2011-11-15T08:11:55-06:00 2010-12-31 RSM MCGLADREY INC 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2010-01-01 536000125 ASSOCIATION OF AMERICAN RAILROADS ASSO 2026392114 425 THIRD STREET SW NO 1000 WASHINGTON DC 20024 JEFFREY D MARSH 2026392114 2011-11-14 1 WILLIAM E TURCO CPA 3012963600 2010 2016-02-24 21:20:13Z EDWARD HAMBERGER 425 THIRD STREET SW NO 1000 WASHINGTON DC 20024 66653618 0 X WWW.AAR.ORG X 1934 DC AAR PROMOTES A SAFE AND EFFICIENT NORTH AMERICAN RAIL SYSTEM WITH PRINCIPAL ACTIVITIES IN AREAS SUCH AS STANDARDS, OPERATIONS, SAFETY, SECURITY, PUBLIC AFFAIRS AND PUBLIC POLICY. 10 9 73 0 69494 8159 0 0 57881149 52493982 -2708117 1038074 7891275 9129086 63064307 62661142 820489 8608654 0 0 17600813 17010347 0 0 0 53412411 35146478 71833713 60765479 -8769406 1895663 29935399 32102719 39262258 40554000 -9326859 -8451281 TO PROMOTE THE COMMON INTERESTS OF RAILROADS. 0 0 STRATEGIC RESEARCH INITIATIVES (SRI)SRI PRIORITIES ARE SHARPLY FOCUSED ON CURRENT AND FUTURE FREIGHT RAILROAD INDUSTRY ISSUES ASSOCIATED WITH SAFETY, EFFICIENCY, AND RELIABILITY. THE RESEARCH PRIORITIES ARE EXPECTED TO CONTRIBUTE SIGNIFICANTLY TO INDUSTRY OBJECTIVES IN THE AREA OF OPERATING HEAVIER AXLE LOADS, AND, IN PARTICULAR, THE EFFECTS ON FREIGHT CARS, TRACK, AND THEIR INTERACTION. IN THE PAST FEW YEARS, THE SRI PROGRAM HAS MOVED DEEPER INTO THE INNOVATION PROCESS IN THE AREAS OF CARS, TRACK, AND VEHICLE/TRACK INTERACTION. THE PROGRAM CONTINUED TO BE INVOLVED IN PRODUCT AND PROCESS DEVELOPMENT AND IMPLEMENTATION. INTEGRATED COMMUNICATIONS CAMPAIGNA PROGRAM OF MEDIA OUTREACH, ADVERTISING AND ELECTRONIC MAILINGS THAT FOCUSES ON (1) HOW THE FREIGHT RAIL INDUSTRY CONSISTENTLY AND EFFICIENTLY DELIVERS ECONOMIC AND ENVIRONMENTAL BENEFITS TO AMERICANS, (2) HOW RAILROADS USE MODERN TECHNOLOGY TO IMPROVE SAFETY AND PROVIDE PUBLIC BENEFITS INCLUDING A SAFE, FUEL EFFICIENT WAY TO MOVE GOODS AND CONNECT US TO THE GLOBAL ECONOMY, AND (3) PRESERVING BALANCED REGULATION OF THE FREIGHT RAIL INDUSTRY. ECONOMIC REGULATIONA PROGRAM TO PROMOTE THE CONTINUED NEED OF THE RAIL INDUSTRY TO OPERATE UNDER A BALANCED REGULATORY STRUCTURE WHICH ALLOWS RAILROADS THE OPPORTUNITY TO ACHIEVE REVENUES FOR REINVESTMENT. SUCH REINVESTMENT IS CRITICAL IF RAILROADS ARE TO BE ABLE TO ADDRESS THE CAPACITY CHALLENGES THAT INCREASED RAIL DEMAND FOR TRANSPORTATION BRINGS. 0 0 0 1 0 0 0 1 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 72 0 1 73 1 1 1 1 UK 0 0 0 0 X 10 9 0 0 0 0 1 0 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X JEFFREY MARSH CFO 2026392118 425 THIRD STREET SW NO 1000 WASHINGTON DC 20024 CHARLES W WICK MOORMAN 1.00 X 0 0 0 JOSEPH H BOARDMAN 1.00 X 0 0 0 PETER A GILBERTSON 1.00 X 0 0 0 FRED J GREEN 1.00 X 0 0 0 MICHAEL R HAVERTY 1.00 X 0 0 0 JOHN C HELLMANN 1.00 X 0 0 0 CLAUDE MONGEAU 1.00 X 0 0 0 MATTHEW K ROSE 1.00 X 0 0 0 EMILIO SACRISTAN ROY 1.00 X 0 0 0 ROGELIO VELEZ LOPEZ 1.00 X 0 0 0 MICHAEL J WARD 1.00 X 0 0 0 JAMES R YOUNG 1.00 X 0 0 0 E HUNTER HARRISON 1.00 X 0 0 0 DENNIS H MILLER 1.00 X 0 0 0 EDWARD R HAMBERGER 40.00 X X 1073521 0 57401 LOUIS P WARCHOT 40.00 X 1312331 0 71965 JOHN T GRAY 40.00 X 408004 0 27323 ROBERT C VANDERCLUTE 40.00 X 328367 0 24682 HUBERT K O'BANNON 40.00 X 381806 0 267578 PATRICIA M REILLY 40.00 X 330607 0 31431 JEFFREY D MARSH 40.00 X 349001 0 27586 JANET L BARTELMAY 40.00 X 422208 0 41305 JOHN F WETZEL 40.00 X 353263 0 68844 NANCY L WILSON 40.00 X 147291 0 13174 PETER W FRENCH 40.00 X 729174 0 23786 MICHAEL J RUSH 40.00 X 599029 0 56980 FRANKLIN N HARDESTY 40.00 X 362501 0 41241 ROBERT E FRONCZAK 40.00 X 342157 0 20792 WILLIAM C THOMPSON 40.00 X 242347 0 30339 7381607 0 804427 38 0 1 0 TRANSPORTATION TECHNOLOGY CENTER INC 55500 DOT ROAD PUEBLO CO 81001 TESTING & RESEARCH 13351200 GIBSON DUNN & CRUTCHER LLP 1050 CONNECTICUT AV NW WASHINGTON DC 20036 LEGAL CONSULTING 467552 BREAUX LOTT LEADERSHIP GROUP LLC 2550 M ST NW WASHINGTON DC 20037 LEGISLATIVE CONSULTANTS 440000 CLEARY GOTTLIEB STEEN & HAMILTON LLP 2000 PENNSYLVANIA AV NW WASHINGTON DC 20006 LEGAL CONSULTING 397141 ANSALDO STS USA INC 645 RUSSELL ST BATESBURG SC 29006 TESTING & RESEARCH 325000 28 MEMBERSHIP DUES 900099 47139564 47139564 USER FEES 900099 3242524 3242524 INDUSTRY SUPPORT 900099 1959823 1959823 PUBLICATIONS 900099 115633 115633 MEETINGS & CONFERENCES 812900 31917 31917 4521 4521 52493982 179420 179420 750000 750000 5760958 223443 5537515 5537515 5537515 4627687 3769033 858654 858654 858654 INTERCO COST SHARE 900099 2043574 1991003 52571 OTHER REVENUE 900099 494385 494385 ERIP/RET COST REIM 900099 286689 286689 16923 16923 2841571 62661142 55266059 69494 7325589 8608654 5792334 7820111 1092970 1073321 1231611 1806886 285822 2137491 4021737 3813146 2452965 169596 4986894 885807 3736 558098 243909 INTERCOMPANY EXPENSES 13351237 OTHER EXPENSES 252072 BAD DEBT 177082 60765479 2120717 4837546 5177510 2732537 1728315 1218927 452425 436232 26109399 22513997 3429697 3595402 1952102 8970899 8970899 8055836 8359074 29935399 32102719 7965614 10807547 905419 984399 699041 836378 29692184 27925676 39262258 40554000 X -9326859 -8451281 -9326859 -8451281 29935399 32102719 X 1895663 -1020085 X X 0 1 1 X 0 0 0 1 47139564 8581934 1585806 10167740 7046174 3121566 0 1 2993951 233523 2760428 1129505 740277 389228 21985943 21540197 445746 3595402 8970899 F 8970899 CUSTODIAL FUNDS 836378 DEFERRED TAX ASSET 41785 INVESTMENTS RELATED TO SUPP. EMPLOYEE BENEFIT PLANS 7480911 8359074 LIABILITY UNDER DEFERRED COMPENSATION 6070104 CURRENT PORTION-OPEB LIABILITY 201168 OTHER POSTEMPLOYMENT BENEFITS 82480 ACCRUED PENSION COST 14139963 SERP OBLIGATION 3316795 DEFERRED RENT PAYABLES 3979122 CAPITAL LEASE OBLIGATIONS 136044 27925676 PART IV, LINE 2B: CUSTODIAL FUNDS ARE CARRIED AS AN ASSET AND OFFSETTING LIABILITY IN THE ASSOCIATION'S BALANCE SHEET. THE ASSOCIATION ACTS AS CUSTODIAN AND AGENT ON BEHALF OF CERTAIN RAILROAD INDUSTRY RELATED ORGANIZATIONS FOR WHICH THE ASSOCIATION PROVIDES BOOKKEEPING SERVICES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ASSOCIATION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE. HOWEVER, THE ASSOCIATION IS SUBJECT TO FEDERAL INCOME TAXES FOR ACTIVITIES THAT ARE UNRELATED TO ITS TAX-EXEMPT FUNCTION. TTCI AND RAILINC FILE SEPARATE FEDERAL AND STATE INCOME TAX RETURNS. RRF IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE; HOWEVER, THE FOUNDATION IS SUBJECT TO FEDERAL INCOME TAXES FOR ACTIVITIES THAT ARE UNRELATED TO ITS TAX-EXEMPT FUNCTION. ACCORDINGLY, AMOUNTS REPORTED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS REPRESENT THE COMBINED INCOME TAX ACCOUNTS OF THE ASSOCIATION, TTCI, RAILINC, AND RRF. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO REVERSE. IF APPROPRIATE, DEFERRED TAX ASSETS ARE REDUCED BY A VALUATION ALLOWANCE, WHICH REFLECTS EXPECTATIONS OF THE EXTENT TO WHICH SUCH ASSETS WILL BE REALIZED. ON JANUARY 1, 2009, THE ASSOCIATION ADOPTED THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE ASSOCIATION MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE-LIKELY-THAN-NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT EVALUATED THE ASSOCIATION'S TAX POSITIONS AND CONCLUDED THAT THE ASSOCIATION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. GENERALLY, THE ASSOCIATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2007. 0 AMERICAN COALITION FOR CLEAN COAL ELECTRICITY 333 JOHN CARLYLE STREET SUITE 530 ALEXANDRIA VA 22314 521799853 501(C)(6) 5970557 PROGRAM SUPPORT AMERICANS FOR TAX REFORM 722 12TH STREET NW FOURTH FLOOR WASHINGTON DC 20005 521400492 501(C)(3) 40000 PROGRAM SUPPORT ARMY COLLEGE FOUNDATION 122 FORBES AVENUE CARLISLE PA 17013 232034407 501(C)(3) 25000 EVENT SUPPORT BUSINESS INDUSTRY POLITICAL ACTION COMMITTEE (BIPAC) 888 SIXTEENTH ST NW STE 305 WASHINGTON DC 20006 131985476 25000 PROGRAM SUPPORT BLUEGREEN ALLIANCE 2828 UNIVESITY AVENUE SE SUITE 200 MINNEAPOLIS MN 55414 203477309 501(C)(3) 50000 PROGRAM SUPPORT CBC INSTITUTE 455 MASSACHUSETTS AVENUE NW SUITE 150-355 WASHINGTON DC 20001 522270607 501(C)(4) 20000 EVENT SUPPORT COALITION AGAINST BIGGER TRUCKS LLC 901 N PITT STREET SUITE 310 ALEXANDRIA VA 22314 943229678 501(C)(4) 415000 PROGRAM SUPPORT COMMON GROUND ALLIANCE 1421 PRINCE STREET SUITE 410 ALEXANDRIA VA 22314 411984081 501(C)(3) 10000 PROGRAM SUPPORT GO21 901N PITT STREET SUITE 315 ALEXANDRIA VA 22314 352226505 501(C)(4) 1315000 PROGRAM SUPPORT METROPOLITAN PLANNING COUNCIL 25 E WASHINGTON STREET STE 1600 CHICAGO IL 60602 362382849 501(C)(3) 20000 PROGRAM SUPPORT NCSL FOUNDATION FOR STATE LEGISLATURES 7700 EAST FIRST PLACE DENVER CO 80230 742232576 501(C)(3) 7500 PROGRAM SUPPORT NORTH AMERICAN RAIL SHIPPERS ASSOCIATION (NARS) 2115 PORTSMOUTH DRIVE RICHARDSON TX 750824839 752635975 501(C)(6) 8500 PROGRAM/EVENT SUPPORT OPERATION LIFESAVER INC 1420 KING STREET SUITE 401 ALEXANDRIA VA 22314 742459189 501(C)(3) 30500 PROGRAM SUPPORT PUBLIC PRIVATE PARTNERSHIP INC 3911 LORCOM LANE ARLINGTON VA 22207 15000 EVENT SUPPORT RAILROAD RESEARCH FOUNDATION 425 THIRD ST SW SUITE 910 WASHINGTON DC 20024 522344655 501(C)(3) 144000 PROGRAM SUPPORT SURFACE TRANSPORTATION POLICY PROJECT 1707 L STREET NW SUITE 1050 WASHINGTON DC 20036 521864166 501(C)(3) 120000 PROGRAM SUPPORT TRANSPORTATION RESEARCH BOARD NATIONAL ACADEMY OF SCIENCES LOCK BOX 289 WASHINGTON DC 20055 530196932 501(C)(3) 32500 PROGRAM SUPPORT UNIVERSITY OF ILLINOIS 205 N MATHEWS AVE NEWMARK CE URBANA IL 61801 376006007 501(C)(3) 124400 PROGRAM SUPPORT 11 7 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: AAR AWARDS ASSISTANCE TO ORGANIZATIONS RECOGNIZED AS TAX-EXEMPT UNDER IRC SECTION 501(C) OR AS A COLLEGE OR UNIVERSITY. X X X X 1 1 X X X X X X 0 1 0 EDWARD R HAMBERGER 697767 0 360180 0 15574 0 10508 0 46893 0 1130922 0 0 0 LOUIS P WARCHOT 319697 0 987628 0 5006 0 51769 0 32527 0 1396627 0 0 0 JOHN T GRAY 275331 0 128418 0 4255 0 13061 0 19256 0 440321 0 0 0 ROBERT C VANDERCLUTE 253909 0 67167 0 7291 0 10420 0 19540 0 358327 0 0 0 HUBERT K O'BANNON 305569 0 72822 0 3415 0 253317 0 29214 0 664337 0 0 0 PATRICIA M REILLY 265478 0 62542 0 2587 0 11513 0 24924 0 367044 0 0 0 JEFFREY D MARSH 255103 0 92545 0 1353 0 9005 0 23177 0 381183 0 0 0 JANET L BARTELMAY 179070 0 240543 0 2595 0 34267 0 9995 0 466470 0 0 0 JOHN F WETZEL 188538 0 162554 0 2171 0 48648 0 24014 0 425925 0 0 0 NANCY L WILSON 40602 0 87500 0 19189 0 9609 0 4278 0 161178 0 0 0 PETER W FRENCH 171790 0 381465 0 175919 0 9524 0 17218 0 755916 0 0 0 MICHAEL J RUSH 174020 0 422951 0 2058 0 36784 0 23153 0 658966 0 0 0 FRANKLIN N HARDESTY 161737 0 198511 0 2253 0 34391 0 9549 0 406441 0 0 0 ROBERT E FRONCZAK 166135 0 174408 0 1614 0 5535 0 18009 0 365701 0 0 0 WILLIAM C THOMPSON 193238 0 26772 0 22337 0 10143 0 23375 0 275865 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS: LOUIS P. WARCHOT - $718 TAX INDEMNIFICATION AND GROSS-UP PAYMENTS: PETER FRENCH - AMOUNT WAS INCLUDED IN SERP PAYMENT HOUSING ALLOWANCE: WILLIAM C. THOMPSON - $11,876 - TAXABLE SOCIAL CLUB DUES: EDWARD R. HAMBERGER - $10,705 - NONTAXABLE LOUIS P. WARCHOT - $7,053 - NONTAXABLE HUBERT K. O'BANNON - $9,732 - NONTAXABLE JOHN F. WETZEL - $720 - NONTAXABLE PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATE IN SERP: EDWARD R. HAMBERGER LOUIS P. WARCHOT HUBERT K. O'BANNON JOHN F. WETZEL JANET L. BARTELMAY MICHAEL RUSH PETER FRENCH FRANKLIN HARDESTY THE FOLLOWING INDIVIDUALS RECEIVED PAYMENTS FROM LONG TERM INCENTIVE PLAN (LTIP): JANET L. BARTELMAY - $193,064 MICHAEL RUSH - $375,472 LOUIS P. WARCHOT - $902,390 JOHN F. WETZEL - $112,340 NANCY WILSON - $37,768 ROBERT FRONCZAK - $151,663 PETER FRENCH - $357,023 FRANKLIN HARDESTRY - $176,190 SUPPLEMENTAL INFORMATION PART III SCHEDULE J, PART II DEFERRED COMPENSATION COMPENSATION FOR CERTAIN PERSONS INCLUDES PAYMENTS MADE IN 2010 UNDER AAR'S LONG TERM INCENTIVE COMPENSATION PLAN (DEFERRED COMPENSATION). ADDITIONAL INFORMATION IS LOCATED IN SCHEDULE O. FORM 990, PART VI, SECTION A, LINE 6 ORGANIZATION'S MEMBERS AAR MEMBERS INCLUDE THE MAJOR FREIGHT RAILROADS OF THE UNITED STATES, CANADA AND MEXICO, AS WELL AS SMALLER RAILROADS THAT PROVIDE FREIGHT OR PASSENGER SERVICES TO TOWNS AND CITIES THROUGHOUT THE U.S. IN ADDITION, AMTRAK IS A FULL MEMBER OF AAR. AAR HAS THREE CLASSES OF MEMBERSHIP, (1) FULL MEMBERSHIP IS AVAILABLE TO U.S. RAILROADS, (2) SPECIAL MEMBERSHIP IS A AVAILABLE TO CANADIAN AND MEXICAN RAILROADS, AND (3) ASSOCIATE MEMBERSHIP IS AVAILABLE TO NON-CLASS 1 RAILROADS AND RAILROAD SUPPLIERS. AAR'S FULL MEMBERS HAVE VOTING RIGHTS AS PRESCRIBED IN THE AAR BY-LAWS. FORM 990, PART VI, SECTION A, LINE 7B AAR CORPORATE DOCUMENTS ALLOW FOR DECISIONS OF THE BOARD TO BE APPROVED BY MEMBERS TO THE EXTENT PROVIDED BY LAW. ALL MATTERS ARE SUBJECT TO MEMBERSHIP APPROVAL IN ACCORDANCE WITH STATE LAW. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED IN DETAIL BY THE ORGANIZATION'S CFO, PRESIDENT AND GENERAL COUNSEL PRIOR TO FILING. A COPY OF THE 2010 FORM 990 WAS MADE AVAILABLE TO EACH MEMBER OF THE ORGANIZATION'S GOVERNING BODY FOR REVIEW PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL WRITTEN CONFIRMATION OF COMPLIANCE WITH THE ORGANIZATION'S CONFLICT OF INTEREST POLICIES IS REQUIRED FROM ALL AAR BOARD MEMBERS, EMPLOYEES AND DIRECTORS. THE ANNUAL CONFLICT OF INTEREST DISCLOSURES OF EMPLOYEES ARE REVIEWED BY THE DIRECTOR OF HUMAN RESOURCES OR GENERAL COUNSEL. THE DISCLOSURES OF THE OFFICERS, PRESIDENT, AND CEO ARE REPORTED TO THE GENERAL COUNSEL. DISCLOSURES OF THE GENERAL COUNSEL ARE REPORTED TO THE CEO. IN THE EVENT OF AN ACTUAL OR POTENTIAL CONFLICT, AAR WOULD INVESTIGATE AND TAKE APPROPRIATE ACTION TO AVOID THE ACTUAL OR POTENTIAL CONFLICT. SUCH ACTION WOULD INCLUDE THAT THE CONFLICTED PERSON DOES NOT PARTICIPATE IN THE REVIEW, RESOLUTION PROCESS, OR ANY DELIBERATION/DECISION MAKING RELATED TO THE MATTER. FOLLOW UP ACTIONS ARE TAKEN AS NEEDED BY AAR GENERAL COUNSEL. FORM 990, PART VI, SECTION B, LINE 15 COMPARABILITY DATA IS PREPARED BY AN INDEPENDENT COMPENSATION CONSULTANT FOR EXECUTIVE (CEO AND VICE PRESIDENTS) COMPENSATION. THAT INFORMATION IS PROVIDED ANNUALLY TO THE ORGANIZATION'S GOVERNANCE COMMITTEE AS PART OF ITS ANNUAL BUDGET DELIBERATIONS. EXECUTIVE SALARIES ARE REVIEWED AND ANY MERIT ADJUSTMENTS FOR THAT FISCAL YEAR ARE DETERMINED AS PART OF THE ANNUAL BUDGETARY PROCESS. CONTEMPORANEOUS MINUTES OF GOVERNANCE COMMITTEE MEETINGS ARE MAINTAINED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC TO THE EXTENT REQUIRED BY LAW. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,003,330. LOSS ON DEFINED BENEFIT PLAN NET ASSETS -2,023,415. TOTAL TO FORM 990, PART XI, LINE 5: -1,020,085. FORM 990, PART XII, LINE 2A, 2B, AND 2C OVERSIGHT OF CONSOLIDATED AUDITED FINANCIAL STATEMENTS THE CONSOLIDATED FINANCIAL STATEMENTS WERE AUDITED BY AN INDEPENDENT ACCOUNTANT. THE ORGANIZATION DOES HAVE AN INDEPENDENT AUDIT COMMITTEE THAT ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF THE INDEPENDENT ACCOUNTANT. RAILROAD RESEARCH FOUNDATION 425 THIRD ST SW SUITE 910 WASHINGTON DC 20024 522344655 RESEARCH DE 501(C)(3) LINE 7 ASSOCIATION OF AMERICAN RAILROADS 0 TRANSPORTATION TECHNOLOGY CENTER INC 55500 DOT ROAD PUEBLO CO 81001 841440384 RAILROAD SVCS DE ASSOCIATION OF AMERICAN RAILROADS C 24336523 24082242 1.00000 RAILINC CORPORATION 7001 WESTON PARKWAY SUITE 200 CARY NC 27513 522131600 IT & SVCS DE ASSOCIATION OF AMERICAN RAILROADS C 46876339 23895496 1.00000 1 1 0 1 1 0 0 0 1 0 1 1 1 1 0 1 0 0 RAILROAD RESEARCH FOUNDATION B 235637 COST RAILROAD RESEARCH FOUNDATION K 133157 COST RAILROAD RESEARCH FOUNDATION P 75331 COST RAILINC CORPORATION A 750000 COST RAILINC CORPORATION K 1273982 COST TRANSPORTATION TECHNOLOGY CENTER INC P 1050535 COST TRANSPORTATION TECHNOLOGY CENTER INC L 13374770 COST TRANSPORTATION TECHNOLOGY CENTER INC I 5249 COST RAILROAD RESEARCH FOUNDATION I 12538 COST TRANSPORTATION TECHNOLOGY CENTER INC K 652587 COST RAILINC CORPORATION P 40070 COST RAILINC CORPORATION L 9971 COST FORM 990, PART V THE TRANSACTIONS WITH RAILROAD RESEARCH FOUNDATION CORRESPONDING WITH LINES 1M AND 1N ARE MINIMAL IN AMOUNT. THE TRANSACTION CORRESPONDING WITH LINES 1D AND 1E INVOLVES AN UNSECURED LINE OF CREDIT WHICH WAS CO-SIGNED BY ORGANIZATIONS RELATED TO THE ASSOCIATION OF AMERICAN RAILROADS. DURING 2007, IN CONNECTION WITH AAR'S RENEWAL OF AN UNSECURED LINE OF CREDIT WITH SUNTRUST BANK, THE ASSOCIATION ENTERED INTO AN UNSECURED LINE OF CREDIT AS A CO-BORROWER WITH RRF, TTCI AND RAILINC (AS WHOLLY OWNED SUBSIDIARIES OF AAR) IN THE AMOUNT OF $4 MILLION THAT EXPIRED JULY 31, 2008 AND WAS SUBSEQUENTLY RENEWED ANNUALLY THROUGH JULY 31, 2011. UNDER THE LINE OF CREDIT FACILITY, SUNTRUST BANK WILL ALLOW ADVANCES AT ANY TIME PROVIDED NO SIGNIFICANT DETERIORATION IN THE FINANCIAL CONDITION OF THE CO-BORROWERS HAS OCCURED. AS OF DECEMBER 31, 2010 NO AMOUNTS HAD BEEN WITHDRAWN ON THE LINE OF CREDIT.