2011-05-13T07:20:51-05:00 2010-06-30 990 2009-07-01 310734115 OCLC Online Computer Library Center Inc OCLC 6147646000 6565 Kilgour Place Dublin OH 43017 RICK J SCHWIETERMAN 6147646000 2011-05-13 2009 2016-02-24 21:20:13Z RICK J SCHWIETERMAN 6565 Kilgour Place Dublin OH 43017 350145337 0 X OCLC.ORG X 1967 OH Establish, maintain and operate a computerized library network and to (continued on Schedule O) promote the evolution of library use, of libraries themselves and of librarianship, and to provide processes and products for the benefit of library users and libraries, including such objectives as increasing availability of library resources to individual library patrons and reducing the rate-of-rise of library per-unit costs, all for the fundamental public purpose of furthering ease of access to and use of the ever-expanding body of worldwide scientific, literary and educational knowledge and information. 16 15 1161 0 928337 -182602 6906824 5266183 198300276 188879342 -24129753 39293465 3862337 3513988 184939684 236952978 193922 218517 0 94988239 96418596 0 0 117291468 115247725 212473629 211884838 -27533945 25068140 335992644 344228778 158882580 134641120 177110064 209587658 Establish, maintain and operate a computerized library network and to promote the evolution of library use, of libraries themselves and of librarianship, and to provide processes and products for the benefit of library users and libraries, including such objectives as increasing availability of library resources to individual library patrons and reducing the rate-of-rise of library per-unit costs, all for the fundamental public purpose of furthering ease of access to and use of the ever-expanding body of worldwide scientific, literary and educational knowledge and information. 0 1 197116467 190012271 OCLC is a non-profit membership, computer library service and research cooperative dedicated to the public purposes of furthering access to the world's information and reducing library costs. It was founded in 1967 by the Ohio College Association and initially provided services to 54 Ohio academic libraries. Since then, more than 72,000 libraries in 170 countries have used OCLC services to locate, acquire, catalog, lend and preserve library materials. Researchers, students, faculty, scholars, professional librarians and other information seekers use OCLC services to obtain bibliographic, abstract and full-text information when and where they need it. OCLC and its member libraries cooperatively produce and maintain the WorldCat database. Each record in this database describes a single item or work and a list of institutions that hold the item. Since 1971, libraries have contributed over 197 million records and more than 1.6 billion location listings to the database, which spans more than 5,000 years of recorded knowledge and grows steadily - seven new records are added every second. Libraries use WorldCat for cataloging, interlibrary loan and reference. The general public can now access WorldCat from the internet and be directed to individual library catalogs from their searches. In addition, OCLC publishes the Dewey Decimal Classification, the world's most widely used library classification system, now in its 22nd edition since it was first published in 1876. In 2002, OCLC developed with the Library of Congress the QuestionPoint virtual reference desk collaborative that enables a library to provide around the clock reference coverage at very low cost. All OCLC services are designed to increase the availability of library resources and lower the rate of rise of library costs. Selected accomplishments during the year are illustrated by the following: Books and other materials cataloged 389.3 million WorldCat searches on internet 150 million Cataloging records added to WorldCat database 57.8 million Location listings added to WorldCat database 160 million Online interlibrary loans 10.2 million End-user reference search transactions (FirstSearch) 65 million Dewey Decimal Classification - Edition 22 1,200 Dewey Decimal Classification - Abridged Edition 900 197116467 1 1 0 0 0 0 0 0 0 1 0 1 0 1 1 1 1 0 0 0 0 1 0 1 1 0 0 0 0 0 1 0 0 1 1 0 0 0 0 0 1 1 0 0 1 243 0 1 1161 1 1 1 1 CA MX CH 0 0 0 0 0 0 0 1 1 16 15 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA DC IN OH OR X RICK J SCHWIETERMAN 6147646000 6565 KILGOUR PLACE DUBLIN OH 43017 Larry P Alford 15.00 X 62250 0 0 Ed Barry 10.00 X 33000 0 0 Mary M Farrell 8.00 X 37500 0 0 anthony Ferguson 10.00 X 28996 0 0 ralph Frasier 5.00 X 25840 0 0 bernadette Gray-Little 5.00 X 0 0 0 kathleen Imhoff 5.00 X 27996 0 0 david Lauer 8.00 X 35000 0 0 james Neal 5.00 X 0 0 0 bruce newell 8.00 X 36000 0 0 elisabeth Niggemann 8.00 X 36666 0 0 john R Patrick 5.00 X 3833 0 0 David Roselle 8.00 X 38666 0 0 Jane N Ryland 5.00 X 29996 0 0 robert A Seal 5.00 X 30330 0 0 lizabeth A Wilson 8.00 X 33530 0 0 sandra Yee 5.00 X 32996 0 0 Robert L Jordan 55.00 X X 4082612 0 48166 Rick J Schwieterman 55.00 X 426486 0 49370 James T Houfek 45.00 X 251643 0 30214 Karen Calhoun 50.00 X 190096 0 17921 Bruce Crocco 45.00 X 197343 0 29528 Lorcan Dempsey 40.00 X 263547 0 41843 Catherine De Rosa 40.00 X 271983 0 41356 Jim Michalko 40.00 X 247744 0 34224 Robin Murray 50.00 X 0 174757 7487 George Needham 30.00 X 176474 0 26772 William Nilges 40.00 X 212376 0 33425 Tammi Spayde 45.00 X 207214 0 33307 Michael Teets 50.00 X 210322 0 34625 Andrew Wang 50.00 X 220939 0 31029 Greg Zick 40.00 X 234559 0 39219 Gene Oliver 45.00 X 171920 0 43532 Tom Hickey 40.00 X 197702 0 33072 Sondra Kowaluk 45.00 X 185822 0 33221 Gary Perlman 40.00 X 187519 0 12405 Marty Withrow 40.00 X 165851 0 25333 STANLEY WOODEND 1009 40.00 X 199883 0 30276 Tom Shaughnessy X 17319 0 0 8811953 174757 676325 178 1 1 0 LEO BURNETT USA INC 35 WEST WACKER CHICAGO IL 60601 Grant related marketing for libraries 1761746 INDEX DATA LLC 10 FIELDSTONE DRIVE WINCHESTER MA 01890 SOFTWARE CONSULTING 971000 KPMG LLP P O BOX 120001 DALLAS TX 75312 CONSULTING SERVICES 321821 WORKSTATE CONSULTING 780 KING AVENUE SUITE 101 COLUMBUS OH 43212 SOFTWARE CONSULTING 282760 LIBRARY OF CONGRESS 101 INDEPENDENCE AVENUE SE WASHINTON DC 20540 EDITORIAL SERVICES 234687 14 5266183 5266183 MetaData Services 519100 85474438 85474438 Resource Share Svcs 519100 44258798 44258798 Reference Services 519100 31407640 31407640 E-Book & Audio Books 519100 14039977 14039977 Digital / Preservation 519100 4950491 4950491 8747998 8747998 188879342 5968796 5968796 116304376 29215208 105041141 7153774 11263235 22061434 33324669 33324669 2130373 997444 1132929 1132929 Space Rentals 531120 1452722 1452722 Misc. revenue-Unrelate 900099 928337 928337 2381059 236952978 190012271 928337 40746187 156670 156670 61847 61847 5410825 2668273 2742552 71576365 66802615 4773750 5463520 5155177 308343 7867409 7056098 811311 6100477 5703251 397226 630717 35393 595324 266026 266026 989032 989032 10144314 9466090 678224 140733 140733 3041351 2949041 92310 4679495 4443038 236457 14738985 14738985 6696360 5981868 714492 4649241 4197560 451681 779448 771520 7928 2146043 2146043 21291537 21287745 3792 523659 523659 IFM Lending Credits 15393892 15393892 Marketing 9340491 9340491 Program Incentives 7677051 7677051 Cataloging Credits 5003894 5003894 Other Than Temporary In 1686058 1686058 5429398 4253134 1176264 211884838 197116467 14768371 0 6050 4468 22030905 13321411 978861 36494540 29283979 50000 50000 561790 4085922 4347294 9212747 6603394 111222835 66697181 49758046 44525654 124628262 160220327 9793665 10797347 60721376 56279784 19211131 17254469 335992644 344228778 20044138 19321787 52953270 28198176 53290273 53635777 32594899 33485380 158882580 134641120 X 0 0 0 0 177110064 209587658 177110064 209587658 335992644 344228778 X 0 1 1 X 0 X 3919418 8570201 14129999 6906824 5266183 38792625 178167717 193101623 196988335 201302146 191009715 960569536 182087135 201671824 211118334 208208970 196275898 999362161 2860789 6363241 12462867 6372377 4939971 32999245 6750633 5173960 6331650 4461101 4603165 27320509 9611422 11537201 18794517 10833478 9543136 60319754 939042407 4127317 5594482 5915373 7472163 7421518 30530853 8729 8729 4136046 5594482 5915373 7472163 7421518 30539582 186223181 207266306 217033707 215681133 203697416 1029901743 0.91180 0.91340 0.02970 0.02630 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 9765121 9765121 55771552 34838528 20933024 1135294 368032 767262 44550868 31490621 13060247 44525654 Other Assets 6257867 Investment in Affiliates 10996602 17254469 Deferred Retirement 1148793 Post Retirement Benefits 12550406 Members Subscription Balances 16234585 Other Liabilities 3551596 33485380 Information required in Sch D, Part X regarding the financial statement footnote for liability for uncertain tax positions under FIN 48 (FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes). This is now codified as Accounting Standards Codification (ASC) 740-10. The text of the footnote in OCLC's consolidated financial statements as audited by OCLC's independent auditor Deloitte & Touche is as follows: OCLC evaluated its tax positions at June 30, 2010 and 2009, in accordance with ASC 740-10. Based on this evaluation, OCLC determined that there was no material impact to the Corporation's consolidated financial statements as a result of the adoption of ASC 740-10. 1 East Asia and the Pacific 1 4 Program Services REPRESENTATIVE OFFICE PROVIDING INFORMATION ABOUT OCLC SERVICES TO LIBRARIES IN CHINA 195947 NORTH AMERICA (OUTSIDE USA) 2 8 Program services Offices providing information about OCLC services to libraries 980210 NORTH AMERICA (OUTSIDE USA) 1 37 PROGRAM SERVICES PROVIDING TECHNICAL SERVICES TO LIBRARIES 2005079 EAST Asia and the Pacific ONE TRUSTEE ATTENDED AN OCLC REGIONAL COUNCIL MEETING 1647 EUROPE TWO TRUSTEES ATTENDEDAN OCLC REGIONAL COUNCIL MEETING 5621 See Schedule R for excluded affiliates outside the US 4 49 3188504 North America (Outside USA) Library and information science research grant 11220 check 1 0 Fellowships for educational program for early career librarians from developing countries Sub-Saharan Africa 1 400 Cash stipend of $100 per week 7247 Travel, lodging and meals to visit OCLC's offices in the US and Europe and to visit various libraries in both regions so that they can observe and learn about library operations in other countries as well as governance models for international library cooperation Actual costs expended Fellowships for educational program for early career librarians from developing countries Russia and Newly Independent States 1 400 cash stipend of $100 per week 10470 Travel, lodging and meals to visit OCLC's offices in the US and Europe and to visit various libraries in both regions so that they can observe and learn about library operations in other countries as well as governance models for international library cooperation Actual costs expended Fellowships for educational program for early career librarians from developing countries South Asia 1 400 cash stipend of $100 per week 7286 Travel, lodging and meals to visit OCLC's offices in the US and Europe and to visit various libraries in both regions so that they can observe and learn about library operations in other countries as well as governance models for international library cooperation Actual costs expended Fellowships for educational program for early career librarians from developing countries MIDDLE EAST AND NORTH AFRICA 1 400 cash stipend of $100 per week 6981 Travel, lodging and meals to visit OCLC's offices in the US and Europe and to visit various libraries in both regions so that they can observe and learn about library operations in other countries as well as governance models for international library cooperation actual costs expended Fellowships for educational program for early career librarians from developing countries EAST ASIA AND THE PACIFIC 1 400 cash stipend of $100 per week 9742 Travel, lodging and meals to visit OCLC's offices in the US and Europe and to visit various libraries in both regions so that they can observe and learn about library operations in other countries as well as governance models for international library cooperation actual costs expended Fellowships for educational program for early career librarians from developing countries CENTRAL AMERICA AND CARIBBEAN 1 400 cash stipend of $100 per week 6501 Travel, lodging and meals to visit OCLC's offices in the US and Europe and to visit various libraries in both regions so that they can observe and learn about library operations in other countries as well as governance models for international library cooperation actual costs expended Procedure for Monitoring Grants Outside the U.S.: Schedule F, Part I, Line 2: Library and Information Science Research Grant Program (LISRG): Faculty in schools of library science are eligible to apply. OCLC sends out an annual call for proposals to eligible schools. Applicants complete an LISRG cover page together with a research proposal, a detailed budget and supporting materials such as curricula vitae, staffing and letters of support. Proposals are reviewed by selected OCLC staff and then submitted to a review panel for further evaluation and recommendation to the Vice President of the OCLC Office of Research who makes a final decision. Research results are furnished to OCLC in a final project report which must be nonproprietary and in the public domain. 1 American Library Association 50 East Huron Street Chicago IL 60611 362166947 501(c)(3) 24850 Operating support and funding for the Mann Citation Award Association of Research Libraries 21 Dupont Circle Washington DC 20036 520784198 501(c)(3) 10000 Operating support Black Caucus of American Library Association P O Box 174 New York NY 10159 521892263 501(c)(3) 7000 Operating support FSU Research Foundation 874 Traditions Way Tallahassee FL 32306 593211153 501(c)(3) 14900 Library and information science research grant Indiana University 620 union drive indianapolis IN 46202 356001673 115 14520 Library and information science research grant Tech Columbus 1275 Kinnear Road columbus OH 43215 311658220 501(c)(3) 7500 operating support United Way of Central Ohio 360 South Third Street columbus OH 43215 314393712 501(c)(3) 10000 Operating Support 7 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Library and Information Science Research Grant Program (LISRG): Faculty in schools of library science are eligible to apply. OCLC sends out an annual call for proposals to eligible schools. Applicants complete an LISRG cover page together with a research proposal, a detailed budget and supporting materials such as curricula vitae, staffing and letters of support. Proposals are reviewed by selected OCLC staff and then submitted to a review panel for further evaluation and recommendation to the Vice President of the OCLC Office of Research who makes a final decision. Research results are furnished to OCLC in a final project report which must be nonproprietary and in the public domain. Other contributions are made for the general operating support of various public charities and government organizations. Many of these are national or regional library associations but some are community organizations in locales where OCLC has offices. These include arts organizations as well as the United Way and similar charitable organizations serving the community. X X X 1 1 X X X X X X 1 1 0 1 1 1 1 1 0 Robert L Jordan 688080 0 385105 0 3009427 0 34818 0 13348 0 4130778 0 2903310 0 Rick J Schwieterman 271272 0 101331 0 53883 0 32010 0 17360 0 475856 0 0 0 James T Houfek 149843 0 59884 0 41916 0 22317 0 7897 0 281857 0 0 0 Karen Calhoun 123803 0 41694 0 24599 0 15680 0 2241 0 208017 0 0 0 Bruce Crocco 139506 0 54096 0 3741 0 12442 0 17086 0 226871 0 0 0 Lorcan Dempsey 159310 0 54796 0 49441 0 23962 0 17881 0 305390 0 0 0 Catherine De Rosa 188265 0 68369 0 15349 0 24560 0 16796 0 313339 0 0 0 Jim Michalko 188269 0 34124 0 25351 0 25607 0 8617 0 281968 0 0 0 Robin Murray 0 142812 0 31945 0 0 0 7140 0 347 0 182244 0 0 George Needham 98054 0 50165 0 28255 0 12189 0 14583 0 203246 0 0 0 William Nilges 141314 0 54053 0 17009 0 17832 0 15593 0 245801 0 0 0 Tammi Spayde 147198 0 48506 0 11510 0 17832 0 15475 0 240521 0 0 0 Michael Teets 155606 0 53251 0 1465 0 17832 0 16793 0 244947 0 0 0 Andrew Wang 140694 0 52726 0 27519 0 18580 0 12449 0 251968 0 0 0 Greg Zick 172302 0 45597 0 16660 0 22317 0 16902 0 273778 0 0 0 Gene Oliver 127505 0 36953 0 7462 0 15847 0 27685 0 215452 0 0 0 Tom Hickey 125317 0 32292 0 40093 0 19124 0 13948 0 230774 0 0 0 Sondra Kowaluk 109808 0 35952 0 40062 0 16935 0 16286 0 219043 0 0 0 Gary Perlman 166147 0 19695 0 1677 0 9138 0 3267 0 199924 0 0 0 Marty Withrow 129661 0 32004 0 4186 0 12407 0 12926 0 191184 0 0 0 STANLEY WOOD(END 1009 ) 111023 0 15801 0 73059 0 9594 0 20682 0 230159 0 0 0 Tom Shaughnessy 17319 0 0 0 0 0 0 0 0 0 17319 0 0 0 Part I, Line 1a Travel for companions: Lorcan Dempsey, Vice President, Programs, Research & Chief Strategist, is provided an allowance for occasional, personal travel to and from his home in the United Kingdom for himself and his family. This allowance is fully included in taxable compensation. Discretionary Spending Account: Robert L. Jordan, President and CEO, receives a $10,000 tax return preparation/financial planning allowance and a $14,400 automobile allowance for which he is not accountable to the organization and both are fully included in taxable income. All US Vice Presidents except Lorcan Dempsey receive a discretionary tax return preparation/financial planning allowance of $600 to be used as they desire. All these allowances are included in taxable compensation. Health or social club dues: Robert L. Jordan, President and CEO and Rick J. Schwieterman, Executive Vice President and CFO each have country club memberships. For Mr. Jordan, dues are either paid directly by OCLC or paid by Mr. Jordan and reimbursed by OCLC. Business expenses incurred are reimbursed under an accountable plan. Dues paid or reimbursed by OCLC are reported as taxable compensation to the extent of reported personal use by Mr. Jordan. For Mr. Schwieterman, OCLC pays personal charges and dues up to $12,000 annually. An allocable portion of the dues based on personal use plus actual personal charges are reported as taxable compensation. Business expenses incurred are reimbursed under an accountable plan. Part I, Line 4a Part I, Line 4a: Stanley Wood, former Executive Director, WebJunction, received a severance payment of $50,819 which is included as part of Other Compensation in Schedule J, Part II, Column Biii. Part I, Line 4b: Robert L. Jordan, President and CEO, participated in a supplemental nonqualified retirement plan as described in Section 457(f). During the calendar year 2009, he received payouts of $2,903,310 from this plan. This amount is included as part of Other Compensation in Schedule J, Part II, Column Biii. Since this compensation was reported as Deferred Compensation in previous years, it is also shown as previously reported compensation in Column F of Schedule J, Part II. Part I, Line 5 OCLC maintains three different incentive compensation plans that are based in part on the global performance of OCLC and its subsidiaries. Subsidiary revenues and expenses are not included in this return. The plans are the Sales Incentive Plan (SIP), the Management Incentive Plan (MIP) and the Long-Term Incentive Plan (LTIP). Officers are participants in both the MIP and the LTIP. All performance awards for the CEO and all other officers are approved by the OCLC Board of Trustees. All incentive plans are regularly reviewed by outside compensation consultants, the last such occurring within the last year. The SIP is for employees responsible for the library sales program and is based on achieving specific product-line sales targets. The MIP is a performance-based compensation program available for management personnel (total of 130) and is based on a weighted average of performance objectives. All participants have at least a 20 % weighting for cooperative-wide objectives for revenue and earnings (excess of revenues over expenses) and 10 % for inclusion. Some MIP participants may also have a weighting for revenues and earnings of specific product segments of OCLC for which they have responsibility. All participants have up to an 80 % weighting for specific individual objectives for the plan year. The amount of compensation for non-officer participants meeting these individual objectives are recommended by the supervising management and approved by the CEO. The LTIP is a performance-based compensation program for officers. The OCLC Board of Trustees establishes metrics that indicate performance in three areas: Distinctive Impact, Lasting Endurance and Superior Performance. These performance measures include long-term revenue goals and earnings goals using a five-year rolling average and other strategic objectives of the cooperative. These are long-term goals which are generally established three years before the performance measurement date. LTIP goals are set each year for new three-year targets. Cooperative-wide objectives (whether for revenues or earnings) are based on the audited results for OCLC and its 100 % owned subsidiaries. Part I, Line 6 See explanation for Line 5 Part I, Line 7 See explanation for Line 5 Supplemental Information Part III Explanation for Schedule J, Part II, Column F Column F of Schedule J reports distributions from a 457f plan which were reported in previous years as deferred compensation. Supplemental Information Part III Description of OCLC Management Savings Plan Effective July 1, 1997, and extending through April 30, 2002, certain employees and trustees elected to participate in the OCLC Management Savings Plan (the Plan), a non-qualified incentive benefit program for certain employees and trustees who contributed to the success of OCLC. Effective May 1, 2002, the Plan was frozen and no additional contributions have been, or will be, accepted. Earnings on existing balances are distributed annually to participants and included on W-2s and 1099s in the year of distribution. Under the Plan, participants receive the right to purchase mutual fund shares for a fixed price. Such right can, generally, be exercised at any time within a 20-year period following the date of grant. However, in the case of a participants death, rights held by such participant must be exercised within six months from the date of death, and in the case of termination of employment (except for retirement) rights held by the terminated participant must be exercised within six months of the date of termination (unless extended by the President). Compensation income attributable to rights granted under the Plan, for tax reporting purposes, is neither determinable at the time of grant thereof, nor at OCLCs fiscal year end, if still outstanding. More specifically, it is only upon exercise of one of these rights that a participant must recognize compensation income, for tax reporting purposes. During the calendar year falling within the fiscal year that is the subject of this information return, one of the participants, who is reported in this information return, exercised the rights granted under the Plan and that income is disclosed in this return. Other than earnings on existing balances which have been distributed, no other income is reflected in the schedule provided above, with respect to those individuals listed therein who are participants in the Plan. Any future compensation amounts ultimately realized from exercise of rights granted under the Plan, will be appropriately disclosed as compensation in OCLCs information return for the year of exercise. Participants in the Plan reported on this return: Ralph Frasier Trustee Lizabeth A Wilson Trustee Robert L Jordan President & CEO Rick J Schwieterman Executive VP and CFO James T Houfek VP & General Counsel Lorcan Dempsey VP, Research & Strategist Catherine De Rosa VP, Global Marketing George Needham VP, Global Councils Tom Shaughnessy Former Trustee County of Franklin Ohio 316400067 353202DZ4 2003-04-03 26223310 To refund 1993 Bonds,improve real property,acquire equipment and databases 0 0 Columbus-Franklin County Finance Authority 571239430 NOCUSIPNO 2008-05-23 20000000 To finance the acquisition of office systems, equipment, and databases 0 1 Columbus-Franklin County Finance Authority 571239430 NOCUSIPNO 2009-08-10 30000000 To refund 1998 Bonds,acquire office systems, equipment and databases 0 1 26223310 17390910 233016 8599384 2003 1 0 1 1 20000000 20000000 2008 0 0 1 1 30000000 17523444 161760 12314796 2009 1 0 1 1 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 Lorcan Dempsey Loan to assist with purchase of principal residence - see details below X 50000 50000 0 0 1 50000 Claire Cocco See Schedule O 120547 Employment Family member of an OCLC officer 0 Sonya Oliver See Schedule O 88103 Employment Family member of an OCLC key employee 0 KNOVEL INC See Schedule O 118624 SALES CATALOGING SERVICES sold to entity with directors on OCLC Board of Trustees 0 Form 990, Part III, line 3 Changes in Program Services During the year, OCLC ceased providing two program services for libraries: providing electronic books and electronic audio books and preservation services in microfilim and digital formats. Both operations were sold to unrelated third parties who are continuing to provide the services to libraries. Form 990, Part VI, Section A, line 2 Two current trustees (Edward Barry and John Patrick) are both board members of Knovel, Inc. Form 990, Part VI, Section A, line 6 Membership in OCLC is open to any library or other memory institution that embraces the OCLC values of collaboration and sharing. Institutions worldwide become members by contractually agreeing to contribute intellectual content or share resources. Members may include libraries, museums, archives, historical societies, or similar institutions. OCLC Members in each of three worldwide regions organize into Regional Councils. Each Regional Council elects delegates to the OCLC Global Council. This body consists of 48 member delegates and it articulates the various interests of the OCLC Members to the OCLC Board of Trustees. Form 990, Part VI, Section A, line 7a The OCLC Global Council elects six members of the OCLC Board of Trustees. Form 990, Part VI, Section A, line 7b The OCLC Global Council ratifies changes to the Articles of Incorporation or the Code of Regulations in order for the changes to take effect. Form 990, Part VI, Section B, line 11 The 990 return is prepared internally by OCLC Finance Staff, in consultation with appropriate management personnel including the Chief Financial Officer, the General Counsel and the Corporate Controller. All supporting data and the return itself are reviewed by the Corporate Controller. The return is then reviewed by Deloitte Tax LLP. Finally, a copy of the 990 in electronic form is provided to the entire Board of Trustees prior to signature by the Chief Financial Officer and filing. Form 990, Part VI, Section B, line 12c All employees are required to certify their knowledge of, and compliance with, the policy on an annual basis by signing a statement. If it is unclear if a conflict exists, the employee can contact the General Counsel for clarification. The employee can also file a written request for a ruling with his or her Vice President or Division Director who may reject or approve the application. If approved, the request is sent to the President for a final approval. A written response is provided to the employee indicating whether the activity can be undertaken or if it violates the conflict of interest policy and cannot be undertaken. In addition to the general policy for all employees, members of the OCLC Board of Trustees and the Strategic Leadership Team are required to answer more detailed questions in writing on an annual basis and all responses are reviewed by the Audit Committee of the OCLC Board of Trustees, the Chief Financial Officer, the General Counsel and the Corporate Controller to ensure that no conflicts exist. Form 990, Part VI, Section B, line 15 For all executives, the Personnel and Compensation Committee of the OCLC Board of Trustees reviews the proposed compensation and an analysis of compensation in the marketplace for comparable positions prepared by an outside consultant. Once approved by the committee, the entire Board of Trustees (except for the CEO) meets in executive session to review and vote on the compensation packages. The committee and the full Board consist only of individuals who do not have a conflict of interest with respect to setting the compensation for the executives. Written minutes of all Board Committees and Board of Trustee meetings are prepared. More information about OCLC executive compensation can be found on the OCLC website at the following link: www.oclc.org/us/en/about/trustees/compensation/executive_compensation.htm Form 990, Part VI, Section C, line 19 TThe Articles of Incorporation and the annual audited financial statements are available on the OCLC website: www.oclc.org/us/en/councils/documents/ www.oclc.org/news/publications/financial/. A description of the conflict of interest policy is contained in OCLCs Code of Conduct document which is also available on the OCLC website. In addition, the Annual Report (including condensed financial statements) is provided to the directors of all Governing Members. The Annual Report is also available on the OCLC website. SCHEDULE L, PART II LOAN TO LORCAN DEMPSEY OCLC LOANED FUNDS TO THIS OFFICER TO FACILITATE HIS RELOCATION TO OCLC'S HEADQUARTERS IN DUBLIN, OHIO DURING A PRIOR FISCAL YEAR. THESE FUNDS WERE USED TO FINANCE A NEW PRINCIPAL RESIDENCE. THE LOAN IS THE RESULT OF ARMS-LENGTH NEGOTIATION AND PROVIDES FOR A BALLOON REPAYMENT AT THE END OF THE TERM. INTEREST IMPUTED ON THIS LOAN AS DESCRIBED IN SECTION 7872 OF THE INTERNAL REVENUE CODE IS REPORTED IN PART VII AND SCHEDULE J OF THIS RETURN. Addendum for Schedule R, Part IV The following non-U.S. corporations are 100 % owned by OCLC Online Computer Library Center, Inc. and are reported in Part IV of Schedule R because they are considered taxable organizations in their respective countries. However, they are owned by a nonprofit organization exempt from U.S. taxes under Section 501(c)(3). All of these organizations engage in providing computerized services to libraries in their regions. Those services provide the same functional support to libraries that OCLC provides to U.S. libraries. The purpose and mission of these non-U.S. corporations is the same as OCLC. While the countries where these corporations reside consider them subject to income tax under local law, those same activities performed by OCLC have been deemed exempt by the Internal Revenue Service. As such, these non-U.S. corporations meet the operational test for U.S. exemption. In addition, since the non-U.S. corporations are 100% owned by OCLC, all earnings and assets of those corporations are fully controlled by, and a benefit to, a U.S. nonprofit organization. Based on this, OCLC considers these non-U.S. corporations to be de facto exempt organizations under U.S. law. However, since these non-U.S. corporations have no permanent establishments or business operations in the U.S., there is no U.S. reporting required and they are, therefore, not included with this information report. OCLC EMEA BV The Netherlands OCLC BV The Netherlands OCLC GmbH Germany OCLC AG Switzerland OCLC (UK) Limited United Kingdom Philosophy Statement on Board of Trustees Compensation Since 1979, The OCLC Board of Trustees has determined that compensation for trustee service is appropriate in order to attract and retain the most qualified and able individuals, to promote economic diversity by providing an opportunity to contribute to the work of the Board by those who might otherwise be unable to do so, and to provide tangible compensation for the considerable time and effort of trustees in support of OCLC's mission. Because of the significant time commitment involved in Board service, many trustees must limit consulting and other activities for which they would be compensated. Compensation will be provided to non-employee trustees, by action of the Board, at levels consistent with those provided by other non-profit organizations that also compensate their Board members/trustees (with market defined by data from 990 filings, supplemented by non-profit published survey data). Compensation levels are also reviewed from time to time by independent compensation consultants for benchmarking against other non-profit organizations. Board compensation consists of cash payments structured as a combination of retainers and meeting fees, with higher compensation amounts for Chairs of the Board and Board Committees reflecting the additional time requirements of these positions. From time to time, there may also be additional trustee compensation for special projects/assignments as determined by the Board, depending on duration and additional time requirements. More information about OCLC Board compensation can be found on the OCLC website at the following link: www.oclc.org/us/en/about/trustees/compensation/compensation_q_and_a.htm OCLC Information Distribution Inc 6565 Kilgour Place Dublin OH 43017 870374788 Information Services OH OCLC Online Computer Library Center Inc C 4028769 1.00000 Dimema Inc 220 West Mercer St W-200 Seattle WA 98119 912129115 information Services WA OCLC INFORMATION DISTRIBUTION INC C 100142 113722 1.00000 OCLC EMEA BV SCHIPHOLWEG 99 2300 AW LEIDEN NL HOLDING COMPANY NL OCLC Online Computer Library Center Inc C 2487219 12767801 1.00000 OCLC BV SCHIPHOLWEG 99 2300 AW LEIDEN NL INformation Services NL OCLC EMEA BV C 15885657 10253077 1.00000 OCLC Gmbh GRUNWALDER WEG 28G 82041 OBERHACHING GM INformation Services GM OCLC EMEA BV C 11372112 3007615 1.00000 OCLC AG ST JAKOB-STRASSE 96 CH-4052 BASEL SZ Information Services SZ OCLC GMBH C 726054 231803 1.00000 OCLC (UK) LIMITED 861 ECCLESAL ROAD SHEFFIELD S11 7AE UK INformation Services UK OCLC EMEA BV C 12245989 6741964 1.00000 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 0 0 OCLC EMEA BV K 253784 OCLC BV L 1206139 OCLC GMBH L 1468642 OCLC (UK) LIMITED L 3408949 oCLC (UK) LIMITED N 94500