Consumer Reports Inc.

“Consumers information: consumer reports publishes and disseminates information and advice to consumers regarding topics such as consumer goods, services, health and personal finance. The number of paid subscribers for each as of 5/31/15 include consumer reports magazine 3,712,178; consumer reports on health 555,735; cr online 3,099,548; consumer reports money adviser 126,162; and shop smart 309,968. Consumers union of us inc. Does not accept outside advertising in any of its publications. In addition, consumer reports disseminates consumer information through other print, radio, television, electronic publishing and interactive media. Product information: consumer reports conducts independent and impartial tests and analyses on a wide range of consumer products and services, such as electronics, appliances, household products, insurance, recreational goods, and cars. The tests and surveys evaluate how the products and services perform and advise consumers on the extent to which they are convenient, safe, and economical. During the fiscal year ended 5/31/15, consumer reports conducted tests and evaluations on more than 3200 models of various consumer products, making use of about 60 laboratories and its auto track. The information gathered as result of these tests is disseminated to the general public as described above.”

“Advocacy and education programs: consumer reports has a focused effort on educating consumers in the critical areas of health and safety. Recent initiatives include programs intended to provide better comparative, evidence-based medical information as well as programs designed to alert consumers to the risks associated with dangerous products and services. In addition, consumer reports provides substantial free consumer education information as a public service through our educational websites and through an expanding use of social networking sites and blogs. Consumer reports's educational websites include: the consumer reports's advocacy website (consumersunion.org); consumer reports best buy drugs (crbestbuydrugs.org); consumer health choices (consumerhealthchoices.org); spanish-language consumer education materials at espanol.consumerreports.org; consumer reports greener choices (greenerchoices.org); and eco-labels, an online guide to environmental labels (eco-labels.org). Specific accomplishments include: health information- through its health content, information tools, partnerships, and advocacy work, consumer reports focuses on achieving high-value care for all consumers and reducing patient harm. Consumer reports continues to develop health ratings (e.g. Hospital safety ratings), information products, educational programs, and communications campaigns (including choosing wisely and best buy drugs) to raise consumer awareness about the changing health care system, engage them in their health care decision making, and empower them to lead healthier lives. Through a network of partnerships that includes other nonprofits, unions, employers, and regional community organizations, this work reaches more than 100 million consumers each year. The choosing wisely program, a partnership with abim foundation and specialty medical societies, encourages conversations between patients and physicians about tests, treatments, and procedures that may be unnecessary and are sometimes harmful. Content and messages in easy-to-read english and spanish are disseminated to consumers in print, online, video, and other channels. The best buy drugs program develops resources to help consumer choose safe, affordable prescription drugs and educates them about off-label use and the safety of drugs including opioids and antibiotics, which were featured in consumer reports magazine cover stories. Hospital ratings, based on the best available data, help consumers choose safe hospitals, avoid unsafe ones, and protect themselves during their hospital stay. Other free consumer tools to support transparency and decision-making around cost and quality are also being developed. Consumer reports' online tool (healthlawhelper.com) engaged more than 750,000 consumers directly in learning about their options and next steps under the affordable care act. The tool provided relevant information about difficult topics like health insurance premium tax credits and how to meet the law's requirement to have coverage and avoid a tax penalty. Consumers union has been a leader in producing printed consumer-facing education materials, including four print guides to the changes made by the law, state-specific tax-credit explainers, and a series of health insurance literacy pieces aimed at making coverage more understandable. To date we've distributed close to 2 million hard copies of the various publications and shared the information across our various online products. The guides are also available in spanish. Additionally, we've created an online tool (consumersunion.org/insurance-complaint-tool) aimed at helping consumers file health insurance complaints in their state. Safety- our food safety and sustainability center continues its work to educate consumers about food safety issues as well as marketplace practices that mislead consumers. In fiscal year 2015, several food tests were conducted including gmos in foods, shrimp and beef testing, pesticides in produce. Expan”

“Part iv, line 12 consumer reports is audited in combination with its related organizations: consumers union action fund, inc. [ein: 20-4780406] and truman avenue foundation, inc. [ein: 20-5665599], although separate audited financial statements are not issued for consumer reports, a consolidated audited financial statement was issued for the fiscal year ended may 31, 2015, which was prepared in accordance with us generally accepted accounting principles.”

“Form 990, part vi, line 6 and 7a consumer reports is a new york state not-for-profit membership corporation. The members are any individual with a paid annual subscription to consumer reports magazine or consumerreports.org., who does one of the following: (1) gives notice of acceptance of membership; (2) sends in a nomination for the board of directors; or (3) returns to cr, the ballot transmitted in connection with the annual election of directors. Powers of members: 1. Members can elect the board of directors; 2. The annual report of consumer reports must be presented to members; 3. The members must meet at least annually; 4. By-laws of the organization may be adopted, amended, or repealed by members; 5. Members may demand to call a special meeting if at least 10% of the members call for a meeting within two to three months in the future.”

“Part vi, line 11 the 990 is prepared utilizing the assistance of our independent financial auditor, kpmg. The related services from kpmg are approved by the audit committee as part of the audit approval process. After the 990 is prepared by cr finance department with coordination with kpmg, it is reviewed by controller and cfo before it is reviewed and approved by the audit committee. A copy of the 990 is then provided to the board of directors prior to its filing.”

“Form 990, part vi, line 12c consumer reports's board of directors and staff members are required to fill out and sign a disclosure of interest statement and attestation of compliance each year. Board members' forms are reviewed by a committee of the board; staff members' forms are reviewed by an outside independent reviewer, and, if conflicts cannot be resolved, by a staff conflict of interest committee.”

“Form 990, part vi, line 15 cr's executive compensation program is designed to attract, engage, and retain highly talented and dedicated individuals who possess the prerequisite skills and demonstrated performance necessary to fulfill its mission. The program is structured to provide total compensation direct and indirect that supports the achievement of cr's strategic and operating goals and is reasonably competitive to what is offered by comparable organizations. Cr established and maintains an executive compensation program that qualifies for a rebuttable presumption of reasonableness and periodically reviews its executive compensation to ensure ongoing alignment with its strategic direction and financial limits. To ensure its executive compensation is consistent with this compensation philosophy, cr: - clearly identifies a survey peer group and protocol for benchmarking and determining the reasonableness of total compensation in relation to market norms for similar executive positions; - engages an independent and qualified compensation consultant to periodically compile and analyze competitive market compensation for similar executives in organizations comparable to cr - provides reasonably competitive total compensation consistent with market norms and performance results in any given year; and - periodically evaluates and realigns performance measures to conform to changing strategic goals and other business needs. Ensures that the executive compensation program is consistent with cr's mission and tax-exempt status and that compensation is both competitive and reasonable is a shared responsibility of the board of directors ("the board"), its compensation and human resources committee ("the committee"), and cr's president. The committee is made up of independent members of the board of directors who do not have any conflict of interest with regard to executive compensation. The bases for the decisions made by the committee are documented in the minutes of each committee meeting.”

“Form 990, part vi, line 19 consumer reports's annual financial statements are made available to the public on its website, www.consumerreports.org. Our governing documents and conflict of interest policy are available to the public upon request.”

“Part xi, line 9 unrealized loss interest rate swap $( 972,370) pension related changes $( 7,241,199) change in value of split interest agreement $( 2,921,513) other rounding $ 1,585 ____________ total other changes in net assets or fund balances $(11,133,497) ============”