Report of the Treasurer of the National Academy of Sciences for the

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Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015

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REPORT OF

THE TREASURER

OF THE

NATIONAL ACADEMY

OF SCIENCES

For the Year

Ended December 31, 2015





Contents

Treasurer’s Statement

I.

Investments

Endowment, Trust, and Other Long-term Investments Pool –

Description of Funds for the Year

Ended December 31, 2015


Financial Detail of Funds for the Year

Ended December 31, 2015


Asset Allocation as of December 31, 2015


Change in Valuation and Market Value Summary

Schedule 1

Schedule 2

Schedule 1 – A

Schedule 2 – A

II.

Private Contributions

III.

Financial Condition

Report of the Auditing Committee of the National Academy of Sciences

Independent Auditor’s Report

Statements of Financial Position

Statements of Activities

Statements of Cash Flows

Notes to the Financial Statements

Page

1

9

10

25

54

55

56

49

50

51

53

19

23

24


iii




Treasurer’s Statement

To the Council of the National Academy of

Sciences:

This

Report of the Treasurer of the National Academy of

Sciences

presents the financial position and results of operations as well as a review of the endowment, trust, and other long-term investments portfolio activities of our

Academy for the year ended December 31, 2015.

Overview

The income that supports the activities of the Academy comes from two major sources: program revenue received from sponsors to pay for the myriad studies and other activities undertaken each year by the National Research

Council (NRC), and a much smaller sum that we withdraw from our own endowment under the endowment spending policies adopted by the Council. Our total NRC program revenue for 2015 experienced an increase of approximately 0.9% above 2014 revenue. In projecting program level in 2016, we anticipate a program level similar to the 2015 program; with a slightly higher level of on-site programmatic work, and a smaller amount of subcontracting.

As the program level has increased slightly over the last two years and looks stable for 2016, we are focusing on the changing sources of our program funding. In 2011, the $330 million of program work was sponsored 84% by the federal government and 16% from non-federal sources. In 2015, the $279 million program was sponsored 74% by the federal government and 26% from nonfederal sources. The decline in the federal funding both in volume and in percentage over the last five years is a trend known to many in the research field. We are working to grow the non-federally sponsored work, with the area of medicine and health research having led the way. Over the last 5 years the annual federal funding has declined from approximately $278 to $207 million, a 25% decline; fortunately, the funding from private and our own sources has increased from $52 to $72 million, a 38% increase. It will be very important for the future of the institution to continue vigorous efforts to diversify its sources of income.

The Gulf Research Program started in 2013 and will become a larger part of the programmatic activity over the next few years. Over its 30-year duration, The Gulf

Research Program will seek to improve understanding of the interconnecting human, environmental, and energy systems of the Gulf of Mexico and other U.S. outer continental shelf areas, and foster application of these insights to benefit Gulf communities, ecosystems, and the

Nation. As of February 2016, we have received $235 million of the total $500 million in payments to be received. The NAS Council is overseeing the investment of the funds and the strategic direction of the program in accordance with agreements arising out of the settlement of the federal government’s criminal complaints against

BP Exploration and Production, Inc. and Transocean

Deepwater, Inc.

With respect to the second source of revenue, it has for many years been the policy of the Council to limit annual endowment spending to 5% of the average value of endowment for the twelve quarters ending in June of the previous year. When the endowment declined significantly in 2008, the Council made the prudent decision to hold spending to 4% and to avoid spending from specific endowment funds having values below the original gift amount, starting in 2009. These practices continued through 2013. For 2014, a conservative increase to a spending rate of 4.25% was approved followed by an increase to 4.5% approved for 2015 and

2016.

NAS Highlights

Endowment, Trust, and Other Long-term Investments

Portfolio

As the Chairman of the Finance Committee, I am responsible, along with the other committee members, for the prudent management of the endowment and trust fund. The goal of the endowment is to provide stable support for the Academy’s programs and activities over time while maintaining the value of the corpus of the endowment in real (inflation adjusted) terms. To achieve this goal, the Council, acting on the recommendation of the Finance Committee, has historically authorized spending from the portfolio at a rate designed to maintain the purchasing power of the endowment over time. The current spending rule caps annual spending at 5% of the trailing 12-quarter average market value of the portfolio.

1



As I have already noted, the Council limited spending to

4% from 2009 through 2013, increased spending to

4.25% in 2014 and 4.50% in 2015 and 2016.

The market value of the portfolio decreased net of withdrawals and new contributions from $423.0 million on January 1, 2015, to $419.9 million at December 31,

2015. The portfolio returned -1.0% for the year, which was 0.7% higher than the benchmark return of -1.7%.

The negative return was primarily due to a decline in the global equity markets driven by fears of an economic slowdown. Despite the downturn, the NAS portfolio outperformed its benchmark due to strong performances from hedged U.S. equity and alternative investments.

The market value of the portfolio, along with the actual portfolio allocation and policy guidelines as of December

31, 2015, were as follows:

Fixed-Income:

Amount

(000's)

U.S. fixed income/

cash $ 23,266

Non-U.S. fixed income 16,446

Equities:

U.S. large equity 94,522

U.S. small/mid equity 46,866

Non-U.S. equity

(developed)

Non-U.S. equity

(emerging)

74,513

43,213

14,797 Real estate

Multi-strategy and private equity funds

Total

106,258

$ 419,881

Portfolio

Allocation

5%

4%

23%

11%

18%

10%

4%

25%

100%

Policy

Guideline

9%

5%

19%

9%

20%

15%

3%

20%

100%

The return percentages for the portfolio as of December

31, 2015, as compared to the blended market benchmark

(i.e. return calculated using the policy guideline and market indices), were as follows:

Time Period

NAS

Portfolio

Return

Benchmark

Return

Year ended 12/31/15 -1.00% -1.70%

Five years ended 12/31/15

Ten years ended 12/31/15

7/1/89 – 12/31/15

4.20%

4.30%

7.70%

5.00%

4.70%

7.60%

It is of some interest to compare our endowment performance with that of similar organizations. A good way of doing this is to review the results of the study of college and university endowments by the National

Association of College and University Business Officers which found that as of June 30, 2015, the average 1, 5, and 10 year returns for endowments in the $100M -

$500M range were 2.0%, 9.5%, and 6.2% respectively.

The 1, 5, and 10 year returns of our endowment as of June

30, 2015 were 4.0%, 8.9%, and 6.2%, respectively. As you know, some years are better than others and that is why it is good to focus on the long-term return, for which the NAS endowment is performing similarly compared to its peers.

One further comparison may be useful. Including the return on investments and the gifts received and the withdrawals made for endowment expenditures, the endowment asset value has increased by 19.2% over the ten year period preceding December 31, 2015 for an average (compounded) rate of growth of 1.8%, in line with the 1.8% annual inflation rate for the comparable period.

•

See Schedule 2-A on page 24 for details of investments by asset class.

•

Included in the $419.9 million total market value of the portfolio as of December 31, 2015, are $7.0 million for the Woods Hole Endowment Funds, $76.3 million for the National Academy of Medicine

(NAM), and $11.2 million for The National

Academies’ Corporation (TNAC). TNAC, which is equally owned by the NAS and the National

Academy of Engineering Fund (NAEF), owns and operates the Beckman Center (see note 1 to the financial statements on page 56).

•

Withdrawals of $12.7 million were made to fund the

President’s Committee, NAS General Fund’s activity, and NAS prizes and awards for the current period.

Additional withdrawals of $6.7 million were made to fund Woods Hole, NAM, and TNAC activity.

NAS General Funds

The NAS General Funds Budget, which provides unrestricted resources to support the activities of the

Academy, receives its funding from the unrestricted portion of the NAS Endowment. As noted above, the

Council has limited spending from the endowment, including the unrestricted portion, to 4% since 2009, increasing to 4.25% in 2014 and 4.50% in 2015.

2



For 2015, funding for the General Funds Budget totaled

$5.8 million and expenditures totaled $5.2 million, resulting in a surplus of approximately $600,000.

Comparable figures for 2014 were $5.6 million in revenues, $4.8 million in expenditures, resulting in a surplus of approximately $849,000.

The 2015 NAS General Funds activity is summarized as follows (in thousands):

Revenues:

Unrestricted Endowment

Annual Giving from Members

Membership Dues

Annual Meeting

Other

Total Revenue

Expenses:

Development Office

Member Services:

Annual Meeting

Other

Programs/Projects:

Cultural Programs of the NAS

Committee on International

$ 4,741

308

396

336

12

$ 5,793

$ 1,178

651

241

347

Security & Arms Control

The Value of Social Science Research

InterAcademy Council

Foreign Meetings & Other Expenses

President’s Office

NAS Executive Office

NRC Operations

Total Expenses

Surplus

225

187

137

598

68

815

796

$ 5,243

$ 550

Any surplus in the General Funds Budget at the end of the year is added to the NAS Reserve; similarly, deficits are funded from the Reserve, which is invested in the NAS

Endowment and Trust Pool. The NAS Reserve had a market value of $5.4 million on December 31, 2015, to which the 2015 surplus will be added.

The NAS Council has approved a General Funds Budget of $6.0 million for 2016, which is based on an expenditure rate of 4.50%.

Prizes and Awards

Several award funds have existed for more than 100 years, while others were established more recently. The

Home Secretary oversees the nomination process that selects award recipients and recommends to the Council

(subject to legal and financial review) changes in the award cycle, amounts of the honoraria, and any other administrative changes.

Journal Publications

Financial results of the

Proceedings of the National

Academy of Sciences

are shown below for the years ended

December 31, 2015 and 2014 (in thousands):

Revenues:

2015 2014

Subscriptions $ 6,119 $ 7,151

Author charges

Other

Total

6,448 6,846

- 2

$ 12,567 $ 13,999

Expenses:

Publishing

Other

Total

$ 5,827 $ 7,636

5,682 5,690

$ 11,509 $ 13,326

Net

Facilities

$ 1,058 $ 673

NAS owns the following facilities:

• Keck Center of the National Academies at 500 Fifth

St., NW in Washington, D.C.

National Academy of Sciences Building at 2101 •

•

Constitution Ave., NW in Washington, D.C.

J. Erik Jonsson Center of the National Academies at

314 Quisset Dr. in Woods Hole, Massachusetts.

Arnold and Mabel Beckman Center at 100 Academy • in Irvine, California (jointly owned with NAEF through TNAC).

NAS leases a facility at 8619 Westwood Center Drive in

Vienna, Virginia for the National Academies Data Center.

3



Development Office Programs

The NAS, including the NAM, is grateful for the generous support of members, friends, and philanthropic organizations. Philanthropic support enables the Academies to focus on innovative work that cuts across interdisciplinary boundaries and to resolve important national problems that the government cannot or is not yet ready to sponsor. It also helps us to initiate leading-edge studies, for which major funding is raised from other sources.

Unrestricted philanthropic support is a vital resource for the Academies. In 2015, the NAS and NAM received approximately $1.4 million in unrestricted expendable support. These funds were raised through support of the annual funds and the NAM’s Harvey V. Fineberg Impact

Fund:

•

There were 403 NAS members and 25 friends of the

NAS who contributed $516,000 to support the NAS annual fund, an increase of 7% over 2014. Of these,

32 members made first time gifts. Additionally, the

NAS received a bequest of $100,000 for unrestricted purposes from the estate of Alexander Rich

(NAS/NAM).

•

The NAM saw an 18% increase in the funds raised through its annual fund campaign, bringing in over

$417,000 from 500 members and 23 friends of the

NAM. An additional $196,900 was raised from 63 donors to support the Harvey V. Fineberg Impact

Fund – a fund established in 2013 that helps the

NAM to address the challenges of healthcare delivery, cost, research, outcomes, and education, and helps to disseminate findings and recommendations to populations who would mostly benefit.

Many gifts and grants were received for restricted purposes to fund numerous projects and activities, including endowment funds that will support activities in perpetuity. The selected gifts described below highlight the scope of philanthropic support received during 2015:

•

The NAS received a gift from Raymond and Beverly

Sackler and the Raymond and Beverly Sackler Foundation to endow the Convergence Research Prize

Fund. The aim of this prize is to recognize significant advances in research made possible by the integration of two or more disciplines in the STEM fields.

•

The Kavli Foundation renewed their support of the

Kavli Frontiers of Science program with a gift of

$5,750,000 to the NAS. This commitment will fund the symposia for young scientists for an additional ten years.

•

The Science & Entertainment Exchange, a program that connects entertainment industry professionals with top scientists and engineers to bring more realistic science and positive portrayals of scientists and engineers to film and television received funding totaling $675,000 from Howard Hughes Medical

Institute, Hillman Family Foundation, Google, and

The Walt Disney Company.

•

The Academies received a total of $10 million from the Robert Wood Johnson Foundation to support programs and activities related to establishing a culture of health initiative. Half of these funds will establish an endowment within the NAM that will benefit the culture of health program, the remaining $5 million is to be expended over the next five years and will enable the Health and Medicine Division, formerly the

IOM, to undertake a series of studies and other activities focused on the social policies that promote health and well-being at the community level.

•

The NAM added to its Anniversary Fellows program by establishing a fellowship in bioethics supported by the Greenwall Foundation. A gift of $750,000 established an endowment and an additional $76,000 in expendable funds allowed the fellowship to start immediately.

•

A generous $3.5 million was raised from the Paul

Allen Family Foundation, the Ford Foundation, Bill and Melinda Gates Foundation, Mr. Ming Wai Lau, the Gordon and Betty Moore Foundation, and the

Wellcome Trust to support the work of the Global

Health Risk Framework Commission for which the

NAM served as secretariat. The Commission issued

4


Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015 recommendations for mitigating the global health and security issues related to infectious disease outbreaks and pandemic preparedness.

•

Gifts and grants from foundations, corporations and other private sources are key resources for funding the studies, workshops, forums, roundtables and other projects of the National Academies of Sciences, Engineering and Medicine. Significant support received in 2015 included: grants of $300,000 from The

Greenwall Foundation, $300,000 from The Wellcome

Trust, and $100,000 from the John D. and Catherine

T. MacArthur Foundation to support the convening of an international summit and conduct a consensus study on the scientific, medical, and ethical considerations of human gene-editing; a grant of $1,000,000 from the Carnegie Corporation of New York to support the first phase of a project that will lead to the creation of a novel, large-scale national resource that will provide researchers and policy analysts with ondemand links to data sets from the Census, IRS, Social Security, the American Community Survey, and other sources to inform studies of educational, occupational, and economic mobility across and within generations; a grant of $800,000 from the Peter G.

Peterson Foundation to convene a series of workshops focused on improving the effectiveness, efficiency, and value in caring for those patients who are high risk and high cost; and the Heising-Simons

Foundation, Robert and Mary Litterman Foundation, and the David and Lucile Packard Foundation, supported the “Extreme Weather Events and Climate

Change Attribution” study – a fast-track examination of the science of attribution of extreme weather to human-caused climate change and natural variability.

•

The Committee on Human Rights of the NAS, NAE, and NAM received support from 180 members across the three academies raising more than $175,000.

This amount includes renewed support from Martha

Vaughan (NAS) who made a generous gift of

$59,210.

•

The NAS and NAM received revocable and irrevocable gift expectancies totaling more than $5 million dollars for the year. This includes a long-term committee member who informed the institution of her intention to bequeath funds to establish an endowment that will provide perpetual support for the programs and activities of the Board on Health Care

Services.

These gifts represent the many ways that members, friends, and organizations supported the NAS and NAM in 2015. This support is essential to the Academy’s ability to fulfill its mission as scientific adviser to the nation. We are deeply grateful for the philanthropic support received from our many donors.

NRC Highlights

Revenues

The two main sources of revenue for the NRC are the

U.S. government and private / nonfederal entities. The total contract and grant revenue from both of these sources totaled $277.5 million in 2015 and $293.5 million in 2014.

U.S. Government Contracts and Grants

NRC activities, conducted in response to requests from a broad range of U.S. government agencies, are funded through cost-reimbursable non-fee contracts and grants.

The total amount reimbursed by the U.S. government agencies in the year ended December 31, 2015, was

$206.6 million (see following chart and the Statements of

Activities on page 54) and in the year ended December

31, 2014, was $231.2 million.

U.S. Government Revenues by Agency ($ in thousands)

Agency for International Development $ 13,548

Department of Agriculture

Department of Commerce

2,065

7,014

Department of Defense:

Defense Threat Reduction Agency

Department of the Air Force

Department of the Army

1,560

8,596

9,795

Department of Defense

Department of the Navy

Department of Education

Department of Energy

2,090

13,701

1,391

7,627

5



U.S. Government Revenues by Agency ($ in thousands) (continued)

Department of Health and Human Services

Department of Homeland Security

Department of the Interior

Department of Justice

Department of Labor

Department of State

Department of Transportation

Department of Treasury

Department of Veterans Affairs

Environmental Protection Agency

Executive Office of the President

Government Accountability Office

17,255

3,202

1,850

1,357

54

2,200

83,104

209

6,768

4,286

256

174

45

9

As in many universities and nonprofit institutions, indirect cost expenditures provide necessary support services and should be kept in reasonable proportion to program expenditures. Historically, NRC management has successfully maintained a relatively constant relationship between program and support costs, i.e., the growth rate of indirect costs has been approximately equal to the growth rate of direct costs. In 2015, management approved a slightly increased indirect cost level in line with the increased program level. In 2015, total indirect expenses were $72.4 million compared to an approved budget of $76.6 million. For 2016, the cash-basis indirect budget reflects an additional pay period of labor compared to 2015, and is set at $78.9 million.

General Services Administration

Marine Mammal Commission

National Aeronautics and Space Administration

National Geospatial-Intelligence Agency

6,601

425

Related Entities

National Science Foundation 14,628

National Security Agency

National Transportation Safety Board

Nuclear Regulatory Commission

Office of the Director of National Intelligence

Social Security Administration

U.S. Arctic Research Commission

92

19

511

1,459

2,649

16

Adjustment to Indirect Cost Receivable & Other (7,908)

Total U.S. Government Agencies

Private/Nonfederal Contracts and Grants

$ 206,648

Private sponsors provided for new initiatives and cosponsored government projects by funding awards in the amount of $70.9 million in 2015, compared with $62.3 million in 2014. The private and nonfederal revenues were comprised of contracts and grants ($50.0 million) and other contributions ($20.9 million). (See Statements of Activities on page 54.) Other contributions revenue increased from $13.0 million in 2014 to $20.9 million in

2015.

Expenses

Many financial transactions take place between the member organizations of the National Academies. The

NRC serves as the clearinghouse for these transactions.

However, it is important to note that only the financial activity and results of the NAS, NAE, NAM, and NRC are included in these financial statements. The financial activity and results of the National Academy of

Engineering Fund (NAEF) and The National Academies’

Corporation (TNAC) are audited and reported separately.

Financial information for the NAEF is available on request from the NAE Finance Office; information for

TNAC is available from the NAS Controller’s Office.

Overall Financial Condition

The main reason for the decrease in net assets during

2015 is the decline in market value of the investment portfolio.

2015 2014

Total Revenues

Total Expenses

$ 310.7 $

318.9

358.6

332.3

Change in Net Assets

$ (8.2) $ 26.3

Net assets, or assets minus liabilities, can be a measurement of a not-for-profit organization’s ability to

Almost all government and private contracts and grants are cost-reimbursable agreements. Therefore, even if the revenues and expenses are not equal in any one given year, the revenues and expenses will be the same over the life of the award. reinvest net income toward its mission while also maintaining reserves and helping protect against inflation.

The NAS 2015 results of operations are further described in the financial statements starting on page 53.

6



Conclusion

I would like to thank the members of the Council, the

Committee on Budget and Internal Affairs, the Finance

Committee, and the NRC leadership for their continued support. Also, special thanks are extended to the Office of the Chief Financial Officer, led by Mary “Didi” Salmon, our CFO, for help in managing the Endowment and Trust

Pool, providing steady oversight of the Academy’s various budgets, and paying careful attention to the

Academy’s financial systems, records and reports.

Jeremiah P. Ostriker

Treasurer


7




I. Investments



SCHEDULE 1

Endowment, Trust, and Other Long–term Investments Pool

Description of Funds for the Year Ended December 31, 2015

Capital

Contribution

(Column 1 of

Schedule 1–A)

I. Funds that Support the NAS

A. General Fund

—

The following funds provide unrestricted resources to support the activities of the National Academy of Sciences.

Agassiz Fund — A bequest of Alexander Agassiz, a member of the Academy.

Carnegie Fund — The balance of the original contribution of $5,000,000 from the Carnegie

Corporation of New York, for the purposes of the National Academy of Sciences/National

Research Council. $1,725,000 was used to cover the cost of the 1924 Academy building and

$ 50,000 the acquisition of other property.

Commonwealth Fund — A grant of the Commonwealth Fund for the capital endowment of the

Academy.

Carl Eckart Fund * — A bequest of Carl Eckart for the general purposes of the Academy.

Ford Foundation Fund — A grant of the Ford Foundation for the capital endowment of the

Academy.

Henrietta and Alexander Hollaender Fund * — A bequest of Dr. Alexander and Mrs. Henrietta

Hollaender.

Grayce B. Kerr Fund — A grant from Grayce B. Kerr for the general purposes of the Academy.

Nealley Fund — A bequest of George True Nealley for the general purposes of the Academy.

Simon Ramo Fund — A contribution from Simon Ramo for the general purposes of the Academy.

Rockefeller Foundation Fund * — A grant of the Rockefeller Foundation to the National Academy of Sciences for the general purposes of the Academy.

Dorothea and Herbert Simon Fund — A contribution from Dorothea and Herbert Simon for the general purposes of the Academy.

Sloan Foundation Fund * — A grant of the Alfred P. Sloan Foundation for the general purposes of the Academy.

Amy Prudden Turner Fund * — A bequest of Amy Prudden Turner for the general purposes of the

Academy to serve as a memorial to her husband Scott and herself.

Anonymous Endowment Fund — A contribution for the general purposes of the Academy from a donor who wishes to remain anonymous.

General Endowment Fund * — A bequest of David Lloyd Fillman and others for the general purposes of the Academy. By action of the Council, the proceeds from the sale of the

International Critical Tables were transferred into this fund during fiscal year 1976, and proceeds from the sale of the Audubon Folios were transferred in fiscal year 1981.

Members Endowment Fund — Contributions from Academy members to be used for the general purposes of the Academy.

Subtotal — General Fund

B. Woods Hole

—

The following funds support the operation and maintenance of the J. Eric

Jonsson Woods Hole Center in Woods Hole, Massachusetts. The Center is operated as an extension of conference facilities in Washington, D.C. and Irvine, California for meetings of the NAS, NAE, NAM, and NRC.

3,275,000

500,000

1,246,366

5,000,000

500,000

250,000

19,556

14,000

1,000,000

898,752

1,000,000

29,662

7,146,660

4,144,079

3,326,184

$ 28,400,259

Peter C. Cornell Trust Fund * — To memorialize Detlev W. Bronk, former president of the

Academy, for his contributions to science and the nation and to recognize the leadership and notable accomplishments of John S. Coleman as a member of the Academy’s staff.

J. Erik Jonsson Woods Hole Fund — A contribution for the Woods Hole Study Center of the NAS in honor of J. Erik Jonsson from a donor who wishes to remain anonymous.

Richard King Mellon Foundation Fund — A grant from the Richard King Mellon Foundation for maintenance of the building and grounds at the Woods Hole Study Center.

$ 100,000

2,002,500

50,000

* Denotes funds for which the contribution was not permanently restricted by the donor

10



SCHEDULE 1



Penzance Foundation Fund — A grant for the J. Erik Jonsson Woods Hole Study Center for support of the property’s Clark Carriage House.

Woods Hole Endowment — Contributions from the Brown Foundation and various individuals for maintenance of the Woods Hole Study Center.

Woods Hole Fund — Contributions from various individuals for maintenance of the Woods Hole

Study Center.

Subtotal — Woods Hole

C. Presidents' Committee Funds

—

Each of the following funds supports programmatic efforts in areas related to the purpose specified by the fund’s donor(s) awarded by a committee consisting of the NAS, NAE, and NAM Presidents.

Basic Science Fund - Earth Sciences — Contribution from an anonymous donor to match a contribution from the Palisades Geophysical Institution of New York to establish the Maurice

Ewing and Planetary Sciences Fund of the National Academy of Sciences.

Biology and Biotechnology Fund — Contributions from various individuals to be used for studies and other activities that address emerging research and policy issues affecting biology and biotechnology, especially cross–disciplinary aspects and those involving the interface of science, technology, and commerce and used for dissemination and outreach efforts that seek to inform policymakers about the findings of the results.

Thomas Lincoln Casey Fund — A bequest of Thomas L. Casey as a memorial to his father,

Thomas Lincoln Casey, to be used in the advancement of engineering in all its applications.

The Coca–Cola Foundation Fund — A grant of the Coca-Cola Foundation to be used for initiatives in precollege science and mathematics education.

Arthur L. Day Fund — A bequest of Arthur L. Day, a member of the Academy, for the purpose of advancing studies of the physics of the earth.

Cecil and Ida Green Fund — A contribution from Cecil and Ida Green to be used to support activities dedicated to improving the quality of life of our people.

W. K. Kellogg Foundation Fund — A grant of the W. K. Kellogg Foundation for an endowment in the areas of education, health, and agriculture, the income from which is used to fund studies and other activities within these program areas such as enhancing the quality of U.S. education, assuring access to quality health care, assessing the role of biotechnology in the future of agriculture, and similar issues as they arise.

Kobelt Fund * — A bequest of Nina I. Kobelt to be used for research scholarships for worthy students.

Andrew W. Mellon Foundation Fund — A grant from the Andrew W. Mellon Foundation to endow a program of Academy-initiated studies.

George and Cynthia Mitchell Endowment for Sustainability Sciences — A contribution from the

George and Cynthia Mitchell Foundation to guide academic, government and other institutions in the development of sustainability science and to encourage the world’s business community to apply knowledge from this new field in business practices.

George and Cynthia Mitchell Matching Endowment * — Contributions from public and private sources to be used to support the same purposes as the George and Cynthia Mitchell

Endowment for sustainability sciences and to raise funds to be eligible for a matching contribution from George and Cynthia Mitchell.

Frank Press Fund for Dissemination and Outreach — Contributions from members of the

Presidents’ Circle of the NAS, NAE, and the IOM to support dissemination and outreach activities.

Capital

Contribution

(Column 1 of

Schedule 1–A)

502,500

971,400

12,874

$ 3,639,274

$ 503,231

420,232

258,081

50,000

5,047,846

467,256

20,000,000

296,593

1,000,000

20,000,000

114,750

1,167,255



11


SCHEDULE 1



Capital

Contribution

(Column 1 of

Schedule 1–A)

Scientists and Engineers for the Future Fund — Contribution from an individual who wishes to remain anonymous. The income from this fund is used to support educational projects focused on maintaining the health of American science and technology by ensuring an adequate supply of well-prepared American scientists and engineers for the future.

Subtotal — Presidents' Committee Funds

D. Program Specific Funds

—

Each of the following funds supports a specific programmatic purpose as designated by the donor(s).

Arnold and Mabel Beckman Fund of the National Academies of Sciences and Engineering * — A fully expendable fund designated for support of programs at the Beckman Center. The fund was established to receive contributions of unexpended income from The National Academies

Corporation (TNAC) operations endowment as well as earnings from the TNAC program endowment.

Seymour Benzer Lecture Series — Contribution from Sydney Brenner to establish a free lecture series to increase public understanding of science, engineering, technology and health.

Billings Fund — A bequest of Mary Ann Palmer Draper (Mrs. Henry Draper) to support publication of the

Proceedings of the National Academy of Sciences

or for other purposes to be determined by the Academy.

Blakeslee Fund — A bequest of Albert Francis Blakeslee, the income from which is to be used in support of genetics research.

Henry G. Booker Fellowship Fund — Contributions from various individuals to provide a travel grant to one young American radio scientist to attend each International Union of Radio

Science Assembly as a Henry G. Booker Fellow.

Ralph J. and Carol M. Cicerone Endowment for NAS Missions — A contribution from NAS president Ralph Cicerone and his wife Carol to provide support for the Koshland Science

Museum of the NAS, the Cultural Programs of the NAS, public lectures of the NAS, or other purposes on behalf of the NAS.

Cultural Programs of the National Academy of Sciences Fund — Contributions from various sources for sponsoring free cultural programs for local residents and for providing a platform for musicians and artists.

Henry and Bryna David Endowment — A bequest of Henry and Bryna David to support the communication of insights and discoveries from the social and behavioral sciences to policy makers and other decision makers to promote informed public policy and staff development.

Food and Nutrition Board (FNB) Fund — A grant for core activities of the Food and Nutrition

Board and a matching amount from the Kaiser Family Foundation for general core support of the Institute of Medicine.

Food and Nutrition Board Corporations Fund — Contributions from Monsanto Company and

Nestle, USA, Inc., to provide support for FNB activities.

Food and Nutrition Board Members Fund — Contributions from members to be used for general purposes of the Food and Nutrition Board.

Global Commons Project Fund

Frederic L. Hoch Fund — A bequest of Frederic L. Hoch to provide grants to women studying in the sciences.

Marian Koshland Science Museum Fund * — Contributions from Dr. Daniel E. Koshland, Jr. and the Koshland Foundation to fund the operation and activities of the museum for the purpose of extending the resources of the National Academies and increasing public understanding of the nature and value of science.

1,000,000

$ 50,325,244

$ 13,495,811

120,000

50,102

886,902

20,826

100,000

62,384

850,000

525,350

125,000

6,900

39,058

50,000

22,793,243


12



SCHEDULE 1



Capital

Contribution

(Column 1 of

Schedule 1–A)

Bruce Alberts Fund of the Marian Koshland Science Museum * — Contributions from Dr. Daniel

E. Koshland, Jr. and the Koshland Foundation to support the traveling costs of the museum's exhibits, to fund new exhibits to replace traveling exhibits, and to extend the museum's outreach to school districts.

Christine Mirzayan Fellowship Fund — A program designed to engage graduate students in various fields in the analysis and creation of science and technology policy.

NAS Members Endowment(s) — NAS members’ contributions that have been designated for special purposes, such as the Board on Chemical Sciences Fund and the Section 14 Chemistry

Discretionary Fund.

National Science Resources Center (NSRC) Fund * — Royalty revenues from elementary and middle school science kits developed by the NSRC to provide core support of NSRC programs to enhance and improve the learning and teaching of science in domestic and international schools.

New Canaan Library Fund — Contribution from the Board of the New Canaan Library to permanently maintain a current National Academies book collection at the library in honor of

Dr. H.R. Shepherd.

Kumar and Shela Patel Endowment for US–India Dialogs — Contributions from Kumar and Shela

Patel to support US-India scientific and technical communication and dialog.

Arthur M. Sackler Colloquia of the National Academy of Sciences Fund — A contribution from

Mrs. Arthur M. Sackler to endow a series of scientific symposia that promote interaction among world–class researchers in rapidly advancing scientific fields.

The Raymond and Beverly Sackler USA–UK Scientific Forum Endowment — A contribution from the Raymond and Beverly Sackler Foundation to endow a bilateral scientific forum to forge a partnership between the scientific leadership of the United Kingdom and the United States through conferences and meetings on topics of immediate and future scientific concern.

Raymond and Beverly Sackler Science Fund — A contribution from Raymond and Beverly

Sackler to provide support for studies and projects in the areas of basic biology and of biomedical science – including the convergence of biology, physics, mathematics, and engineering sciences – in addressing problems in biomedical science and human health

U.S. National Committee for the International Astronomical Union (USNC/IAU) Fund * —

Contributions from USNC/IAU to support participation by U.S. astronomers in the activities of the International Astronomical Union Triennial General Assemblies.

Subtotal – Program Specific Funds

E. Prizes and Awards

—

The following funds support prizes or awards presented in various scientific fields as designated by the donor(s).

American Psychological Association (APA) Science Directorate Fund — A contribution from the

APA to conduct activities that will help inform the public of the knowledge base, value, and importance of behavioral science research.

Henryk Arctowski Fund — A bequest of Jane Arctowski in memory of her husband Henryk

Arctowski, for the promotion and study of solar activity changes of short or long duration and their effects upon the ionosphere and terrestrial atmosphere.

Richard C. Atkinson Fund — A contribution of Richard C. Atkinson to establish the National

Academy of Sciences Prize in Psychological and Cognitive Sciences to be awarded for significant advances in the psychological and cognitive sciences with important implications for formal and systematic theory in these fields.

Bache Fund — A bequest of Alexander Dallas Bache to aid research in the physical and natural sciences.

Edward and Marianne Blaauw Fund — A bequest of Marianne Blaauw to support research in the field of ophthalmology.

5,134,871

5,760

58,941

4,986,473

4,000

612,500

4,375,000

2,025,108

2,000,000

100,000

$ 58,428,229

$ 30,000

95,736

3,151,478

60,000

71,299


13



SCHEDULE 1



John J. Carty Fund — A contribution of the American Telephone and Telegraph Company in recognition of John J. Carty for a gold medal and award for noteworthy and distinguished accomplishments in any field of science.

Comstock Fund — A contribution of Cyrus B. Comstock for a prize for notable investigations in electricity, magnetism, or radiant energy.

Draper Fund — A contribution of Mrs. Henry Draper in memory of her husband, a former member of the Academy, to found the Henry Draper Medal to be awarded for notable investigations in astronomical physics; the balance of income is applied to aid research in this science.

Elliot Fund — A contribution of Margaret Henderson Elliot for the most meritorious work on zoology and paleontology published in each year.

Estes Award in Social and Behavioral Sciences — A contribution from William K. and Katherine

W. Estes to be used initially for an award relating to contributions to the prevention of nuclear war. After several awards are given for this purpose, the remaining money will be set aside for use by the Division of Behavioral and Social Sciences and Education.

Gibbs Brothers Fund — A contribution from William Francis Gibbs and Frederic H. Gibbs for outstanding contributions in the field of naval architecture and marine engineering.

Gibbs Fund — A contribution from Wolcott Gibbs and increased by a bequest of Morris Loeb for the promotion of research in chemistry.

Ralph E. Gomory Award for the Application of Science — A grant from the International Business

Machines Corporation for an award to be given in honor of Ralph Gomory.

Gould Fund — A contribution and a bequest of Alice Bache Gould in memory of her father for the promotion of research in astronomy, increased by a bequest of Elizabeth Chandler Hockley.

Michael and Sheila Held Prize in Mathematical Programming — A bequest of Michael and Sheila

Held for achievement in mathematical programming.

Joseph Henry Fund — Contributions by Fairman Rogers, Joseph Patterson, George W. Childs, and others in honor of Joseph Henry to assist meritorious investigators of original research.

Alexander Hollaender Award in Biophysics — A bequest of Alexander Hollaender for a prize to an outstanding biophysicist.

Hunsaker Fund — A contribution of Mr. and Mrs. J. C. Hunsaker to found an Academy award in the field of aeronautical engineering.

Franklin Livingston Hunt Fund — A bequest of Franklin Livingston Hunt to aid research in physics, chemistry, and preventive medicine.

Kovalenko Fund — A contribution of Michael S. Kovalenko, in memory of his wife, to found the

Jessie Stevenson Kovalenko Gold Medal for meritorious research in medical sciences.

Marsh Fund — A bequest of Othniel Charles Marsh to promote original research in the natural sciences.

George P. Merrill Fund — A contribution of Mrs. George P. Merrill for studies of meteors, meteorites, and space.

Stanley Miller Award * — A bequest of Stanley L. Miller for work or contributions to early earth studies.

Monsanto Award in Molecular Biology — A grant from the Monsanto Company for contributions in the field of molecular biology.

Murray Fund — A contribution of Sir John Murray in honor of Alexander Agassiz for original contributions to the science of oceanography.

National Academy of Sciences Award in Chemical Sciences — A contribution of The Merck

Company Foundation for distinction in research and broad fundamental impact in pure chemistry.

National Academy of Sciences Award for Chemistry in Service to Society — A contribution of the

E. I. DuPont de Nemours & Company for contributions to chemistry, whether in fundamental science or its applications, that clearly satisfy a societal need.

National Academy of Sciences Award in Mathematics — A contribution of the American

Mathematical Society for achievements in mathematics.

Capital

Contribution

(Column 1 of

Schedule 1–A)

25,000

10,400

6,000

8,000

79,849

24,000

5,274

179,046

50,000

3,975,000

39,740

100,000

24,750

10,465

102,985

10,000

10,000

204,554

421,374

6,000

478,277

181,838

53,597


14



SCHEDULE 1



Capital

Contribution

(Column 1 of

Schedule 1–A)

National Academy of Sciences Award in Neuroscience — A contribution of the Fidia Research

Foundation for achievements in neuroscience.

National Academy of Sciences Fund for Sciences and Technology in International Affairs —

Contributions from Cecil and Ida Green, J. Erik Jonsson, and Jerome B. Wiesner and others in honor of Walter A. Rosenblith.

Pradel Fund — A bequest of Jules Pradel to be applied to work on the human central nervous system and allied subjects.

H. P. Robertson Lectureship Fund — Contributions by friends of H. P. Robertson for the Robertson

Memorial Lecture of the National Academy of Sciences.

Raymond and Beverly Sackler Convergence Research Prize Fund — A contribution from Dr.

Raymond R. Sackler and Beverly Sackler to establish a Prize to recognize significant advances by a group or individual in convergence research in two or more among the disciplines of mathematics, physics, chemistry, biomedicine, biology, astronomy, earth sciences, engineering and computational science.

John P. Schaefer Fund — A contribution from the Research Corporation for Science Advancement to create the National Academy of Sciences Award for Scientific Discovery, in honor of John

P. Schaefer for basic research.

Helen P. Smith Fund — A bequest of Helen P. Smith in memory of her husband, Gilbert Morgan

Smith for published research in marine and freshwater algae.

Mrs. J. Lawrence Smith Fund — A contribution of Mrs. J. Lawrence Smith in memory of her husband for important investigations of meteoric bodies and to assist, by grants of money, research concerning such objects.

Thompson Fund — A contribution of Mary Clark Thompson for important services to geology and paleontology.

Troland Fund — A bequest of Leonard T. Troland for the advancement of scientific knowledge in the field of psychophysics.

Selman A. Waksman Award Fund — A contribution from the Waksman Foundation for

Microbiology to establish an award to be given biennially to an individual responsible for significant advances in the field of microbiology.

Walcott Fund — A contribution of Mary Vaux Walcott in honor of her husband for Cambrian or pre-Cambrian life and its history.

G. K. Warren Fund — A contribution of Emily B. Warren in memory of her father for achievements in any field of science.

Watson Fund — A bequest of James Craig Watson for the promotion of astronomical sciences and grants in aid of research.

Subtotal — Prizes and Awards

F. Reserve Funds

—

The following funds are invested in the long-term investment pool to provide for future unanticipated funding needs.

National Academy of Sciences Reserve Fund * — Accumulated surplus from NAS General Fund operating budget.

Proceedings of the National Academy of Sciences (PNAS) Fund *

Transportation Research Board (TRB) Reserve Fund * — Income in excess of expenditures for

TRB core support activities in a fiscal year.

Subtotal — Reserve Funds

Subtotal — Funds that Support the NAS

140,206

59,119

16,392

20,325

10,000,000

1,500,000

67,107

8,000

10,000

505,359

390,000

5,000

15,000

25,000

$ 22,176,170

$ 6,655,608

1,000,000

1,500,000

$ 9,155,608

$ 172,124,784


15





II. Funds that Support the NAM

A. General Funds

— The following funds provide unrestricted resources to support the activities of the National Academy of Medicine.

H. Fineberg and M. Wilson Fund — A contribution by Harvey V. Fineberg and Mary E. Wilson

to be used at the discretion of the president of the National Academy of Medicine to increase

the impact of its activities and of the joint program with the National Academy of Sciences and

National Academy of Engineering.

General Endowment Fund — Contributions from various sources, including members of the

National Academy of Medicine, for capital endowment of the National Academy of Medicine.

Robert Wood Johnson Foundation Fund — A grant from the Robert Wood Johnson Foundation for core support of the National Academy of Medicine.

Henry J. Kaiser Family Foundation Fund — A contribution of the Hentry J. Kaiser Family

Foundation for core activities of the National Academy of Medicine.

National Academy of Medicine Kellogg Fund * — A grant from the Kellogg Foundation for the general purposes of the National Academy of Medicine.

National Academy of Medicine Members’ Dues *

John D. and Catherine T. MacArthur Foundation Fund — A grant to the endowment of the

National Academy of Medicine, the income from which is restricted to the general purposes of the Academy.

Pharmaceutical Discretionary Fund * — A grant from the W. K. Kellogg Foundation to further the

National Academy of Medicine’s long-range program development.

Pharmaceutical Endowment Fund — Contributions of $250,000 from Glaxo, Inc., and $10,000 from Eli Lilly Company for the general purposes of the National Academy of Medicine.

Miscellaneous Private Sector Fund — Contributions from Kaiser Permanente for core support of the National Academy of Medicine.

Subtotal — General Funds

B. Program Specific Funds

— Each of the following funds supports a specific programmatic

purpose as designated by the donor(s).

American Board of Emergency Medicine (ABEM) Fellowship Fund — A contribution from the

American Board of Emergency Medicine for early career health science scholars in the field of emergency medicine to participate in the NAM study process as part of NAM’s Anniversary

Fellows program.

Distinguished Scholar Fund — A contributions from NAM members for one or more persons of senior caliber to spend a p eriod of time at the NAM in scholarly pursuits related to key program initiatives.

Norman F. Gant, M.D. and American Board of Obstetrics and Gynecology Fellowship Fund

—

A contribution from the American Board of Obstetrics and Gynecology for an early career health scientist in the field of obstetrics and gynecology, as part of NAM’s Anniversary Fellows program.

Greenwall Fellowship in Bioethics — A contribution from the Greenwall Foundation to support a

two-year fellowship at the National Academy of Medicine for an early career scholar in the

field of bioethics.

David and Beatrix Hamburg Endowment Fund — Contributions from individuals for communication and dissemination programs, collaborations among key public health stakeholders, and forward-looking studies.

Howard Hughes Medical Institute Fund — A contribution from the Howard Hughes Medical

Institute for a program of studies to foster the translation of science into advances in health.

SCHEDULE 1

Capital

Contribution

(Column 1 of

Schedule 1–A)

$ 96,500

1,137,182

5,000,000

488,485

282,500

197,500

5,000,000

480,000

259,448

26,346

$ 12,967,961

1,012,775

5,000,000

$ 750,000

16,550

650,500

750,000


16



SCHEDULE 1



Capital

Contribution

(Column 1 of

Schedule 1–A)

Robert Wood Johnson Foundation Culture of Health Program * — A grant from the Robert Wood

Johnson Foundation to support programs and activities in the National Academy of Medicine

related to the Culture of Health.

Kellogg Health of the Public Fund — A contribution from the W.M. Kellogg Foundation to advance the National Academy of Medicine's capacity to contribute to the improvement of the health of America's communities.

Kellogg Health of the Public Fund Matching Contributions — Contributions in response to the

W.M. Kellogg Foundation’s challenge grant to support communication and outreach activities.

Omenn Fellowship Fund — A contribution from Gilbert S. Omenn and Martha Darling for early career health science scholars in the fields of biomedical science and population health to participate in the NAM study process as part of NAM’s Anniversary Fellows program.

Osteopathic Medicine Fellow Fund — Contributions from the American Osteopathic Association, the American Association of Colleges of Osteopathic Medicine, and the American Osteopathic

Foundation for early career health science scholars in the field of osteopathic medicine to participate in the NAM study process as part of NAM’s Anniversary Fellows program.

Pharmacy Fellowship Fund — Contributions from the American Association of Colleges of

Pharmacy and the American College of Clinical Pharmacy for early career health science scholars from the pharmaceutical and clinical sciences to participate in the NAM study process as part of NAM’s Anniversary Fellows program.

James C. Puffer / ABFM Fund — A contribution from the American Board of Family Medicine for early career health science scholars in the field of family medicine to participate in the NAM study process as part of the NAM’s Anniversary Fellows program.

Richard and Hinda Rosenthal Lecture Series — A contribution from the Richard and Hinda

Rosenthal Foundation for a lecture series to bring greater attention to some of the critical health policy issues facing the country.

Leonard D. Schaeffer Fund — A contribution from Leonard D. Schaeffer to establish an endowed position in the Executive Office of the National Academy of Medicine.

Women’s Health Issues Fund — A contribution from Syntex (U.S.A.), Inc., to be used for purposes related to women’s health issues.

Subtotal — Program Specific Funds

C. Prizes and Awards

—

The following funds support prizes or awards presented in various fields as designated by the donor(s).

Gustav O. Lienhard Award — A grant from the Robert Wood Johnson Foundation for an outstanding contribution to the advancement of health care.

Sandra H. Matthews Cecil Award * — For a current or former administrative support staff member who has made a significant and sustained contribution to developing and maintaining efficient, effective, and service oriented support for the membership or program activities.

Rhoda and Bernard G. Sarnat International Prize in Mental Health — A grant from Rhoda and

Bernard G. Sarnat for distinguished accomplishments in the field of mental health.

Subtotal — Prizes and Awards

5,000,000

5,000,000

2,572,544

752,805

499,999

750,000

750,000

1,000,000

2,020,684

20,000

$ 26,545,857

$ 1,200,000

153,175

1,009,179

$ 2,362,354



17


SCHEDULE 1



D. Reserve Funds

—

The following funds are invested in the long-term investment pool to provide for future unanticipated funding needs.

NAM Reserve Fund * — Unexpended balance of endowment earnings based on NAM Council spending plan.

Subtotal — Reserve Funds

Subtotal — Funds that Support the NAM

Subtotal — NAS and NAM Funds

III. FUNDS HELD ON BEHALF OF OTHERS

A. The National Academies' Corporation (TNAC)

Operations Endowment

—

An endowment from the Arnold and Mabel Beckman Foundation to

TNAC to support operations of the Beckman Center in Irvine, California. The endowment is held on behalf of TNAC and invested by the NAS.

Program Endowment — An endowment from the Arnold and Mabel Beckman Foundation to

TNAC to support NRC program activities conducted in whole or in part at the Beckman

Center. The endowment is held on behalf of TNAC and invested by the NAS.

Subtotal — The National Academies’ Corporation

TOTAL

Capital

Contribution

(Column 1 of

Schedule 1–A)

$ 500,000

$ 500,000

$ 42,376,172

$ 214,500,956

$ 8,000,000

1,939,644

$ 9,939,644

$ 224,440,600


18



SCHEDULE 1-A

Endowment, Trust, and Other Long-term Investments Pool

Financial Detail of Funds for the Year Ended December 31, 2015

Capital

Contributions as of Dec. 31,

2015

Market

Value at

Dec. 31,

2014

(Dollars in thousands)

2015

Contributions

2015

Investment

Loss

2015

Expenditures

& Transfers

Market

Value at

Dec. 31,

2015

I. Funds that Support the NAS

A. General Fund

Agassiz Fund

Carnegie Fund

Commonwealth Fund

Carl Eckart Fund *

Ford Foundation Fund

Henrietta and Alexander Hollaender Fund *

Grayce B. Kerr Fund

Nealley Fund

Simon Ramo Fund

Rockefeller Foundation Fund *

Dorothea and Herbert Simon Fund

Sloan Foundation Fund *

Amy Prudden Turner Fund *

Anonymous Endowment Fund

General Endowment Fund *

General Endowment Fund

Members Endowment Fund

B. Woods Hole

Peter C. Cornell Trust Fund *

J. Erik Jonsson Woods Hole Fund

Richard King Mellon Foundation Fund

Penzance Foundation Fund

Woods Hole Endowment Fund

Woods Hole Fund

$ 50

3,275

500

1,246

5,000

500

250

20

14

1,000

899

1,000

30

7,147

4,144

454

2,871

$ 28,400

$ 550

38,029

2,469

2,513

24,273

1,084

543

218

36

4,922

1,441

4,906

124

15,771

9,919

560

5,509

$ 112,867

$ -

-

-

-

-

-

-

-

-

-

-

-

-

-

100

-

15

$ 115

$ (6)

(386)

(25)

(25)

(246)

(11)

(6)

(2)

(1)

(49)

(15)

(50)

(1)

(160)

(102)

(6)

(56)

$ (1,147)

$ (24)

(1,659)

(108)

(110)

(1,059)

(47)

(24)

(9)

(1)

(215)

(61)

(214)

(5)

(688)

(378)

(24)

(240)

$ (4,866)

$ 520

35,984

2,336

2,378

22,968

1,026

513

207

34

4,658

1,365

4,642

118

14,923

9,539

530

5,228

$ 106,969

$ 100

2,003

50

502

971

13

$ 3,639

$ 260

4,500

190

1,131

1,301

39

$ 7,421

$ -

-

-

-

-

-

$ -

$ (3)

(46)

(2)

(11)

(13)

-

$ (75)

$ (11)

(196)

(8)

(50)

(57)

(2)

$ (324)

$ 246

4,258

180

1,070

1,231

37

$ 7,022

C. Presidents' Committee Funds

Basic Science Fund - Earth Sciences

Biology and Biotechnology Fund

Thomas Lincoln Casey Fund

The Coca-Cola Foundation Fund

Arthur L. Day Fund

Cecil and Ida Green Fund

W. K. Kellogg Foundation Fund

Kobelt Fund *

Andrew W. Mellon Foundation Fund

George and Cynthia Mitchell Endowment for Sustainability Sciences

George and Cynthia Mitchell Matching

Endowment *

Frank Press Fund for Dissemination and Outreach

Scientists and Engineers for the Future

Fund

$ 503

420

258

50

5,048

467

20,000

297

1,000

$ 1,538

954

6,301

71

19,533

1,662

45,225

2,049

1,675

20,000 27,376

$ -

-

-

-

-

-

-

-

-

-

$ (15)

(8)

(62)

(1)

(196)

(17)

(440)

(18)

(18)

-

(281)

$ (122)

(94)

(266)

-

(496)

(46)

(1,647)

(122)

(9)

-

(652)

$ 1,401

852

5,973

70

18,841

1,599

43,138

1,909

1,648

26,443

115 179 (2) 177

1,167 2,312 (23) (98) 2,191

1,000

$ 50,325

1,692

$ 110,567

-

$ -

(18)

$ (1,099)

(14)

$ (3,566)

1,660

$ 105,902



19


SCHEDULE 1-A



Capital


2015

Market

Value at

Dec. 31,

2014


2015

Contributions

2015

Investment

Loss

2015

Expenditures

& Transfers

Market

Value at

Dec. 31,

2015

D. Program Specific Funds

Arnold and Mabel Beckman Fund of the NAS and NAE *

Seymour Benzer Lecture Series

Billings Fund

Blakeslee Fund

Henry G. Booker Fellowship Fund

Ralph J. and Carol M. Cicerone Endowment for NAS Missions

Communications Initiative Fund *

Cultural Programs of the NAS Fund

Henry and Bryna David Endowment

Food and Nutrition Board Fund

Food and Nutrition Board Corporations Fund

Food and Nutrition Board Members Fund

Global Commons Project Fund

Frederic L. Hoch Fund

Marian Koshland Science Museum Fund *

Bruce Alberts Fund of the Marian

Koshland Science Museum *

Christine Mirzayan Fellowship Fund

NAS Members Endowment(s)

National Science Resources Center Fund *

New Canaan Library Fund

Kumar and Shela Patel Endowment for US-India Dialogs

Arthur M. Sackler Colloquia of the NAS Fund

The Raymond and Beverly Sackler USA-UK

Scientific Forum Endowment

Raymond and Beverly Sackler Science Fund

U.S. National Committee for the International

Astronomical Union (USNC/IAU) Fund *

$ 13,496

120

50

887

21

100

-

62

850

525

125

7

39

50

22,793

$ 1,046

155

1,181

2,475

73

100

3,506

79

1,448

1,979

572

33

214

60

19,556

$ -

-

-

-

-

-

-

11

-

-

-

1

-

-

-

$ (1)

(1)

(13)

(23)

(1)

(1)

(36)

(1)

(15)

(21)

(6)

-

(2)

(1)

(189)

$ (261)

(1)

(2)

(101)

-

-

(153)

-

(35)

(21)

(1)

-

-

-

(953)

$ 784

153

1,166

2,351

72

99

3,317

89

1,398

1,937

565

34

212

59

18,414

5,135

6

59

4,986

4

8,031

8

368

6,321

14

-

-

-

-

-

(82)

-

(4)

(67)

-

(290)

-

-

(285)

-

7,659

8

364

5,969

14

613

4,375

883

6,328

2

-

(9)

(54)

(47)

(466)

829

5,808

2,025

2,000

2,253

2,619

100

$ 58,428

211

$ 59,513

-

-

$

-

14

(24)

(28)

-

(2)

$ (581)

(4)

(4)

-

(13)

$ (2,637)

2,225

2,587

196

E. Prizes and Awards

American Psychological Association (APA)

Science Directorate Fund

Henryk Arctowski Fund

Richard C. Atkinson Fund

Bache Fund

Blaauw Fund

John J. Carty Fund

Comstock Fund

Draper Fund

Elliot Fund

Estes Award in Social and

Behavioral Sciences

Gibbs Brothers Fund

Gibbs Fund

Ralph E. Gomory Award for the Application of Science

Gould Fund

Michael and Sheila Held Prize

in Mathematical Programming

Joseph Henry Fund

$ 30

96

3,152

60

71

25

10

6

8

$ 84

4,063

3,705

421

919

799

956

384

191

$ -

-

-

-

-

-

-

-

-

$ (1)

(40)

(40)

(4)

(9)

(9)

(10)

(4)

(2)

$ -

(95)

(2)

(34)

(73)

(2)

(1)

(1)

-

$ 83

3,928

3,663

383

837

788

945

379

189

80

24

5

263

257

172

-

-

-

(2)

(3)

(2)

(27)

-

(14)

234

254

156

179

50

580

759

-

-

(6)

(8)

-

(60)

574

691

3,975

40

810

493

3,175

-

(57)

(5)

-

(39)

3,928

449


20



SCHEDULE 1-A



Capital


2015

Market

Value at

Dec. 31,

2014


2015

Contributions

2015

Investment

Loss

2015

Expenditures

& Transfers

Market

Value at

Dec. 31,

2015

Alexander Hollaender Award in Biophysics

Hunsaker Fund

Franklin Livingston Hunt Fund

Kovalenko Fund

Marsh Fund

George P. Merrill Fund

Stanley Miller Award *

Monsanto Award in Molecular Biology

Murray Fund

NAS Award in Chemical Sciences

NAS Award for Chemistry in

Service to Society

NAS Award in Mathematics

NAS Award in Neuroscience

NAS Fund for Sciences and Technology in International Affairs

Pradel Fund

H. P. Robertson Lectureship Fund

Raymond and Beverly Sackler Convergence Research Prize Fund

John P. Schaefer Fund

Helen P. Smith Fund

Mrs. J. Lawrence Smith Fund

Thompson Fund

Troland Fund

Selman A. Waksman Award Fund

Walcott Fund

G. K. Warren Fund

Watson Fund

$ 100

25

10

103

10

10

205

421

6

478

$ 346

524

309

1,754

216

709

259

1,185

171

634

182

54

140

390

64

568

$ -

-

-

36

-

-

-

-

-

-

-

-

-

$ (4)

(5)

(3)

(18)

(2)

(7)

(3)

(11)

(2)

(6)

$ (1)

(57)

(1)

(4)

(17)

(57)

(1)

(39)

-

(23)

$ 341

462

305

1,768

197

645

255

1,135

169

605

(3)

(1)

(6)

(29)

-

(2)

358

63

560

59

16

20

10,000

1,500

67

8

10

506

390

5

15

25

$ 22,176

289

2,027

384

-

1,558

761

831

258

4,926

-

73

206

1,613

$ 34,911

10

-

-

10,000

-

-

-

-

-

390

-

-

-

$ 13,611

(4)

(19)

(4)

(126)

(13)

(5)

(6)

(2)

(45)

(2)

(1)

(2)

(17)

$ (519)

-

(64)

(1)

(454)

(1)

(64)

(59)

(20)

(177)

-

-

(1)

(3)

$ (1,423)

295

1,944

379

9,420

1,544

692

766

236

4,704

388

72

203

1,593

F. Reserve Funds

National Academy of Sciences Reserve Fund *

Proceedings of the National Academy of Sciences (PNAS) Fund *

Transportation Research Board (TRB) Reserve Fund *

Due to (from) National Academy of Sciences *

$ 6,656 $ 5,316 $ $ (57) $ (25) $ 5,234

1,000

1,500

-

$ 9,156

$ 172,124

1,450

2,948

(703)

$ 9,011

-

-

825

$ 825

$ 334,290 $ 14,565

(16)

(32)

-

$ (105)

(2)

(4)

(147)

$ (178)

1,432

2,912

(25)

$ 9,553

$ (3,526) $ (12,994) $ 332,335 Subtotal — Funds that Support the NAS

II. Funds that Support the NAM

A. General Funds

H. Fineberg and M. Wilson Fund

General Endowment Fund

Robert Wood Johnson Foundation Fund

Henry J. Kaiser Family Foundation Fund

NAM Kellogg Fund *

NAM Members' Dues *

John D. and Catherine T. MacArthur

Foundation Fund

Pharmaceutical Discretionary Fund *

Pharmaceutical Endowment Fund

Miscellaneous Private Sector Fund

$ 97

1,137

5,000

488

283

198

$ -

2,048

11,798

922

647

435

$ 97

-

-

-

-

-

$ -

(16)

(93)

(8)

(5)

(4)

$ -

(155)

(816)

(64)

(43)

(15)

$ 97

1,877

10,889

850

599

416

5,000

480

259

26

$ 12,968

11,668

1,154

558

65

$ 29,295

-

-

-

-

(90)

(9)

(4)

(1)

$ (230)

(809)

(77)

(39)

(4)

$ (2,022)

10,769

1,068

515

60


21



SCHEDULE 1-A



Capital


2015

Market

Value at

Dec. 31,

2014


2015

Contributions

2015

Investment

Loss

2015

Expenditures

& Transfers

Market

Value at

Dec. 31,

2015

B. Program Specific Funds

American Board of Emergency Medicine (ABEM)

Fellowship Fund

Distinguished Scholar Fund

Norman F. Gant, M.D. and American Board of

Obstetrics and Gynecology Fellowship Fund

Greenwall Fellowship in Bioethics

David and Beatrix Hamburg Endowment Fund

Howard Hughes Medical Institute Fund

Robert Woods Johnson Culture of Health Program *

Kellogg Health of the Public Fund

Kellogg Health of the Public Fund

Matching Contributions

Omenn Fellowship Fund

Osteopathic Medicine Fellow Fund

Pharmacy Fellowship Fund

James C. Puffer / ABFM Fund

Richard and Hinda Rosenthal

Lecture Series

Leonard D. Schaeffer Fund

Women's Health Issues Fund

$ 750

17

$ 754

90

$ -

-

$ (7)

(1)

$ 1

-

$ 748

89

650

750

1,013

5,000

5,000

5,000

914

-

1,666

18,403

-

7,039

-

750

-

-

5,000

-

(9)

(34)

(18)

(181)

(232)

(71)

9

(23)

(3)

(2,916)

-

(192)

914

693

1,645

15,306

4,768

6,776

2,573

753

500

750

750

3,968

864

213

788

975

-

-

250

112

-

(44)

(10)

(18)

(14)

(10)

(48)

16

64

(51)

(9)

3,876

870

509

835

956

1,000

2,021

20

$ 26,547

1,583

2,379

103

$ 39,739

-

-

-

$ 6,112

(17)

(26)

(1)

$ (693)

(39)

(3)

-

$ (3,194)

1,527

2,350

102

C. Prizes and Awards

Gustav O. Lienhard Award

Sandra H. Matthews Cecil Award *

Rhoda and Bernard G. Sarnat

International Prize in Mental Health

$ 1,200

153

$ 5,057

184

$ -

-

$ (46)

(2)

$ (680)

(5)

$ 4,331

177

1,009

$ 2,362

1,680

$ 6,921

-

$ -

(17)

$ (65)

(56)

$ (741)

1,607

$ 6,115

D. Reserve Funds

NAM Reserve Fund *

Subtotal — Funds that Support the NAM

Subtotal — NAS and NAM Funds

III. Funds Held on Behalf of Others

A. The National Academies' Corporation

Operations Endowment

Program Endowment

Building Maintenance Reserve *

TOTAL

$ 500 $ 1,161 $ $ (12) $ (1) $ 1,148

$ 42,377 $ 77,116

$ 214,501 $ 411,406

$ 6,209

$ 20,774

$ (1,000) $ (5,958) $ 76,367

$ (4,526) $ (18,952) $ 408,702

$ 8,000

1,940

-

$ 9,940

$ 9,015

2,197

371

$ 11,583

$ -

-

-

$ -

$ (108)

(28)

(6)

$ (142)

$ (365)

(91)

194

$ (262)

$ 8,542

2,078

559

$ 11,179

$ 224,441 $ 422,989 $ 20,774 $ (4,668) $ (19,214) $ 419,881


22




Asset Allocation as of December 31, 2015

SCHEDULE 2

U.S. Large Equity

22.5%

Private Equity

5.3%

U.S. Small/Mid

Equity

11.2%

Hedge Funds

20.0%

Non-U.S. Fixed

Income

3.9%

U.S. Fixed

Income/Cash

5.5%

Real Estate Equity

3.5%

Non-U.S. Equity

(Emerging)

10.3%

Non-U.S. Equity

(Developed)

17.8%


23


SCHEDULE 2-A


Change in Valuation and Market Value Summary

Change in Valuation from 12/31/14 to 12/31/15

(Dollars in Thousands)

Market Value at 12/31/14

Realized Capital Gain

Unrealized Capital Loss

Reinvested Income

Contributions

Expenditures and Transfers

Market Value at 12/31/15

$ 422,989

6,464

(18,461)

7,329

20,774

(19,214)

$ 419,881

Holdings and Market Value Summary as of 12/31/15

(Dollars in Thousands)

U.S. Large Equity

Berkshire Hathaway A

Berkshire Hathaway B

Vanguard Institutional Index

Vanguard Precious Metals & Mining

Materials Select Sector SPDR

Vanguard Energy Fund

Renaissance Inst'l Equities (long-short)

Maverick Fund Ltd. (long-short)

Subtotal

$ 28,088

59

5,499

2,446

4,965

2,610

25,365

25,490

$ 94,522

Real Estate Equity iShares Dow Jones RE Index

Third Avenue RE Fund

Subtotal

U.S. Fixed Income/Cash

PIMCO Funds Total Return

Cash Equivalents

Subtotal

$ 15,280

20,059

9,458

1,175

894

$ 46,866

Non-U.S. Fixed Income

PIMCO Foreign Bond

PIMCO Developing

PIMCO Emerging Bond

Subtotal

U.S. Small/Mid Equity

SPDR S&P Biotech ETF

Vanguard Extended Market Index

Vanguard Small Cap Index

Waters Corp

Dunkin Brands Group, Inc

Subtotal

Non-U.S. Equity (Developed)

Dodge & Cox International

Driehaus International Discovery

Templeton Institutional

Vanguard Pacific Stock Index

Vanguard International Growth

Vanguard International Value

Matthews Asia Dividend Fund

Platinum Fund (long-short)

Subtotal

Non-U.S. Equity (Emerging)

Emerging Markets Growth Fund

Templeton Emerging Market

Wisdomtree Emerging Markets

Driehaus Emerging Markets Growth

Subtotal

$ 9,227

13,294

9,924

7,006

11,249

9,790

3,257

10,766

$ 74,513

$ 16,848

8,456

7,526

10,383

$ 43,213

Hedge Funds

Tactician Windward

Makena Capital Associates

Renaissance Inst'l Diversified

Bowery Opportunity Fund

Davidson Kempner

Highbridge Tactical

JPS Credit Opportunities

Subtotal

Private Equity

GRAND TOTAL

24


$ 7,870

6,927

$ 14,797

$ 15,829

7,437

$ 23,266

$ 9,012

4,960

2,474

$ 16,446

$ 5,910

40,613

12,166

8,518

9,615

3,459

3,767

$ 84,048

$ 22,210

$ 419,881


II. Private Contributions



D

ONOR

R

ECOGNITION

We gratefully acknowledge the support of private contributors to the National Academy of Sciences and the

National Academy of Medicine. The philanthropy of our members and friends enhances our impact as advisors to the nation.

Einstein Society

In recognition of members and friends who have made significant lifetime contributions to the National Academy of Sciences, the National Academy of Engineering, or the National Academy of Medicine as of December 31, 2015.

Arnold

and Mabel

Beckman

*

$10 million or more

Bernard M. Gordon

Daniel E. Koshland, Jr.

*

Fred Kavli*

Lifetime Giving Societies

George P. Mitchell*

Raymond and Beverly Sackler

Donald L. Bren

Bruce

and Betty

Alberts

Richard

and Rita

Atkinson

Norman R. Augustine

Craig and Barbara Barrett

Jordan* and Rhoda Baruch

Stephen D. Bechtel, Jr.

Harry E. Bovay, Jr.*

Harvey V. Fineberg and

Mary E. Wilson

$5 million to $10 million

William R.

and Rosemary

B.

Hewlett

*

Peter O'Donnell, Jr.

Cecil H. Green*


Robert* and Mayari

Michael and Sheila Held*

Joan and Irwin Jacobs

Pritzker

Richard L. and Hinda G.

Kenneth A. Jonsson* Rosenthal*

Tillie K. Lubin*

John F. McDonnell

The Ambrose Monell

Foundation

Jack W. and Valerie Rowe

Fritz J. and Dolores H.

Russ Prize Fund of the

Russ College of

Gordon and Betty Moore

Engineering and

Dame Jillian Sackler

Technology

at Ohio University

Bernard* and Rhoda Sarnat

Leonard D. Schaeffer

Sara Lee and Axel Schupf

Rose-Marie and Jack R.*

Anderson

John and Elizabeth

Armstrong

Kenneth E. Behring

Gordon Bell

Elkan R.

* and Gail F.

Blout

Carson Family Charitable

Trust

Henry David*

Richard Evans*

Eugene Garfield

Foundation

$500,000 to $1 million

Asta* and William W.

Lang

Penny and Bill George,

George Family

Foundation

William T.

* and Catherine

Morrison

Golden

Alexander Hollaender*

Thomas V. Jones*

William J. Rutter

Herbert A.

and Dorothea P.

Simon

*

Raymond S. Stata

Roy

and Diana

Vagelos

Andrew

and Erna*

Viterbi

Alan M. Voorhees*

Anonymous (1)

Charina Endowment Fund

Ralph J. and Carol M.

Cicerone

James McConnell Clark

Cindy and Jeong Kim

Ralph and Claire Landau*

Ruben F.* and Donna

Mettler

Dane and Mary Louise

Miller

Philip

and Sima

Needleman

Oliver E.

and Gerda K.

Nelson

*

Gilbert S. Omenn and

Martha A. Darling

Shela and

Kumar Patel

Names in bold print are NAS members.

*Deceased

26



The Agouron Institute

W. O. Baker

*

Warren L. Batts

Clarence S. Coe*

Theodore Geballe

Jerome H.* and Barbara

N. Grossman

$250,000 to $500,000

William R. Jackson*

Robert L. and Anne K. James

Mary and Howard* Kehrl

Ann and Michael Ramage

Simon Ramo

Anne and Walt Robb

Janet and Richard M.*

Morrow

Stephen* and Anne Ryan

Ralph S. O'Connor

Kenneth H. Olsen*

Henry and Susan Samueli

H.E. Simmons

*

Judy Swanson

Holt Ashley*

Francisco J.

and Hana

Ayala

William F. Ballhaus, Sr.*

Thomas D.* and Janice H.

Barrow

H. H.

and Eleanor F.

Barschall

*

Daniel and Frances Berg

Elwyn

and Jennifer

Berlekamp

Diane and Norman Bernstein

Bharati and Murty Bhavaraju

Erich Bloch

David G. Bradley

Lewis M. Branscomb

Sydney Brenner

George* and Virginia

Bugliarello

Malin Burnham

Ursula Burns and

Lloyd Bean

John and Assia Cioffi

Paul Citron and Margaret

Carlson Citron

A. James Clark*

W. Dale and Jeanne C.

Compton

John D. Corbett*

Lance and Susan Davis

Roman W. DeSanctis

Robert and Florence

Deutsch

Nicholas M. Donofrio

Paul M. Doty*

Charles W. Duncan, Jr.

Ruth and Victor Dzau

George and Maggie Eads

Robert and Cornelia Eaton

Dotty and Gordon England

Emanuel and Peggy

Epstein

$100,000 to $250,000

Olivia and Peter Farrell Frederick A. Klingenstein

Michiko So* and

Lawrence Finegold

William I. Koch

Gail F. Koshland

Tobie and Daniel J.* Fink Jill Howell Kramer

George and Ann Fisher Kent Kresa

Robert C. and Marilyn G.

Forney

John W. Landis*

Janet and Barry Lang

Harold K.* and Betty Forsen

William L. and Mary Kay

Ming-wai Lau

Friend

Gerald and Doris Laubach

David M.* and Natalie

Christopher Galvin

William H.

and

Melinda

F.

Gates III

Nan and Chuck Geschke

Lederman

Bonnie Berger and

Frank

Thomson Leighton

Frances and George Ligler

Jack and Linda Gill

Martin E. and Lucinda

Whitney and Betty

MacMillan

Glicksman

George

and Christine

Gloeckler

Christa and Detlef Gloge

Avram Goldstein*

Robert W. Gore

Paul and Judy Gray

Asad M., Gowhartaj, and

Jamal Madni

Davis L. Masten and

Christopher Ireland

Roger L. McCarthy

Robin K. and Rose M.

McGuire

Corbin Gwaltney William W. McGuire

John O. Hallquist

Margaret A. Hamburg and

Peter F. Brown

William M. Haney III

George and Daphne

Hatsopoulos

John L. Hennessy

Jane Hirsh

Chad and Ann Holliday

M. Blakeman Ingle

Richard B. Johnston, Jr.

Anita K. Jones

Trevor O. Jones

Thomas Kailath

Yuet Wai

and Alvera

Kan

Leon K. and Olga

Kirchmayer*

Burt and Deedee McMurtry

G. William* and Ariadna

Miller

Stanley L. Miller

*

Joe and Glenna Moore

David and Lindsay

Morgenthaler

Clayton Daniel and

Patricia L. Mote

Ellen and Philip Neches

Susan and Franklin M.

Orr, Jr.

David Packard

*

Charles and Doris Pankow*

Larry and Carol Papay

Jack S. Parker*

Edward E. Penhoet


*Deceased

Ted Turner

Leslie L. Vadasz

Charles M.* and Rebecca M.

Vest

Allen E

.* and Marilynn

Puckett

Richard F. and Terri W. Rashid

Alexander Rich*

Ronald L. Rivest

Matthew L. Rogers and Swati

Mylavarapu

Henry M. Rowan

Joseph E. and Anne P. Rowe*

Maxine L. Savitz

Walter Schlup*

Wendy and Eric Schmidt

David E. Shaw

Richard P. Simmons

James H.

and Marilyn

Simons

Robert F. and Lee S. Sproull

Georges C. St. Laurent, Jr.

Arnold and Constance Stancell

Edward C. Stone

John and Janet Swanson

Charlotte and Morris Tanenbaum

Peter and Vivian Teets

James M. Tien and Ellen S.

Weston

Gary and Diane Tooker

Martha Vaughan

John C. Wall

Robert and Joan Wertheim

Robert M.* and Mavis E. White

John C. Whitehead

Wm. A. Wulf

Ken Xie

Tachi and Leslie Yamada

Adrian Zaccaria

Alejandro Zaffaroni*

Janet and Jerry Zucker

Anonymous(2)

27



William J. Baumol

Rosie and

Stirling A.*

Colgate

Daniel Branton

Ellis and Bettsy

Cowling

Robert E. Kahn

A. Dale Kaiser

Elkan Blout Society of the National Academy of Sciences

Andreas

and Juana

Acrivos

Robert McC. Adams

Clarence R. Allen

Kamla* and

Bishnu S. Atal

John D. Baldeschwieler

Jacqueline K. Barton and

Peter B. Dervan

Terry and

Roger N. Beachy

Paul Berg

Kenneth I. Berns

R. Stephen

and Carla F.

Berry

R. Byron Bird

Floyd E. Bloom

Felix Boehm

John

and Sharon

Brauman

Donald D. Brown

Harold Brown

Peggy and

Thomas Caskey

Purnell W. Choppin

Michael and Adriana

Clegg

Barry

and Bobbi

Coller

Members of the NAS who have contributed $20,000 to $100,000

$75,000 to $100,000

Jeremiah P. Ostriker

Arthur D. Riggs

Rudi*

and Sonja

Schmid

F. William Studier

Jean D. Wilson

Johanna M.H. Levelt

Sengers

Frank Press

Adam G. Riess

$50,000 to $75,000

Brian P. Schmidt

Lubert

and Andrea

Stryer

Robert Tjian

Torsten N. Wiesel

$20,000 to $50,000

Pedro M. Cuatrecasas

Roy Curtiss III

Igor B. Dawid

Pablo G. Debenedetti

Mildred S. Dresselhaus

Hans

and Verena

Frauenfelder

Carl Frieden

Richard L. and Lois E.

Garwin

David V. Goeddel

Ronald L. Graham

Shirley and

Harry Gray

Jeffrey C. Hall

John G. Hildebrand

Joseph F. Hoffman

Sarah and Dan

Hrdy

Evelyn L. Hu and David

R. Clarke

Tony Hunter

Anthony A. James and

Cynthia K. French

Richard V. Kadison

Peter S. Kim

Tadamitsu Kishimoto

James S.

Langer

and Elinor G. A.

Sharon R. Long

Jane Lubchenco

Menge

R. Duncan* and Carolyn

Scheer

Luce

Fred

and Tibby

McLafferty

Jane Menken

James K.

and Holly T.

Mitchell and Bruce

Nancy A. Moran

and

Howard Ochman

Arno G. Motulsky

Cherry A. Murray

Neekeyfar Foundation

Norman F. Ness

Roy Radner

Kuh

and Charlotte

Donald and Joan Beall

Wiley N. Caldwell

Richard J. Mahoney

Berkley Bedell

E. Cabell Brand*

Louis W. Cabot

Nancy E. Conrad

Raymond E. Galvin

Friends of the National Academy of Sciences

Friends of the NAS who have contributed $20,000 to $100,000

$75,000 to $100,000

Robert W. and Maura H. R.(Shep)* and Carol Ruth

Morey, Jr. Shephard

$50,000 to $75,000

Samuel F. Heffner, Jr. Mary and Harvey* Sadow

Robert H. Malott

Donald* and Miriam Miller

Molex Incorporated

Neil R. Rolde

Jack W. Schuler

Margaret Scarbrough Wilson

Thomas and Marilyn Sutton


*Deceased

Anonymous (1)

Anonymous (1)

Peter H. Raven

Eugene

and Ruth

Roberts

Randy Schekman

Phillip A. Sharp

Eric M. Shooter

Maxine F. Singer

Robert L. Sinsheimer

Joan A. and

Thomas A.

Steitz

George F. Vande Woude

Peter K. Vogt

Patricia Bray-Ward and

David C. Ward

Irving L. Weissman

Carl E. Wieman

Owen N. Witte

Tilahun D. Yilma

28



Sunanda Basu

Tanya S. Beder

Bennett Family Foundation

Gail and Roberto Canizares

Howard E. Cox, Jr.

Charles R. Denham

Meredith L. Dreiss

John Everets, Jr.

Robert Glushko and Pamela

Samuelson

$20,000 to $50,000

Mark Green and Kathryn John S. Reed

Kert Green Marco A. Royo

Benjamin W. Heineman, Jr.

Thomas A. Mann

Christopher P. Michel

Kamal K. Midha

Collin W.* and Ann

Scarborough

Share Fund

Susan E. Siegel and Robert

Patricia S. Nettleship A. Reed

Guy W. Nichols Dorothy L. Simpson

Deborah Szekely Lucio A. Noto

William J. Raduchel Jeff Tarr, Sr.

Jay Scott Walker

Bob and Judy Waterman

Susan E. Whitehead

Ronald A. Williams

Robert E. Wycoff

Jim and Carole Young

Peter Zandan

James and Linda Ziglar

Anonymous (3)

John K. Castle

NAM Society of the National Academy of Medicine

Members and friends of the NAM who have contributed $20,000 to $100,000

$75,000 to $100,000

Michael and Pat McGinnis

Rudi* and Sonja

Schmid Jean D. Wilson

John R. Ball

William H. Danforth

Ronald D. Miller

Nancy Adler and Arnold

Milstein

Dyanne D. Affonso

Jack D. Barchas


Peter B. Dervan

Paul Berg


Maureen Bisognano

Floyd E. Bloom

Enriqueta C. Bond

Stuart Bondurant and Susan

Ehringhaus

Roger J. Bulger

Peggy and

Thomas Caskey

Christine Cassel and

Michael McCally

David R. and Jacklyn A.

Challoner


Ellen Wright Clayton and

Jay Clayton

Fred E. Cohen


*Deceased

$50,000 to $75,000

Woodrow A. Myers, Jr. Robert E. Tranquada

Samuel O. Thier Gail L. Warden

$20,000 to $50,000

Mary Sue Coleman

Barry

and Bobbi

Coller

Cato and Cynthia Laurencin

Patricia and George

Lundberg Colleen Conway-Welch


Jane and Worth B.*

Christy and John Mack

Marie McCormick and

Daniels, Jr.

Delbert A. and Beverly C.

Fisher

Richard L. and Lois E.

Garwin

James R. Gavin III

Robert Blendon

Bruce McEwen and

Karen Bulloch McEwen

Jane Menken


Van and Barbara Mow

Tony Gotto Robert M. and Marilyn R.

Bradford H. Gray

Jane E. Henney and Robert

Nerem

June E. Osborn

Graham

Martha N. Hill

William N. Hubbard, Jr.

Tony Hunter

Nancy S. and Thomas S. Inui

The Henry J. Kaiser Family

Foundation

Peter S. Kim


Herbert Pardes

William C. Richardson

Marco A. Royo

Charles A. Sanders

Randy Schekman

Donna E. Shalala

Larry J. Shapiro


Kenneth I. Shine

Torsten N. Wiesel

Anonymous (2)

Eric M. Shooter



Harold C. and Carol H. Sox

William N. Spellacy*

Joan A. and

Thomas A. Steitz

Rosemary A. Stevens

Jeff Tarr, Sr.

Peter K. Vogt

Irving L. Weissman

Nancy S. Wexler

C. Kern Wildenthal

Owen N. Witte

Warren and Nikki Zapol

Elias A. Zerhouni

Michael Zubkoff

Anonymous (1)

29



Heritage Society

In recognition of members and friends who have included the National Academy of Sciences, the National Academy of

Engineering, or the National Academy of Medicine in their estate plans or who have made some other type of planned gift to the academies as of December 31, 2015.

Andreas and Juana

Acrivos Stanley N. Cohen

Norma M. Lang James F. Roth

Gene M. and Marian Amdahl Colleen Conway-Welch Asta* and William W. Lang Esther and Lewis Rowland

Betsy Ancker-Johnson

John C. Angus

John and Elizabeth

Armstrong


Jack D. Barchas

Harrison H. and Catherine C.

Barrett

Stanley Baum

Clyde J. Behney

Elisabeth Belmont

Daniel and Frances Berg

Paul Berg

Elkan R.

* and Gail F.

Blout

Amann

Wyatt W. Anderson

John C. Angus

Edward M. Arnett

Wm. Howard Arnold*

Ross and Stephanie Corotis

Ellis

and Bettsy

Cowling

Molly Joel Coye

Barbara J. Culliton

Daniel P. Loucks

R. Duncan

* and Carolyn

Scheer

Luce

Thomas and Caroline

Pat and Jim McLaughlin

Jane Menken


Van and Barbara Mow

Guido Munch

Mary O. Mundinger

Philip

and Sima

Needleman

Norman F. Ness

Sheila A. Ryan

Paul R. Schimmel

Stuart F. Schlossman

Rudi

* and Sonja

Schmid

Kenneth I. Shine


Arnold and Constance

Enriqueta C. Bond

Daniel Branton

Robert and Lillian Brent

Corale L. Brierley

James A. Brierley

Martin E. and Lucinda

Glicksman

George and Christine

Gloeckler

Christa and Detlef Gloge

Ronald and Joan Nordgren


Martha A. Darling

William* and Constance

Opie

John C. Wall


David C.

Ward

Robert and Joan Wertheim

Maw-Kuen Wu

Lenore and Rob Briskman

Kristine L. Bueche

Dorit Carmelli

Peggy and

Thomas Caskey

A. Ray Chamberlain

Linda and

Frank Chisari

Joseph W. Goodman

Chushiro

* and Yoshiko

Hayashi

Larry L. Hench

Nancy S. and Thomas S. Inui

Richard B. Johnston, Jr.

Bradford W. and Virginia W.

Parkinson

Zack T. Pate

Frank Press

Simon Ramo

James J. Reisa, Jr.

Wm. A. Wulf


Michael Zubkoff

Anonymous (1)

Rita K. Chow

John A. Clements

D. Walter Cohen

Morrel H. Cohen

Anita K. Jones

Jerome Kagan

Diana S. and Michael D.

King

Emanuel P. Rivers

Richard J. and Bonnie B.

Robbins

Eugene

and Ruth

Roberts

Loyalty Society

In recognition of members and friends who have made gifts to the National Academy of Sciences, the National Academy of

Engineering, or the National Academy of Medicine for at least 20 years.

Herbert L. Abrams Jack D. Barchas

Harold Brown Pedro M. Cuatrecasas

H. Norman Abramson

Andreas and Juana

Acrivos

Bruce

and Betty

Alberts


Barbara W. Alpert

Marilynn and Charles A.*

Daniel L. Azarnoff

Malcolm R. Currie

Peter N. Devreotes

Mildred S. Dresselhaus

Gerard W. Elverum

Emanuel

and Peggy

Epstein

Tobie and Daniel J.* Fink


Forney

Arthur and Helen Geoffrion

Paul H. Gilbert

Jeremiah A. Barondess

Stephen D. Bechtel, Jr.

John C. Beck

Richard E. Behrman

Gordon Bell

Paul Berg

Diane and Norman Bernstein

Kathleen and H. Kent Bowen


John

and Sharon

Brauman

Alan C. Brown

Donald D. Brown

Maddock

Artur Mager

Kristine L. Bueche

George* and Virginia

Bugliarello

William B. Carey


Challoner




Michael D. Coe

Richard A. Conway

Max D. Cooper

Stancell

H. Eugene Stanley

Rosemary A. Stevens

John and Janet Swanson

John A. Swets

Esther Sans Takeuchi

Paul

and Pamela

Talalay

William H. Danforth

Igor B. Dawid

Roman W. DeSanctis

Irwin Dorros

W. G. Ernst

Harold J. Fallon

Gary Felsenfeld


Mary E. Wilson

Tobie and Daniel J.* Fink


Forney


*Deceased

30



Harold K.* and Betty Forsen

T. Kenneth Fowler

Hans

and Verena

Frauenfelder

Carl Frieden

James S.

and Elinor G. A.

Langer

Louis J. Lanzerotti

Gerald and Doris Laubach

Philip

and Sima

Needleman

Robert M. and Marilyn R.

Nerem

Elena and Stuart Nightingale

Lubert and Andrea

Stryer


Paul

and Pamela

Talalay

Charlotte and Morris

Theodore V. Galambos

Joseph G. Gall

Peter Geiduschek


Joseph W. Goodman

Richard M. Goody

Paul E. Gray

Robert B. Griffiths

Judith R. Lave

Cynthia and Robert

Lawrence

Johanna M.H. Levelt

Sengers

Robert G. Loewy

R. Duncan

* and Carolyn

Scheer

Luce

Anthony P. Mahowald

Vincent T. Marchesi




Martha A. Darling

Gordon H. Orians

George W. Parshall

Thomas K. Perkins

Gordon H. Pettengill

Frank Press

Tanenbaum

Anita and

George

Thompson

George H. Trilling

Roxanne and

Karl K.* Turekian

Martha Vaughan

Raymond Viskanta

Andrew

and Erna*

Viterbi

Peter K. Vogt

Michael Grossman

Adam Heller

Ernest M. Henley

David and Susan Hodges



J. David Jackson

Andre T. Jagendorf

Hans Mark

James F. Mathis

Robert D. Maurer

Charles A. McCallum

Christopher F. McKee

Mortimer Mishkin

Joel Moses


Donald E. Procknow

Simon Ramo

Janet and

Lester

*

Reed

Jerome G. Rivard

Maxine Savitz

William R. Schowalter

F. Stan Settles


Louis Sokoloff*

Irv Waaland

George D. Watkins

Julia and Johannes Weertman

Robert J. Weimer

Herbert Weissbach

Robert M.* and Mavis E. White

Catherine M. Wilfert

Gerald N. Wogan

Anita K. Jones

Samuel L. Katz and


Seymour J. Klebanoff

John H. Moxley III

Elaine and Gerald* Nadler

Jaya and Venky

Raymond S. Stata

Joan A.

and

Thomas A.

Steitz

Wm. A. Wulf

Anonymous (1)

Max A. Kohler

Narayanamurti

Rosemary A. Stevens

NAS Building Seat Naming Campaign

Members and friends of the NAS were offered the opportunity to “take their seat in history” by making a $5,000 donation to the NAS in order to have their name, or that of a designee, placed on the arm of a seat in the restored NAS Building auditorium. The following donors have participated in the campaign to date. The listing does not reflect unfulfilled pledges.

Andreas

and Juana

Acrivos

Shizuo Akira

Bruce

and Betty

Alberts

Kamla* and

Bishnu S. Atal

Francisco J.

and Hana

Ayala

William A. Bardeen


Peter B. Dervan

Roger N. Beachy

Peter and Sandra

Beak

May R. Berenbaum

Robert and Wendy

Bergman

Elwyn and Jennifer

Berlekamp


Elkan R.

* and Gail F.

Blout

Felix Boehm

Gary G. Borisy


John and Sharon

Brauman

Axel T. Brunger

Philip H. Bucksbaum

Anthony Cerami

Vicki L. Chandler

Yuan Chang

S. Moore and

Patrick

Malcolm H. Chisholm


Cicerone

Michael

and Adriana

Clegg

Stanley N. Cohen

Jack H. and

Rita R. Colwell

R. James Cook

Linda S. Cordell*

Robert J. Cousins

Ellis and Bettsy

Cowling

Roy Curtiss III

Elsebet Lund and

Dahlberg

Roy H. Doi

James

Mostafa A. El-Sayed

Mary K. Estes

Nina V. Fedoroff


Mary E. Wilson

Libo Fineberg


Fisher

Perry A. Frey

Kenneth R. Fulton

Fred H. Gage

Elisabeth Gantt

Michael S. Gazzaniga

F. W. Gehring*

Sibyl Golden

T. Golden* and

William

Laura Green

Diane E. Griffin

Donald A. Gurnett

Stanley R. Hart


David M. Hillis


Michael Hout

Sarah and Dan

Hrdy

Jisoon Ihm

Harvey A. Itano

Family

Anthony A. James

John and Kyri

Joannopoulos

V. Craig Jordan

Thomas Kailath

Charles F. Kennel

Rosalind and

Sung-Hou

Kim


*Deceased

31



Mary-Clair King


Stephen C.

Kowalczykowski

John E. Kutzbach

Arthur H. Lachenbruch

Ho-Wang Lee

Richard E. Lenski

Robert L. Letsinger

Harris A. Lewin

Sharon R. Long

Ruth W. Lubic

Akinlawon Mabogunje

J. Ross

and Margaret

Macdonald

Robert D. Mare

and Judith

A. Seltzer

Douglas S. Massey and

Susan Fiske

Olive J. McCloskey


Fred and Tibby

McLafferty

Sabeeha S. Merchant


Mary E. Wilson

Gordon and Betty

Moore Foundation


Philip and Sima

Needleman

Oliver E. Nelson*

Jerry E. Nelson

Norman F. Ness

Maria Iandolo New

Sergei P. Novikov

Neil D. Opdyke


Charles and Patricia

Parmenter

Michael E. Phelps

Ron and Judy

Phillips

E. Ward Plummer

Frank Press

William Press

Louis J. Ptacek

Allen E.

and Marilynn

Puckett

Natasha V. Raikhel

Simon Ramo

Adam Reiss

Lynn M. Riddiford and

James W. Truman

John D. Roberts

Peggy and

Hamish

Robertson

Gene E. and Julia

Robinson


Linda J. Saif

Myriam P. Sarachik

Barbara Schaal and Joe

Leverich

Randy Schekman

Brian Schmidt

Vern L. Schramm

Nevin S. Scrimshaw*

Donald C. Shapero


Hee-Sup Shin

Gerard I. Shulman


Gabor A. and Judith K.

Somorjai

Charles S. Spencer

Peter J. and Christine S.

Stang

H. Eugene Stanley

David K. Stevenson

Karen B. Strier

James M. Tiedje

Michael S. Turner

Cumrun Vafa

Thomas E. Wellems and Marilyn I. Powell

Roy

and Diana

Vagelos

Andrew and Erna*

Viterbi

Susan R. Wessler

Yu Xie

Huanming Yang and Ren

Liu


Jozef J. Zwislocki

Anonymous (1)

Annual Giving Societies

In recognition of members and friends who supported the NAS or NAM in 2015. We acknowledge those contributions made as personal gifts or as gifts facilitated by the donor through a donor advised fund, matching gift program, or family foundation. This listing reflects gifts received in 2015.

Catalyst Society

Bruce

and Betty

Alberts

Russell L. Carson


Cicerone

Ruth and Victor Dzau

$100,000 or more

Michael and Sheila Held* Matthew L. Rogers and

Janet and Barry Lang

Ming-wai Lau

Alexander Rich*

Swati Mylavarapu

Raymond and Beverly

Sackler

$50,000 to $100,000

Anonymous (1)

Martha Vaughan

Jane and Alan Mulally

Philip and Sima

Needleman

Jack W. and Valerie Rowe

James H. and Marilyn

Simons

The NAS gratefully acknowledges a gift of $3,175,000 from the estate of Michael and Sheila Held.

Benjamin W. Heineman

Ronald D. Miller

Rosette Society

$25,000 to $50,000

Henry and Susan Samueli Leonard D. Schaeffer Anonymous (1)


*Deceased

32



Rose-Marie and Jack R.*

Anderson

Donald and Joan Beall



David C. Ward

Gail and Roberto Canizares

Martin Chalfie

and Tulle

Hazelrigg

Rosie Colgate

Francois M. Abboud

Andreas and Juana

Acrivos

Nancy Adler and Arnold

Milstein

Dyanne D. Affonso

Peter C. Agre

Bobby R. Alford


David B. Allison

Hortensia d. l. A. Amaro

Edward

and Joan

Anders

Porter W. Anderson, Jr.

Luc Anselin

and Emily

Talen

Edward M. Arnett

Ruth and Ken Arnold

Arthur K. Asbury

K. Frank Austen

John D. Baldeschwieler

John R. Ball

Jack D. Barchas

Jeremiah A. Barondess

Jacqueline K. Barton

and

Peter B. Dervan

Paul B. Barton, Jr.

William J. Baumol

Gordon Baym

and Cathrine

Blom

Terry and

Roger N. Beachy

Peter Beak

Arthur L. Beaudet

Tanya S. Beder

Gordon Bell

J. Claude Bennett

Paul Berg

R. Stephen

and Carla F.

Berry

Dennis M. Bier

Maureen Bisognano

Nancy E. Conrad

Richard P. Fishman

Sibyl R. Golden

Challenge Society

$10,000 to $25,000

Lee McIntire

Christopher P. Michel

David and Lindsay

Dan Gupta

Share Fund

Jill Howell Kramer

Kent Kresa

Davis L. Masten and

Christopher Ireland

Morgenthaler


Mitzi Perdue

Arthur D. Riggs

Ajay Royan


John F. McDonnell

Mina J. Bissell

Marie McCormick and

Robert Blendon

Floyd E. Bloom

Felix Boehm

Dame Jillian Sackler

Charter Society

$1,000 to $10,000

Graham A. Colditz

Barry

and Bobbi

Coller

Elizabeth F. Colson

R. James Cook

Molly Cooke and Paul

Enriqueta C. Bond

Stuart Bondurant and Susan

Ehringhaus

P. Borst


John and Sharon

Brauman

Claire D. Brindis

W. F. Brinkman

Harold Brown

Robert Bryant

and

Reymundo Garcia

Sheila Burke

Robert L. Byer

Michael L. Callaham

Lennart A. Carleson

Charles C.J. Carpenter

Christine Cassel and

Volberding

Ellis

and Bettsy

Cowling

Nicholas R.*

and Linda A.

Cozzarelli


James H. Curry

Roy Curtiss III

William H. Danforth

Bruce B. Darling

James E. Darnell, Jr.

Igor B. Dawid

Carl de Boor

Catherine D. DeAngelis

Haile T. Debas

Pablo G. Debenedetti

Hans G. Dehmelt

Susan Dentzer

Robert J. Desnick Michael McCally

Thure E. Cerling

John Chae


Challoner

Yu-Mei Y. Chao

R. Alta Charo

Lincoln C. Chen

Frank A. Chervenak


Maarten J. Chrispeels

Steven Chu

Ellen Wright Clayton and

Jay Clayton

Michael and Adriana

Clegg

D. Walter Cohen

Fred E. Cohen

William H. Dietz

William D'Italia

Vishva M. Dixit

Jack

and Claudia

Dixon

Sue K. Donaldson

R. Gordon Douglas, Jr.

Jeffrey A. Drebin


James S. Economou

Alain C. Enthoven

Emanuel and Peggy

Epstein

John W. Erdman, Jr.

Frederick J. Erdtmann

Gary Felsenfeld

Howard L. Fields


*Deceased

Harold C. and Carol H. Sox

Edward C. Stone


Thomas and Marilyn Sutton

Judy Swanson

Ronald A. Williams

Peter Zandan

James and Linda Ziglar

Anonymous (2)

Stephen E. Fienberg

Libo Fineberg


Fisher

G. David Forney, Jr.

Hans

and Verena

Frauenfelder

Carl Frieden

Victor R. Fuchs

Kenneth R. Fulton

Fred H. Gage

Joseph G. Gall

Theodore G. Ganiats

Norman F. Gant

Patricia A. Ganz

James R. Gavin III

Theodore Geballe

Neil Gehrels

E. Peter Geiduschek

Jack and Linda Gill

Linda C. Gill

Roger I. Glass


Lewis R. Goldfrank

Tony Gotto

Robert Graham

Bradford H. Gray

Shirley and

Harry Gray

Philip L. Gray

Diane E. Griffin

David S. Guzick

Ashley T. Haase

Philip C. Hanawalt

Barbara C. Hansen

Stanley R. Hart

Juris Hartmanis

Robert and Margot

Haselkorn

Jane E. Henney

33




Martha N. Hill

Jim and Cindy Hinchman

Leroy E. Hood

H. Robert Horvitz

Michael Hout

Sarah

and Dan

Hrdy


Betsy L. Humphreys

Helen M. Hunt

Tony Hunter

Steven E. Hyman

Richard and Fleur

Hynes

Thomas S. Inui

Kimishige Ishizaka

Joan and Irwin Jacobs

Christine Jacobs-Wagner

Andre T. Jagendorf

Anthony A. James

and

Cynthia K. French

Robert L. and Anne K.

James

Jiri Jonas

Richard V. Kadison

John and Wilma Kassakian

Samuel L. Katz and


Leonid V. Keldysh

Charles F. Kennel

Peter S. Kim

Sung Wan Kim

Mary-Claire King

Thomas Kent Kirk


Nancy Knowlton

William I. Koch

Richard D. Kolodner

David Korn

Douglas E. Koshland

Stephen C.

Kowalczykowski

Edward A. and Kathryn F.

Kravitz

Charlotte V. Kuh and

Roy

V. Radner

James S. and Elinor G. A.

Langer

Lynn M. Larsen

Judith R. Lave

Joel L. Lebowitz

Albert Lee


*Deceased

Brendan and Maria Lee

I. Robert Lehman

Claude Lenfant

Alan I. Leshner

Vicki Levi

Gene E. Likens

George

and Freia

Lorimer

Jane Lubchenco and Bruce

Menge

Ruth Watson Lubic

Patricia and George

Lundberg

Noreen Luszcz

Joe Lutkenhaus

Akinlawon Mabogunje

Adel A. Mahmoud

Richard J. Mahoney

Matt Mallow

JoAnn E. Manson

Robert D. Mare

and Judith

A. Seltzer

James S. and Judith M.

Marks

Douglas S. Massey

and

Susan Fiske

Martin M. Matzuk and

Lynn Zechiedrich

Angela Barron McBride

Michael McCally

Roger O. McClellan

Bruce McEwen and Karen

Bulloch McEwen

Michael and Pat McGinnis

William W. McGuire

Fred

and Tibby

McLafferty

Marcia K. McNutt

Edward W. Merrill

Elliot M. Meyerowitz

Mortimer Mishkin

James K. and Holly T.

Mitchell

William E. Moerner

Nancy A. Moran and

Howard Ochman

Robert W. Morey, Jr.

Audrey Mosley


Robert M. and Marilyn R.

Nerem

John E. Niederhuber


Paul A. Offit


Martha A. Darling

Gordon H. Orians

James and Deborah

Osterholt

Joanne and

Larry

Overman

Herbert Pardes

Shela and

Kumar Patel

Edward E. Penhoet

Helen and David Piwnica

Worms

Thomas D. Pollard

Claire Pomeroy

William H. Press

Roy Radner and Charlotte

Kuh

Natasha Raikhel

Simon Ramo

E. Albert Reece

Charles M. Rice III

William C. Richardson

Frank M. Richter

Robert Ricklefs

Wayne J. Riley

Emanuel P. Rivers

Ronald L. Rivest

Judith Rodin

Erkki Ruoslahti

Vinod K. Sahney

Marvin Schechter

R. Duncan*

and Carolyn

Scheer

Luce

Randy Schekman

Paul R. Schimmel

Fred B. Schneider and Mimi

Bussan

Vern L. Schramm

Martin J. Sepulveda

Donna E. Shalala

Larry J. Shapiro

Charles J. Sherr

Eric M. Shooter

Stephen M. Shortell

Ira Shoulson

Gerald I. Shulman

Susan E. Siegel and Robert

A. Reed

Joe Leigh Simpson


Jeanne C. Sinkford


Jeannette E. South-Paul

William N. Spellacy*


William and Janet Stead

Joan A. and

Thomas A.

Steitz

Judith S. Stern

Rosemary A. Stevens

David K. Stevenson

Lubert

and Andrea

Stryer

Jack W. Szostak

Mercedes Talley

Terence C. Tao

Palmer and

Susan Taylor

Samuel O. Thier

Anita and

George

Thompson

Jeremy W. Thorner

Maury Tigner

Mary E. Tinetti

Cumrun Vafa

Roy

and Diana

Vagelos

Neal A. Vanselow

Harold E. Varmus

Andrew

and Erna*

Viterbi

Peter K. Vogt

Gail L. Warden

Michael S. Waterman

Myron and Linda Weisfeldt

Myrna M. Weissman

Thomas E. Wellems and

Marilyn I. Powell

James A. Wells and Carol

Windsor

Susan R. Wessler

Nancy S. Wexler

Carl E. Wieman


James T. Willerson

Ellen D. Williams

Jean D. Wilson

Elizabeth S. Wing

Owen N. Witte

Gerald N. Wogan

Mary M. Woolley

E. M. Wright

Yu Xie

Tachi and Leslie Yamada

34



Huanming Yang and

Ren

Liu

Barbara Abrams

Herbert L. Abrams

Robert McC. Adams

Lucile L. Adams-Campbell

Stephen L. Adler

Bernard W. Agranoff

Gustavo D. Aguirre

Linda H. Aiken

Paula G. Allen-Meares

Myron Allukian, Jr.

Barbara W. Alpert

Lawrence K. Altman

Cissy and John Anderson

John Anderson

Lamar Anderson

Wyatt W. Anderson

Marsha Anderson-Bomar

Awoue Andre Ernest

Nancy C. Andrews

John C. Angus

Yoshiaki Aoki

Lawrence J. Appel

Frances H. Arnold

Kenneth J. Arrow

Michael Artin

Ann M. Arvin

David A. Asch

Nancy L. Ascher

Karen H. Ashe

Barbara F. Atkinson

Tom P. Aufderheide

Dennis A. Ausiello

Joan K. Austin

Pierre Auza

Daniel L. Azarnoff

Howard L. Bailit

Rabinder Bains

Ruzena K. Bajcsy

Steven A. Balbus

Ian T. Baldwin

Robert W. Balluffi

Jeffrey R. Balser

Rose and John Bannigan

James M. Bardeen

William A. Bardeen


*Deceased


Elias A. Zerhouni

Mary Lou

and Mark D.

Zoback

Other Individual Donors

Grigory I. Barenblatt

Hiba Baroud

O'Neill Barrett, Jr.

Elizabeth Barrett-Connor

Michele Barry and Mark

Cullen

Eugene A. Bauer

Bruce J. Baum

Stanley Baum

Zdenek P. Bazant

J. L. Beauchamp

John C. Beck

James Becker

Glynn Behmen

Clyde J. Behney

Richard E. Behrman

Marlene

and Georges

Belfort

C. Elisabeth Belmont

Leslie Z. Benet

Georges C. Benjamin

Charles L. Bennett

Michael V. L. Bennett

Jeffrey L. Bennetzen

John A. Benson, Jr.

Marsha J. Berger

Robert G. and Wendy S.

Bergman

Bobbie A. Berkowitz

Nancy Berliner

Bruce J. Berne


Lionel M. Bernstein

Monika Bernstein

Joseph A. Berry

Marie Berry

Jerome A. Berson

Chris Beyrer

N. Ozgur Bezgin

Peter J. Bickel

Klaus Biemann

Sue Biggins

Andrew B. Bindman

Eula Bingham

John D. Birkmeyer

Michelle H. Biros

Robert L. Black

Randolph Blake

Helen M. Blau

Dan G. Blazer

R. Don Blim

Barton Blinder

Clara D. Bloomfield

Thomas F. Boat

Allan G. Bogue

Ronald Boisvert

Michael L. Boninger

J. T. Bonner

Richard J. Bonnie

Boonchai

Boonyaratanakornkit

William H. Bowen

L. Thompson Bowles

W. Thomas Boyce

Roscoe O. Brady

Allan M. Brandt

Wendell C. Brase

Paula A. Braveman

Rachel and Henry Brem

Patricia F. Brennan

Gert H. Brieger

Winslow R. Briggs

Orville G. Brim

Ralph L. Brinster

Norman H. Brooks

Alan C. Brown

Emery N. Brown

James A. Brown

James H. Brown

Richard Brownback

Rebecca H. Buckley

Joseph A. Buckwalter

Kathleen Coen Buckwalter

Martin J. Bukovac

Bull Run Philosophical

Society

Peter M. Bungay

Mary B. Bunge

John Bunnell

Benjamin S. Bunney

Michael Zubkoff

Anonymous (1)

William E. Bunney, Jr.

Douglas W. Burbank

Maurice B. Burg

Diane Burko and Richard

Ryan

Stephen V. Burks

Linda Burnes Bolton

Deborah Butler

Anne and

John Cahn*

John Cairns, Jr.

Eugenio Calabi

Allan Campbell

Dennis Cannon

M. Paul Capp

Alexander M. Capron

Diana D. Cardenas

William B. Carey

John R. Carlson

Richard W. Carlson

John E. Carlstrom

Robert L. Carneiro

William T. Carpenter, Jr.

Mark L. Carter

Regis Carvalho

Patrick Casey

Donald L. D. Caspar

Eric J. Cassell

Webster

and Jill

Cavenee

Setsuko K. Chambers

Sai Chand

Daniel G. Chatman

Ding-Shinn Chen

Herman Chernoff

Linda Cherrington

Wilsonia Cherry

Shu Chien

and Kuang

Chung Chien

Lynda Chin

E. Antonio Chiocca

Kathleen R. Cho

Rita K. Chow

Benjamin K. Chu

Francisco G. Cigarroa

James Cimino

George Ciscle

35



George W. Clark

Christopher Clarke

Sarah Cleaveland

Barbara Clemens


Tom Clemons

Linda Hawes Clever

Carolyn Cohen

Marshall H. Cohen

Morrel H. Cohen

Susan Cohen

Jonathan J. Cole

Mary Sue Coleman

Monica A. Coleman

Jack H. and

Rita R. Colwell

Jack M. Colwill

Phillip Combest

Eric E. Conn

Alison Conway

Patrick Conway

Leon N. Cooper

Max D. Cooper

Sally Cooper

Denis A. Cortese

Wayne D. Cottrell

Gary Cox

Mary Crass

Peter Cresswell

F. Fleming Crim

Thomas and Roselind

Cronin

Maureen L. Cropper

Ben Cummins

Douglas Cunningham

Robert F. Curl, Jr.

Graham Currie

Brent

and Sharon

Dalrymple

Ernest L. Daman

Janice Daniel

Philip D. Darney and Uta E.

Landy

Ingrid Daubechies

Ezra C. Davidson, Jr.

Nancy E. Davidson

David R. Davies

Julian Davies

Pamela B. Davis

Elizabeth Deakin

Lisa DeAngelis

John Deatrick

Alan H. DeCherney

Carlos M. del Rio

Patrick H. DeLeon

Pierre Deligne

Mahlon R. DeLong

David L. Denlinger

John DePaola and Mary

Haywood

Ronald A. DePinho

Roman W. DeSanctis

Stanley Deser

Ulyana V. Desiderio

Joseph M. DeSimone

Don E. Detmer

Jennifer E. DeVoe

Shelly DeZevallos

Luis A. Diaz

Nancy Wilson Dickey

Francois N. Diederich

Salvatore DiMauro

Andrew D. Dixon

Julie Donovan and Peter

Jenkins

Patricia M. Dove

John A. Dracup

Kathleen A. Dracup

Robert D. Drennan

Leon and Lucy Dubinsky

Greg J. Duncan

Mark Dunzo

Mitzi L. Duxbury

Jeffrey Dwoskin

Johanna T. Dwyer

James L. Dye

Felton Earls and Maya

Carlson

Marci Early

Dean E. Eastman

David L. Eaton

Timothy Eberlein

Calvin Edghill

David Eisenberg

David

and Lucy T.

Eisenberg

Richard Eisenberg

Fleming El-Amin II

Ammar Elhassan

Jason Elliott

Teo En Ming

John J. Eppig

Robert M. Epstein


*Deceased

W. G. Ernst

Gerhard Ertl

Jim Esselman

Carroll L. Estes

E. Harvey Estes, Jr.

Caswell A. Evans, Jr.

William E. Evans

John H. Exton

Claire M. Fagin

Asif Faiz

Harold J. Fallon

Robert M. Fano

Ruth and Martin Farber

Peggie Fariss

John W. Farquhar

Eric R. Fearon

Frank Fee

Elsa and George Feher

Marcus W. Feldman

Stephanie L. Ferguson

Harvey Fernbach

Donna M. Ferriero

Sima Ficks

Christopher Field

and

Nona Chiariello

Robert W. Field

Lee and Frank Field

Stanley Fields

Morris E. Fine*

Barbara J. Finlayson-Pitts

Joseph J. Fins

Edmond H. Fischer

Michael E. Fisher

Kent V. Flannery

Wendell H. Fleming

Gregory L. Florant

Judith Florman

Neil Foley

Robert E. and Elizabeth H.

Forster

Stephen P. Fortmann

Daniel W. Foster

Henry W. Foster, Jr.

Maurice Foushee

T. Kenneth Fowler

James G. Fox

Marye Anne Fox

John and Linda Francis

Barbara R. Frank

Edward Frank

Mark Franzen

Philip and Katie Friedel

George C. Frison

Mark Frisse

Fred Fry

Dennis G. Fryback

Elena Fuentes-Afflick

Margaret T. Fuller

Terry T. Fulmer

Mitchell H. Gail

Mary K. Gaillard and

Bruno Zumino*

Theodore V. Galambos

Vanessa Northington

Gamble

Elisabeth Gantt

Joe G. Garcia

John and Turkan Gardenier

Norman W. Garrick

Mary Gaydos

Helene D. Gayle

Michael S. Gazzaniga

Martin Gellert

Robert J. Genco

Naomi Lynn Gerber

Ronald N. Germain

John P. Geyman

Barbara A. Gilchrest

David Ginsburg

Linda C. Giudice

Mihalis Gkolias

Gary A. Glatzmaier

Seymour and Brenda Glick

Jeanne Goeglein

Alfred L. Goldberg

Janice F. Goldblum

Allen M. Goldman

Bernard D. Goldstein

Jerry Gollub

and Diane

Nissen

Solomon W. Golomb

Aaron Golub

Alvaro Gonzalez

Francisco Gonzalez-Scarano

Richard M. Goody

Enoch Gordis

Lev P. Gor'Kov

Geoffrey D. Gosling

Emil C. Gotschlich

Frederic L. Gould

Roy W. Gould

Patricia A. Grady

36



B. Rosemary Grant

Peter R. Grant

Margie and Larry A. Green

Deborah and John S.

Greenspan

M.R.C. Greenwood

Robert B. Griffiths

Lewis Grimm

Paul F. Griner

Ellen R. Gritz

Gerald N. Grob

Carol A. Gross

Marilyn and Norman

Grossblatt

Michael Grossman

Martin Gruebele

Murat Günel

Friederike Haass

Kathie Haire

Mark A. Hall

Zach W. Hall

Abdul-Rahman Hamad

Charles B. Hammond

Robert Hampshire

Susan Hanson

Thorbjorn Hansson

Su Hao

Charlene A. Harrington

Judith C. Harrington

Nicholas Harsh

Michelle Hart

Ann Hartell

Susan Hassmiller

Jameelah Hayes

Maxine Hayes

William R. Hazzard

Richard M. Held

Donald R. Helinski

Adam Heller

Martin Hellman

Robert W. Hellwarth

Sean Hennessy

Frances Henry

Arthur L. Herbst

Sarah Hernandez

Jo Ann Hersh

Timothy G. Hess

Howard H. Hiatt

Eve Higginbotham and

Frank Williams

Sally Hill-Cooper


*Deceased

Manju Hingorani

Kurt and Rochelle

Hirschhorn

John P. Hirth

Helen H. Hobbs

Carol A. Hochstrasser

Paul F. Hoffman

Frank Hole

William Holzemer

Edward A. Hoover

Joanne Hopkins and Joe

Gagan

Tracy Hopkins

Thomas F. Hornbein

James S. House

Roger Howe

Peter M. Howley

George Hripcsak

David Hsla

Herbie Huff

James M. Hughes

Barbara S. Hulka

Charles Hull

Sandral Hullett

Jerard Hurwitz

Peter Barton Hutt

Donald E. Ingber

Sharon K. Inouye

Luciana Iorio

Julie Ische

Kurt J. Isselbacher

Brian Jack

William R. Jacobs

Linos J. Jacovides

Arthur M. Jaffe

Elaine Sarkin Jaffe

Jodie L. Janowiak

Marjorie K. Jeffcoat

Howard Jennings

Dilip V. Jeste

Alan M. Jette

Michael M. Johns

Latoya Johnson

Marcia K. Johnson

Timothy Johnson

Ronald W. Jones

Ted Jones

Margaret S. and

Thomas H.

Jordan

Tiffany Joseph

Alexandra L. Joyner

Bart Kahr

Roger D. Kamm

David M. Karl

Beth Y. Karlan

Arthur Karlin

Morris J. Karnovsky

Gerard Karsenty

Nancy Kass

Jerome P. Kassirer

Michael B. Kastan

Daniel Kastner

Robert W. Kates

Michael Katz

Lydia Kavraki

Haig H. Kazazian, Jr.

Yang Ke

Emmett B. Keeler

Art Kellermann

David Kelley

Bridget B. Kelly

Irwin Kempler

Kenneth S. Kendler

Diana and

James Kennett

Nannerl O. Keohane

Robert O. Keohane

Gurdev S. Khush

Jamie M. Killorin

Linda M. Kilroy

Lonnie J. King

Raynard S. Kington

Kenneth W. Kinzler

Darrell G. Kirch

Margaret G. Kivelson

Todd R. Klaenhammer

Seymour J. Klebanoff

Nancy Kleckner

Claude B. Klee

Miles V. Klein

Daniel Kleppner

Genevieve Knezo

Andrew H. Knoll

Donald E. Knuth

Eva Kondorosi

Mary Frances Kornak

Hans Kornberg

Bill and Ann Koros

Conrad P. Kottak

Stephen G. and Sara

Dunham Kraskin

Gregory Krause

Richard D. Krugman

Casimir A. Kulikowski

Shiriki K. Kumanyika

Nathan Kuppermann

Ann Kurth

John E. Kutzbach

Michael D. Lairmore

Bruce M. Lake

Leslie B. Lamport

Lynn T. Landmesser

Neal F. Lane

Norma M. Lang

Ronald G. Larson

Sandra Q. Larson

Joyce C. Lashof

Leonard Lauder

Cynthia and Robert

Lawrence

Wendy and Ted Lawrence

Thorne Lay

Stephen Layton

Mitchell A. Lazar

M. A. Lee McNair

Marvin & Annette Lee

Foundation

Irene and Kit Lee

John Q. Trojanowski and

Virginia M.-Y. Lee

Yuan T. Lee

Susan E. Leeman

Anthony Leggett

Warren J. Leonard

Johanna M.H. Levelt

Sengers

Willem J. M. Levelt

Howard Leventhal

Aaron Levine

Myron M. Levine

Gail Lewis

Roger J. Lewis

Lin Li

David E. Liddle

Elliott H. Lieb

Tracy Lieu

Richard P. Lifton

Shin-Yi Lin

Susan L. Lindquist

Christopher Lindsey

Richard S. Lindzen

Marilynn A. Liotta

Stephen J. Lippard

Steven H. Lipstein

37



Nathan and

Barbara

Liskov

George Lister

Iris F. Litt

Roderick J. Little

Rodolfo R. Llinas

Irving M. London

Michael S. Longuet-

Higgins

Kathleen M. Lopez

Laszlo Lorand

Jacob Louie

Guillermina Lozano

Tom C. Lubensky

Stephen Ludwig

Thomas Lynch

Joanne Lynn

J. Ross Macdonald

Susan E. Mackinnon

Peter and Marlene

MacLeish

Thomas and Caroline

Maddock

Anthony P. Mahowald

Donald C. Malins

Willem V. R. Malkus

Beverly Malone

Gerry and Madeline

Malovany

Matthew Mampara

Erika C. Manning

Vincent T. Marchesi

Joyce Marcus

Rudolph A. Marcus

Hans Mark

James D. Marks

Michael Marletta and

Margaret Gutowski

Robert R. Marshak

Barry and Adrienne

Marshall

Karel Martens

George M. Martin

Ricardo Martinez

Manuel Martinez-

Maldonado

Ida M. Martinson

John C. Mather

Deborah Matherly

Goran and Susan

Matijasevic


*Deceased

Rowena

and Larry

Matthews

Sandra H. Matthews

Donald R. Mattison

Jonna Mazet

Michael McCall-Delgado

Ellen McCallie

Charles A. McCallum

J. Andrew McCammon

Barbara McCann

Pender M. McCarter

Laurie K. McCauley

Linda A. McCauley

Bob and Mary McCleary

Kathleen McClure-Wight

Dusa McDuff

James L. McGaugh

Elizabeth A. McGlynn


Pat and Jim McLaughlin

James O. McNamara

James C. McWilliams

David Mechanic

David J. Meltzer

Louis Merlin

Henry Metzger

Charles D. Michener*

Emmanuel Mignot

and

Servane Briand

Antonios G. Mikos

William W. Millar

Kyoko Miller

Linda B. Miller

John W. Milnor

Lori Minichini

Lloyd B. Minor

Raymond M. Miskowski

Kiyoshi Mizuuchi

Peter Moe

Patricia L. Mokhtarian

James W. Mold

Robert Montgomery

C. Bradley Moore

Peter B. Moore

William H. Moorhead

William Moose

Cathleen Synge Morawetz

Jonathan D. Moreno

M. Granger Morgan

Anne C. Morris

Richard Morris

Joanne Morse

Stephen Morse

Michael E. Moseley

Ellen S. Mosley-Thompson


John H. Moxley III

Sezaki K. Mtingwa

Darla and George E.*

Mueller

Warren R. Muir

Fitzhugh Mullan

Margaret M. Murnane

and

Henry C. Kapteyn

Michael Murphy and Karen

Gundersen

Robert Murphy

Suzanne P. Murphy

Royce W. Murray

Joshua Myers

Milap C. Nahata

Shigetada Nakanishi

Kesh S. Narayanan

Carl F. Nathan

Alan Needleman

Jack Needleman

Shawn Neil and Marcus

Shaw

Charles B. Nemeroff

Eugene W. and Martha T.

Nester

Eric J. Nestler

Liz

and Ben

Neufeld

Jo-Ann Neuhaus

Duncan B. Neuhauser

Norman and Georgine

Neureiter

James B. Nevels, Jr.

Eviatar Nevo

Maria Iandolo New

Elissa L. Newport

Michelle R. Neyman

Jennifer R. Niebyl

Elena and Stuart

Nightingale

Louis Nirenberg

Eva Nogales


Ryoji Noyori

Robert L. Nussbaum

Ruth S. Nussenzweig

Andrew Oakley

Godfrey P. Oakley

Piermaria J. Oddone

David Odell

Nancy A. Odenthal

Seiji Ogawa

William Ogren

Paul E. Olsen

Elaine S. Oran

Walter A. Orenstein

Joseph P. Ornato

Harry T. Orr

Sten Orrenius

David Ory

Juanita Owens

Luana Ozelim

Joseph S. Pagano

Lyman A. Page

Guy H. Palmer

Morton B. Panish

Alagusundaramoorthy

Paramasivan

Arthur B. Pardee

Mary-Lou Pardue

George W. Parshall

Narendra Parson

Barbara H. Partee

Ellen Partidge

Robert E. Patricelli

Arogyaswami J. Paulraj

Harold W. Paxton

Robert and Carol Peck

Nicholas A. Peppas

David H. Perlmutter

Edward B. Perrin

Carey Petrie

Gordon H. Pettengill

Martin A. Philbert

Theodore L. Phillips

William D. Phillips

Chester M. Pierce

Daniel S. Pine

David and Suzy

Pines

Vivian W. Pinn

Roy M. Pitkin

Terry A. Plank

Christopher Plano

Jeffrey L. Platt

Maryvonne C. Plessis-

Fraissard

Jewel Plummer Cobb

Stephen Polasky

38



Peter J. Polverini

John Edward Porter

Michael I. Posner

Kathleen M. Potempa

James M. Poterba

Deborah E. Powell

Elena Prassas

Joyce Pressley

Donald L. Price

Ronald F. Probstein

Jennifer M. Puck

Paul G. Quie

Helen R. Quinn

Thomas C. Quinn

Maureen Raley

Amelie G. Ramirez

Marilyn J. Rantz

Calyampudi R. Rao

Mark A. Ratner

Terry Reagan

Eve Reider

Robert D. Reischauer

Howard Reiss

Mary V. Relling

Kenneth A. Ribet

Dorothy P. Rice

James R. Rice

T. M. Rice

Charles C. Richardson

Lynn M. Riddiford

Barbara K. Rimer

Neil J. Risch

C. Ruth and

Eugene

Roberts

Morton S. Roberts

Edwina Rogers

Paul Rogers

Rich Roisman

Jacqueline Rojas

Matsiona Rolland Charnick

Barbara A. Romanowicz

Saul A. Rosenberg

Judy F. Rosenblith

Mark Rosenwasser

Michael G. Rossmann

Lucia B. Rothman-Denes

Rodney Rothstein

Esther and Lewis Rowland

Harry Rubin

Roberta L. Rudnick

Gary Runco


*Deceased

Benjamin Rusek

B. Don and Becky Russell

Eugene R. Russell

Liane B. Russell

Zelnio Ryan

Yoel Sadovsky

Roald Z. Sagdeev

N. P. Samios

Robert Samis

Bruce J. Sams

Leland Sandler

David T. Sandwell

Joshua R. Sanes

Jean-Daniel M. Saphores

Myriam P. Sarachik

David Satcher

Katherine Saylor

Trijntje Schapp

Jose A. Scheinkman

George W. Scherer

Joseph E. Scherger

Gerold L. Schiebler

Suzanne B. Schneider

Richard M. Schoen

William R. Schowalter

Richard R. Schrock

Julian I. Schroeder

Gerald Schubert

Gertrud M. Schupbach

Mark A. Schuster

Peter Schuster

J. Sanford and Susan

Schwartz

John H. Schwarz

Anne and Mel Schwarz

Thomas L. Schwenk

Tyrone Scorsone

Matthew P. Scott

Susan C. Scrimshaw

Dieter Seebach

George E. Seidel, Jr.

Larry and Linda Seidman

Donald W. Seldin

Theresa Senserrick

Nirav R. and Nidhi N. Shah

Iris R. Shannon

Linda Sharpe

Peter M. Shearer

Emilyn Sheffield

Kenneth A. Shepsle

Edward H. Shortliffe

Beth A. Simmons

Iakov G. Sinai

Robert E. Skinner, Jr.

Pamela Sklar

William S. Sly

James P. Smith

Richard J. Smith

Janille Smith-Colin

Louis* and Betty

Sokoloff

Edward I.

and Darlene J.S.

Solomon

Hugo F. Sonnenschein

Patricia G. Spear

Steven Spears

Frank E. Speizer

Charles S. Spencer

Thomas C. Spencer

Daniel Sperling

Allen M. Spiegel

David Spiegel

Nicholas Spitzer

Deepak Srivastava

Joseph W. St. Geme III

John R. Stanley

Harold Stark

John J. Stegeman

Dale F. and Audrey Stein

Donald M. Steinwachs

Andy Stergachis

David J. Stevenson

Bruce W. Stillman

J. Fraser Stoddart

Susanne A. Stoiber

Howard and Valerie

Stone

A. M. and Charlotte

Stradtman

Joan E. Strassmann

Brian and Deborah Stutz

Federico Subervi-Velez

Lawrence H. Summers

Norman Sutin

Peer Swan

Lynn R. Sykes

Megan Sykes

Lawrence A. Tabak

Joseph S. Takahashi

Masatoshi Takeichi

Charlotte and Morris

Tanenbaum

Jiarui Tao

Lisa Tauxe

Shiraz D. Tayabji

Saul A. Teukolsky

Athanasios Theologis

Elizabeth A. Thompson

Gregory L. Thompson

Lonnie G. Thompson

Gerald E. Thomson

David J. Thouless

Robert E. Tranquada

Harvey Triebwasser

George H. Trilling

Marianne Tropp

Vi Truong

Alex Tse

Marshall P. Tulin

Katherine F. Turnbull

Maria Tutica and Angelina

Bailey

Mark Tyra

David Ucko

Sandy and Myron Uman

William Underwood

Walter J. Unger

James L. Van Etten

Amiy Varma

Ramkumar

Venkatanarayana

Sidney Verba

Inder M. Verma

Sten H. Vermund

George Veronis

Alison Vickers

David A. Vogan

Dan-Virgil Voiculescu

Leslie B. Vosshall

Edward H. Wagner

David B. Wake

Thomas H. Wakeman

Bruce D. Walker and Alice

M. Cort

John M. Wallace

Edward E. Wallach

Christopher A. Walsh

Christopher T. Walsh

Qian Wang

Diane W. Wara

Kenneth E. Warner

Gerald J. Wasserburg

Judith Wasserheit

Robert H. Wasserman

George D. Watkins

39



Ewald R. Weibel

Elizabeth E. Weiner

Herbert Weissbach

Ralph Weissleder

Matt Welbes

William J. Welch

Joan Wennstrom Bennett

Zena Werb

John B. West

Mary Jane West-

Eberhard

Carolyn L. Westhoff

Raymond P. White, Jr.

Kenneth B. Wiberg

Jeanine P. Wiener-Kronish

Eric F. Wieschaus

Pauline W. Wiessner

Richard S. Wilbur

Diana J. Wilkie

Lewis T. Williams

Alana Wilson

Charles B. Wilson

Earl N. Wilson

Linda S. and Paul A. Wilson

Roger W. Wilson

Jason Wingard

Adam Winkleman

Fred M. Winston

Nancy F. Woods

George M. Woodwell

Tributes

James O. Woolliscroft

Peter E. Wright

Carl Wunsch

In Honor of Lynne Morishita and Tom Amatruda

Sharon K. Inouye

In Honor of Tom Amatruda and Lynne Morishita

Sharon K. Inouye

Phyllis M. Wise

Lauren Wiseman

Evelyn M. Witkin

Richard V. Wolfenden

Peter Wolynes and

Kathleen Bucher

Maurice Wood

William B. Wood III

Amber Woodburn

Eli Yablonovitch

Vivian W. W. Yam

Lingling Yang

Wayne and Lynn

Yokoyama

Frank E. Young

Laurence R. Young

Bin Yu

Oliver J. Yun

Patricia C. Zambryski

Maria E. Zavala

George D. Zuidema

Anonymous (4)

In Honor of Richard B. Johnston, Jr.

Godfrey P. Oakley

In Honor of Michael Lairmore

Jonna A. Mazet

In Honor of Carol Corillon

Martin Chalfie

In Honor of Lucy and Walt Dale

Claire D. Brindis

In Honor of Dr. Alan DeCherney and Dr. Roberto

Romero

Beth Y. Karlan

In Honor of Dr. Frederick Erdmann

Ira Shoulson

In Honor of Harvey Fineberg

Nancy E. Adler, Morris J. Karnovsky, Susan C.

Scrimshaw

In Honor of Melvin Grumbach

Elena Fuentes-Afflick

In Honor of Robert M. Hauser

Michael Hout, Robert D. Mare, Douglas S. Massey, Yu

Xie

In Honor of Ian Hutcheon

Gerald J. Wasserburg

In Honor of David E. Liddle

Edward Frank

In Honor of Anne-Marie C. Mazza

Marvin Schechter

In Honor of John, Jennifer, Jace and Kade Anderson

Barbara Murphy

In Honor of Conor Brennan Murphy

Patricia F. Brennan

In Honor of Alan DeCherney and Roberto Romero

Beth Y. Karlan

In Honor of Walter A. Rosenblith

Judy F. Rosenblith

In Honor of David Vaughan

Marvin Farber

In Memory of Leo K. Bustad

Roger O. McClellan

In Memory of Mary Catherine Costello

Jeanne Goeglein


*Deceased

40



In Memory of Donald S. Fredrickson

Walter J. Unger

In Memory of Alfred Gilman

Joseph S. Takahashi

In Memory of David M. Kipnis

Mark Frisse

In Memory of Fred Leonard

Warren J. Leonard

In Memory of Theresa Manson In Memory of Luther and Ruby Higginbotham

Eve J. Higginbotham

In Memory of John R. Hogness

Walter J. Unger

In Memory of James P. Hughes

JoAnn E. Manson

In Memory of Marshall Nirenberg

Myrna M. Weissman

In Memory of Geoffrey Shellam

James M. Hughes

In Memory of Joshua Bryan Inouye Helfand and Mitsuo

Inouye

Sharon K. Inouye

Barry J. Marshall

In Memory of William N. Spellacy

Lynn M. Larsen

The Presidents’ Circle

The Presidents’ Circle is an advisory and philanthropic support group of the Academies. Gifts from members of the

Presidents’ Circle help promote awareness of science, engineering, and medicine in our society and a better understanding of the work of the Academies.

MEMBERS

Benjamin W. Heineman, Jr. Christopher P. Michel Thomas C. Sutton Drew E. Altman


Donald R. Beall

Jane Hirsh

Charles O. Holliday, Jr.

David T. Morgenthaler

Darla Mueller

Judy Swanson

Jay S. Walker

Tanya S. Beder

Daniel A. Bennett

Lawrence A. Bock

Nancy E. Conrad

Juan Enriquez

Richard P. Fishman

Richard N. Foster

Dan Gupta

EMERITUS MEMBERS

Ernest A. Bates

Berkley Bedell

Diane Bernstein

Malin Burnham

Louis W. Cabot

M. Blouke Carus


Howard E. Cox


Irwin M. Jacobs

William I. Koch

Jill H. Kramer

Kent Kresa

Whitney MacMillan

Davis L. Masten

John F. McDonnell

Christopher D. McFadden

George C. Eads

Raymond E. Galvin

Eugene Garfield

Jack M. Gill

Samuel F. Heffner, Jr.

M. Blakeman Ingle

Christopher Ireland

Robert L. James

Scott A. Jones


Frank Press

John S. Reed

John W. Rowe

Ajay Royan

Jillian Sackler

Sarah Scott Mitchell

Susan E. Siegel

Gerald D. Laubach

Richard J. Mahoney

Robert H. Malott

Burton J. McMurtry

Charles H. McTier

Kamal K. Midha

Joe F. Moore

Robert W. Morey, Jr.

Patricia S. Nettleship

Ronald H. Waterman

Kelly Wanser

Ronald A. Williams

Joshua Wolfe

Peter Zandan

James W. Ziglar

Anonymous (2)

Neil R. Rolde

Axel Schupf

Sara L. Schupf


Deborah Szekely

Margaret S. Wilson

Carole S. Young

James F. Young


*Deceased

41



Foundations, Corporations, and Other Organizations

Cumulative Giving through December 31, 2015

In 1919, Carnegie Corporation of New York provided a vital gift to construct the National Academy of Sciences Building and to establish an endowment for the Academy and the National Research Council. Since that time, the following foundations and corporations have supported our work on behalf of the nation with gifts or grants of $1 million or more.

Carnegie Corporation of New York

The Ford Foundation

The Bill & Melinda Gates Foundation

The Robert Wood Johnson Foundation

$25 million or more

W.M. Keck Foundation

W.K. Kellogg Foundation

The Koshland Foundation

Arnold and Mabel Beckman Foundation

The Charles Stark Draper Laboratory

The William and Flora Hewlett Foundation

Howard Hughes Medical Institute


The Andrew W. Mellon Foundation

The Cynthia and George Mitchell Foundation

Raymond & Beverly Sackler Foundation

Alfred P. Sloan Foundation

The John D. and Catherine T. MacArthur

Foundation

Michael and Susan Dell Foundation

The Grainger Foundation

The Irvine Company

Kaiser Permanente


The Kavli Foundation

The Pew Charitable Trusts

The Rockefeller Foundation

Aetna Foundation

American Board of Family Medicine

American Cancer Society, Inc.

American Legacy Foundation

American Public Transportation Association

America’s Health Insurance Plans Foundation

Amgen, Inc.

Association of American Railroads


Burroughs Wellcome Fund

The California Endowment

California HealthCare Foundation

Margaret A. Cargill Foundation

Chevron Corporation

Chrysler Group LLC

The Commonwealth Fund

John and Laura Arnold Foundation

AstraZeneca Pharmaceuticals LP

AT&T Corporation

Atkinson Family Foundation

The Dow Chemical Company

E.I. du Pont de Nemours & Company

Eastman Kodak Company

The Ellison Medical Foundation

The Atlantic Philanthropies (USE)

Craig & Barbara Barrett Foundation

Battelle

S.D. Bechtel, Jr. Foundation

Blue Shield of California Foundation

The Boeing Company

Breast Cancer Research Foundation

Bristol-Myers Squibb Company

ExxonMobil Corporation

ExxonMobil Foundation

Ford Motor Company

General Electric Company

General Motors Company

GlaxoSmithKline

Google, Inc.

William T. Grant Foundation

Great Lakes Protection Fund

42



The Greenwall Foundation

The John A. Hartford Foundation

Leona M. and Harry B. Helmsley Foundation

Lumina Foundation for Education

Hewlett-Packard Company

Intel Company

International Business Machines Corporation

Johnson & Johnson

The JPB Foundation

JSM Charitable Trust

Ewing Marion Kauffman Foundation

The Susan G. Komen Breast Cancer Foundation

Daniel E. Koshland, Jr. Family Fund

The Kresge Foundation

Eli Lilly and Company

Lockheed Martin Corporation

Richard Lounsbery Foundation

Josiah Macy, Jr. Foundation

Merck & Company, Inc.

Merck Company Foundation

Microsoft Corporation

The Ambrose Monell Foundation

Monsanto Company

Gordon and Betty Moore Foundation

National Multiple Sclerosis Society

Northrop Grumman Corporation

Nuclear Threat Initiative

O’Donnell Foundation

The David and Lucile Packard Foundation

Peter G. Peterson Foundation

Pfizer, Inc.

Robert Pritzker Family Foundation

Research Corporation for Science Advancement

Rockefeller Brothers Fund

Richard & Hinda Rosenthal Foundation

Sanofi-Aventis

The Spencer Foundation

The Starr Foundation

The Wellcome Trust

Robert W. Woodruff Foundation

Xerox Corporation

2015 Gifts and Grants

We gratefully acknowledge the following foundations, corporations, and other organizations that provided funding in 2015 to support the work of the National Academies of Sciences, Engineering, and Medicine.

The Laura and John Arnold Foundation

Carnegie Corporation of New York

The Ford Foundation

The Greenwall Foundation

The Bill & Melinda Gates Foundation

The William and Flora Hewlett Foundation

Conrad N. Hilton Foundation

The Gordon and Betty Moore Foundation

$1,000,000 or more

The Robert Wood Johnson Foundation

The Kavli Foundation

Raymond & Beverly Sackler Foundation, Inc.

The Wellcome Trust

$500,000 to $1,000,000

Peter G. Peterson Foundation

The Rockefeller Foundation

Zurich Risk Engineering (Zurich Insurance Group)

AbbVie

Aetna Foundation

Paul G. Allen Family Foundation

American Association of Colleges of Pharmacy

American Medical Association

Amgen Foundation

Anheuser-Busch InBev

Autism Speaks, Inc.

S.D. Bechtel, Jr. Foundation

The Breast Cancer Research Foundation

Bristol-Myers Squibb Company

Burroughs Wellcome Fund

The Walt Disney Company

$100,000 to $500,000

Doris Duke Charitable Foundation

East Bay Community Foundation

Eli Lilly and Company

Eli Lilly and Company Foundation

Elsevier Science

Environmental Defense Fund

Foundation for the National Institutes of Health

Google, Inc.

William T. Grant Foundation

Leona M. and Harry B. Helmsley Charitable Trust

Hillman Family Foundations

Howard Hughes Medical Institute

The Kresge Foundation

43



Robert and Mary Litterman Foundation

Richard Lounsbery Foundation

The John D. and Catherine T. MacArthur Foundation

The Andrew W. Mellon Foundation

The Melville Charitable Trust

Merck & Company, Inc.

Northrop Grumman Corporation

The David and Lucille Packard Foundation

Lucille Packard Foundation for Children’s Health

Pfizer, Inc.

The Ambrose Monell Foundation

J.P. Morgan Chase Foundation

Jewish Community Foundation of Southern Arizona

Koninklijke Philips Electronics N.V.

Lumina Foundation for Education

Mars Incorporated

Academy of Nutrition and Dietetics

American Association of Petroleum Geologists

D. E. Shaw Research, LLC

Skoll Global Threats Fund

Takeda Pharmaceuticals

Vulcan, Inc.

Waksman Foundation for Microbiology

$50,000 to $100,000

Humana, Inc.

IEEE

Foundation

American Cancer Society, Inc.

American Chemistry Council

American Dental Association

American Heart Association

American Hospital Association

American Public Transportation Association

American Red Cross

Amgen, Inc.

Anthem Blue Cross Blue Shield

AstraZeneca Pharmaceuticals LP

Baxter Healthcare Corporation

Biogen Idec Inc.

Blue Shield of California Foundation

The Boeing Company

California HealthCare Foundation

Cargill, Inc.

CEO Roundtable on Cancer, Inc.

Colgate-Palmolive Company

ExxonMobil Foundation

Fidelity Charitable Gift Fund

General Electric Company

General Mills, Inc.

GlaxoSmithKline

Greater Saint Louis Community Foundation

HCA Inc.

Healthy Weight Commitment Foundation

Heising-Simons Foundation

Highmark, Inc.

Jacobs Foundation

Janssen Research & Development, LLC

Kaiser Permanente

The MAC AIDS Fund

Medtronic, Inc.

Robert McCormick Foundation

Richard King Mellon Foundation

Methodist Healthcare Ministries

Nemours Foundation

Nestle USA, Inc.

North Shore LIJ Health System

Novartis Pharmaceuticals Corporation

Novo Nordisk Diabetes Innovation Award Program

The Ohio State University

PepsiCo, Inc.

Raytheon Company

Fannie E. Rippel Foundation

Sandia National Laboratories

Sanofi Pasteur

Schlumberger Ltd.

Schwab Charitable Fund

The Simons Foundation

The Teagle Foundation Inc.

Texas A&M University

Training for Health Equity Network Inc.

United Health Foundation

United Healthcare

United Soybean Board

Abbott Laboratories

Agilent Technologies

Alzheimer's Association

American Academy of Nursing

American Association for Cancer Research

American College of Clinical Pharmacy

American Council on Exercise

American Psychological Association

American Society for Radiation Oncology

$25,000 to $50,000

American Society of Clinical Oncology

American Society of Hematology

Annual Reviews

Ascension Health

Association of American Medical Colleges

Association of Schools of Public Health

Association of State and Territorial Health Officials

Bezos Family Foundation

BlueCross and BlueShield Association

44



Brewster Foundation

California Institute of Technology

C-Change

Cedars Sinai Medical Center

The Coca-Cola Company

College of American Pathologists

Colorado School of Mines

ConAgra, Inc.

Courtesy Associates

Dairy Research Institute

The Dow Chemical Company

The George Washington University

Greater Rochester Health Foundation

Harris Corporation

Healthcare Financial Management Association

Heineman-Russell Family Foundation

Iowa State University

Jade Ventures

Kraft Foods, Inc.

LeadingAge, Inc.

Lockheed Martin Corporation

National Comprehensive Cancer Network, Inc.

National Peanut Board

NESTEC, SA

Ocean Spray Cranberries, Inc.

Oncology Nursing Society

Patient-Centered Outcomes Research Institute

Pharmaceutical Research and Manufacturers of America

PPD Development, LLC

The Procter & Gamble Company

Research to Prevent Blindness

Sanofi European Treasury Center

Seafood Industry Research Fund

Siemens Corporation

The Spencer Foundation

Tate & Lyle Ingredients Americas

Temple University of the Commonwealth

Dave Thomas Foundation for Adoption

Unilever Bestfoods North America

University of California, Davis

University of Florida

University of Maryland

University of Michigan

Bernard Van Leer Foundation

Washington Area Women's Foundation

Washington State University

West Virginia University

AB Vista, Inc.

ABIM Foundation

Alliance for Continuing Medical Education

Alliance of Crop, Soil & Environmental Social Sciences

American Academy of Family Physicians

$10,000 to $25,000

Association of American Cancer Institutes

Association of Schools and Colleges of Optometry

Academic Consortium for Complementary & Alternative

Health Care

Accreditation Council for Graduate Medical Education

Alliance for Continuing Education in the Health

Professions

Association of Schools of Allied Health Professionals

Auburn University

Austin Community Foundation

Battelle Pacific Northwest National Laboratory

The Beall Family Foundation


Boston Scientific Corporation

Brain Canada Foundation

American Academy of Ophthalmology

American Association of Colleges of Nursing

American Association of Colleges of Osteopathic

Medicine

American Association of Retired Persons

American Board of Family Medicine

American Board of Internal Medicine

American College of Emergency Physicians

CADCA

Catholic Health Initiatives

Chevron Corporation

CHS, Inc.

Cleveland Foundation

Climate Central

Comcast Corporation

The Community Foundation National Capital Region

Share Fund

Council of Academic Programs in Comm. Sciences and

American College of Nurse-Midwives

American Council of Academic Physical Therapy Inc.

American Dental Education Association

American Educational Research Association

American Institute for Cancer Research, Inc.

American Occupational Therapy Association, Inc.

American Optometric Association

American Society for Microbiology

Disorders

Council on Social Work Education, Inc.

Covance MAD Labs Inc.

CTA Foundation

DSM Finance

Dynetics, Inc.

East West Protection, LLC American Society for Nutrition

The American Society of Human Genetics

American Speech-Language Hearing Association

Arizona State University

Edelman

F. Felix Foundation

Foundation for Child Development

45



Genentech, Inc.

Global Health Innovative

Golden Family Foundation

Grand Challenges Canada

The John A. Hartford Foundation, Inc.

Healthcare Ready

Henderson Foundation

Heritage Technologies

Hewlett-Packard Company

High Scope

Hy-Line International

Infectious Diseases Society of America

Institute of International Education, Inc.

Intel Corporation

Inter-American Development Bank

Lundbeck Research USA, Inc.

Michigan Technological University

Mile High United Way

Mithril Capital Management LLC.

National Academies of Practice

National Association of Chain Drug Stores Foundation

National Association of County and City Health Officials

National Association of Emergency Medical Technicians

National Association of Social Workers

National Board of Medical Examiners

National League for Nursing, Inc.

National Multiple Sclerosis Society

National Organization for Associate Degree Nursing

National Society of Genetic Counselors

National Water Research Institute

Noblis Inc.

Northeastern University

Novus International Inc.

One Mind for Research

Optical Society of America

Partners HealthCare Systems, Inc.

PATH

Physician Assistant Education Association

Qualcomm, Inc.

Reebok International Ltd.

The Rutter Foundation

Sabic

Dame Jillian & Dr. Arthur M. Sackler Foundation

Samueli Foundation

Alfred P. Sloan Foundation

Society for Neuroscience

Society for Research in Child Development

Society for Simulation in Healthcare

Stanford University

Target Corporation

Texas Biomedical Research Institute

Trauma Center Association of America, Inc.

Tufts University

United Nations Foundation

Universitair Zeikenhuis

University of California, Berkeley

University of California, Los Angeles

University of Illinois at Urbana-Champaign

University of North Dakota

University of Pennsylvania

University of Pittsburgh

The University of Tennessee, Knoxville

The University of Texas at Austin

University of Toronto

University of Washington

University Physicians, Inc.

UT-Battelle

Vesto M. Slipher Charitable Trust

The Maria Cecília Souto Vidigal Foundation

Vitality Group, LLC

W.M. Keck Foundation

Water Environment Research Foundation

Alliance for a Healthier Generation, Inc.

Alliance for Home Health Quality and Innovation

AllTech Inc.

American Academy of Pediatrics

American Association for the Advancement of Science

The American Board of Obstetrics and Gynecology

The American Veterinary Medical Association

$1,000 to $10,000

Asthma and Allergy Foundation of America

The AYCO Charitable Foundation

Babcock & Wilcox Company

Baumol Family Foundation

Bell Family Foundation

Bipartisan Policy Center

Branscomb Family Foundation

American College of Medical Genetics

American College of Obstetricians & Gynecologists

American College of Sport Medicine

American Diabetes Association

American Statistical Association

Asphalt Institute, Inc.

Association for Molecular Pathology, Inc.

Brinkman Family Foundation

The Harold & Colene Brown Family Foundation

California Community Foundation

Cancer Support Community

Case Western Reserve University

Chubb & Son

Community Foundation for Southeastern Michigan

Association for Research in Vision Council on Food, Agricultural and Resource Economics

46



The Critical Path Institute

Dartmouth College

Det Norske Videnskapa-Akademi

RD & AM Douglas Foundation

Duke University

Edwards Aquifer Authority

Eucalyptus Associates, Inc.

FasterCures/The Center for Accelerating Medical

Solutions

Flextech Alliance Inc.

Friends of Cancer Research

Georgia Tech Research Corporation

Harvard University

Hospital for Sick Children

Houston Jewish Community Foundation

Human Factors and Ergonomics Society

IHI Corporation

ILSI North America

Indiana University

INEOS Nitriles

Institute of Mathematical Statistic

International Health Foundation

Jewish Community Foundation San Diego

The Katz Family Foundation

Kellogg Company

Lawrence Berkeley National Laboratory

Alan G. Lehman and Jane A. Lehman Foundation

Massachusetts Institute of Technology

Massachusetts Medical Society

Meals to Heal, LLC

MedImmune

Merck Partnership for Giving

Miami Foundation

Michelin North America, Inc.

Milbank Memorial Fund

Morris Animal Foundation

Northern Illinois University

The Obesity Society

Orcas Island Community Foundation

Orion Bionetworks, Inc.

Partnership for a Healthier America

Pfizer Foundation Matching Gifts Program

PHI

Raymond James Charitable Endowment Fund

Rensselaer Polytechnic Institute

Rutgers, The State University of New Jersey

Secure World Foundation

Sense About Science USA

Sierra Health Foundation

Texas Pacific Group

Triangle Community Foundation, Inc.

Universiteit Gent

The University of Iowa

University of Kentucky

University of Maryland Faculty Physicians, Inc.

University of Minnesota

University of Rochester

University of Southern California

Virginia Tech University

Weed Science Society of America

Joan and Sanford I. Weill Medical College & Graduate

School

Wells Fargo Foundation

Westinghouse Electric Company

Worcester Polytechnic Institute

Yanofsky Family Trust

Zerhouni Family Charitable Foundation, Inc.

We have made every effort to list donors accurately and according to their wishes. If we have made an error, please accept our apologies and contact the Office of Development at 202.334.2431 so that we may correct our records.


47




III. Financial Condition



Auditing Committee

June 7, 2016

Dr. Ralph J. Cicerone

President

National Academy of Sciences

Dear Dr. Cicerone:

In accordance with paragraph 11 of section II of the Bylaws of the National

Academy of Sciences, the firm of KPMG LLP was retained by the Auditing Committee on behalf of the Council to conduct an audit of the accounts of the Treasurer for the year ended

December 31, 2015, and to report to the Auditing Committee.

The independent accountants have completed their audit and submitted their report.

In accordance with paragraph 13 of section II of the Bylaws, the Auditing Committee has reviewed the report and recommends to the Council that it be accepted and that the opinion of the independent accountants be published with the report of the Treasurer.

Respectfully submitted,

Auditing Committee

Robert H. Wurtz, Chair

Claude R. Canizares

Susan Gottesman

Ronald L. Graham

Brian W. Matthews

50



KPMG LLP

1676 International Drive

McLean, VA 22102

The Auditing Committee

National Academy of Sciences:

We have audited the accompanying financial statements of the National Academy of Sciences, which comprise the statements of financial position as of December 31, 2015 and 2014, and the related statements of activities, and cash flows for the years then ended, and the related notes to the financial statements.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits i n accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.



Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the National Academy of Sciences as of December 31, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended, in accordance with U.S. generally accepted accounting principles.

May 27, 2016

52



NATIONAL ACADEMY OF SCIENCES

Statements of Financial Position

December 31, 2015 and 2014

(In thousands)

Assets

Current assets:

Cash and cash equivalents

Short-term investments (notes 3 and 4)

Contracts receivable (notes 2 and 12)

Contributions and other receivables, net (notes 2 and 6)

Other current assets

Total current assets

Other assets (notes 2, 13, 14, and 15)

Long-term investments (notes 3 and 4)

Contributions receivable, net (notes 2 and 6)

Property and equipment, net (note 5)

Einstein Memorial

Total assets

Liabilities and Net Assets

Liabilities:

Current liabilities:

Accounts payable and accrued expenses

Deferred revenue (note 7)

Lines of credit (note 8)

Other current liabilities (notes 2 and 13)

Total current liabilities

Bonds payable (note 13)

Funds held on behalf of others (notes 3 and 4)

Accrued employee benefits (note 14)

Other long-term liabilities (notes 2 and 13)

Total liabilities

Net assets:

Unrestricted

Temporarily restricted (note 9)

Permanently restricted (note 10)

Total net assets

Commitments and contingencies (notes 3, 12, 13, 14, 16, and 17)

Total liabilities and net assets

See accompanying notes to financial statements.

2015 2014

$

$

$

$ 3,274 $

56,852

83,919

154,107

10,995

309,147

5,216

539,631

268,889

167,188

1,723

1,291,794 $

9,481

51,156

78,046

81,810

9,585

230,078

8,192

490,908

395,180

173,632

1,723

1,299,713

36,809 $

37,296

13,669

5,522

93,296

164,305

11,179

8,876

10,574

288,230

101,981

754,958

146,625

1,003,564

1,291,794

37,801

37,979

7,061

5,679

88,520

168,191

11,582

8,207

11,503

288,003

110,515

766,186

135,009

1,011,710

$ 1,299,713

53




Statements of Activities

Years ended December 31, 2015 and 2014


2015

Unrestricted

Temporarily restricted

Permanently restricted

Revenues, gains, and other support:

Government contracts and grants (note 12)

Private contracts and grants

Gulf Research Program

Other contributions

Fees and publications

Investment income (note 3)

Other income (note 13)

Net assets released from restriction (note 9)

$ 206,648

12,842

-

3,921

15,984

(2,028)

14,098

58,854

-

37,124

9,222

5,350

-

(4,070)

-

(58,854)

Total Unrestricted

2014



-

11,616

- 206,648 $ 231,188

- 49,966 19,446

9,222

20,887

-

3,496

-

-

-

15,984

(6,098)

14,098

17,544

5,744

11,204

- - 46,300

-

29,825

10,543

468

-

20,106

-

(46,300) -

Total

-

9,067

- 231,188

- 49,271

10,543

13,031

-

-

-

17,544

25,850

11,204

-

Total revenues, gains, and other support

Expenses (notes 13 and 14):

Programs (note 11)

Management and general

Fundraising

Total expenses

310,319

266,044

48,994

2,826

317,864

(11,228)

-

-

-

-

11,616 310,707 334,922

- 266,044 274,155

- 48,994 48,794

- 2,826 2,453

- 317,864 325,402

14,642

-

-

-

-

9,067 358,631

- 274,155

- 48,794

- 2,453

- 325,402

Postretirement changes other than net periodic benefit cost (note 14)

Change in net assets

Net assets at beginning of year

Net assets at end of year

989

(8,534)

110,515

$ 101,981

-

(11,228)

766,186

754,958

-

11,616

989

(8,146)

6,906

2,614

135,009 1,011,710 107,901

146,625 1,003,564 $ 110,515

-

14,642

751,544

766,186

-

9,067

6,906

26,323

125,942 985,387

135,009 1,011,710

54





Statements of Cash Flows

Years ended December 31, 2015 and 2014


Cash flows from operating activities:

Change in net assets

Adjustments to reconcile change in net assets to net cash provided by operating activities:

Depreciation and amortization

Loss on disposal of property and equipment

Bad debt expense

Net loss (gain) on investments

Net loss (gain) on investments held on behalf of others

Amounts collected on behalf of others

Amounts remitted on behalf of others

Change in value of interest rate swap

Change in value of split-interest agreements

Contributions restricted for construction or endowment

(Increase) decrease in assets:

Other receivables

Contracts receivable

Other current assets

Other assets

Increase (decrease) in liabilities:

Accounts payable and accrued expenses

Deferred revenue

Other current liabilities

Funds held on behalf of others

Other long-term liabilities

Accrued employee benefits

Net cash provided by operating activities

Cash flows from investing activities:

Additions to property and equipment

Sales or maturities of investments

Purchases of investments

Net cash used in investing activities

Cash flows from financing activities:

Contributions restricted for construction or endowment

Proceeds from lines of credit

Payments on lines of credit

Payments on bond principal

Net cash provided by (used in) financing activities

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year

Supplemental disclosure of cash flow information:

Interest paid

2015

$ (8,146)

8,243

16

(79)

16,239

311

(2,967)

3,207

(534)

(69)

(14,677)

54,074

(5,873)

(1,410)

2,833

(992)

(683)

(620)

(403)

(27)

669

49,112

(1,899)

279,089

(350,149)

(72,959)

14,677

163,028

(156,420)

(3,645)

17,640

(6,207)

9,481

$ 3,274

$ 5,686

2014

$ 26,323

8,177

77

(119)

(12,538)

(264)

(5,689)

6,266

667

(91)

(3,665)

15,097

(7,919)

(1,047)

590

(1,525)

4,071

(1,878)

473

80

6,405

33,491

(3,631)

196,061

(213,136)

(20,706)

3,665

128,597

(135,105)

(3,475)

(6,318)

6,467

3,014

$ 9,481

$ 5,765



55



Notes to

Financial Statements

December 31, 2015 and 2014

(1) ORGANIZATION AND RELATED

ENTITIES

(a) National Academy of Sciences

The National Academy of Sciences (NAS) was formed under a charter that was passed as an Act of Incorporation by the United States Congress and signed into law on

March 3, 1863. NAS operates as a private cooperative society of distinguished scholars engaged in scientific or engineering research, dedicated to the furtherance of science and its use for the general welfare.

(b) National Research Council

Most of the activities undertaken by NAS are carried out through the divisions and boards of the National Research

Council (NRC). The NRC draws on a wide cross section of the nation’s leading scientists and engineers for advisory services to government agencies and Congress.

To respond effectively to both the disciplinary concerns of the research community and the complex interdisciplinary problems facing American society, NRC performs its studies and workshops through the following major divisions:

•

Behavioral and Social Sciences and Education

•

Earth and Life Studies

•

Engineering and Physical Sciences

•


•

Institute of Medicine

•

Policy and Global Affairs

•

Transportation Research Board

NRC activities are under the control of the NAS governance structure and, therefore, are included in the NAS financial statements.

(c) Institute of Medicine

The Institute of Medicine (IOM), which was established in 1970, has been reconstituted as the National Academy of Medicine (NAM) effective June 1, 2015. NAM is a separate membership organization within NAS, and issues position statements on policy issues related to health and medicine, cooperates with the major scientific and

. professional societies in the field, identifies qualified individuals to serve on study groups in other organizational units, and disseminates information to the public and the relevant professions. The financial activities and results of NAM are included in the NAS financial statements.

(d) National Academy of Engineering

The National Academy of Engineering (NAE) was established in 1964 under the charter of NAS as a related parallel organization, autonomous in its governance, administration, and the selection of its members. NAE shares with NAS the responsibility for advising the federal government on scientific issues. The NAE conducts independent program activities and activities through the NRC. The results of both of these activities are included in the NAS financial statements.

(e) National Academy of Engineering Fund

The National Academy of Engineering Fund (NAEF) is a separately incorporated tax-exempt organization established and controlled by NAE to raise funds to support its goals. The financial activities and results of NAEF are not included in the NAS financial statements.

(f) The National Academies’ Corporation

The National Academies’ Corporation (TNAC) was separately incorporated in 1986 as a tax-exempt corporation for the purpose of constructing and maintaining a study and conference facility. This facility, the Arnold and Mabel Beckman Center, located in Irvine, California, operates to expand and support the general activities of

NAS, NRC, NAM, and NAE. TNAC is controlled by

NAS and NAEF. The financial position and results of

TNAC are not consolidated in the NAS financial statements. NAS manages the operations of the Beckman

Center.

(2) SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES

(a) Basis of Accounting

Net assets, revenues, gains, and losses are classified based on the existence or absence of donor-imposed restrictions.

Accordingly, net assets of NAS are classified and reported as follows:

Permanently restricted

– Net assets subject to donor-imposed stipulations that they be maintained in perpetuity by NAS. Generally, the donors of these assets permit NAS to use all or part of the income earned on related investments for general or specific purposes.

56



Temporarily restricted

– Net assets subject to donor-imposed stipulations that may or will be met either by actions of NAS and/or the passage of time. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.

Unrestricted

– Net assets arising from exchange transactions and contributions not subject to donor-imposed stipulations.

(b) Cash Equivalents

NAS reports liquid, temporary investments purchased with original maturities of three months or less as cash equivalents.

(c) Investments

Investments are stated at fair value. Changes in the fair value of investments are reported within investment income in the statements of activities.

Certain investments are pooled for long-term investment purposes. Investments in the pool are administered as an open-end investment trust, with shares of the pool funds expressed in terms of participating capital units (PCUs).

PCU values are used to determine equity in the allocation of investment income among funds in the pool whenever additional funds are contributed or withdrawn.

(d) Contributions

Contributions, including unconditional promises to give, are recognized as revenues in the period received.

Conditional promises to give are not recognized until all conditions are substantially met.

Revenues from nonfederal grants qualifying as contributions are recorded by NAS upon notification of the grant award. Such grants are classified as temporarily restricted net assets when use of the grant funds is limited to specific areas of study or is designated for use in future periods.

Gifts of land, buildings, or equipment are reported as unrestricted net assets unless explicit donor stipulations specify how the donated assets must be used. Temporary restrictions on gifts that must be used to acquire long-lived assets are released in the period in which the assets are acquired or placed in service.

Allowances are recorded for estimated uncollectible contributions based upon management’s judgment and analysis of the creditworthiness of the donor, past collection experience, and other relevant factors. Contributions to be received after one year are discounted at an appropriate rate commensurate with risks involved.

Amortization of the discount is recorded as additional

. revenue and is used in accordance with donor-imposed restrictions, if any, on the contributions. These inputs represent Level 3 inputs in the fair value hierarchy. The carrying value of contributions receivable approximates fair value because of the relatively short maturity of these assets.

NAS performs certain activities in connection with fundraising by NAEF. NAS collected a total of $3.2 million and $5.4 million in 2015 and 2014, respectively, on behalf of NAEF. NAS disbursed $3.4 million and $6.2 million to

NAEF from these collected amounts in 2015 and 2014, respectively. Amounts collected but not yet remitted to

NAEF are included in other current liabilities in the statements of financial position.

Gulf Research Program revenue relates to two agreements between NAS and BP Exploration and Production, Inc.

(BP) and Transocean Deepwater Inc. (Transocean), respectively. As a result of separate plea agreements between those corporations and the federal government related to the 2010 Deepwater Horizon disaster, NAS was asked to establish a program focused on human health and environmental protection in the Gulf of Mexico. BP will pay $350.0 million over five years, and Transocean will pay $150.0 million over four years, to fund this 30-year,

$500.0 million program. The present value of these payments in 2013 was $471.4 million, which was recognized as revenue in that year. The present value of the balance of these payments is $396.2 million and

$452.9 million as of December 31, 2015 and 2014, respectively. The unpaid balance due for each agreement is reflected in contributions and other receivables

(current) and contributions receivable (long term) in the statements of financial position.

(e) Contracts and Grants

The majority of NAS activities are performed under cost-reimbursable contracts and grants with the

U.S. government. For the years ended December 31, 2015 and 2014, the Department of Transportation provided

40% and 44%, respectively, of NAS government contract and grant revenue.

NAS records federal contracts and grants as exchange transactions, recognizing revenue as recoverable costs are incurred. Revenues from nonfederal contracts and grants classified as exchange transactions are also recognized as recoverable costs are incurred.

Contracts receivable consisted of $29.2 million of billed receivables, $52.9 million of unbilled receivables, and

$1.8 million of indirect costs under recovered on federal contracts and grants as of December 31, 2015. Contracts receivable consisted of $16.6 million of billed receivables, $55.0 million of unbilled receivables, and $6.4

57


Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015 million of indirect costs under recovered on federal contracts and grants as of December 31, 2014.

(f) Inventories

Inventories are stated at the lower of cost or net realizable value and include both work in process and finished goods related to publication activities. The majority of

NAS publication inventories and supplies reside with an

NAS unit, the National Academy Press (NAP). NAP uses the full absorption costing methodology in pricing finished products. This methodology includes direct printing and related indirect costs. Inventories are included in other current assets in the statements of financial position.

(g) Property and Equipment

Depreciation of NAS buildings and equipment is computed on a straight-line basis using the following lives:

Asset class

Buildings

Building and leasehold improvements

Depreciable lives

40 years

Lesser of the remaining life of the building or improvement

Furniture and equipment 4 to 10 years

Capitalized software 3 to 10 years

The Einstein Memorial sculpture is valued at cost and is not depreciated. Work-in-progress is not depreciated until the related assets are placed in service. Capitalized software is amortized over its depreciable life when it is ready for its intended use and placed in service.

(h) Split-Interest Agreements

Charitable gift annuity agreements are classified as other assets and other long-term liabilities in the statements of financial position. Periodically, NAS pays a fixed amount of the assets to the beneficiary designated by the donor.

Upon termination of an annuity, the remainder interest in the assets is available for use by NAS as restricted or unrestricted assets in accordance with the donor’s designation. At December 31, 2015 and 2014, NAS had charitable gift annuity assets of $2.7 million and

$2.8 million, respectively. NAS has recorded a liability of

$1.8 million at December 31, 2015 and 2014 representing the present value of estimated future cash payments to annuitants based on the annuitant’s life expectancy.

(i) Deferred Revenue

For both federal and nonfederal grants and contracts that are determined to be exchange transactions, revenue is recognized as the related costs are incurred. Funds received in advance of being earned for these grants are recorded as deferred revenue in the statements of financial position.

(j) Income Taxes

NAS is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, except for unrelated business income. NAS recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. NAS does not believe its financial statements include any uncertain tax positions.

(k) Risks and Uncertainties

NAS invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported.

(l) Recently Adopted Accounting Pronouncements

In May 2015, the Financial Accounting Standards Board issued the Accounting Standards Update (ASU) 2015-07,

Disclosures for Investments in Certain Entities that

Calculate Net Asset Value per Share (or its Equivalent)

(ASU 2015-07). ASU 2015-07 removes the requirement to categorize, within the fair value hierarchy, investments for which fair values are estimated using the net asset value practical expedient provided by Accounting

Standards Codification (ASC) 820,

Fair Value Measurement

(ASC 820). Disclosures about investments in certain entities that calculate net assets value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for entities (other than public business entities) for fiscal years beginning after December 15, 2015, with retrospective application to all periods presented. Early application is permitted. NAS elected to adopt ASU 2015-07 early and the disclosures in note 4 are presented accordingly.

(m) Use of Estimates

The preparation of these financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions. These estimates and assumptions may affect the reported amounts of assets and liabilities and disclosures in the financial statements. Actual results could differ from those estimates.

.

58



(n) Reclassifications

Certain amounts from the prior year have been reclassified to conform to the current year presentation.

(3) INVESTMENTS

Investments, which are reported at fair value (except as noted), consisted of the following as of December 31,

2015 and 2014 (in thousands):

Short-term investments:

Cash equivalents

Bonds and notes

Equity

2015 2014

$ 2,642 $ 4,326

43,582

10,628

35,826

11,004

Total short-term investments $ 56,852 $ 51,156

Long-term investments:

Investment pool, including endowment assets:

Cash equivalents $ 7,437 $ 10,631

Bonds and notes

Equity

Hedge funds

Private equity

32,276

286,076

71,882

22,210

34,805

284,954

73,700

18,899

419,881 422,989

Gulf Research Program investments:

Cash equivalents

Bonds and notes

Equity

140

41,312

41,575

83,027

133

13,279

13,556

26,968

Other long-term investments:

Cash equivalents

Bonds and notes

Equity

Total long-term investments

1,258

20,681

14,784

775

22,571

17,605

36,723 40,951

$ 539,631 $ 490,908

TNAC, a related entity, invests certain of its assets in the

NAS long-term investment pool. TNAC investments participate in the investment pool proportionally with all other funds in this pool.

The NAS obligation to TNAC for these funds held in trust, which totaled approximately $11.2 million and

$11.6 million as of December 31, 2015 and 2014, respectively, is reported as funds held on behalf of others in the statements of financial position.

Investment income is reported net of investment expenses of approximately $1,026,000 and $735,000 for the years ended December 31, 2015 and 2014, respectively, and is comprised of the following (in thousands):

Interest and dividends income

Net (loss) gain on investments

$

2015

10,141 $

(16,239)

(6,098) $ Total investment income $

(4) FAIR VALUE MEASUREMENTS

2014

13,312

12,538

25,850

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following discussion describes the valuation methodologies used for financial assets measured at fair value.

The techniques utilized in estimating the fair values are affected by the assumptions used, including discount rates and estimates of the amount and timing of future cash flows. Care should be exercised in deriving conclusions about NAS’ business, its value or financial position based on the fair value information of financial assets presented below.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial asset, including estimates of timing, amount of expected future cash flows, and the credit standing of the issuer. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial asset. Furthermore, the disclosed fair values do

.

59


Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015 not reflect any premium or discount that could result from offering for sale at one time an entire holding of a particular financial asset. Potential taxes and other expenses that would be incurred in an actual sale or settlement are not reflected in amounts disclosed.

The following methods, assumptions, and inputs were used to estimate the fair value of each class of financial instruments:

The carrying value of cash equivalents such as money market funds approximates the fair value because of the short maturity of these investments. These amounts are disclosed in Level 1.

NAS’ fixed maturity investments (bonds and notes) include U.S. Treasury securities, mortgage-backed securities, corporate bonds, and mutual funds that invest in these types of securities. Other than U.S. Treasury securities and mutual funds, these investments generally do not trade on a daily basis. The fair value estimates of such debt securities are based on prices provided by NAS’ investment managers and custodian bank. Both the investment managers and the custodian bank use a variety of pricing sources to determine market valuations. Each designate specific pricing services or indexes for each sector of the market based upon the provider’s expertise.

NAS’ debt securities portfolio is highly liquid, which allows for a high percentage of the portfolio to be priced through pricing services. Accordingly, the estimates of fair value for such debt securities are included in Level 2 inputs. The estimated values of U.S. Treasury securities and debt mutual funds are based on actively traded market prices and are, accordingly, included in the bonds and notes amount in Level 1.

Fair values of exchange-traded equity securities and mutual funds that invest in equity securities have been determined by NAS from observable market quotations on major trade exchanges. Accordingly, such equity securities are disclosed in Level 1.

Fair value of alternative investments including private equity securities and hedge funds is based on the alternative investment fund managers’ net asset value (NAV).

Private equity investments is comprised of limited partnership interests. Valuations provided by alternative investment fund managers include estimates, appraisals, assumptions, and methods that are reviewed by management. When necessary, NAS adjusts NAV for contributions and distributions subsequent to the latest NAV valuation date when calculating fair value. NAS analyzes the NAVs provided by alternative investment fund managers on a regular basis considering relevant economic and market conditions, applicable benchmarks and our understanding of the nature and related risks of the investments. As required by ASU 2015-07, these investments are not leveled in the fair value hierarchy.

Charitable gift annuity investments and deferred compensation investments are held in debt and equity mutual funds along with some U.S. Treasury securities, all of which are included in Level 1. The deferred compensation obligation to employees is equal to the fair value of the investments held and is disclosed in the same levels as the investment assets.

NAS has interest rate swap agreements covering the variable-rate bonds payable. The fair value of the swaps are determined using pricing models based on observable market data such as prices of instruments with similar maturities and characteristics, interest rate yield curves, and measures of interest rate volatility. The value was determined after considering the potential impact of collateralization and netting agreements, adjusted to reflect nonperformance risk of both the counterparty and

NAS. Accordingly, the interest rate swaps are included in

Level 2.

The funds held on behalf of others liability approximates the investments held in NAS’ long-term investment pool on behalf of TNAC. Therefore, the liability is disclosed in the same levels as the investment assets.

NAS’ policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period in which the event or change in circumstances occurred. There were no transfers among levels during

2015 and 2014.

60

.



The following table presents NAS’ fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2015 (in thousands):

Financial assets:

Short-term and long-term investments:

Cash equivalents

Bonds and notes

U.S. treasuries/government bonds

Mortgage-backed securities

Corporate bonds

Non-U.S. fixed income

Equity

U.S. large equity

U.S. small/mid equity

Non-U.S. equity (developed)

Non-U.S. equity (emerging)

Real estate

Long/short equity hedge funds

Hedge fund investments

Private equity funds

Total short-term and long-term investments

Charitable gift annuity assets:

Cash equivalents

Bonds and notes



Corporate bonds

U.S. fixed income


Equity

U.S. large equity




Total charitable gift annuity assets

Deferred compensation assets:

Cash equivalents

Bonds and notes

Corporate bonds

Equity

U.S. large equity



Total deferred compensation assets

Total financial assets

Total fair value

$ 11,477

33,040

61,359

27,005

16,447

81,426

70,965

68,125

43,659

15,100

73,788

71,882

22,210

596,483

87

238

191

281

114

39

84

1,221

241

224

212

2,694

Fair value measurements using: Investments measured

Level 1 Level 2 at net asset value 1

$ 11,477

33,040

38,860

16,489

16,447

$ -

-

22,499

10,516

-

$ -

-

-

-

-

81,426

70,965

68,125

43,659

15,100

-

-

-

395,588

87

191

44

114

39

84

1,221

241

224

212

2,457

238

-

-

-

-

-

-

-

-

33,015

-

-

237

-

-

-

-

-

-

-

237

-

-

-

-

-

-

73,788

71,882

22,210

167,880

-

-

-

-

-

-

-

-

-

-

-

-

10

303

146

136

10

303

146

136

-

-

-

-

-

-

-

-

833

$ 600,010

833

$ 398,878

-

$ 33,252

-

$ 167,880

.


61


(Continued)

Financial liabilities:


Deferred compensation liability

Interest rate swaps

Total financial liabilities


$ 11,179

833

9,044

$ 21,056



$ 6,710

833

-

$ 7,543

$ -

-

9,044

$ 9,044

$ 4,469

-

-

$ 4,469

1

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

The following table presents NAS’ fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands):


Short-term and long-term investments:

Cash equivalents

Bonds and notes



Corporate bonds


Equity

U.S. large equity




Real estate

Long/short equity hedge funds

Hedge funds

Commodity futures contracts

Hedge fund investments

Private equity funds

Total short-term and long-term investments

Charitable gift annuity assets:

Cash equivalents

Bonds and notes



Corporate bonds


Equity

U.S. large equity




Real estate

Total charitable gift annuity assets


$ 15,865

4,095

58,451

23,580

20,355

70,758

70,423

71,443

43,628

16,118

54,749



$ 15,865 $ - $ -

4,095

30,035

12,673

20,355

70,758

70,423

71,443

43,628

16,118

-

-

28,416

10,907

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

54,749

1,461

72,239

18,899

542,064

60

251

263

114

91

1,118

326

352

104

152

2,831

.

1,461

-

-

356,854

60

251

44

114

91

1,118

326

352

104

152

2,612

-

-

-

39,323

-

-

219

-

-

-

-

-

-

219

-

72,239

18,899

145,887

-

-

-

-

-

-

-

-

-

-

62



(Continued)

Deferred compensation assets:

Cash equivalents

Bonds and notes

Corporate bonds

Equity

U.S. large equity



Total deferred compensation assets

Total financial assets

Financial liabilities:


Deferred compensation liability

Interest rate swaps

Total financial liabilities

Fair value

268


Level 1

268

78 78

542

149

172

1,209

$ 546,104

542

149

172

1,209

$ 360,675

$ 11,582 $ 7,587

Level 2

-

$ -

-

-

-

-

-

$ 39,542 at net asset value 1

-

-

-

-

$ 145,887

$ 3,995

-

-

1,209

9,958

$ 22,749

1,209

-

$ 8,796

-

9,958

$ 9,958

-

-

$ 3,995

1

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

Gains and losses included in changes in net assets are presented in investment income in the statements of activities. The following table presents the nature and risk of assets with fair values estimated using NAV held at December 31, 2015 (in thousands):

Long/short equity funds -

U.S. large equity (a)

Long/short equity funds -

Non-U.S. equity (developed) (b)

Hedge fund – multi-strategies/ multivehicle (c)

Hedge fund – fixed income single strategy (d)

Private equity – Asia (e)

Private equity – Global (f)

Private equity – Domestic (g)

Total

Fair value

$ 63,021

10,767

Unfunded commitments

N/A

N/A

65,972

5,910

20,085

N/A

N/A

3,990

1,837

288

4,870

293

$ 167,880 $ 9,153

Redemption frequency

Quarterly/Annually

Monthly

Quarterly/Annually

Quarterly

N/A

N/A

N/A

Redemption notice period

45 days/365 days

45 days

45 days/365 days

30 days

N/A

N/A

N/A

Notes:

(a) This category relates to long-short equity hedge funds comprised of equity investments in

U.S. large cap. Each of these funds buys investments long and sells short with the ability to use leverage.

These funds can also invest in derivative instruments such as forward, futures, and option contracts. The fair values of the investments in this category have been estimated using the net asset value per share of the

. investments. All of the investments in this category are redeemable within the near term from December 31,

2015.

(b) This category relates to a long-short equity hedge fund comprised of equity investments in

Non-U.S. developed countries. This fund buys investments long and sells short with the ability to use leverage. This fund can also invest in derivative instruments such as forward, futures, and option

63


Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015 contracts. The fair value of the investment in this category has been estimated using the net asset value per share of the investment. The investment in this category is redeemable within the near term from

December 31, 2015.

(c) This class includes investments in multistrategy, multivehicle hedge funds with the objective of maximizing long term, risk-adjusted returns, and capital appreciation by investing in securities, investment funds, discretionary accounts, and investment partnerships across a broad range of marketable and alternative asset classes. Asset classes include domestic and international marketable equity securities, hedged equity, real estate, natural resource, fixed income, and private equity and absolute return strategies, primarily focused in the United States. The fair values of the investments in this class have been estimated using the

NAV per share of the investments. Approximately

$16.8 million of investments in this category are redeemable within the near term from December 31,

2015.

(d) This class includes an investment in a single strategy hedge fund focused on undervalued fixed income securities. Investments held by this fund consist of U.S. government agency mortgage-backed securities and derivatives, primarily in the form of collateralized mortgage obligations. Securities are generally held in the portfolio as long as interest rates and repayment rates are unfolding as anticipated. The majority of the investment return is expected to come from trading mortgage-backed securities in an attempt to maximize interest income. The fair value of the investment in this class has been estimated using the NAV per share of the investment. The investment in this category is redeemable within the near term from December 31, 2015.

(e) This class includes several private equity funds that invest in equity, debt, or debt-oriented instruments, primarily in privately held companies, which own or contractually control operating entities located in the

People’s Republic of China and India. Investments held in India primarily include equity securities of “early to early growth stage” companies in multiple sectors, except real estate. The fair values of these investments have been estimated using the NAV of NAS’ ownership interest in partners’ capital. These investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over 1 to 10 years.

(f) This class includes several global private equity funds with diverse portfolios consisting primarily of venture capital funds, leveraged buyout funds,midstage growth capital funds, assets of healthcare companies, and international private equity funds. These investments are focused on several industries including, but not limited to, insurance, services, and consumer-related industries. The fair values of these investments have been estimated using the NAV of NAS’ ownership interest in partners’ capital. These investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over 1 to 10 years.

(g) This class includes several domestic private equity funds, which make investments in domestic equity securities, warrants, or other securities that are generally not actively traded at the time of investment.

These investments are focused on several industries including, but not limited to, insurance, financial services, consumer-related, and communications. The fair values of these investments have been estimated using the NAV of NAS’ ownership interest in partners’ capital. These investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over one year.

(5) PROPERTY AND EQUIPMENT

Property and equipment as of December 31, 2015 and

2014, is comprised of the following (in thousands):

Land

Furniture and equipment

Buildings and improvements

Capitalized software

Work in progress

Leasehold improvements

Less accumulated depreciation and amortization

Total property and equipment, net

2015 2014

$ 29,689 $ 29,689

30,137

177,882

29,844

177,757

17,983

78

4,073

259,842

16,546

1,225

3,390

258,451

(92,654) (84,819)

$ 167,188 $ 173,632

.

64



(6) CONTRIBUTIONS RECEIVABLE

Contributions not yet collected are included in contributions and other receivables (current) and contributions receivable (long-term) in the statements of financial position, and mature as follows (in thousands):

Less than one year

One to five years

Thereafter

$ 150,519

275,726

3,000

429,245

Less:

Discount at rates from 0.73% to 6.75% to estimated net present value

Allowance for uncollectible contributions

Less current portion

Total contributions receivable, long-term

(9,837)

(704)

418,704

(149,815)

$ 268,889

As of December 31, 2015 and 2014, 95% of contributions receivable was due from two corporations. NAS does not believe there is any significant risk associated with collection of these receivables.

At December 31, 2014, the discount on contributions receivable was approximately $18,251,000 at rates ranging from 0.73% to 6.75% and the allowance for uncollectible contributions was approximately

$704,000.

(7) DEFERRED REVENUE

Deferred revenue consisted of the following as of

December 31, 2015 and 2014 (in thousands):

2015 2014

Advances from private grants and contract sponsors

Advances from U.S. government sponsors

Publication subscriptions and other

Total deferred revenue

(8) LINES OF CREDIT

$ 19,401 $ 17,946

11,406 13,629

6,489 6,404

$ 37,296 $ 37,979

Until March 2014, NAS was party to a $55 million line of credit from Wells Fargo, which bore interest at

LIBOR plus 0.55%. In March 2014, NAS renewed its line of credit with Wells Fargo for $45 million. The renewed line of credit bears interest at LIBOR plus

0.55% and expires on September 30, 2016. NAS is also party to a $15 million line of credit from TD Bank, which bears interest at LIBOR plus 0.55% and expires on August 31, 2016. NAS has pledged and granted to each bank a security interest in NAS’ gross revenues.

Interest expense related to the lines of credit for the years ended December 31, 2015 and 2014, was approximately $190,000 and $143,000, respectively.

(9) TEMPORARILY RESTRICTED NET

ASSETS

Temporarily restricted net assets were available for the following purposes as of December 31, 2015 and 2014

(in thousands):


Other sponsored research and advisory programs

General endowment

Prizes and awards

Woods Hole facility

Total temporarily restricted net assets

2015 2014

$ 480,571 $ 479,950

165,120

77,672

28,358

168,077

83,647

30,890

3,237 3,622

$ 754,958 $ 766,186

Temporarily restricted net assets were released from restriction for the following purposes during the years ended December 31, 2015 and 2014 (in thousands):


Other sponsored research and advisory programs

General endowment

Prizes and awards

Woods Hole facility

Total temporarily restricted net assets released from restriction

(10) ENDOWMENT

2015 2014

$ 8,557 $ 3,019

43,194

4,843

1,948

312

37,045

4,741

1,204

291

$ 58,854 $ 46,300

(a)

Permanently Restricted Net Assets

The income generated by permanently restricted net assets is available to support donor-specified programs.

As of December 31, 2015 and 2014, NAS held the following permanently restricted net assets, classified by the purpose for which the income is to be used (in thousands):

Sponsored research and advisory programs

General endowment

Prizes and awards

Woods Hole facility

Total permanently restricted net assets

2015 2014

$ 95,054 $ 93,981

32,487 32,372

15,545 5,117

3,539 3,539

$ 146,625 $ 135,009

.

65



(b) Endowment Assets

The NAS endowment consists of approximately 125 individual funds established to support general operations, sponsored research and advisory programs, prizes and awards, and the operations of the Woods Hole facility. The endowment solely comprises donor-restricted endowment funds. The investments of the endowment are included in the NAS long-term investment pool, as described in note 3.

Interpretation of Relevant Law

NAS has interpreted the District of Columbia “Uniform

Prudent Management of Institutional Funds Act of

2007” (the Act) as requiring NAS, absent explicit donor stipulations to the contrary, to act in good faith and with the care that an ordinarily prudent person in a like position would exercise under similar circumstances in making determinations to appropriate or accumulate endowment funds, taking into account both its obligation to preserve the value of the endowment and its obligation to use the endowment to achieve the purposes for which it was donated. NAS classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment required by the applicable donor gift instrument. The remaining portion of donor-restricted endowment funds that are not classified as permanently restricted are classified as temporarily restricted net assets until those amounts are appropriated for expenditure by NAS. In making a determination to appropriate or accumulate,

NAS adheres to the standard of prudence prescribed by the Act and considers the following factors:

(1)

(2)

(3)

(4)

The duration and preservation of the endowment fund;

The purposes of the institution and the endowment fund;

General economic conditions;

The possible effect of inflation or deflation;

(5)

(6)

The expected total return from income and the appreciation of investments;

Other resources of the institution; and

(7) The investment policy of the institution

Return Objectives and Strategies

NAS has adopted an investment and spending policy for endowment assets that is designed to provide a predictable stream of funding to programs supported by the endowment while seeking to protect the real purchasing power of the assets from inflation. Accordingly, NAS has adopted guidelines, which feature a material commitment to equity and equity-like investments.

The asset allocation guidelines are as follows:

Asset category

U.S. large equity

U.S. small/mid cap equity



Real estate

Total equity

U.S. fixed income/cash


Total fixed

Multi-strategy and private equity funds

Total

Guideline percentage

19%

9

20

15

3

66

9

5

14

20

100%

NAS has adopted a spending policy that limits the annual spending to 5% of the three-year average fair value of the participating funds in the endowment portfolio. This is consistent with NAS’ objective to maintain the purchasing power of the endowment assets held in perpetuity as well as to provide additional real growth through new gifts and investment return.

.

66



Changes in endowment assets for the fiscal year ended December 31, 2015 are as follows (in thousands):

Endowment assets, beginning of year

Investment return:

Interest and dividend income

Net loss on investments

Total investment return

Contributions

Amounts appropriated for expenditure

Other changes:

2014 appropriation expended in 2015

Unspent purpose restricted appropriations

Accrued expenses withdrawn in 2016

Unrestricted

$ -

-

(921)

(921)

-

-

-

-

-


$ 205,320

5,568

(8,395)

(2,827)

5,076

(13,914)

(9,587)

6,044

1,604


$ 128,889

Total

$ 334,209

14,703

-

-

-

-

-

-

-

5,568

(9,316)

(3,748)

19,779

(13,914)

(9,587)

6,044

1,604

Endowment assets, end of year $ (921) $ 191,716 $ 143,592

Changes in endowment assets for the fiscal year ended December 31, 2014 are as follows (in thousands):

Unrestricted



Endowment assets, beginning of year $ - $ 199,657 $ 125,143

$ 334,387

Total

$ 324,800

Investment return:

Interest and dividend income - 8,652 8,652

Net gain on investments

Total investment return

Contributions

Amounts appropriated for expenditure

-

-

-

-

7,767

16,419

278

(12,623)

3,746

-

-

-

-

7,767

16,419

4,024

(12,623)

Other changes:

2013 appropriation expended in 2014

Unspent purpose restricted appropriations

Accrued expenses withdrawn in 2015

Endowment assets, end of year

-

-

-

$ -

(7,998)

9,326

261

$ 205,320

-

-

-

$ 128,889

(7,998)

9,326

261

$ 334,209

Funds with Deficiencies

From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the original value of the gift donated to the permanent endowment. Deficiencies of this nature are reported as unrestricted net assets. At December 31,

2015, there were eight endowment funds with a fair value below the original value of the gift.

These deficiencies were primarily a result of unfavorable market fluctuations that occurred shortly after the investment of new permanently restricted contributions.

Subsequent gains that restore the fair value of the assets of the endowment fund to the required level are classified as an increase in unrestricted net assets. At

December 31, 2014, there were no endowment funds with a fair value below the original value of the gift.

.


67


(11) PROGRAM EXPENSES

Program expenses for the years ended December 31,

2015 and 2014 are summarized as follows (in thousands):

Transportation Research Board

Policy and Global Affairs

Institute of Medicine

Earth and Life Studies

Engineering and Physical Sciences

Behavioral and Social Sciences and

Education

Proceedings of the National Academy of

Sciences

NAS


National Academy of Engineering

National Academy Press

National Academy of Medicine

Koshland Science Museum

Total program expenses

2015 2014

$ 86,619 $ 106,706

66,408

31,414

62,461

33,032

17,775

15,079

16,142

15,319

12,053 10,810

11,509

8,112

7,537

3,439

2,753

2,298

13,327

6,327

1,872

3,724

3,199

-

1,048 1,236

$ 266,044 $ 274,155

(12) RECOVERY OF INDIRECT COSTS

NAS receives indirect cost recovery on its federal contracts and grants. An overhead assessment is applied to direct salaries, accrued leave, fringe benefits, and services provided by outside contractors

(e.g., temporary personnel agencies, consultants) on

NAS property. A general and administrative assessment

(G&A) is applied to direct costs and overhead less subcontract costs and stipends. Therefore, both the overhead and G&A rates are applied to projects incurring direct salaries and other direct costs such as travel. If a program does not require direct salaries, such as a travel grant program, a subcontract/flow-through administration rate is applied. Certain off-site work (not performed on NAS property) is assessed reduced overhead rates.

NAS bills for indirect cost recovery throughout the year based on negotiated rates. At the end of each year, NAS compares actual expenses incurred in each of its cost pools to the amounts recovered based on its billing rates. The difference is recorded as its indirect cost carryforward. If NAS over recovers on its indirect costs during the year, a liability is recorded. If NAS under recovers, a receivable is recorded.

NAS has a cumulative net under recovery of approximately $1.8 million and $6.4 million as of December 31, 2015 and 2014, respectively. The under recovery is included in the contracts receivable balance in the statements of financial position.

(13) BUILDING PROJECT AND

FINANCING

(a)

Building

Project Revenue Bonds

In January 1999, the District of Columbia issued

Series 1999A, Series 1999B, and Series 1999C tax-exempt revenue bonds on behalf of NAS. Proceeds from the sale of the revenue bonds financed the cost of the acquisition of 44,250 square feet of land and related construction of an office building, as well as paid certain costs of issuing the bonds. This building consolidates most of NAS’ program activities into one location.

In June 2008, the District of Columbia issued Series 2008A tax-exempt revenue bonds in the amount of

$66,325,000 on behalf of NAS. The proceeds were used to refund the Series 1999B and Series 1999C revenue bonds, as well as pay certain costs of issuing the bonds.

In April 2009, the District of Columbia issued Series 2009A tax-exempt revenue bonds in the amount of

$57,500,000 on behalf of NAS. The proceeds were used to refund the Series 1999A revenue bonds, as well as pay certain costs of issuing the bonds.

In May 2010, the District of Columbia issued Series 2010A tax-exempt revenue bonds in the amount of

$59,550,000 on behalf of NAS. These bonds were sold to finance the cost to restore the NAS headquarters building on Constitution Avenue in Washington, DC and pay for certain costs of issuance. The restoration was completed in 2012.

In December 2012, NAS remarketed the Series 2008A and 2009A bonds as direct bank purchases. The

Series 2008A bonds were purchased by Wells Fargo

Municipal Capital Strategies LLC; the Series 2009A bonds were purchased by TD Bank, N.A. Both agreements stipulate mandatory repurchase in December 2020 at which point NAS could renew the direct purchase agreements, remarket the bonds, or repurchase the bonds. NAS is obligated under the revenue bonds as follows (in thousands):

.

68



2015 2014

Series 2008A revenue bonds, term, at flexible rates (1.1% in 2015 and 1.1% in

2014) maturing at various dates from

January 1, 2015 through 2039

Series 2009A revenue bonds, term, at flexible rates (0.7% in 2015 and 0.7% in

2014) maturing at various dates from

January 1, 2015 through 2028

Series 2010A revenue bonds, serial, with interest rates ranging from 3.0% to

5.0%, maturing at various dates from

April 1, 2015 through 2030

Series 2010A revenue bonds, term:

Interest rate 5%, maturing April 1, 2035

Interest rate 5%, maturing April 1, 2040

Total bonds, at face value

Plus unamortized premium

$ 62,430 $ 63,790

49,065

25,890

13,205

16,960

167,550

641

50,135

27,105

13,205

16,960

171,195

725

Total bonds payable

Less current portion (included in other current liabilities)

168,191 171,920

(3,886) (3,729)

Bonds payable, long-term $164,305 $168,191

The serial and term bonds represent unsecured general obligations of NAS.

Interest on the 2008A and 2009A bonds is payable monthly. Interest on the 2010A bonds is payable semiannually every April 1 and October 1.

The term bonds maturing on April 1, 2035, and April 1,

2040, are subject to mandatory redemption by operation of sinking fund installments. Installment payments for the term bond maturing April 1, 2035, begin on April 1,

2031, and range from $2.4 to $2.9 million per year through the maturity date. Installment payments for the term bond maturing April 1, 2040, begin on April 1,

2036, and range from $3.1 to $3.8 million per year through the maturity date.

Scheduled maturities and sinking fund requirements are as follows (in thousands):

Years ending December 31:

2016

2017

2018

2019

2020

Thereafter

$ 3,820

4,005

4,195

4,390

4,605

146,535

$ 167,550

.

The carrying value of bonds payable in the financial statements was approximately $4.9 million and

$3.7 million less than fair value as of December 31,

2015 and 2014, respectively. NAS estimated the fair value of bonds payable through valuations provided by an independent financial institution. If measured at fair value in the statement of financial position, the bonds payable would be categorized as Level 2 in the fair value hierarchy.

Interest expense on the bonds payable for 2015 and

2014 totaled $3.5 million and $3.6 million, respectively.

(b) Interest Rate Swaps

In October 1999, NAS entered into a swap agreement, with an effective date of February 1, 2000, relating to the $66 million face amount of its Series 1999A revenue bonds. The agreement provides for NAS to receive

4.97% in interest on a notional amount of $65 million and to pay interest at a floating rate option based on the weekly interest rate resets of tax-exempt variable-rate issues per the Securities Industry and Financial Markets

Association (SIFMA) Municipal Swap Index. NAS amended the agreement for the 2005–2020 period by agreeing to give up the benefit of any 30-day period during which the SIFMA index remains below 2.25% for the entire 30 days. Each time this occurs, the rate on the swap portfolio reverts to the fixed rate noted above for that month only.

NAS entered into this fixed-to-variable swap agreement to manage its exposure to interest rate changes. The fixed-rate debt obligations exposed NAS to variability in the cost recovery stream due to changes in interest rates. NAS recovers the costs of borrowing through a capital investment incentive rate that is set by the

U.S. government and is tied to a variable index. If interest rates increase, the capital investment incentive recovery increases.

Conversely, if interest rates decrease, the capital investment incentive recovery decreases. Therefore,

NAS entered into a derivative instrument that ties the fixed-rate debt to a variable index to manage fluctuations in cash flows resulting from interest rate risk. By using derivative financial instruments to hedge exposures to changes in interest rates, NAS exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes NAS, which creates credit risk for NAS. When the fair value of a derivative contract is negative, NAS owes the counterparty, and therefore, it does not possess credit risk. NAS

69


Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015 minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties.

In May 2009, NAS entered into an additional swap agreement as a result of a counterparty exercising a swaption related to the Series 1999A Revenue Bonds.

The variable-to-fixed swap requires NAS to pay 5.00% on a notional amount of $55 million and to receive a floating rate equal to 67% of one-month LIBOR plus

0.41%.

NAS entered into this variable-to-fixed swap agreement in order to preserve the synthetic variable rate achieved through the 1999 swap agreement once the fixed-rate

Series 1999A bonds were refunded with the variable-rate Series 2009A bonds.

With regard to the fixed-to-variable interest rate swap,

NAS recorded a loss on the change in the fair value of its swap agreement of $211,000 and a gain of $164,000, for the years ended December 31, 2015 and 2014, respectively, which is included in other income in the accompanying statements of activities. The fair value of the interest rate swap was recorded as an asset of

$161,000 and $372,000 as of December 31, 2015 and

2014, respectively, and is included in other assets in the statements of financial position.

Pertaining to the swaption and resultant variable-to-fixed interest rate swap, NAS recorded a gain on the change in the fair value of approximately $902,000 for the year ended December 31, 2015 and a loss of approximately $662,000, for the year ended December 31, 2014, respectively, which is included in other income in the statements of activities. The fair value of the swap is recorded as a liability of approximately

$9.0 million and $10.0 million as of December 31, 2015 and 2014, respectively, and is included in other current liabilities and other long-term liabilities.

(14) EMPLOYEE BENEFITS

(a) Retirement Plans

NAS has a noncontributory defined-contribution retirement plan covering substantially all of its employees (based on certain benefit eligibility requirements).

The funding vehicles under the plan consist of group investments issued by Teachers Insurance and Annuity

Association (TIAA) and College Retirement Equities

Fund (CREF), known collectively as TIAA-CREF, as well as mutual funds issued by TIAA-CREF, Vanguard

Fiduciary Trust Company, and other third parties.

Participants in this plan vest immediately. NAS has received a favorable determination letter from the IRS

.

70


on the qualification of this plan under Section 401(a) of the Internal Revenue Code.

In addition, NAS has a voluntary employee contribution retirement plan that is funded solely by employee contributions made on a pretax salary-reduction basis under Section 403(b) of the Internal Revenue Code. The funding vehicles under the plan consist of group investments issued by TIAA and CREF, as well as mutual funds issued by TIAA-CREF, Vanguard

Fiduciary Trust Company, and other third parties.

Pension expense for the years ended December 31, 2015 and 2014, amounted to approximately $11.7 million and

$11.7 million, respectively. The NAS policy is to fund pension benefits as they are earned. The NAS normal retirement age is 62, but there is no mandatory age for retirement.

(b) Deferred Compensation

NAS holds long-term investments as part of a frozen deferred compensation arrangement for certain employees. The fair value of these investments was approximately $0.8 million and $1.2 million as of December 31, 2015 and 2014, respectively, which is reported within other assets in the statements of financial position. The related obligation is included in accrued employee benefits in the statements of financial position.

(c) Postretirement and Postemployment Benefits

NAS provides certain health and life insurance benefits for employees retired due to length of service. All benefit-eligible employees may become eligible for service retiree benefits if they reach age 60 while working for NAS and complete five years of service in a benefit-eligible status for medical and 10 years of service for life insurance benefits. In addition, certain health and life insurance benefits are provided for employees retired due to disability. A benefit-eligible employee may become eligible for disabled retiree benefits if deemed totally disabled under NAS’ long-term disability insurance or if they are eligible for disability benefits from the Social Security Administration. Life insurance benefits are provided based on coverage at date of disability and health insurance may be continued if the disabled retiree had participated in an NAS health insurance plan for five years at the date of disability. Insurance companies whose premiums are determined on an experience-rated basis provide life and health insurance benefits for retirees. Medicare supplement insurance is not experience rated. The retiree welfare benefit plan is contributory for health insurance purposes for employees who retired on or after January 1, 1990. Participant contributions for

Report of the Treasurer of the National Academy of Sciences for the Year Ended December 31, 2015 health insurance are based on a percentage of the monthly premium paid by NAS (from 25% to 100%).

The participant contribution is also based on their date of retirement, length of service, and choice of health insurance carrier.

NAS has elected to recognize the initial postretirement benefit obligation over a period of 20 years. The accrued postretirement benefit obligation is reported in accrued employee benefits in the statements of financial position.

Postretirement changes other than net periodic benefit cost are as follows (in thousands):

Net actuarial loss

Recognized net actuarial loss

Prior service credit

Recognized prior service cost

Recognized net initial obligation

Total

2015

$ 1,583

(643)

-

49

-

2014

$ 6,906

(49)

-

49

-

$ 989 $ 6,906

Items not yet recognized as a component of net periodic benefit cost at December 31, 2015 and 2014 are as follows (in thousands):

Net actuarial loss

Prior service (credit) cost

Total

2015

$ 10,968

(294)

$ 10,674

2014

$ 10,029

(343)

$ 9,686

The estimated amounts, measured at year-end, that are expected to be recognized in the net periodic benefit cost over the next fiscal year for the postretirement benefit plan are as follows (in thousands):

Prior service cost

Recognized actuarial loss

Total

2015 2014

$ (49) $ (49)

733 643

$ 684 $ 594

The following table presents the changes in benefit obligations, changes in plan assets, funded status, and the components of net periodic benefit cost for the year ended December 31, 2015 and 2014 (in thousands):

2015 2014

Change in benefits obligation:

Benefits obligation, beginning of year $ 35,950 $ 28,268

Service cost

Interest cost

Plan participants’ contributions

Actuarial (gain) loss

Benefits provided

Benefits obligation, end of year

1,297

1,417

108

(1,450)

(941)

36,381

890

1,315

117

6,157

(797)

35,950

.

(Continued)

Change in plan assets:

Fair value of plan assets, beginning of year

Actual return on plan assets

Employer contributions

Benefits paid

2015

28,952

(861)

1,137

(889)

2014

28,147

1,362

216

(773)

Fair value of plan assets, end of year

Funded status

Components of net periodic benefit cost:

Service cost

28,339

$ (8,042)

28,952

$ (6,998)

$ 1,297 $ 890

Interest cost

Expected return on plan assets

Recognized prior service cost

Recognized actuarial loss

Net periodic benefit cost

1,417

(2,171)

(49)

1,315

(2,110)

(49)

643 49

$ 1,137 $ 95

The assumptions used to determine net periodic benefit cost for the years ended December 31, 2015 and 2014 are as follows:

2015 2014

Discount rate 4.00% 4.75%

Expected long-term return on plan assets

Rate of increase in healthcare costs:

7.50 7.50

Under age 65 8.00 8.00

Over age 65 6.50 5.00

The assumptions used to calculate the accumulated postretirement benefit obligation for the years ended

December 31, 2015 and 2014 are as follows:

Discount rate

Rate of increase in healthcare costs for next year:

Under age 65

2015

4.25%

2014

4.00%

7.75 8.00

Over age 65 6.25 6.50

The trend rate for growth in healthcare costs was assumed to decline gradually beginning in 2016 to 4.5% in the year 2029 for under age 65 and to 4.5% in the year 2023 for over age 65 for the years ended December 31, 2015 and December 31, 2014.

The healthcare cost trend rate assumption has a significant impact on the postretirement benefit costs and obligations. The effect of a 1% increase in the assumed healthcare cost trend rate would have resulted in the following effects (in thousands):

Postretirement benefit obligation

Benefit expense

2015 2014

$ 5,546 $ 5,380

535 330

71



The effect of a 1% decrease in the assumed healthcare cost trend rate would have resulted in the following effects (in thousands):

Postretirement benefit obligation

2015 2014

$ (4,426) $ (4,301)

Benefit expense (412) (266)

NAS postretirement benefit plan asset allocations at

December 31, 2015 and 2014, by asset class are as follows:

Cash

Bonds and notes

Equity

2015

3%

43

54

2014

3%

39

58

100% 100%

The investment objective of the Plan is to produce a rate of return over the long term that will provide for fund growth, protect against the effect of inflation, and provide for some stability in different market environments. The fund is diversified between fixed income and equity investments. With this diversification and investment in broader market funds, there is reasonable assurance that no single security or class of securities will have a disproportionate impact on the Plan assets.

The Plan assets are invested with a long-term growth strategy, with a 70% equity guideline.

The overall long-term rate of return was developed by estimating the long-term real rate of return for the

Plan’s asset mix, while taking into account the effects of inflation. This estimate was developed by evaluating the history and similar asset allocation of the NAS Endowment.

The following table presents the fair value hierarchy for the postretirement benefit plan assets at December 31,

2015 (in thousands):

.

72



Retiree Welfare Benefit Plan investments:

Cash equivalents

Bonds and notes

U.S. treasuries/ government bonds


Corporate bonds


Equity

U.S. large equity


Non-U.S. equity

(developed)

Non-U.S. equity

(emerging)

Total investments

Fair value

Fair value measurements using

Level 1 Level 2

$ 884 $ 884 $ -

1,907

2,086

6,866

1,436

5,244

6,639

3,002

1,907

-

5,712

1,436

5,244

6,639

3,002

-

2,086

1,154

-

-

-

-

275 275 -

$28,339 $ 25,099 $ 3,240

The following table presents the fair value hierarchy for the postretirement benefit plan assets at December 31,

2014 (in thousands):

Fair value

Fair value measurements using

Level 1 Level 2


Retiree Welfare Benefit Plan investments:

Cash equivalents

Bonds and notes

U.S. treasuries/

government bonds


Corporate bonds


Equity

U.S. large equity


Non-U.S. equity

(developed)

Non-U.S. equity

(emerging)

Total investments

$ 782

790

4,008

5,881

753

3,828

8,682

3,991

$ 782 $ -

790

-

4,829

753

3,828

8,682

3,991

-

4,008

1,052

-

237 237 -

$ 28,952 $ 23,892 $ 5,060

-

-

-


The methods and assumptions used to estimate the fair value of each class of financial instrument are further discussed in note 4,

Fair Value Measurements

.

NAS expects to contribute to the Plan the actuarially determined net periodic cost for 2016, which is approximately $1.3 million.

The following benefit payments, which reflect future services, are expected to be paid in future years as noted, as of December 31, 2015 (in thousands):

2016

2017

2018

2019

2020

2021 – 2025

$ 1,059

1,223

1,391

1,454

1,587

9,611

$ 16,325

The measurement date of the plan assets and benefit obligations for 2015 and 2014 is December 31, 2015 and 2014, respectively.

(15) RELATED-PARTY TRANSACTIONS

The NAS Council has authorized two agreements providing noninterest-bearing, collateralized advances to two employees in connection with the purchase of each employee’s residence. The agreements between the parties were executed in May 2005 and April 2013. The agreement executed in May 2005 provides that the repayment obligation will be adjusted to allocate to each party its proportional share of the appreciation or depreciation in the value of the residence, which is based on the relative financing percentage provided by each party. That agreement will terminate upon pay-back of the advance, sale of the property, or the end of the individual’s employment with NAS, which will not exceed 12 years. The agreement executed in April

2013 will terminate upon the first to occur of the date the individual ceases to occupy the property as principal residence, sale of the property, or the end of the individual’s employment with NAS. The estimated present value of the receivables is $3.8 million at

December 31, 2015 and is included in other current assets and other assets in the statement of financial position. The estimated present value of the receivables is $3.8 million at December 31, 2014 and is included in other assets in the statement of financial position.

(16) COMMITMENTS AND

CONTINGENCIES

(a) Leases

NAS is committed to one noncancelable operating lease for space. Future minimum rental payments due under the noncancelable operating lease are as follows (in thousands):

Year ending December 31:

2016

2017

2018

2019

2020

Thereafter

$ 545

589

607

625

644

3,709

$ 6,719

Rental expense amounted to approximately $403,000 and $401,000 for the years ended December 31, 2015 and 2014, respectively.

(b) Contingencies

NAS receives a portion of its revenues directly or indirectly from federal government grants and contracts, all of which are subject to audit by the Defense Contract

Audit Agency, which has completed its examinations through December 31, 2010. A contingency exists relating to unexamined periods and final settlements of examined periods to refund any amounts received in excess of allowable costs. Management is of the opinion that no material liability will result from such audits.

(17) SUBSEQUENT EVENTS

NAS has evaluated subsequent events from the statement of financial position date through May 27, 2016, the date at which the financial statements were available to be issued, and determined that there are no other items to disclose.

.


73




OFFICERS

Ralph J. Cicerone, President

Diane E. Griffin, Vice President

Susan Wessler, Home Secretary

John Hildebrand, Foreign Secretary

Jeremiah P. Ostriker, Treasurer

FINANCE COMMITTEE

Jeremiah P. Ostriker, Chair

Elwyn R. Berlekamp

Ralph J. Cicerone

Maureen Cropper

David Donoho

Robert Engle

Ronald L. Graham

Jose A. Scheinkman

James H. Simons

William W. Stead

BUDGET AND INTERNAL AFFAIRS COMMITTEE

Jeremiah P. Ostriker, Chair

Diane E. Griffin

Margaret M. Murnane

Randy W. Schekman

Sylvia T. Ceyer

Peter S. Kim

AUDITING COMMITTEE

Robert H. Wurtz, Chair

Claude R. Canizares

Susan Gottesman

Ronald L. Graham

Brian W. Matthews

FINANCIAL MANAGEMENT STAFF

Didi Salmon, Chief Financial Officer

Laura Douglas, Controller


75