| Return Reference | Explanation |
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| FORM 990, PART VI, SECTION A, LINE 6 | CLASSES OF MEMBERSHIP- MEMBERSHIP IN THE CORPORATION IS DIVIDED INTO THREE CLASSES: ACTIVE, ASSOCIATE, AND INTERNATIONAL. ACTIVE MEMBERS- ANY PERSON, FIRM, OR CORPORATION ENGAGED IN OPERATING FOR-PROFIT RETAIL DRUG STORES OR OTHER FOR-PROFIT COMMUNITY RETAIL PHARMACIES SHALL BE ELIGIBLE FOR ACTIVE MEMBERSHIP IN THE CORPORATION, INCLUDING OPERATORS OF FOUR OR MORE FOR-PROFIT RETAIL DRUG STORES OR OTHER FOR-PROFIT COMMUNITY RETAIL PHARMACIES THAT ARE SUBSIDIARIES OF, OWNED BY, OR DIRECTLY OR INDIRECTLY CONTROLLED BY A NOT-FOR-PROFIT ORGANIZATION. ASSOCIATE MEMBERS- ANY PERSON, FIRM, CORPORATION, OR ORGANIZATION ACTIVELY ENGAGED IN SUPPLYING GOODS OR SERVICES TO THE PROFESSION OF PHARMACY, THE DRUG INDUSTRY, RETAIL DRUG STORES OR OTHER FOR-PROFIT COMMUNITY RETAIL PHARMACIES SHALL BE ELIGIBLE FOR ASSOCIATE MEMBERSHIP IN THE CORPORATION. INTERNATIONAL MEMBERS- ANY PERSON, FIRM, CORPORATION, OR ORGANIZATION LOCATED IN AND ORGANIZED UNDER THE LAWS OF A JURISDICTION OUTSIDE OF THE UNITED STATES AND ENGAGED IN OPERATING FOR-PROFIT RETAIL DRUG STORES OR OTHER FOR-PROFIT COMMUNITY RETAIL PHARMACIES OR ACTIVELY ENGAGED IN SUPPLYING GOODS OR SERVICES TO THE PROFESSION OF PHARMACY, DRUG INDUSTRY, RETAIL DRUG STORES OR OTHER FOR-PROFIT COMMUNITY RETAIL PHARMACIES SHALL BE ELIGIBLE FOR INTERNATIONAL MEMBERSHIP. |
| FORM 990, PART VI, SECTION A, LINE 7A | THE NOMINATING COMMITTEE OF THE BOARD OF DIRECTORS PRESENTS A SLATE OF DIRECTORS TO BE VOTED ON AT EACH YEAR'S ANNUAL MEMBER'S MEETING. EACH ACTIVE MEMBER IS ENTITLED TO ONE VOTE ON ANY MATTER PRESENTED TO THE MEMBERSHIP AT ANY MEETING OF THE MEMBERS. VOTING MAY BE BY PROXY, WHICH PROXY SHALL BE IN WRITING, SIGNED BY THE ACTIVE MEMBER, AND SUBMITTED TO THE SECRETARY PRIOR TO THE VOTE. |
| FORM 990, PART VI, SECTION B, LINE 11B | A COPY OF THE FORM 990 IS MADE AVAILABLE TO THE DIRECTORS FOR THEIR REVIEW PRIOR TO FILING. THE DIRECTORS ARE INSTRUCTED TO CONTACT THE SVP FINANCE IF THEY HAVE ANY QUESTIONS REGARDING THE RETURN. AFTER A REASONABLE PERIOD OF TIME, THE FORMS ARE FILED IF THERE ARE NO FURTHER QUESTIONS. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE ORGANIZATION'S CONFLICT OF INTEREST POLICY APPLIES TO VOTING BOARD MEMBERS OF THE ORGANIZATION; ANY BOARD MEMBER WHO DECLARES A CONFICT OF INTEREST ON A MATTER IS REQUIRED TO RECUSE THEMSELVES FROM THE DISCUSSION AND ANY VOTE ON THE MATTER. IN ORDER TO MONITOR AND ENFORCE COMPLIANCE WITH THE POLICY, DIRECTORS ARE REMINDED OF THE POLICY AT EVERY BOARD MEETING. |
| FORM 990, PART VI, SECTION B, LINE 15 | FORM 990 EXECUTIVE COMPENSATION: Q15A. TAXPAYER HAS A HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS FOR REVIEW, DISCUSSION AND APPROVAL OF THE CEO'S SALARY AND ANNUAL PERFORMANCE-BASED BONUS AWARD. THE CEO'S COMPENSATION IS BENCHMARKED ANNUALLY BY AN INDEPENDENT COMPENSATION ANALYSIS FIRM THAT USES APPROPRIATE COMPARABLE DATA FROM OTHER ORGANIZATIONS OF SIMILAR SIZE AND GEOGRAPHIC LOCATION, INCLUDING 990'S OF OTHER ORGANIZATIONS AND COMPENSATION STUDIES. THE DATA AND ANALYSIS IS PROVIDED TO THE COMMITTEE. RECORDS OF THE PROCESS AND THE RESULTING DETERMINATION ARE KEPT WITHIN THE COMMITTEE MEETING MINUTES. Q15B. TAXPAYER USES COMPARABLE COMPENSATION DATA TO BENCHMARK OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. AN INDEPENDENT COMPENSATION ANALYSIS FIRM IS UTILIZED TO ROUTINELY REVIEW AND COMPARE OUR ESTABLISHED, BOARD-APPROVED COMPENSATION PROGRAM WITH COMPARABLE ORGANIZATIONS OF SIMILAR SIZE AND GEOGRAPHIC REGION. THE HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS AND DISCUSSES COMPENSATION FOR OFFICERS AND KEY EMPLOYEES. THE PRESIDENT & CEO HAS THE FINAL AUTHORITY ON OTHER OFFICERS AND KEY EMPLOYEES COMPENSATION. RECORDS OF THE PROCESS AND THE RESULTING DETERMINATION ARE KEPT WITHIN THE COMMITTEE MEETING MINUTES. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE TAXPAYER'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). |
| FORM 990, PART VIII | TAXPAYER OWNED 25% OF SURESCRIPTS, LLC, AN ELECTRONIC PRESCRIBING PLATFORM, AS OF 1/1/2024. THIS INVESTMENT WAS RECORDED AT COST, LESS AN ALLOWANCE, OF $1,900,000 ON THE ORGANIZATION'S 2023 FORM 990. IN NOVEMBER 2024, TAXPAYER SOLD 12.75% OF THEIR OWNERSHIP SHARE, AND RETAINED A 12.25% STAKE IN SURESCRIPTS. THE SALE RESULTED IN A LONG-TERM CAPITAL GAIN OF $256,433,261. TAXPAYER ALSO RECEIVED A CASH DIVIDEND DISTRIBUTION FROM SURESCRIPTS IMMEDIATELY PRECEDING THE SALE. THE DIVIDEND TOTALED $61,841,463. FINALLY, IN ACCORDANCE WITH ASC820, THE TAXPAYER RAISED THE REMAINING 12.25% OWNERSHIP IN SURESCRIPTS FROM COST TO FAIR VALUE, FOLLOWING THE OBSERVABLE MARKET VALUE ESTABLISHED BY THE NOVEMBER SALE. THIS RAISED THE FAIR VALUE OF THE REMAINING INVESTMENT AT 12/31/2024 TO $195,225,607. |
| FORM 990, PART XI, LINE 9: | PENSION RELATED GAIN/LOSS -64,000. |
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