DISSEMINATE THEIR FINDINGS, GIA RESEARCHERS SPEAK AT SEMINARS, POST DEVELOPMENTS ONLINE ON THE GIA RESEARCH WEB SITE, AND PUBLISH FREQUENTLY IN SCHOLARLY TEXTS AND JOURNALS, INCLUDING GEMS & GEMOLOGY, GIA'S QUARTERLY SCIENTIFIC PUBLICATION. GEMS & GEMOLOGY, WHICH HAS BEEN IN CONTINUOUS PUBLICATION FOR MORE THAN 75 YEARS, PROVIDES INFORMATION ON NEW GEM MATERIALS, GEM LOCALITIES, TREATMENT AND SYNTHESIS TECHNIQUES, AND IDENTIFICATION METHODS. THE JOURNAL KEEPS STUDENTS AND PROFESSIONALS ALIKE UP-TO-DATE ON THE MOST CRITICAL TOPICS IN GEMOLOGY. IN RECENT YEARS, GIA HAS PUBLISHED THREE COMPENDIUMS OF ARTICLES FROM GEMS & GEMOLOGY, ON SYNTHETIC, COLORED AND TREATED DIAMONDS. THERE IS A CONSTANT DEMAND FOR BACK ISSUES BY STUDENTS, PROFESSIONALS AND HOBBYISTS RESEARCHING NUMEROUS GEMOLOGICAL SUBJECTS. IN ADDITION, GIA SUMMARIZES TECHNICAL ARTICLES PUBLISHED BY GIA RESEARCHERS IN GEMS & GEMOLOGY FOR REPUBLICATION IN TRADE JOURNALS NATIONALLY AND INTERNATIONALLY, SO THE INFORMATION CAN BE BROADLY DISSEMINATED. SINCE NOVEMBER 2008, THE JOURNAL HAS BEEN AVAILABLE ONLINE AS WELL AS IN PRINT. AND SINCE OCTOBER 2009, STAFF MEMBERS AT GEMS & GEMOLOGY HAVE PRODUCED A MONTHLY ELECTRONIC NEWSLETTER CALLED THE G&G EBRIEF, WITH SHORT, ORIGINAL REPORTS FROM GIA AND OTHER RESEARCHERS ABOUT THE NEW DEVELOPMENTS IN THE FIELD. PUBLICATION INFORMATION FOR THE YEAR 2010: ISSUES DISTRIBUTED TO SUBSCRIBERS: 17,265 CURRENT ISSUES ORDERED: 2,490 BACK ISSUES ORDERED: 1,427 TOTAL ISSUES: 21,182 GIA INSTRUMENTS UK LIMITED 35 VINE STREET LONDON, ECN 2AA UK UK GEMOLOGICAL INSTRUMENT SALES UK 444891 526041 N/A GIA HOLDINGS INC 5345 ARMADA DRIVE CARLSBAD CA 92008 330990032 TITLE HOLDING COMPANY FOR TAX-EXEMPT PARENT CA 501(C)(2) N/A 1 GIA ENGLAND 35 VINE STREET LONDON, EC3N 2AA UK EDUCATIONAL SERVICES UK N/A 1 GIA (INTERNATIONAL) COMPANY LTD BISCO TOWER - 12TH FLOOR 56/12-13 S SI PHRAYA BANGKOK, 10 500 TH EDUCATIONAL SERVICES TH N/A 1 GIA INDIA 10TH FLOOR TRADE CENTRE BANDRA KU BANDRA EAST, MUMBAI, 400 0051 IN EDUCATIONAL SERVICES IN GIA HOLDINGS INC 1 GIA INSTRUMENT (TAIWAN) CO 3F 270 NANJING EAST ROAD SEC 3 TAIPEI 105 TW EDUCATIONAL SERVICES TW N/A C 1324988 1439359 1.00000 GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD 10TH FLOOR U-CHU-LIANG BUILDING 9 BANGKOK, 10500 TH LIMITED LABORATORY SERVICE TH N/A C 3138026 5013812 1.00000 GIA HOLDINGS COMPANY LTD 10TH FLOOR U-CHU-LIANG BUILDING 9 BANGKOK, 10500 TH HOLDING COMPANY TH N/A C 1.00000 GIA HONG KONG LIMITED ROOM 301 3/F AON CHINA BUILDING 29 QUEENS ROAD CENTRAL HK EDUCATIONAL SERVICES HK N/A C 1797930 3857998 1.00000 GIA HONG KONG LABORATORY SERVICES CENTER LIMITED ROOM 1203 12/F AON CHINA BUILDIN 29 QUEENS ROAD CENTRAL HK LOGISTICAL SUPPORT HK N/A C 1607232 6351142 1.00000 GIA BELGIUM NV LANGE HERENTALSESTRAAT 20-26 2018 ANTWERPEN BE RESEARCH SERVICES BE N/A C 823539 887040 0.78770 GIA SWITZERLAND SA 2 RUE DE CHANTEPOULET GENEVA, CH - 1201 SZ LIMITED LABORATORY SERVICE SZ N/A C 14 17419 1.00000 GIA EDUCATION AND LABORATORY LIMITED SUITE 106 THE ATRIUM DIAMOND TECH BLOCK 8, INDUSTRIAL GABORONE BC EDUCATIONAL AND LABORATORY SERVICES BC N/A C 3140753 2354999 1.00000 GEMOLOGICAL INSTITUTE INTERNATIONAL INC 5345 ARMADA DR CARLSBAD CA 92008 263688898 EDUCATIONAL AND TRAINING SERVICES CA N/A C 5333322 7662881 1.00000 GIA INDIA LABORATORY PRIVATE LIMITED 10TH FLOOR TRADE CENTRE BANDRA KU BANDRA EAST, MUMBAI, 400-0051 IN LABORATORY SERVICE IN GIA HOLDINGS INC C 44657275 42548751 1.00000 GIA MIDDLE EAST (LLC) REGUS UP HOUSE OFFICE 521 PO BO PORT SAEED ROAD, DUBAI AE EDUCATION AND LOGISTIC SUPPORT AE N/A C 114929 1748360 1.00000 GIA EDUCATION AND LABORATORY (PTY) LTD S A DIAMOND CENTRE SUITE 512 225 JOHANNESBURG, 2001 SF EDUCATION AND LAB SERVICES SF N/A C 4078065 2363831 1.00000 GIA HONG KONG LABORATORY LIMITED ROOM 1411 14/F NEW WORLD TOWER 16-18 QUEEN'S ROAD CENTRAL HK LABORATORY SERVICE HK N/A C 1945624 3799699 1.00000 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 GIA MIDDLE EAST (LLC) D 1114993 FMV GIA HONG KONG LABORATORY LIMITED D 783544 FMV GIA INDIA LABORATORY PRIVATE LIMITED F 707100 FMV GIA EDUCATION AND LABORATORY LIMITED F 287036 FMV GEMOLOGICAL RESEARCH (THAILAND) COMPANY LTD P 389535 FMV GIA INDIA LABORATORY PRIVATE LIMITED P 2946506 FMV GIA EDUCATION AND LABORATORY (PTY) LTD P 1382796 FMV GIA EDUCATION AND LABORATORY LIMITED P 948135 FMV GIA HONG KONG LIMITED P 64746 FMV GIA INDIA P 211048 FMV GIA (INTERNATIONAL) COMPANY LTD P 52577 FMV GIA MIDDLE EAST (LLC) P 71901 FMV GIA BELGIUM NV Q 779754 FMV GIA INDIA LABORATORY PRIVATE LIMITED R 25900294 FMV GIA EDUCATION AND LABORATORY LIMITED R 231354 FMV GIA (INTERNATIONAL) COMPANY LTD R 999975 FMV GIA INSTRUMENT (TAIWAN) CO R 704594 FMV GIA EDUCATION AND LABORATORY (PTY) LTD R 1344985 FMV GIA EDUCATION AND LABORATORY LIMITED R 275000 FMV SCHEDULE R, PART V THE TRANSACTIONS REPORTED BETWEEN GIA AND THE RELATED ORGANIZATIONS LISTED ON LINES 14 & 15 ARE ASSOCIATED WITH THE PROVISION OF GRADING AND MANAGEMENT SERVICES BY GIA. THESE GRADING SERVICES ARE PERFORMED IN GIA'S ORDINARY COURSE OF BUSINESS AS DESCRIBED IN SCHEDULE O, PART III, LINE 4B. THE TRANSACTIONS REPORTED ON LINES 16 & 17 ARE DIVIDEND DISTRIBUTIONS FROM RELATED ORGANIZATIONS.