Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private
foundations)
MediumBullet Do not enter social security numbers on this form as it may be made public.
MediumBullet Information about Form 990 and its instructions is at www.IRS.gov/form990.
OMB No. 1545-0047
2014
Open to Public Inspection
A For the 2014 calendar year, or tax year beginning 01-01-2014 , and ending 12-31-2014
BCheck if applicable:
CName of organization
Educational Testing Service
 
Doing business as
 
 
Number and street (or P.O. box if mail is not delivered to street address)
Rosedale Road MS 20-J
 
Room/suite
City or town, state or province, country, and ZIP or foreign postal code
Princeton, NJ08541
D Employer identification number

21-0634479
E Telephone number

G Gross receipts $ 1,374,948,280
F Name and address of principal officer:
Jack Hayon
Rosedale Road MS 20-J
Princeton,NJ08541
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
www.ets.org
H(a)
Is this a group return for
subordinates?
H(b)
Are all subordinates
included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1947
M State of legal domicile: NY
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: See Page 2, Part III, Question 1
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) ........ 3 20
4 Number of independent voting members of the governing body (Part VI, line 1b) ..... 4 19
5 Total number of individuals employed in calendar year 2014 (Part V, line 2a) ...... 5 26,198
6 Total number of volunteers (estimate if necessary) ............. 6 0
7a Total unrelated business revenue from Part VIII, column (C), line 12 ........ 7a 14,725,878
b Net unrelated business taxable income from Form 990-T, line 34 ......... 7b -11,648,720
Revenues Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 11,013,107 9,848,829
9 Program service revenue (Part VIII, line 2g) ......... 1,040,969,720 1,086,721,635
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 3,802,266 52,727,076
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 82,318,061 88,836,608
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 1,138,103,154 1,238,134,148
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 2,388,720 2,050,663
14 Benefits paid to or for members (Part IX, column (A), line 4)..... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 386,960,688 401,611,854
16a Professional fundraising fees (Part IX, column (A), line 11e)..... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e).... 721,011,862 765,599,552
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 1,110,361,270 1,169,262,069
19 Revenue less expenses. Subtract line 18 from line 12....... 27,741,884 68,872,079
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............. 941,669,696 1,058,074,088
21 Total liabilities (Part X, line 26)............. 340,298,542 401,978,965
22 Net assets or fund balances. Subtract line 21 from line 20..... 601,371,154 656,095,123
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title
Paid Preparer Use Only
Print/Type preparer's name
Preparer's signature
Date
PTIN
Firm's name MediumBullet
Firm's EIN MediumBullet
Firm's address MediumBullet



Phone no.
May the IRS discuss this return with the preparer shown above? (see instructions) ..........
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y Form 990 (2014)
Form 990 (2014)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response or note to any line in this Part III ..............
1
Briefly describe the organization’s mission: Educational Testing Service (ETS) was incorporated in 1947 by the Board of Regents for the Education Department of the State of New York as an educational organization to engage in research, services and other activities in the field of educational testing.MISSIONOur mission is to help advance quality and equity in education by providing fair and valid assessments, research and related services. Our products and services measure knowledge and skills, promote learning and performance, and support education and professional development for all people worldwide.VISIONETS will be recognized as the global leader in providing fair and valid assessments, research and related products and services to help individuals make successful educational and career transitions throughout their lives, parents understand and use assessments and related products to help their children reach their full potential and teachers improve their practice through assessment and professional development.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ......................
If "Yes," describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ............................
If "Yes," describe these changes on Schedule O.
4
Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 370,550,022 including grants of $ 675,844 ) (Revenue $ 495,812,560 )
The Global Division is mainly responsible for the design, development, administration (primarily in a computer based testing environment), scoring and reporting of assessments for graduate and business school admissions, as well as delivery of English language tests. In 2014, approximately 756 thousand individuals took the graduate and business school assessments, while over 7.7 million test takers took the English language assessments. These English language testing programs support our mission primarily in markets outside the United States.In addition, the Division develops College Programs assessments that are used to support student success and measure student learning outcomes. These products are used in nearly 1,400 higher education institutions.The Division also provides products and services that: measure knowledge and skills; promote learning and performance; and support education and professional development.
4b (Code:   ) (Expenses $ 447,337,904 including grants of $ 229,432 ) (Revenue $ 391,146,681 )
Teacher Licensure & Certification (TLC): TLC is primarily involved in assessing prospective teachers for licensure and/or certification. TLC manages three major licensure and certification assessment programs. Tests for all three major TLC programs are delivered in a computer-based environment. Paper and pencil testing is available, as needed, for candidates with special requirements who cannot test online.In 2014, approximately 800 thousand tests were administered.ETS provides services to the College Board that relate to the testing of pre-college students and assisting in the transition from high school to college and to advanced college degrees.In 2014, approximately 12.0 million tests were administered on behalf of the College Board.
4c (Code:   ) (Expenses $ 255,470,694 including grants of $ 1,145,387 ) (Revenue $ 199,762,394 )
Student and Teacher Assessments (K12 Student Assessment Programs): K12 Student Assessment Programs currently has large scale assessment contracts in several states in the US. These K12 assessments measure levels of student achievement in their respective public school system. K12 Student Assessment Programs also contracts with non-profit consortia of states, dedicated to the pursuit of educational excellence. The purpose is to develop and administer testing programs that are designed to measure and improve teaching and learning.Research and Development:Research & Development provides: educational measurement research and analysis; innovative assessment and product development; and informative policy studies to advance quality and equity in education for all people worldwide. Research & Development ensures the technical quality and fairness of ETS's assessments and assessment-related services through excellence in assessment design, development, analysis and psychometric research. Support for its research programs comes primarily from its own resources. Support also comes from national governments and agencies and various private foundations.National Assessment of Educational Progress (NAEP):Considered the Nations Report Card, NAEP is a continuing series of academic content assessments of samples of students, mandated by Congress, and implemented by the National Center for Education Statistics. ETS has held primary contracts for NAEP since 1983. ETS is responsible for the overall coordination, strategic planning, development of survey questionnaires, test development for printed books and technology-based assessments, assessment design, test book preparation, data and psychometric analysis, and report preparation in print and on the NAEP website.ETS Policy and Evaluation & Research Center (PERC):The Policy Evaluation and Research Center (PERC) conducts research and analyses that address challenging education policy issues in the United States. The focus of PERC's research and analyses are increasing overall educational achievement and closing opportunity and achievement gaps among population groups.PERC publishes and disseminates reports and designs and carries out research and evaluation studies that are designed to increase understanding of education challenges and probable solutions. PERC plans and convenes symposiums, seminars and conferences to address the most challenging education problems in the nation.Institute for Student Achievement (ISA):Working in partnership with districts and schools, the ISA Division of ETS uses a proven, research-based educational framework to transform underperforming public high schools into rigorous and supportive learning environments that prepare students to be college-ready.In 2014, ISA worked in collaboration with approximately 40 schools. Chauncey Conference Center:ETS operates a conference center. A portion of the revenue is classified as unrelated business income.
4d Other program services (Describe in Schedule O.)
(Expenses $   including grants of $   ) (Revenue $   )
4e Total program service expensesMediumBullet1,073,358,620
Form 990 (2014)
Form 990 (2014)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes," complete Schedule AClick to see attachment........................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? Click to see attachment...
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part IIClick to see attachment........
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C,
Part IIIClick to see attachment............................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part IClick to see attachment........................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes," complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21 for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IVClick to see attachment..............
9
 
No
10
Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part VClick to see attachment......
10
 
No
11
If the organization’s answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable.
a
Did the organization report an amount for land, buildings, and equipment in Part X, line 10?
If "Yes," complete Schedule D, Part VI.Click to see attachment...................
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIIClick to see attachment.......
11b
Yes
 
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIIIClick to see attachment.......
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part IXClick to see attachment............
11d
 
No
e
Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part XClick to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Part XClick to see attachment.........................
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year?
If "Yes," complete Schedule D, Parts XI and XII Click to see attachment.................
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E....
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?.....
14a
Yes
 
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV......... Click to see attachment
14b
Yes
 
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If “Yes,” complete Schedule F, Parts II and IVClick to see attachment
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If “Yes,” complete Schedule F, Parts III and IV... Click to see attachment
16
Yes
 
17
Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Part I (see instructions) ....
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II............
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes," complete Schedule G, Part III...................
19
 
No
20a
Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H....
20a
 
No
b
If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return?
20b
 
 
Form 990 (2014)
Form 990 (2014)
Page 4
Part IV
Checklist of Required Schedules (continued)
21
Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
Yes
 
22
Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III........ Click to see attachment
22
Yes
 
23
Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," complete Schedule J....................... Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer lines 24b through 24d and complete Schedule K. If “No,” go to line 25a................
24a
 
No
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
 
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
 
d
Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year?...
24d
 
 
25a
Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I.... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If "Yes," complete Schedule L, Part I................... Click to see attachment
25b
 
No
26
Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If "Yes," complete Schedule L, Part II................ Click to see attachment
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part III......... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV .......................... Click to see attachment
28a
Yes
 
b
A family member of a current or former officer, director, trustee, or key employee? If "Yes,"
complete Schedule L, Part IV..................... Click to see attachment
28b
Yes
 
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV... Click to see attachment
28c
 
No
29
Did the organization receive more than $25,000 in non-cash contributions? If "Yes," complete Schedule M..
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes," complete Schedule M.............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If "Yes," complete Schedule R, Part I........ Click to see attachment
33
Yes
 
34
Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Part II, III, or IV, and Part V, line 1........................ Click to see attachment
34
Yes
 
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
Yes
 
b
If ‘Yes’ to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2... Click to see attachment
35b
Yes
 
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If "Yes," complete Schedule R, Part V, line 2............. Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2014)
Form 990 (2014)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response or note to any line in this Part V ..............
Yes
No
1a
Enter the number reported in Box 3 of Form 1096 Enter -0- if not applicable ..
1a
104,167
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable .
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and
Tax Statements, filed for the calendar year ending with or within the year covered by this return ..................
2a
26,198
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?
Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?...
3a
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No” to line 3b, provide an explanation in Schedule O...
3b
Yes
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)?..........................
4a
Yes
 
b
If "Yes," enter the name of the foreign country: MediumBulletAS , BE , CA , CH , FR , GM , IN , EI , IS , IT , JA , JO , LU , MY , MT , NL , PL , SN , SF , KS , TU , AE , UK
See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If "Yes," to line 5a or 5b, did the organization file Form 8886-T? ............
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions?...
6a
 
No
b
If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
No
b
If "Yes," did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
No
d
If "Yes," indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?............................
7e
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?............................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?..........................
7h
 
 
8
Sponsoring organizations maintaining donor advised funds.
Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year?.........................
8
 
 
9a
Did the sponsoring organization make any taxable distributions under section 4966?...
9a
 
 
b
Did the sponsoring organization make a distribution to a donor, donor advisor, or related person?...
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ..........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If "Yes," enter the amount of tax-exempt interest received or accrued during the year. ....................
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. See the instructions for additional information the organization must report on Schedule O.
13a
 
 
b
Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans ....
13b
 
c
Enter the amount of reserves on hand ............
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
No
b
If "Yes," has it filed a Form 720 to report these payments? If "No," provide an explanation in Schedule O..
14b
 
 
Form 990 (2014)
Form 990 (2014)
Page 6
Part VI
Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response or note to any line in this Part VI ..............
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year .....................
1a
20
If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
b
Enter the number of voting members included in line 1a, above, who are independent ...................
1b
19
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? .
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? ...........................
4
Yes
 
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Did the organization have members or stockholders? ................
6
 
No
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ....................
7a
 
No
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ...................
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If "Yes," provide the names and addresses in Schedule O.......
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.)
Yes
No
10a
Did the organization have local chapters, branches, or affiliates? ............
10a
Yes
 
b
If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes?
10b
Yes
 
11a
Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? ............................
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review this Form 990. .....
12a
Did the organization have a written conflict of interest policy? If "No," go to line 13.......
12a
Yes
 
b
Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ..........................
12b
Yes
 
c
Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe in Schedule O how this was done.......................
12c
Yes
 
13
Did the organization have a written whistleblower policy? ...............
13
Yes
 
14
Did the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions).
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
AZ , CA , DC , DE , IN , KS , NJ , NY , OR
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
20
State the name, address, and telephone number of the person who possesses the organization's books and records:
MediumBulletMichael J Freddo Vice President a
Rosedale Road MS 20-J
Princeton,NJ08541 (609) 921-9000
Form 990 (2014)
Form 990 (2014)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response or note to any line in this Part VII ..............
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (list any hours for related organizations below dotted line) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; OfficerInd; Key Employee; Highest compensated employee; FormerOfcrDirectorTrusteeInd;
(1) Carstarphen Meria........................................................................
Trustee
 2.00
.......................   		X           57,834 0 0
(2) Colbert Isaac........................................................................
Trustee
 2.00
.......................   		X           73,834 0 0
(3) English Michela A........................................................................
Trustee
 2.00
.......................   		X           75,751 0 0
(4) Garcia Ofelia........................................................................
Trustee
 2.00
.......................   		X           57,834 0 0
(5) Henderson Wade N........................................................................
Trustee
 2.00
.......................   		X           76,751 0 0
(6) Johnson Melvin........................................................................
Trustee
 2.00
.......................   		X           57,834 0 0
(7) Kanter Martha........................................................................
Trustee - Partial Term
 2.00
.......................   		X           13,000 0 0
(8) Kapoor Vikas........................................................................
Trustee
 2.00
.......................   		X           41,834 0 0
(9) Levin Henry M........................................................................
Trustee
 2.00
.......................   		X           57,834 0 0
(10) Levine Arthur E........................................................................
Trustee
 2.00
.......................   		X           57,834 0 0
(11) Lewis Earl........................................................................
Trustee
 2.00
.......................   		X           57,834 0 0
(12) Lumpkins Robert........................................................................
Trustee - Partial Term
 2.00
.......................   		X           19,500 0 0
(13) Menezes Victor........................................................................
Trustee
 2.00
.......................   		X           70,751 0 0
(14) Murley Robert S........................................................................
Trustee
 2.00
.......................   		X           83,668 0 0
(15) Robertson Piedad F........................................................................
Trustee - Partial Term
 2.00
.......................   		X           26,667 0 0
(16) Rothkopf Arthur J........................................................................
Trustee
 2.00
.......................   		X           75,751 0 0
(17) Stewart Debra W........................................................................
Trustee
 2.00
.......................   		X           69,834 0 0
Form 990 (2014)
Form 990 (2014)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (list any hours for related organizations below dotted line) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; OfficerInd; Key Employee; Highest compensated employee; FormerOfcrDirectorTrusteeInd;
(18) Tatum Beverly Daniel........................................................................
Trustee
 2.00
.......................   		X           53,834 0 0
(19) Valdes Guadalupe........................................................................
Trustee
 2.00
.......................   		X           90,751 0 0
(20) Winckler Georg........................................................................
Trustee
 2.00
.......................   		X           49,834 0 0
(21) MacDonald Walter B........................................................................
President & CEO
 40.00
.......................   		X   X       911,023 0 43,956
(22) Bailey Diane A........................................................................
VP Teacher Licensure and Cert
 40.00
.......................   		    X       368,057 0 44,842
(23) Basehore John........................................................................
VP & Treasurer
 40.00
.......................   		    X       347,942 0 49,065
(24) Donado Yvette........................................................................
SVP & Chief Admin Officer
 40.00
.......................   		    X       448,611 0 57,241
(25) Draper Jr William C........................................................................
VP & COO College Board
 40.00
.......................   		    X       406,262 0 36,473
(26) Elliott Thomas J........................................................................
VP & CLO Strategic Workforce Systems
 40.00
.......................   		    X       383,626 0 46,338
(27) Farnum Marisa........................................................................
VP Assessment Development
 40.00
.......................   		    X       396,358 0 30,294
(28) Freddo Michael J........................................................................
VP & Controller
 40.00
.......................   		    X       347,744 0 46,097
(29) Gilbertson Bruce M........................................................................
VP Facilities & Real Estate
 40.00
.......................   		    X       359,780 0 30,667
(30) Hayon Jack........................................................................
SVP & Chief Financial Officer
 40.00
.......................   		    X       634,292 0 72,676
(31) Hernandez Sandra........................................................................
VP Finance
 40.00
.......................   		    X       414,356 0 42,721
(32) Hobson David........................................................................
VP & Corporate Secretary
 40.00
.......................   		    X       307,257 0 36,117
(33) House Naomi........................................................................
President ISA
 40.00
.......................   		    X       634,146 0 41,063
(34) Hunt David........................................................................
SVP Global Ed. & Workforce
 40.00
.......................   		    X       516,325 0 60,567
(35) Johnson-Gregory Sheree L........................................................................
VP Assoc. General Counsel
 40.00
.......................   		    X       376,524 0 56,898
(36) Kerins Nancy J........................................................................
SVP Production & Delivery
 40.00
.......................   		    X       590,665 0 38,648
(37) Lawrence Ida M........................................................................
SVP Research & Development
 40.00
.......................   		    X       518,747 0 65,090
(38) Lazer Stephen........................................................................
VP Student & Teacher Assessment
 40.00
.......................   		    X       517,219 0 63,938
(39) Mazzeo John........................................................................
VP Stat Analysis & Psych. Research
 40.00
.......................   		    X       404,445 0 33,553
(40) Miller George........................................................................
VP Strategic Workforce Solutions
 40.00
.......................   		    X       346,136 0 53,755
(41) Nelson Scott F........................................................................
SVP Marketing & Public Affairs
 40.00
.......................   		    X       453,338 0 62,149
(42) Nettles Michael T........................................................................
SVP - Ctr. for Policy Eval. & Research
 40.00
.......................   		    X       440,675 0 59,416
(43) Oswald John........................................................................
VP & COO K-12 Assessment
 40.00
.......................   		    X       405,587 0 38,563
(44) Paris Scott G........................................................................
VP Research
 40.00
.......................   		    X       392,427 0 38,179
(45) Payne David G........................................................................
VP & COO Global Education
 40.00
.......................   		    X       426,477 0 59,239
(46) Pfund Rebecca........................................................................
VP IT Production
 40.00
.......................   		    X       355,995 0 51,025
(47) Pote Stephen K........................................................................
VP & Chief Quality Officer
 40.00
.......................   		    X       363,610 0 47,336
(48) Powell George D........................................................................
VP & COO TLC & Nat ELL
 40.00
.......................   		    X       444,516 0 38,266
(49) Rockey Anne F........................................................................
VP Operations
 40.00
.......................   		    X       363,010 0 46,407
(50) Schroeder Glenn C........................................................................
SVP & General Counsel
 40.00
.......................   		    X       566,780 0 67,338
(51) Tyler Linda L........................................................................
VP New Product Development
 40.00
.......................   		    X       330,933 0 43,100
(52) Wakeman Daniel........................................................................
VP & Chief Information Officer
 40.00
.......................   		    X       363,019 0 56,163
(53) Weaver Scott V........................................................................
VP & Chief Strategy Officer
 40.00
.......................   		    X       403,305 0 59,255
(54) Bennett Randy E........................................................................
Frederiksen Chair Assessment Innov.
 40.00
.......................   		        X   352,979 0 36,855
(55) Mislevy Robert........................................................................
Lord Chair in Meas. & Statistic
 40.00
.......................   		        X   354,622 0 37,423
(56) Kirsch Irwin........................................................................
Tyler Chair LG Scale Assessment
 40.00
.......................   		        X   378,378 0 39,772
(57) Patanella Richard........................................................................
Chief Financial Advisor
 40.00
.......................   		        X   342,774 0 38,835
(58) Schmidt Amy........................................................................
General Manager, Stat Analysis
 40.00
.......................   		        X   306,299 0 39,401
(59) Landgraf Kurt M........................................................................
Former President & CEO
 0.10
.......................   		          X 2,647,314 0 6,646
(60) Ramsey Paul A........................................................................
Former SVP Global Dev & Re
 7.00
.......................   		          X 128,116 0 0
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 20,218,433 0 1,815,367
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organizationMediumBullet1,235
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual ..............
3
Yes
 
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If "Yes," complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If "Yes," complete Schedule J for such person ........
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization’s tax year.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
Accenture LLP

161 North Clark St
Chicago,IL60601 		Supply chain services 56,487,125
Computer Sciences Corporation

3170 Fairview Park Drive
Falls Church,VA22042 		Computer services 51,395,602
NCS Pearson Inc

5601 Green Valley Dr
Bloomington,MN55437 		Test administration services 24,812,977
McCann Relationship Marketing Inc dba

105 Carnegie Center
Princeton,NJ08540 		Marketing 19,955,186
Adecco Corporation

175 Broad Hollow Road
Melville,NY11747 		Temporary labor 19,292,355
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization MediumBullet253
Form 990 (2014)
Form 990 (2014)
Page 9
Part VIII
Statement of Revenue
Check if Schedule O contains a response or note to any line in this Part VIII .............
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512-514
Contributions, Gifts, GrantAmt and OtherAmt Similar Amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d  
e Government grants (contributions)1e 8,268,443
f All other contributions, gifts, grants, and
similar amounts not included above1f 		1,580,386
g Noncash contributions included in lines
1a-1f:$ 		 
h Total. Add lines 1a-1f.......MediumBullet 9,848,829
Program Service RevenueAmt Business Code
2a Global Division 611710 495,812,560 495,812,560    
b Teacher Licensure & Co 611710 391,146,681 391,146,681    
c Student and Teacher As 611710 199,762,394 199,762,394    
d
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 1,086,721,635
OtherAmt RevenueAmt 3 Investment income (including dividends, interest, and other similar amounts).......MediumBullet 44,906,871     44,906,871
4 Income from investment of tax-exempt bond proceeds..MediumBullet        
5 Royalties...........MediumBullet 74,098,659     74,098,659
(i) Real (ii) Personal
6a Gross rents 20,694  
b Less: rental expenses 8,623  
c Rental income or (loss) 12,071  
d Net rental income or (loss).......MediumBullet 12,071     12,071
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 144,220,064 405,650
b Less: cost or other basis and sales expenses 136,433,019 372,490
c Gain or (loss) 7,787,045 33,160
d Net gain or (loss)..........MediumBullet 7,820,205     7,820,205
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ..
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet        
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet        
Miscellaneous Revenue Business Code
11a Occupational & Prof Sk 611600 10,017,491   10,017,491  
b Chauncey Conf. Center 721000 4,152,755   4,152,755  
c Computerized Assessmen 611600 366,500   366,500  
d All other revenue .... 189,132   189,132  
e Total. Add lines 11a–11d ...... MediumBullet 14,725,878
12 Total revenue. See Instructions......MediumBullet 1,238,134,148 1,086,721,635 14,725,878 126,837,806
Form 990 (2014)
Form 990 (2014)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A).Check if Schedule O contains a response or note to any line in this Part IX ...............
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 .... 1,589,283 1,589,283
2 Grants and other assistance to domestic individuals. See Part IV, line 22 .... 281,212 281,212
3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............ 180,168 180,168
4 Benefits paid to or for members ....    
5 Compensation of current officers, directors, trustees, and key employees .... 17,673,086 5,790,853 11,882,233  
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) .... 1,553,806 128,116 1,425,690  
7 Other salaries and wages .... 300,459,389 275,279,167 25,180,222  
8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) .... 26,159,145 23,009,754 3,149,391  
9 Other employee benefits ....... 33,874,868 29,796,555 4,078,313  
10 Payroll taxes ........... 21,891,560 19,255,959 2,635,601  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 8,737,971 4,412,835 4,325,136  
c Accounting ........... 3,208,063   3,208,063  
d Lobbying ........... 94,519   94,519  
e Professional fundraising services. See Part IV, line 17    
f Investment management fees ...... 890,549   890,549  
g Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) .... 490,214,300 467,982,967 22,231,333  
12 Advertising and promotion .... 26,077,974 26,077,974    
13 Office expenses ....... 148,311,295 142,843,931 5,467,364  
14 Information technology ......        
15 Royalties .. 1,577,218 1,577,218    
16 Occupancy ........... 16,687,144 16,039,824 647,320  
17 Travel ............ 10,862,704 9,414,202 1,448,502  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 5,097,462 4,127,133 970,329  
20 Interest ........... 200,597   200,597  
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 38,805,248 34,885,788 3,919,460  
23 Insurance .............. 2,102,039   2,102,039  
24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a Foreign & State Taxes 5,356,252 5,348,492 7,760  
b Chauncey Conference Cen 3,740,868 3,740,868    
c Business licenses/fees 2,958,700 1,145,727 1,812,973  
d Memberships and Dues 676,649 450,594 226,055  
e All other expenses        
25 Total functional expenses. Add lines 1 through 24e 1,169,262,069 1,073,358,620 95,903,449 0
26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here MediumBullet if following SOP 98-2 (ASC 958-720).        
Form 990 (2014)
Form 990 (2014)
Page 11
Part X Balance Sheet Check if Schedule O contains a response or note to any line in this Part X ..............
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash–non-interest-bearing ............. 10,309,716 1 20,646,534
2 Savings and temporary cash investments ......... 73,028,714 2 45,927,211
3 Pledges and grants receivable, net ...........   3  
4 Accounts receivable, net ............. 90,919,506 4 123,847,301
5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..................
  5  
6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
  6  
7 Notes and loans receivable, net .............   7  
8 Inventories for sale or use ..............   8  
9 Prepaid expenses and deferred charges .......... 15,603,979 9 18,133,450
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 265,005,684
b Less: accumulated depreciation ..... 10b 139,063,406 120,400,084 10c 125,942,278
11 Investments—publicly traded securities .......... 42,578,825 11 61,042,032
12 Investments—other securities. See Part IV, line 11 ..... 468,831,229 12 525,813,185
13 Investments—program-related. See Part IV, line 11 .....   13  
14 Intangible assets ............... 116,225,793 14 134,109,097
15 Other assets. See Part IV, line 11 ........... 3,771,850 15 2,613,000
16 Total assets. Add lines 1 through 15 (must equal line 34)...... 941,669,696 16 1,058,074,088
Liabilities 17 Accounts payable and accrued expenses ......... 159,163,440 17 154,968,645
18 Grants payable .................   18  
19 Deferred revenue ................ 61,324,513 19 66,316,399
20 Tax-exempt bond liabilities .............   20  
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L..........   22  
23 Secured mortgages and notes payable to unrelated third parties ..   23  
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.................... 119,810,589 25 180,693,921
26 Total liabilities. Add lines 17 through 25......... 340,298,542 26 401,978,965
Net Assets or Fund Balance Organizations that follow SFAS 117 (ASC 958), check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets .............. 601,371,154 27 656,095,123
28 Temporarily restricted net assets ...........   28  
29 Permanently restricted net assets ...........   29  
Organizations that do not follow SFAS 117 (ASC 958), check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds ........   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ........... 601,371,154 33 656,095,123
34 Total liabilities and net assets/fund balances ........ 941,669,696 34 1,058,074,088
Form 990 (2014)
Form 990 (2014)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response or note to any line in this Part XI ..............
1
Total revenue (must equal Part VIII, column (A), line 12) ............
1
1,238,134,148
2
Total expenses (must equal Part IX, column (A), line 25) ............
2
1,169,262,069
3
Revenue less expenses. Subtract line 2 from line 1 ..............
3
68,872,079
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..
4
601,371,154
5
Net unrealized gains (losses) on investments ...............
5
-3,226,269
6
Donated services and use of facilities .................
6
 
7
Investment expenses .....................
7
 
8
Prior period adjustments .....................
8
 
9
Other changes in net assets or fund balances (explain in Schedule O) ........
9
-10,921,841
10
Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B))
10
656,095,123
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response or note to any line in this Part XII .............
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?
2a
 
No
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both:
b
Were the organization’s financial statements audited by an independent accountant?
2b
Yes
 
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both:
c
If "Yes," to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
2c
Yes
 
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O.
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? .................
3a
Yes
 
b
If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits.
3b
Yes
 
Form 990 (2014)
Form 990 (2014)
Page 13
Form 990, Special Condition Description:
Special Condition Description
Form 990 (2014)
Form 990 (2014)
Page 14
Additional Data


Software ID:  
Software Version:  
SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust.
right arrow Attach to Form 990 or Form 990-EZ.
right arrow Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public
Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I
Reason for Public Charity Status (All organizations must complete this part.) See instructions.
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
a
b
c
d
e
f
Enter the number of supported organizations .............................  
g
Provide the following information about the supported organization(s).
(i)Name of supported organization (ii) EIN (iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions)) (iv) Is the organization listed in your governing document? (v) Amount of monetary support (see instructions) (vi) Amount of other support (see instructions)
Yes No
Total    

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014
Page 2
Part II
Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year (or fiscal year beginning in) right arrow (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....            
2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......            
3 The value of services or facilities furnished by a governmental unit to the organization without charge..            
4 Total. Add lines 1 through 3            
5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..  
6 Public support. Subtract line 5 from line 4.  
Section B. Total Support
Calendar year (or fiscal year beginning in) right arrow (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
7 Amounts from line 4..            
8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...            
9 Net income from unrelated business activities, whether or not the business is regularly carried on..            
10 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.)..            
11 Total support Add lines 7 through 10.  
12
12
 
13
First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here........................................right arrow
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions ..................................................... right arrow
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014
Page 3
Part III
Support Schedule for Organizations Described in Section 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year (or fiscal year beginning in) right arrow (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") . 12,889,559 13,420,573 9,316,768 11,378,847 9,848,829 56,854,576
2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose...... 880,691,488 942,813,001 976,442,900 1,040,603,980 1,086,721,635 4,927,273,004
3 Gross receipts from activities that are not an unrelated trade or business under section 513..            
4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...            
5 The value of services or facilities furnished by a governmental unit to the organization without charge..            
6 Total. Add lines 1 through 5. 893,581,047 956,233,574 985,759,668 1,051,982,827 1,096,570,464 4,984,127,580
7a Amounts included on lines 1, 2, and 3 received from disqualified persons...           0
b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year. 320,175,828 343,101,445 359,923,209 359,048,657 400,936,397 1,783,185,536
c Add lines 7a and 7b.. 320,175,828 343,101,445 359,923,209 359,048,657 400,936,397 1,783,185,536
8 Public support (Subtract line 7c from line 6.) 3,200,942,044
Section B. Total Support
Calendar year (or fiscal year beginning in) right arrow (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
9 Amounts from line 6... 893,581,047 956,233,574 985,759,668 1,051,982,827 1,096,570,464 4,984,127,580
10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources.. 51,618,196 60,310,105 69,479,111 66,285,663 119,026,224 366,719,299
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.            
c Add lines 10a and 10b. 51,618,196 60,310,105 69,479,111 66,285,663 119,026,224 366,719,299
11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.            
12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) .. 7,030 9,505 7,562     24,097
13 Total support. (Add lines 9, 10c, 11, and 12.).. 945,206,273 1,016,553,184 1,055,246,341 1,118,268,490 1,215,596,688 5,350,870,976
14
Section C. Computation of Public Support Percentage
15
15
59.820 %
16
16
65.600 %
Section D. Computation of Investment Income Percentage
17
17
6.850 %
18
18
5.690 %
19a
b
20
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014
Page 4
Part IV
Supporting Organizations
(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)
Section A. All Supporting Organizations
Yes
No
1
Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.
1
 
 
2
Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).
2
 
 
3a
Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.
3a
 
 
b
Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.
3b
 
 
c
Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.
3c
 
 
4a
Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.
4a
 
 
b
Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations....
4b
 
 
c
Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.
4c
 
 
5a
Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document).
5a
 
 
b
Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?
5b
 
 
c
Substitutions only. Was the substitution the result of an event beyond the organization's control?
5c
 
 
6
Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.
6
 
 
7
Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990) .
7
 
 
8
Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part II of Schedule L (Form 990).
8
 
 
9a
Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.
9a
 
 
b
Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.
9b
 
 
c
Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.
9c
 
 
10a
Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer b below.
10a
 
 
b
Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).
10b
 
 
11
Has the organization accepted a gift or contribution from any of the following persons?
a
A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?
11a
 
 
b
A family member of a person described in (a) above?
11b
 
 
c
A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.
11c
 
 
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014
Page 5
Part IV
Supporting Organizations (continued)

Section B. Type I Supporting Organizations
Yes
No
1
Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.
1
 
 
2
Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.
2
 
 
Section C. Type II Supporting Organizations
Yes
No
1
Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).
1
 
 
Section D. All Type III Supporting Organizations
Yes
No
1
Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?
1
 
 
2
Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).
2
 
 
3
By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.
3
 
 
Section E. Type III Functionally-Integrated Supporting Organizations
1
Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):
a
b
c
2
Activities Test. Answer (a) and (b) below.
Yes
No
a
Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.
2a
 
 
b
Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.
2b
 
 
3
Parent of Supported Organizations. Answer (a) and (b) below.
a
Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.
3a
 
 
b
Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard.
3b
 
 
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014
Page 6
Part V – Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

1.   Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.
Section A - Adjusted Net Income (A) Prior Year (B) Current Year
(optional)
1 Net short-term capital gain 1    
2 Recoveries of prior-year distributions 2    
3 Other gross income (see instructions) 3    
4 Add lines 1 through 3 4    
5 Depreciation and depletion 5    
6 Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) 6    
7 Other expenses (see instructions) 7    
8 Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) 8    

Section B - Minimum Asset Amount (A) Prior Year (B) Current Year
(optional)
1 Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): 1
a Average monthly value of securities 1a    
b Average monthly cash balances 1b    
c Fair market value of other non-exempt-use assets 1c    
d Total (add lines 1a, 1b, and 1c) 1d    
e Discount claimed for blockage or other factors (explain in detail in Part VI):  
2 Acquisition indebtedness applicable to non-exempt use assets 2    
3 Subtract line 2 from line 1d 3    
4 Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions). 4    
5 Net value of non-exempt-use assets (subtract line 4 from line 3) 5    
6 Multiply line 5 by .035 6    
7 Recoveries of prior-year distributions 7    
8 Minimum Asset Amount (add line 7 to line 6) 8    

Section C - Distributable Amount Current Year
1 Adjusted net income for prior year (from Section A, line 8, Column A) 1  
2 Enter 85% of line 1 2  
3 Minimum asset amount for prior year (from Section B, line 8, Column A) 3  
4 Enter greater of line 2 or line 3 4  
5 Income tax imposed in prior year 5  
6 Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) 6  
7   Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014
Page 7
Section D - Distributions Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes  
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in
excess of income from activity		  
3 Administrative expenses paid to accomplish exempt purposes of supported organizations  
4 Amounts paid to acquire exempt-use assets  
5 Qualified set-aside amounts (prior IRS approval required)  
6 Other distributions (describe in Part VI). See instructions  
7Total annual distributions. Add lines 1 through 6.  
8 Distributions to attentive supported organizations to which the organization is responsive (provide
details in Part VI). See instructions		  
9 Distributable amount for 2014 from Section C, line 6  
10 Line 8 amount divided by Line 9 amount  

Section E - Distribution Allocations (see instructions) (i)
Excess Distributions 		(ii)
Underdistributions
Pre-2014 		(iii)
Distributable
Amount for 2014
1 Distributable amount for 2014 from Section C, line
6 		 
2 Underdistributions, if any, for years prior to 2014
(reasonable cause required--see instructions)		  
3 Excess distributions carryover, if any, to 2014:
a From 2009.......X
b From 2010.......X
c From 2011.......X
d From 2012.......X
e From 2013.......  
fTotal of lines 3a through e  
g Applied to underdistributions of prior years  
h Applied to 2014 distributable amount  
i Carryover from 2009 not applied (see
instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.  
4Distributions for 2014 from Section D, line 7:
$  
a Applied to underdistributions of prior years  
b Applied to 2014 distributable amount  
c Remainder. Subtract lines 4a and 4b from 4.  
5 Remaining underdistributions for years prior to
2014, if any. Subtract lines 3g and 4a from line 2
(if amount greater than zero, see instructions)		  
6 Remaining underdistributions for 2014. Subtract
lines 3h and 4b from line 1 (if amount greater than
zero, see instructions)		  
7 Excess distributions carryover to 2015. Add lines
3j and 4c.		  
8 Breakdown of line 7:
a From 2010.......X
b From 2011.......X
c From 2012.......X
d From 2013.......  
e From 2014.......  
Schedule A (Form 990 or 990-EZ) (2014)
Schedule A (Form 990 or 990-EZ) 2014
Page 8
Part VI
Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
 
Return Reference Explanation
Schedule A (Form 990 or 990-EZ) 2014

Additional Data


Software ID:  
Software Version:  
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Schedule of Contributors
Arrow Bullet Attach to Form 990, 990-EZ, or 990-PF.
Arrow Bullet Information about Schedule B (Form 990, 990-EZ, or 990-PF) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Organization type (check one):
Filers of:
Section:
Form 990 or 990-EZ





Form 990-PF




Check if your organization is covered by the General Rule or a Special Rule.  
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.
General Rule
Special Rules
......... Arrow Bullet $  
Caution. An organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2, of its Form 990; or check the box on line H of its
Form 990-EZ or on its Form 990PF, Part I, line 2, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).
For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.
Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)
Page 2
Name of organization
Educational Testing Service
  		Employer identification number

21-0634479
Part I
Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total contributions		 (d)
Type of contribution
RESTRICTED
 
 

   
 
 
  ,    

$RESTRICTED


(Complete Part II for noncash contributions.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total contributions		 (d)
Type of contribution
 
 
 

   
 
 

$  


(Complete Part II for noncash contributions.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total contributions		 (d)
Type of contribution
 
 
 

   
 
 

$  


(Complete Part II for noncash contributions.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total contributions		 (d)
Type of contribution
 
 
 

   
 
 

$  


(Complete Part II for noncash contributions.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total contributions		 (d)
Type of contribution
 
 
 

   
 
 

$  


(Complete Part II for noncash contributions.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total contributions		 (d)
Type of contribution
 
 
 

   
 
 

$  


(Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)
Page 3
Name of organization
Educational Testing Service
  		Employer identification number

21-0634479
Part II
Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)
Page 4
Name of organization
Educational Testing Service
  		Employer identification number

21-0634479
Part III
Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10)
that total more than $1,000 for the year from any one contributor. Complete columns (a) through (e) and the following line entry. For organizations completing Part III, enter the total of exclusively religious, charitable, etc., contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet$  
Use duplicate copies of Part III if additional space is needed.
(a) No.
from
Part I		 (b) Purpose of gift (c) Use of gift (d) Description of how gift is held
 
(e) Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
     
 
(a) No.
from
Part I		 (b) Purpose of gift (c) Use of gift (d) Description of how gift is held
 
(e) Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
     
 
(a) No.
from
Part I		 (b) Purpose of gift (c) Use of gift (d) Description of how gift is held
 
(e) Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
     
 
(a) No.
from
Part I		 (b) Purpose of gift (c) Use of gift (d) Description of how gift is held
 
(e) Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
     
 
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Additional Data


Software ID:  
Software Version:  
SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet Complete if the organization is described below.SchCMd Bullet Attach to Form 990 or Form 990-EZ.
SchCMd Bullet Information about Schedule C (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public
Inspection
If the organization answered "Yes" to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet Section 527 organizations: Complete Part I-A only.
If the organization answered "Yes" to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B.
Round Bullet Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered "Yes" to Form 990, Part IV, Line 5 (Proxy Tax) (see separate instructions) or Form 990-EZ, Part V, line 35c (Proxy Tax) (see separate instructions), then
Round Bullet Section 501(c)(4), (5), or (6) organizations: Complete Part III.
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

1
Provide a description of the organization’s direct and indirect political campaign activities in Part IV.
2
Political expenditures ....................................SchCMd Bullet
$  
3
Volunteer hours ........................................
 

Part I-B
Complete if the organization is exempt under section 501(c)(3).
1
Enter the amount of any excise tax incurred by the organization under section 4955 .........SchCMd Bullet
$  
2
Enter the amount of any excise tax incurred by organization managers under section 4955 ......SchCMd Bullet
$  
3
If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............
4a
Was a correction made? .........................................
b
If "Yes," describe in Part IV.
Part I-C
Complete if the organization is exempt under section 501(c), except section 501(c)(3).
1
Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet
$  
2
Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ...................................SchCMd Bullet

$  
3
Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b..SchCMd Bullet

$  
4
Did the filing organization file Form 1120-POL for this year? ..........................
5
Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.
(a) Name (b) Address (c) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.










For Paperwork Reduction Act Notice, see the instructions for Form 990 or 990-EZ.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2014

Schedule C (Form 990 or 990-EZ) 2014
Page 2
Part II-A
Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).
A Check SchCMd Bulletexpenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet
Limits on Lobbying Expenditures
(The term "expenditures" means amounts paid or incurred.) 		(a) Filing
organization's
totals 		(b) Affiliated group
totals
1a Total lobbying expenditures to influence public opinion (grass roots lobbying) ......    
b Total lobbying expenditures to influence a legislative body (direct lobbying) ....... 94,519  
c Total lobbying expenditures (add lines 1a and 1b) ................... 94,519  
d Other exempt purpose expenditures ........................ 1,145,792,952  
e Total exempt purpose expenditures (add lines 1c and 1d) ............... 1,145,887,471  
f Lobbying nontaxable amount. Enter the amount from the following table in both
columns.		 1,000,000  
If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
Not over $500,00020% of the amount on line 1e.
Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
Over $17,000,000$1,000,000.
g Grassroots nontaxable amount (enter 25% of line 1f) ................. 250,000  
h Subtract line 1g from line 1a. If zero or less, enter -0-. ................ 0  
i Subtract line 1f from line 1c. If zero or less, enter -0-. ................ 0  
j If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting
section 4911 tax for this year? ......................................

4-Year Averaging Period Under section 501(h)
(Some organizations that made a section 501(h) election do not have to complete all of the five
columns below. See the separate instructions for lines 2a through 2f.)
Lobbying Expenditures During 4-Year Averaging Period
Calendar year (or fiscal year
beginning in) 		(a) 2011 (b) 2012 (c) 2013 (d) 2014 (e) Total
2a Lobbying nontaxable amount 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		6,000,000
c Total lobbying expenditures 152,599 62,120 40,851 94,519 350,089
d Grassroots nontaxable amount 250,000 250,000 250,000 250,000 1,000,000
e Grassroots ceiling amount
(150% of line 2d, column (e))		 1,500,000
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2014


Schedule C (Form 990 or 990-EZ) 2014
Page 3
Part II-B
Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).
For each "Yes" response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.
(a)
No
Yes
(b)
Amount
1
During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:
a
Volunteers? .........................................
 
 
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
 
 
c
Media advertisements? ....................................
 
 
 
d
Mailings to members, legislators, or the public? .........................
 
 
 
e
Publications, or published or broadcast statements? .......................
 
 
 
f
Grants to other organizations for lobbying purposes? .......................
 
 
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
 
 
 
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
 
 
i
Other activities? ..........................
 
 
 
j
Total. Add lines 1c through 1i ...............................
 
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
 
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......
 
 
Part III-A
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).
Yes
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carry over lobbying and political expenditures from the prior year? ..........
3
 
 
Part III-B
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2, are answered "No" OR (b) Part III-A, line 3, is answered “Yes."
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ............................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
Part IV
Supplemental Information
Provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; Part II-A (affiliated group list); Part II-A, lines 1 and 2 (see instructions), and Part ll-B, line 1. Also, complete this part for any additional information.
Return Reference Explanation
Part II-A, Line 2, Lobbying Activities: Total ETS federal and state lobbying expenses were $94,519. The total lobbying expenditures of ETS were minimal in comparison to total revenues.
Schedule C (Form 990 or 990EZ) 2014

Additional Data


Software ID:  
Software Version:  

SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b.
SchDMd Bullet Attach to Form 990.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .........    
2 Aggregate value of contributions to (during year)    
3 Aggregate value of grants from (during year)    
4 Aggregate value at end of year ........    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register .................... 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? .......................................
9
In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items:
(i)
Revenue included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958) relating to these items:
a
Revenue included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 52283D
Schedule D (Form 990) 2014

Schedule D (Form 990) 2014
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIII.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIII and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability?
b
If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII .......
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current year (b)Prior year b (c)Two years back (d)Three years back (e)Four years back
1a Beginning of year balance ....          
b Contributions ........          
c Net investment earnings, gains, and losses          
d Grants or scholarships .....          
e Other expenditures for facilities
and programs ........ 		         
f Administrative expenses ....          
g End of year balance ......          
2
Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as:
a
Board designated or quasi-endowment SchDMd Bullet  
b
Permanent endowment SchDMd Bullet  
c
Temporarily restricted endowment SchDMd Bullet  
The percentages in lines 2a, 2b, and 2c should equal 100%.
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIII the intended uses of the organization's endowment funds.
Part VI
Land, Buildings, and Equipment. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11a. See Form 990, Part X, line 10.
Description of property (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   1,970,618 1,970,618
b Buildings ................   196,143,047 102,595,823 93,547,224
c Leasehold improvements ............   4,896,331 3,231,091 1,665,240
d Equipment ................   61,995,688 33,236,492 28,759,196
e Other .................        
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......SchDMdBullet 125,942,278
Schedule D (Form 990) 2014

Schedule D (Form 990) 2014
Page 3
Part VII
Investments—Other Securities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
(3)Other
(A) Investment in affiliated entities 		414,368,404 F

(B) Non-publicly traded securities 		111,444,781 F







Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)Small Bullet 525,813,185
Part VIII
Investments—Program Related. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c. See Form 990, Part X, line 13.
(a) Description of investment (b) Book value (c) Method of valuation:
Cost or end-of-year market value








Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)Small Bullet  
Part IX
Other Assets. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11d. See Form 990, Part X, line 15.
(a) Description (b) Book value








Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........Small Bullet  
Part X
Other Liabilities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.
1.(a) Description of liability (b) Book value
Federal income taxes  
Post-retirement medical benefits 118,232,803
Intercompany payable 28,771,875
Other liabilities 33,689,243






Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)Small Bullet 180,693,921
2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII
Schedule D (Form 990) 2014

Schedule D (Form 990) 2014
Page 4
Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1 Total revenue, gains, and other support per audited financial statements ....... 1  
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains (losses) on investments .... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIII.) ............ 2d  
e Add lines 2a through 2d ..................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIII.) ........... 4b  
c Add lines 4a and 4b....................... 4c  
5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ...... 5  
Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1 Total expenses and losses per audited financial statements ........... 1  
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIII.) ............ 2d  
e Add lines 2a through 2d...................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIII.) ............ 4b  
c Add lines 4a and 4b....................... 4c  
5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ...... 5  
Part XIII
Supplemental Information
Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.
Return Reference Explanation
Part X, Line 2: This summary reflects the ETS portion of the ASC 740-10(FIN 48) Note in the Consolidated Financial Statements. Educational Testing Service adopted ASC 740-10(FIN 48) on January 1, 2009 in accordance with U.S. Generally Accepted Accounting Procedures (US GAAP). In accordance with the US GAAP requirements, Educational Testing Service adjusted its net assets for its uncertain tax positions. It is reasonably possible that the tax liability recorded for these uncertain tax positions can change within the next twelve months. The tax liability has various open statutes which range from three to ten years.
Schedule D (Form 990) 2014

Additional Data


Software ID:  
Software Version:  




SCHEDULE F(Form 990)
Department of the Treasury
Internal Revenue Service
Statement of Activities Outside the United States
Right pointing arrow large image Complete if the organization answered "Yes" to Form 990,Part IV, line 14b, 15, or 16.Right pointing arrow large image Attach to Form 990.Right pointing arrow large image Information about Schedule F (Form 990) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I
General Information on Activities Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 14b.
1
For grantmakers. Does the organization maintain records to substantiate the amount of its grants
and other assistance, the grantees’ eligibility for the grants or assistance, and the selection criteria
used to award the grants or assistance? ...........................
2
For grantmakers. Describe in Part V the organization’s procedures for monitoring the use of its grants and other assistance outside the United States.
3
Activites per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.)
(a) Region (b) Number of offices in the region (c) Number of employees, agents, and independent contractors in region (d) Activities conducted in region (by type) (e.g., fundraising, program services, investments, grants to recipients located in the region) (e) If activity listed in (d) is a program service, describe specific type of
service(s) in region		 (f) Total expenditures
for and investments
in region
East Asia and the Pacific 0 0 Grants to recipients located in the region. Grantmaking 180,168
North America 0 1,057 Program services Testing activities 2,466,134
Europe 0 494 Program services Testing activities 10,928,289
Central America and the Caribbean 0 539 Program services Testing activities 222,742
East Asia and the Pacific 0 2,063 Program services Testing activities 8,628,318
Middle East and North Africa 0 643 Program services Testing activities 1,482,494
Russia and Neighboring States 0 113 Program services Testing activities 41,411
South America 0 407 Program services Testing activities 349,237
South Asia 0 1,025 Program services Testing activities 2,395,092
Sub-Saharan Africa 0 361 Program services Testing activities 300,974
Europe 0 0 Investments   3,081,968
North America 0 0 Investments   483,514
Central America and the Caribbean 0 0 Investments   16,976,199
           
           
           
           
3a Sub-total ..... 0 5,316 24,298,793
b Total from continuation sheets to Part I ... 0 1,386 23,237,747
c Totals (add lines 3a and 3b) 0 6,702 47,536,540
For Paperwork Reduction Act Notice, see the Instructions for Form 990.Cat. No. 50082W Schedule F (Form 990) 2014
Schedule F (Form 990) 2014
Page 2
Part II
Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed.
1 (a) Name of organization (b) IRS code section
and EIN (if applicable)		 (a)(c) Region (b)(d) Purpose of
grant 		(e) Amount of
cash grant 		(f) Manner of
cash
disbursement 		(g) Amount
of non-cash
assistance 		(h) Description
of non-cash
assistance 		(i) Method of
valuation
(book, FMV,
appraisal, other)
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
2 Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter ....MediumBullet
 
3
Enter total number of other organizations or entities .......................MediumBullet
 
Schedule F (Form 990) 2014
Schedule F (Form 990) 2014Page 3
Part III
Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 16.
Part III can be duplicated if additional space is needed.
(a) Type of grant or assistance (b) Region (c) Number of recipients (d) Amount of
cash grant 		(e) Manner of cash
disbursement 		(f) Amount of
non-cash
assistance 		(g) Description
of non-cash
assistance 		(h) Method of
valuation
(book, FMV,
appraisal, other)
Scholarships for outstanding South Korean Students East Asia and the Pacific 24 72,000 Scholarships are paid directly to student's schools for tuition.      
Scholarships for outstanding Japanese Students East Asia and the Pacific 6 42,000 Scholarships are paid to third party who pays the student's tuition.      
Scholarships for outstanding South Korean Students East Asia and the Pacific 24 66,168 Scholarships are paid to third party who pays the student's tuition.      
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
Schedule F (Form 990) 2014
Schedule F (Form 990) 2014
Page 4
Part IV
Foreign Forms
1 Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes,"the organization may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation (see Instructions for Form 926)......................................
2 Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization may be required to file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, and/or Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (see Instructions for Forms 3520 and 3520-A; do not file with Form 990)............................
3 Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations. (see Instructions for Form 5471)..............................
4 Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If “Yes,” the organization may be required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. (see Instructions for Form 8621)...............................................
5 Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships. (see Instructions for Form 8865)....................................
6 Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to file Form 5713, International Boycott Report (see Instructions for Form 5713; do not file with Form 990).....................................
Schedule F (Form 990) 2014
Schedule F (Form 990) 2014
Page 5
Part V
Supplemental Information
Provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information (see instructions).
ReturnReference Explanation
Part I, Line 2: Educational Testing Service requires applicants for scholarships to provide transcripts and other information upon which they are evaluated. During 2014, scholarship funds were distributed in two manners: 1. Scholarship funds are made payable directly to the university or college that the awarded recipient attends. 2. Scholarship funds are paid directly to an independent third party who then was contractually obligated to disburse funds to the respective university or college. Scholarships awarded to recipients outside the United States are monitored at the university level, since the awards are for one year only.
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
Schedule F (Form 990) 2014
Additional Data


Software ID:  
Software Version:  



Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990.
lBullet Information about Schedule I (Form 990) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public
Inspection
Name of the organization
Educational Testing Service
 
Employer identification number
21-0634479
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed.
(a) Name and address of organization
or government		 (b) EIN (c) IRC section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) American Assoc of Hispanics in Higher Education (AAHHE)
1120 S Cady Mall Suite B 275
Tempe,AZ85257 		30-0150324 501(c)(3) 100,500 4,404 Fair Market Value Printing and Catering Support of local community educational programs.
(2) American Education Research Association (AERA)
1430 K Street NW Suite 1200
Washington,DC20005 		23-7003537 501(c)(3) 5,000       Support of local community educational programs.
(3) 100 Hispanic Women
413 East 120th Street
New York,NY10035 		13-3831889 501(c)(3) 5,000       Support of local community educational programs.
(4) 50Can Inc
1112 16th St NW Suite 240
Washington,DC20036 		27-3069592 501(c)(3) 50,000       Support of local community educational programs.
(5) African American Chamber of Commerce of NJ
110 West State Street Suite 2B
Trenton,NJ08608 		06-1820423 501(c)(3) 10,000       Support of local community educational programs.
(6) American Indian College Fund
8333 Greenwood Blvd
Denver,CO80221 		52-1573446 501(c)(3) 5,000       Support of local community educational programs.
(7) Anchor House Foundation Inc
482 Centre Street
Trenton,NJ08611 		22-2229995 501(c)(3) 10,000       Support of local community educational programs.
(8) Association of Public & Land Grant Universities
1307 New York Ave NW
Washington,DC20005 		53-0183246 501(c)(3) 10,000       Support of local community educational programs.
(9) Boys & Girls Club of Trenton and Mercer County
212 Centre Street
Trenton,NJ08611 		73-1658119 501(c)(3) 1,344 21,318 Fair Market Value Catering Support of local community educational programs.
(10) Camden City Board of Education Foundation Inc (Camden Schools Foundation)
201 Front Street
Camden,NJ08102 		41-2177584 501(c)(3) 5,000       Support of local community educational programs.
(11) Career Development Awards
PO Box 2314
Princeton,NJ08542 		23-6206954 501(c)(3) 5,000 6,032 Fair Market Value Catering Support of local community educational programs.
(12) Court Appointed Special Advocates (CASA) of Mercer County
180 Ewingville Road
Ewing,NJ08638 		22-3770968 501(c)(3) 5,000       Support of local community educational programs.
(13) Council of Chief State School Officers (CCSSO)
One Massachusetts Ave NW NO 700
Washington,DC20001 		53-0198090 501(c)(3)   75,080 Fair Market Value Catering and Supplies Support of local community educational programs.
(14) Children's Defense Fund
25 E Street NW
Washington,DC20001 		52-0895622 501(c)(3) 200,000       Support of local community educational programs.
(15) Council for Adult and Experiential Learning
55 East Monroe Street
Chicago,IL60603 		13-2890752 501(c)(3) 7,000       Support of local community educational programs.
(16) Communities in Schools of San Antonio
1616 E Commerce St Bldg 1
San Antonio,TX78205 		74-2393714 501(c)(3) 5,242       Support of local community educational programs
(17) CONTACT of Mercer County New Jersey Inc
60 South Main St
Pennington,NJ08534 		22-2320153 501(c)(3) 5,100       Support of local community educational programs
(18) Committee for Hispanic Children and Families Inc
110 William St Suite 1802
New York,NY10038 		11-2622003 501(c)(3) 11,000       Support of local community educational programs.
(19) Council of Graduate Schools
One Dupont Circle NW
Washington,DC20036 		52-2175852 501(c)(3) 5,000       Support of local community educational programs.
(20) Dual Language Education of New Mexico (La Cosecha)
1309 Fourth Street SW Suite E
Albuquerque,NM87102 		85-0477820 501(c)(3) 7,500       Support of local community educational programs.
(21) Education Commission of the States
700 Broadway
Denver,CO85203 		31-0722194 501(c)(3) 10,000       Support of local community educational programs.
(22) Education Law Center
60 Park Place
Newark,NJ07102 		22-2104555 501(c)(3) 20,000       Support of local community educational programs.
(23) Every Child Valued
175 Johnson Avenue
Lawrenceville,NJ08648 		26-4654078 501(c)(3) 50,506       Support of local community educational programs.
(24) Ewing Public Education Foundation Inc
PO Box 7033
Ewing,NJ08628 		22-3347353 501(c)(3) 43,770 1,536 Fair Market Value Catering Support of local community educational programs.
(25) Fight for Children
1726 M Street NW Suite 202
Washington,DC20036 		52-1706059 501(c)(3) 5,000       Support of local community educational programs.
(26) Hispanic Association of Colleges and Universities
8415 Datapoint Drive Suite 400
San Antonio,TX78229 		74-2466103 501(c)(3) 23,200       Support of local community educational programs.
(27) Hispanics Inspiring Students' Performance and Achievement (HISPA)
PO Box 702
Princeton,NJ08542 		52-1825305 501(c)(3) 25,460 1,018 Fair Market Value Catering Support of local community educational programs.
(28) Hoboken Board of Education
158 4th Street
Hoboken,NJ07030 		Government 69,339 3,120 Fair Market Value Computer equipment Support of local community educational programs.
(29) Homefront
1880 Princeton Pike
Lawrenceville,NJ08648 		22-3165145 501(c)(3) 12,000 2,584 Fair Market Value Catering and Supplies Support of local community educational programs.
(30) Lawrence Township Community Foundation
PO Box 6706
Lawrenceville,NJ08648 		22-3835387 501(c)(3) 10,000       Support of local community educational programs.
(31) Institute for Educational Leadership
4455 Connecticut Avenue NW
Washington,DC20008 		52-1198450 501(c)(3) 5,000       Support of local community educational programs.
(32) The Latino Institute Inc
50 Park Place Suite 1539
Newark,NJ07102 		20-1516874 501(c)(3) 11,500       Support of local community educational programs.
(33) Junior Achievement of New Jersey
4365 Route 1 South
Princeton,NJ08540 		22-1774147 501(c)(3) 23,268       Support of local community educational programs.
(34) Lawrence Township Education Foundation Inc
17 Phillips Ave
Lawrenceville,NJ08648 		22-3192024 501(c)(3) 80,468 129 Fair Market Value Supplies Support of local community educational programs.
(35) Lawrenceville Fire Company
64 Phillips Avenue
Lawrenceville,NJ08648 		23-7330548 501(c)(3) 5,000       Support of local community educational programs.
(36) Life Pieces to Masterpieces
5600 Eads Street NE 4th Floor
Washington,DC20018 		52-2076894 501(c)(3) 15,000       Support of local community educational programs.
(37) Literacy Volunteers of Mercer County
3535 Quakerbridge Road
Hamilton,NJ08619 		22-3502495 501(c)(3) 10,000       Support of local community educational programs.
(38) Mercer Street Friends
151 Mercer St
Trenton,NJ08618 		21-0733990 501(c)(3) 5,100       Support of local community educational programs.
(39) National Alliance on Mental Illness (NAMI) Mercer County
3371 Brunswick Pike Suite 124
Lawrenceville,NJ08648 		22-2587453 501(c)(3) 10,000 731 Fair Market Value Catering Support of local community educational programs.
(40) Mercer County Office of Education
1075 Old Trenton Road
Trenton,NJ08690 		21-6000856 Government   12,998 Fair Market Value Catering Support of local community educational programs.
(41) MillHill Child Family Development Center
101-A Oakland Street
Trenton,NJ08618 		22-3828387 501(c)(3) 5,000       Support of local community educational programs.
(42) Minding Our Business
65 Livingston Avenue
Roseland,NJ07068 		46-1076647 501(c)(3) 12,000       Support of local community educational programs.
(43) National Urban League
120 Wall Street 8th Floor
New York,NY10005 		13-1840489 501(c)(3) 25,000       Support of local community educational programs.
(44) New Jersey Education Foundation Partnership Inc
PO Box 908
Princeton Junction,NJ08550 		36-4613556 501(c)(3) 15,000       Support of local community educational programs.
(45) Parents Step Ahead Inc
2102 Empire Central
Dallas,TX75235 		26-2477378 501(c)(3) 35,000       Support of local community educational programs.
(46) Princeton YWCA
59 Paul Robeson Place
Princeton,NJ08540 		21-0635056 501(c)(3) 13,925 5,266 Fair Market Value Catering and Supplies Support of local community educational programs.
(47) Rutgers University Foundation
Winanta Hall 7 College Avenue
New Brunswick,NJ08901 		23-7318742 501(c)(3) 25,100       Support of local community educational programs.
(48) Shiloh Community Development Corporation
340 Rev S Howard Woodson Jr Way
Trenton,NJ08618 		12-3799161 501(c)(3) 11,042       Support of local community educational programs.
(49) Stony Brook Millstone Watershed Association
31 Titus Mill Road
Pennington,NJ08534 		21-0649717 501(c)(3) 9,000       Support of local community educational programs.
(50) Morris Hall - St Lawrence Inc (StLawrence Rehabilitation Center)
2381 Lawrenceville Road
Lawrenceville,NJ08648 		52-2250044 501(c)(3) 12,500       Support of local community educational programs.
(51) The College of New Jersey Foundation
PO Box 7718
Ewing,NJ08628 		22-2448189 501(c)(3) 12,000       Support of local community educational programs.
(52) United Way of Greater Mercer County
3150 Brunswick Pike
Lawrenceville,NJ08648 		21-0683073 501(c)(3) 50,595       Support of local community educational programs.
(53) Young Scholars Institute
349 West State Street
Trenton,NJ08618 		22-3051022 501(c)(3) 1,680 5,549 Fair Market Value Catering and Supplies Support of local community educational programs.
(54) Young Audiences of New Jersey Inc
200 Forrestal Road
Princeton,NJ08540 		23-7384991 501(c)(3) 7,746       Support of local community educational programs.
(55) Ewing Public Schools
2099 Pennington Road
Ewing,NJ08638 		21-6000324 Government   16,949 Fair Market Value Catering and Supplies Support of local community educational programs.
(56) New Jersey City University Foundation Inc
2039 Kennedy Blvd
Jersey City,NJ07305 		23-7261698 501(c)(3) 16,500       Support of local community educational programs.
(57) New Jersey School Boards Association
413 West State Street
Trenton,NJ08618 		Government   53,386 Fair Market Value Catering and Supplies Support of local community educational programs.
(58) New Jersey Seeds
494 Broad Street Suite 105
Newark,NJ07102 		22-3181507 501(c)(3) 30,000       Support of local community educational programs.
(59) Princeton Area Community Foundation
15 Princess Road
Lawrenceville,NJ08648 		52-1746234 501(c)(3) 1,000 8,448 Fair Market Value Catering and Supplies Support of local community educational programs.
(60) UCLA Foundation CARE Project
405 Hilgard Ave GSEIS Moore Hall
Box 951521
Los Angeles,CA90095 		95-2250801 501(c)(3) 50,000       Support of local community educational programs.
(61) United States Hispanic Leadership
431 Dearborn Street
Chicago,IL60605 		36-3191740 501(c)(3) 7,500       Support of local community educational programs.
(62) Trenton Board of Education
108 North Clinton Ave
Trenton,NJ08609 		21-6000326 Government   8,307 Fair Market Value Catering Support of local community educational programs.
(63) New Venture Fund
1201 Connecticut Avenue
Washington,DC20036 		20-5806345 501(c)(3) 60,000       Support of local community educational programs.
(64) Asian & Pacific Islander American Scholarship Fund
2025 M Street NW Ste 610
Washington,DC20036 		57-1192973 501(c)(3) 15,000       Support of local community educational programs.
2
Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................ Bullet Image
64
3
Enter total number of other organizations listed in the line 1 table ........................ . Bullet Image
 
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2014

Schedule I (Form 990) 2014
Page 2
Part III
Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Part III can be duplicated if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance
(1) Historically Black Colleges and Universities Presidential Scholarship 9 98,879      
(2) Trenton Central High School Scholarship 7 152,833      
(3) Research Fellowships 1 29,500      








Part IV
Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b), and any other additional information.
Return Reference Explanation
Part I, Line 2: The ETS Center for Advocacy and Philanthropy, a division of ETS which manages ETS's contributions, has established criteria for making grants and other contributions. It also maintains records to substantiate the amount of grants or in-kind contributions, as well as the grantees eligibility for the grants. IRS Form W-9 is requested from all organizations to ascertain the legal name, EIN or Taxpayer Identification Number and address. ETS typically maintains close contact with its grantees to monitor their progress in the use of funds and, whenever feasible, the extent to which the funded program met its objectives. Small contributions (under $2,000) are sometimes made to 501(c)(3) organizations to promote volunteerism and philanthropy among employees at ETS. ETS monitors the use of funds in several ways: (1) requests written reports on the use of restricted funds and the organization's annual report when the grant is unrestricted; (2) for sponsored events, such as conferences and workshops, ETS requests programs and other materials prepared for the event; (3) staff members attend a number of sponsored events so that there is direct observation; (4) ETS remains in contact with grant recipients via email, phone calls and face-to-face meetings; and (5) ETS obtains copies of any research papers that might be developed as a result of the grant.
Schedule I (Form 990) 2014


Additional Data


Software ID:  
Software Version:  


Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 23.
SchJMediumBullet Attach to Form 990.
SchJMediumBullet Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain....
1b
Yes
 
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
directors, trustees, officers, including the CEO/Executive Director, regarding the items checked in line 1a? ..
2
Yes
 
3
Indicate which, if any, of the following the filing organization used to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
4
During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment? ................
4a
Yes
 
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? .........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? .........
4c
 
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.
5
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization? ...........................
5a
 
No
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization? ...........................
6a
Yes
 
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
Yes
 
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50053T
Schedule J (Form 990) 2014

Schedule J (Form 990) 2014
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.
Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.
(A) Name and Title (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation in column(B) reported as deferred in prior Form 990
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
1MacDonald Walter BPresident & CEO (i)
(ii)		 478,888
...............................
0 		289,313
...............................
0 		142,822
...............................
0 		23,400
...............................
0 		20,556
...............................
0 		954,979
...............................
0 		0
...............................
0
2Bailey Diane AVP Teacher Licensure and Cert (i)
(ii)		 201,687
...............................
0 		110,375
...............................
0 		55,995
...............................
0 		29,830
...............................
0 		15,012
...............................
0 		412,899
...............................
0 		0
...............................
0
3Basehore JohnVP & Treasurer (i)
(ii)		 197,902
...............................
0 		108,450
...............................
0 		41,590
...............................
0 		31,902
...............................
0 		17,163
...............................
0 		397,007
...............................
0 		0
...............................
0
4Donado YvetteSVP & Chief Admin Officer (i)
(ii)		 256,517
...............................
0 		149,625
...............................
0 		42,469
...............................
0 		39,578
...............................
0 		17,663
...............................
0 		505,852
...............................
0 		0
...............................
0
5Draper Jr William CVP & COO College Board (i)
(ii)		 216,585
...............................
0 		140,938
...............................
0 		48,739
...............................
0 		33,973
...............................
0 		2,500
...............................
0 		442,735
...............................
0 		0
...............................
0
6Elliott Thomas JVP & CLO Strategic Workforce Systems (i)
(ii)		 205,775
...............................
0 		125,500
...............................
0 		52,351
...............................
0 		22,995
...............................
0 		23,343
...............................
0 		429,964
...............................
0 		0
...............................
0
7Farnum MarisaVP Assessment Development (i)
(ii)		 186,458
...............................
0 		119,780
...............................
0 		90,120
...............................
0 		20,776
...............................
0 		9,518
...............................
0 		426,652
...............................
0 		25,872
...............................
0
8Freddo Michael JVP & Controller (i)
(ii)		 186,091
...............................
0 		113,875
...............................
0 		47,778
...............................
0 		30,125
...............................
0 		15,972
...............................
0 		393,841
...............................
0 		0
...............................
0
9Gilbertson Bruce MVP Facilities & Real Estate (i)
(ii)		 212,904
...............................
0 		115,875
...............................
0 		31,001
...............................
0 		30,667
...............................
0 		0
...............................
0 		390,447
...............................
0 		0
...............................
0
10Hayon JackSVP & Chief Financial Officer (i)
(ii)		 326,713
...............................
0 		258,300
...............................
0 		49,279
...............................
0 		48,983
...............................
0 		23,693
...............................
0 		706,968
...............................
0 		0
...............................
0
11Hernandez SandraVP Finance (i)
(ii)		 212,832
...............................
0 		131,725
...............................
0 		69,799
...............................
0 		21,929
...............................
0 		20,792
...............................
0 		457,077
...............................
0 		18,846
...............................
0
12Hobson DavidVP & Corporate Secretary (i)
(ii)		 178,423
...............................
0 		43,034
...............................
0 		85,800
...............................
0 		20,178
...............................
0 		15,939
...............................
0 		343,374
...............................
0 		0
...............................
0
13House NaomiPresident ISA (i)
(ii)		 344,234
...............................
0 		168,300
...............................
0 		121,612
...............................
0 		23,400
...............................
0 		17,663
...............................
0 		675,209
...............................
0 		0
...............................
0
14Hunt DavidSVP Global Ed. & Workforce (i)
(ii)		 289,626
...............................
0 		184,845
...............................
0 		41,854
...............................
0 		43,811
...............................
0 		16,756
...............................
0 		576,892
...............................
0 		0
...............................
0
15Johnson-Gregory Sheree LVP Assoc. General Counsel (i)
(ii)		 221,730
...............................
0 		131,119
...............................
0 		23,675
...............................
0 		33,055
...............................
0 		23,843
...............................
0 		433,422
...............................
0 		0
...............................
0
16Kerins Nancy JSVP Production & Delivery (i)
(ii)		 315,089
...............................
0 		210,113
...............................
0 		65,463
...............................
0 		23,400
...............................
0 		15,248
...............................
0 		629,313
...............................
0 		0
...............................
0
17Lawrence Ida MSVP Research & Development (i)
(ii)		 287,429
...............................
0 		180,675
...............................
0 		50,643
...............................
0 		43,668
...............................
0 		21,422
...............................
0 		583,837
...............................
0 		0
...............................
0
18Lazer StephenVP Student & Teacher Assessment (i)
(ii)		 298,732
...............................
0 		154,138
...............................
0 		64,349
...............................
0 		42,745
...............................
0 		21,193
...............................
0 		581,157
...............................
0 		0
...............................
0
19Mazzeo JohnVP Stat Analysis & Psych. Research (i)
(ii)		 222,231
...............................
0 		129,375
...............................
0 		52,839
...............................
0 		33,553
...............................
0 		0
...............................
0 		437,998
...............................
0 		0
...............................
0
20Miller GeorgeVP Strategic Workforce Solutions (i)
(ii)		 219,233
...............................
0 		112,800
...............................
0 		14,103
...............................
0 		31,090
...............................
0 		22,665
...............................
0 		399,891
...............................
0 		0
...............................
0
21Nelson Scott FSVP Marketing & Public Affairs (i)
(ii)		 265,747
...............................
0 		147,125
...............................
0 		40,466
...............................
0 		40,806
...............................
0 		21,343
...............................
0 		515,487
...............................
0 		0
...............................
0
22Nettles Michael TSVP - Ctr. for Policy Eval. & Resear (i)
(ii)		 246,444
...............................
0 		144,500
...............................
0 		49,731
...............................
0 		38,223
...............................
0 		21,193
...............................
0 		500,091
...............................
0 		0
...............................
0
23Oswald JohnVP & COO K-12 Assessment (i)
(ii)		 257,321
...............................
0 		120,825
...............................
0 		27,441
...............................
0 		23,400
...............................
0 		15,163
...............................
0 		444,150
...............................
0 		0
...............................
0
24Paris Scott GVP Research (i)
(ii)		 230,207
...............................
0 		120,438
...............................
0 		41,782
...............................
0 		23,400
...............................
0 		14,779
...............................
0 		430,606
...............................
0 		0
...............................
0
25Payne David GVP & COO Global Education (i)
(ii)		 245,940
...............................
0 		134,516
...............................
0 		46,021
...............................
0 		38,046
...............................
0 		21,193
...............................
0 		485,716
...............................
0 		0
...............................
0
26Pfund RebeccaVP IT Production (i)
(ii)		 205,119
...............................
0 		134,400
...............................
0 		16,476
...............................
0 		29,682
...............................
0 		21,343
...............................
0 		407,020
...............................
0 		0
...............................
0
27Pote Stephen KVP & Chief Quality Officer (i)
(ii)		 218,816
...............................
0 		121,250
...............................
0 		23,544
...............................
0 		32,088
...............................
0 		15,248
...............................
0 		410,946
...............................
0 		0
...............................
0
28Powell George DVP & COO TLC & Nat ELL (i)
(ii)		 229,836
...............................
0 		134,888
...............................
0 		79,792
...............................
0 		21,018
...............................
0 		17,248
...............................
0 		482,782
...............................
0 		0
...............................
0
29Rockey Anne FVP Operations (i)
(ii)		 227,423
...............................
0 		126,425
...............................
0 		9,162
...............................
0 		31,173
...............................
0 		15,234
...............................
0 		409,417
...............................
0 		0
...............................
0
30Schroeder Glenn CSVP & General Counsel (i)
(ii)		 321,914
...............................
0 		221,163
...............................
0 		23,703
...............................
0 		45,155
...............................
0 		22,183
...............................
0 		634,118
...............................
0 		0
...............................
0
31Tyler Linda LVP New Product Development (i)
(ii)		 171,378
...............................
0 		105,064
...............................
0 		54,491
...............................
0 		28,088
...............................
0 		15,012
...............................
0 		374,033
...............................
0 		0
...............................
0
32Wakeman DanielVP & Chief Information Officer (i)
(ii)		 219,498
...............................
0 		119,189
...............................
0 		24,332
...............................
0 		32,735
...............................
0 		23,428
...............................
0 		419,182
...............................
0 		0
...............................
0
33Weaver Scott VVP & Chief Strategy Officer (i)
(ii)		 248,786
...............................
0 		135,375
...............................
0 		19,144
...............................
0 		35,827
...............................
0 		23,428
...............................
0 		462,560
...............................
0 		0
...............................
0
34Bennett Randy EFrederiksen Chair Assessment Innov. (i)
(ii)		 234,985
...............................
0 		64,565
...............................
0 		53,429
...............................
0 		23,400
...............................
0 		13,455
...............................
0 		389,834
...............................
0 		0
...............................
0
35Mislevy RobertLord Chair in Meas. & Statistic (i)
(ii)		 273,281
...............................
0 		70,571
...............................
0 		10,770
...............................
0 		23,400
...............................
0 		14,023
...............................
0 		392,045
...............................
0 		0
...............................
0
36Kirsch IrwinTyler Chair LG Scale Assessment (i)
(ii)		 252,112
...............................
0 		69,338
...............................
0 		56,928
...............................
0 		23,400
...............................
0 		16,372
...............................
0 		418,150
...............................
0 		0
...............................
0
37Patanella RichardChief Financial Advisor (i)
(ii)		 191,159
...............................
0 		69,715
...............................
0 		81,900
...............................
0 		21,475
...............................
0 		17,360
...............................
0 		381,609
...............................
0 		0
...............................
0
38Schmidt AmyGeneral Manager, Stat Analysis (i)
(ii)		 221,383
...............................
0 		62,595
...............................
0 		22,321
...............................
0 		31,889
...............................
0 		7,512
...............................
0 		345,700
...............................
0 		0
...............................
0
39Landgraf Kurt MFormer President & CEO (i)
(ii)		 746,548
...............................
0 		531,009
...............................
0 		1,369,757
...............................
0 		4,902
...............................
0 		1,744
...............................
0 		2,653,960
...............................
0 		0
...............................
0
40Ramsey Paul AFormer SVP Global Dev & Re (i)
(ii)		 128,116
...............................
0 		0
...............................
0 		0
...............................
0 		0
...............................
0 		0
...............................
0 		128,116
...............................
0 		0
...............................
0
Schedule J (Form 990) 2014

Schedule J (Form 990) 2014
Page 3
Part III
Supplemental Information
Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.
Also complete this part for any additional information.
Return Reference Explanation
Part I, Line 1a Part I, Line 1a: First-class or charter travel: Trustees (2) received this benefit during 2014. It was not treated as taxable compensation to the individual. This benefit is provided based on length of travel time required of the individual. Part I, Line 1a: Tax gross-up payments: Officers (25) received this benefit during 2014. It was treated as taxable compensation to the individual. Part I, Line 1a: Housing allowance or residence for personal use: Officer (1) received this benefit during 2014. It was treated as taxable compensation to the individual.
Part I, Line 3 ETS engages an external executive independent compensation consultant organization to review and advise on excess benefit transaction law and to prepare an annual report and analysis of proposed compensation of ETS's CEO and officers. The analysis includes data on compensation for comparable organizations and similar occupations/functions in similarly situated organizations. The external executive independent compensation consultant also develops a Letter of Reasonableness regarding the analyses of Officers pay consistent with government guidelines which is presented to the Committee on Governance and Human Resources and the Board for review, comment and approval.
Part I, Lines 4a-b Officer (1) received a severance payment from the organization in 2014. Kurt Landgraf - $708,000. The officers participated in a supplemental non-qualified retirement plan under 457(f). The non-vested portion of each officer's deferred compensation is reported in Column C. The vested portion of each officer's deferred compensation is reported in Columns B & F. In 2014, Kurt Landgraf received a $204,023 payment from the 457(f) plan.
Part I, Lines 6a & 7: ETS incentive compensation programs are variable cash compensation programs to provide employees earnings opportunities in addition to base pay. These variable compensation components recognize and reward based on individual and ETS's performance. Payments under these programs are realized when ETS meets and achieves its annual performance targets for the year, as determined by holistic assessment of metrics from ETS's balanced scorecard objectives, including financial, operational, customer and growth goals.
Schedule J (Form 990) 2014

Additional Data


Software ID:  
Software Version:  
Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V, line 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ.
MediumBulletInformation about Schedule L (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I
Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Relationship between disqualified person and organization (c) Description of transaction (d) Corrected?
Yes No





2
Enter the amount of tax incurred by organization managers or disqualified persons during the year under section 4958. ........................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22
(a) Name of interested person (b) Relationship with organization (c) Purpose of loan (d) Loan to or from the organization? (e)Original principal amount (f)Balance due (g) In default? (h) Approved by board or committee? (i)Written agreement?
To From Yes No Yes No Yes No
Total ......Small Bullet $  
Part III
Grants or Assistance Benefiting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of assistance (d) Type of assistance (e) Purpose of assistance
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2014
Schedule L (Form 990 or 990-EZ) 2014
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) Teresa M Sanchez-Lazer see Part V 161,215 see Part V   No
(2) Paul Ramsey see Part V 128,116 see part V   No
Part V
Supplemental Information
Provide additional information for responses to questions on Schedule L (see instructions).
Return Reference Explanation
Part IV: (a)Name of person: Teresa M. Sanchez-Lazer(b)Relationship between interested person and the organization: family member of Stephen Lazer, Current Officer(d)Description of transaction: Salary and benefits(a)Name of person: Paul Ramsey(b)Relationship between interested person and the organization: Paul Ramsey is a former ETS officer who retired in 2009.(d)Description of transaction: In 2014 Paul Ramsey provided consulting services to ETS.
Schedule L (Form 990 or 990-EZ) 2014

Additional Data


Software ID:  
Software Version:  




SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
MediumBullet Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public
Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Return Reference Explanation
Form 990, Part VI, Section A, line 4 The Corporate Bylaws were revised to change the financial year-end for years beginning after December 31, 2014.
Form 990, Part VI, Section B, line 11 All Trustees received a copy of Form 990 for review and information prior to Board of Trustees meeting. Form 990 was reviewed by the Board of Trustees' Audit Committee and the full Board of Trustees prior to filing.
Form 990, Part VI, Section B, line 12c The Trustees of Educational Testing Service, individually and collectively, are expected to act in accordance with the highest standards of ethical behavior. Annually, the Audit Committee reviews the ETS Code of Ethics for Members of the Board of Trustees. Subsequently, each Trustee receives a copy of the Code of Ethics and signs a statement agreeing to abide by the Code. The Code of Ethics states a clear policy on conflicts of interest. ETS also has a conflict of interest policy that is supplied to the Board of Trustees, officers and key employees. The Trustees annually complete a Trustee Disclosure Statement and a Trustee Affiliation Form. The Disclosure Statement requests if there are any Trustees with material financial interest to which ETS is a party. The Affiliation Form requests information regarding the Trustees employment as a staff member or as a consultant of ETS, as well as their affiliation with other organizations. The Corporate Secretary reviews these disclosures for potential conflicts or the potential appearance of a conflict. Should a situation be disclosed that presents a potential conflict, the Corporate Secretary would seek resolution with the involvement of the appropriate authority such as the Audit Committee or the ETS General Counsel and Chief Ethics Officer. Intrinsic to the policy is a Trustee recusing themselves on certain matters or resigning from the Board to prevent a conflict of interest or avoid an appearance of a conflict of interest. Failure to respond to the annual disclosure process would result in the requisite follow up by the Corporate Secretary. Candidates for Trustees receive receive general information on relevant ETS policies, such as the Code of Ethics and Conflict of Interest and are required to complete the Affiliations Form prior to standing for election. Trustees can obtain assistance with the interpretation or administration of the Code of Ethics conflicts policy or procedures from the Corporate Secretary or the General Counsel and Chief Ethics Officer. Trustees receive the complete policy statements upon their election. Educational Testing Service requires that employees, including officers, who are uncertain whether an outside activity comes within the scope of ETS's Code of Ethics or Conflict of Interest policy, discuss the matter with their supervisors. Employees wishing to engage in outside activities must submit an Outside Activities Report to their division director for review and approval prior to engaging in the activity. Employees must submit an amended report whenever the activity changes. The report is reviewed and the employee is informed whether the request is approved. The employee's division Vice President and the Vice President of Strategic Workforce Solutions (SWS)(ETS's Human Resources Department) receive a copy of all such reports regardless of whether the request is approved. Any situation involving a potential conflict of interest must be reviewed by SWS to verify that no conflict exists. Any employee who acquires information that gives the employee reason to believe that any employee, officer or trustee is engaged in conduct that is prohibited by ETS's Code of Ethics or subject to ETS's Conflict of Interest policy, or that any sales representative, distributor or other person or firm representing ETS in any transaction is engaged in the type of conduct (whether or not in connection with a transaction involving ETS or its products) which, if engaged in by an employee, would violate this policy is required to report this information immediately. All complaints regarding potential conflicts of interest are investigated promptly, and where necessary, immediate and appropriate action is taken to stop and remedy any such conduct. Any employee or officer, found in violation of this policy will be subject to disciplinary action, up to and including termination, depending upon the severity of the violation. This policy is reviewed on an annual basis by the Vice President of Strategic Workforce Solutions. All ETS employees receive a copy of the Code of Ethics on an annual basis. The annual review and signature indicating their agreement to comply with the policy is mandatory as part of employment with ETS.
Form 990, Part VI, Section B, line 15 ETS's Board of Trustees ("Board") engages an independent external organization, a leading consultant in executive compensation, to review the structure and process of Officer compensation to ensure practices that are within IRS and not-for-profit guidelines. The external organization issues a letter to the Board that presents their expert opinion as to the reasonableness and comparability of the total remuneration of the executives. The Board has reviewed and agreed upon the analysis and the Opinion Letter as to the Reasonableness of the Total Compensation Provided for the executives working for ETS. The independent, external executive compensation consultant prepares a Letter of Reasonableness regarding the analysis of Officer pay consistent with government guidelines which is presented to the Board Committee on Governance and Human Resources and the full Board for review, comment and approval.
Form 990, Part VI, Section C, line 19 Currently, ETS does not provide its governing documents, conflict of interest policy, or financial statements available to the public. This process is consistent with prior years.
Form 990, Part IX, line 11g Test Admin and Consultants: Program service expenses 347,793,902. Management and general expenses 21,567,651. Fundraising expenses 0. Total expenses 369,361,553. Subcontracting Costs: Program service expenses 120,189,065. Management and general expenses 663,682. Fundraising expenses 0. Total expenses 120,852,747.
Form 990, Part XI, line 9: Postretirement benefits -37,407,000. Equity earnings in affiliates 69,582,000. Disregarded entity loss included in Form 990 1,058,159. Dividend income from subsidiaries -44,155,000.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2014

Additional Data


Software ID:  
Software Version:  
SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.
MediumBulletAttach to Form 990.
MediumBullet Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047
2014
Open to Public Inspection
Name of the organization
Educational Testing Service
 
Employer identification number

21-0634479
Part I
Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33.
(a)
Name, address, and EIN (if applicable) of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Total income


 		(e)
End-of-year assets


 		(f)
Direct controlling
entity
(1) ETS Tech LLC
Rosedale Road
Princeton,NJ08541
45-4054815 		Holding company DE 0 11,521,106 Educational Testing Service
 
(2) Computerized Assessments and Learning LLC
1202 East 23rd Street Suite D
Lawrence,KS66046
20-4973305 		Educational services KS 5,955,258 21,226,705 Educational Testing Service
 








Part II
Identification of Related Tax-Exempt Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.
(a)
Name, address, and EIN of related organization


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Exempt Code section


 		(e)
Public charity status
(if section 501(c)(3))

 		(f)
Direct controlling
entity

 		(g)
Section 512(b)(13) controlled entity?
Yes No
(1) Educational Testing Service Retiree Medical and Life Ins Plan
Rosedale Road MS 20-J

Princeton,NJ08541
22-3372287 		Benefit Plan NJ 501(c)(9)   Educational Testing Service
 
 
No












For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2014
Schedule R (Form 990) 2014
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V-UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No












Part IV
Identification of Related Organizations Taxable as a Corporation or Trust Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.
(a)
Name, address, and EIN of
related organization
 		(b)
Primary activity
 		(c)
Legal
domicile
(state or foreign
country)
 		(d)
Direct controlling
entity
 		(e)
Type of entity
(C corp, S corp,
or trust) 		(f)
Share of total income
 		(g)
Share of end-of-year
assets
 		(h)
Percentage
ownership
 		(i)
Section 512(b)(13) controlled entity?
Yes No
(1) Educational Testing Service (ETS) Global BV

Strawinskylaan 929
Amsterdam   1077 XX
NL
Educational services NL Educational Testing Service
  		C 32,702,095 12,647,177 100.000 % Yes  
(2) Educational Testing Service Canada Inc

138B ch de la Grande-Cote
Rosemere,QuebecJ7A 1H3
CA
Educational services CA Educational Testing Service
  		C 1,485,438 980,070 100.000 % Yes  
(3) ETS Assessments (Beijing) Ltd

No 3 Dongsanhuan Beilu Block B L
Beijing   100027
CH
Educational services CH Educational Testing Service (ETS) Global BV
  		C 2,132,645 1,450,137 100.000 % Yes  
(4) ETS Educational Services (India) Private Limited

12-2-417/A/15 Jayanagar Colony
Hyderabad   500 082
IN
Educational services IN Educational Testing Service (ETS) Global BV
  		C     100.000 % Yes  
(5) ETS Holdings Inc

1501 South Clinton Street
Baltimore,MD21224
26-0416543 		Holding company DE Educational Testing Service
  		C     100.000 % Yes  
(6) Prometric Inc

1501 South Clinton Street
Baltimore,MD21224
26-0416596 		Educational services DE ETS Holdings Inc
  		C 231,673,128 481,432,136 100.000 % Yes  
(7) Prometric Japan Company Limited

Ochanomizu Sola City 5F 4-6 Kanda S
Tokyo   101-0062
JA
Educational services JA Prometric Inc
  		C 22,917,998 17,598,630 100.000 % Yes  
(8) Prometric Limited

7th Floor The Victoria Harbour Cit
Manchester   M5 03SP
UK
98-0561896 		Educational services UK Prometric Inc
  		C 5,559,903 4,258,269 100.000 % Yes  
(9) Prometric Luxembourg SARL

5 Rue Guillaume Kroll
Luxembourg   L-1882
LU
Holding company LU Prometric Inc
  		C 23,153,392 109,795,133 100.000 % Yes  
(10) Ireland Test Center Delivery Limited

Office 11 Verdala Business Center
Mriehel   BKR 3000
MT
98-0561894 		Holding company MT Prometric Luxembourg SARL
  		C 14,962,074 48,516,485 100.000 % Yes  
(11) Prometric Ireland Limited

25/28 North Wall Quay
Dublin   1
EI
98-1020297 		Educational services EI Ireland Test Center Delivery Limited
  		C 25,876,618 12,834,956 100.000 % Yes  
(12) Prometric Pty Limited

Suite 12 Level 12 37 Bligh Street
Sydney NSW   2000
AS
98-1072358 		Educational services AS Ireland Test Center Delivery Limited
  		C 296,909 1,255,924 100.000 % Yes  
(13) Prometric BV

Hogehilweg 8
Amsterdam   1101CC
NL
98-1071416 		Educational services NL Prometric Luxembourg SARL
  		C 23,153,392 109,781,551 100.000 % Yes  
(14) Prometric Korea Limited

Yoon-Ik Building 8 Floor 430 Eonj
Seoul    
KS
Educational services KS Prometric BV
  		C 609,172 2,401,431 100.000 % Yes  
(15) Prometric (Proprietary) Ltd

4 Daventry Street Lynnwood Manor
Pretoria   0081
SF
Educational services SF Prometric BV
  		C 115,315 431,068 100.000 % Yes  
(16) Prometric Testing Private Limited

2nd Floor DLF Infinity Tower-A Sec
Gurgaon, Haryana   122002
IN
Educational services IN Prometric BV
  		C 10,637,662 8,789,435 100.000 % Yes  
(17) Prometric Technology (Beijing) Co Ltd

Unit 406 Raycom InfoTech Tower A
Beijing   100080
CH
Educational services CH Prometric BV
  		C 1,713,604 1,150,679 100.000 % Yes  
(18) Prometric Technology SDN Bhd

Suite 21A-15-1 Farber Imperial CRT
Kuala Lumpur   50250
MY
Educational services MY Prometric BV
  		C 8,492,757 4,212,979 100.000 % Yes  
(19) Prometric GmbH

Tortrasse 49
Berlin   10119
GM
Educational services GM Prometric BV
  		C 263,419 917,663 100.000 % Yes  
(20) Prometric Pte Ltd

77 Robinson Road 15-01
Singapore   068898
SN
Educational services SN Prometric BV
  		C 539,697 1,238,804 100.000 % Yes  
(21) Prometric FZ-LLC

Dubai Knowledge Village Office 108
Dubai    
AE
Educational services AE Prometric BV
  		C 1,104,853 700,548 100.000 % Yes  
(22) Educational Testing Service International Holdings Limited

25/28 North Wall Quay
Dublin   1
EI
Educational services EI Educational Testing Service
  		C 82,518 1,719,346 100.000 % Yes  
(23) Edusoft Ltd

16 Hamelacha St North Industrial P
Rosh Ha'Ayin   48091
IS
Educational services IS Educational Testing Service International Holdings Limited
  		C 5,031,358 12,213,277 100.000 % Yes  
(24) Edustar America Inc

c/o Tax Dept Rosedale Road MS-20J
Princeton,NJ08541
59-3125818 		Educational services DE Educational Testing Service International Holdings Limited
  		C 286   100.000 % Yes  
(25) Prometric Canada Testing Services Inc

550 Burrard Street Suite 2300 Bent
Vancouver,British Columbia  
CA
Educational services CA Prometric Inc
  		C     100.000 % Yes  
Schedule R (Form 990) 2014
Schedule R (Form 990) 2014
Page 3
Part V
Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.
Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule.
Yes
No
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
Yes
 
b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
Yes
 
c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
 
No
d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Dividends from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
Yes
 
g Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .
1l
Yes
 
m Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .
1m
Yes
 
n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .
1n
 
No
o Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
 
No
p Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
 
No
q Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
Yes
 
r Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
 
No
s Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1s
 
No
2
If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.
(a)
Name of related organization 		(b)
Transaction
type (a-s) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1) Educational Testing Service Retiree Benefits Trust

 Q 3,633,562 Cash
(2) Educational Testing Service (ETS) Global BV

 A 4,501,840 Fair market value
(3) Educational Testing Service (ETS) Global BV

 L 1,311,884 Fair market value
(4) Educational Testing Service (ETS) Global BV

 Q 35,000 Cash
(5) Educational Testing Service Canada Inc

 A 242,005 Fair market value
(6) Educational Testing Service Canada Inc

 L 76,293 Fair market value
(7) Prometric Inc

 L 780,763 Fair market value
(8) Prometric Inc

 Q 154,132 Cash
(9) Edusoft Ltd

 L 76,667 Fair market value
(10) Educational Testing Service International Holdings Limited

 B 800,000 Cash
(11) Educational Testing Service Canada Inc

 F 155,000 Cash
(12) ETS Holdings Inc

 F 44,000,000 Cash
(13) Educational Testing Service (ETS) Global BV

 M 6,632,533 Fair market value
(14) Educational Testing Service Canada Inc

 M 40,633 Fair market value
(15) Prometric Inc

 M 127,109,415 Fair market value
(16) Edusoft Ltd

 M 1,189,302 Fair market value
Schedule R (Form 990) 2014
Schedule R (Form 990) 2014
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Predominant income (related, unrelated, excluded from tax under sections 512-514)

(e)
Are all partners
section
501(c)(3)
organizations? 		(f)
Share of total income




 		(g)
Share of
end-of-year
assets 		(h)
Disproprtionate allocations? 		(i)
Code V-UBI
amount in box 20
of Schedule K-1
(Form 1065) 		(j)
General or
managing
partner? 		(k)
Percentage
ownership
Yes No Yes No Yes No






























Schedule R (Form 990) 2014
Schedule R (Form 990) 2014
Page 5
Part VII
Supplemental Information
Provide additional information for responses to questions on Schedule R (see instructions).
Return Reference Explanation
Schedule R (Form 990) 2014
Additional Data


Software ID:  
Software Version: