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 in order to effect it's educational purpose. The number of paid subscribers for each as of 5/31/17 include consumer reports magazine 3,577,885; consumer reports on health 544,660; and cr online 2,866,813. Consumer reports 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 educate consumers on the extent to which they are convenient, safe, and economical. During the fiscal year ended 5/31/17, consumer reports conducted tests and evaluations on more than 3050 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. Form 990, part iii, line 4b advocacy and education programs: consumer reports is dedicated to improving the lives of consumers and promoting a fairer, safer and healthier world. We are an independent nonprofit organization that seeks to educate consumers in order to drive a new era of consumer power and protection. For 80 years, we have built a legacy of trust among consumers by conducting rigorous science-based testing of products, championing the rights of consumers in the halls of government, moving corporate actors to provide consumers with greater transparency and safety, and helping consumers to navigate an increasingly complex marketplace. Additionally, consumer reports provides substantial free consumer education information as a public service through educational websites, and advocacy and social media campaigns. Consumer reports longstanding commitment to educating consumers and advocating for laws, policies and practices that benefit consumers is exemplified by our fy17 (june 1, 2016 through may 31, 2017) accomplishments, some of which include: cars and products: infant seat safety - the consumer product safety commission approved new standards to improve the safety of infant bouncer seats. Utility pricing - a florida utility withdrew consument price hikes following a campaign by consumer reports and partners. Self-driving cars - modest improvements were made to a senate self-driving car bill, though serious problems remain and our advocacy continues. Safety rollbacks - fought rollbacks on auto safety, product safety, and clean energy through media campaigns, advocacy, and engagement with congress. Food: overuse of antibiotics in food animal production - consumer reports publications and marketplace campaigns educated consumers about the escalating health crisis of antibiotic resistance. Most of the antibiotics sold in the u.s. Are not used to treat sick people, but rather, to prevent disease and promote growth in food animals. This and the over-prescription of antibiotics in human medicine, have helped fuel the rise in deadly antibiotic resistant superbugs. Consumer reports third annual chain reaction report, which surveyed the top u.s. Fast food chains on their policies on serving chicken raised with antibiotics, found that over half the chains have limited or eliminated the routine use of antibiotics in the chicken they serve. This is a marked marketplace improvement since our first report three years ago. Organic standards - following consumer reports research and testimony on the adverse effects of carrageenan, the national organic standards board struck it from the list of permitted additives in organic food. Health: d”

“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.”

“Form 990, PART VI, LINE 11 THE 990 IS PREPARED UTILIZING THE ASSISTANCE OF AN INDEPENDENT ACCOUNTING FIRM, 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 THE 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, any conflicts determined to exist,will be resolved by a staff conflict of interest committee. Remedies for conflicts of interest include but are not limited to: - removing or reassigning the person, either temporarily or permanently, from any participation in the matter(s) giving rise to the conflict; - placing investments that raise the conflict into blind trusts or similar vehicles; - selling or otherwise disposing of the investments that raised the conflict, for which an appropriate period of time may be discussed.”

“FORM 990, PART VI, LINES 15A and 15B 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 (USING SURVEY DATA AND IRS FORM 990 DATA FROM OTHER ORGANIZATIONS AS PROVIDED BY AN INDEPENDENT CONSULTANT), - PROVIDE REASONABLY COMPETITIVE TOTAL COMPENSATION CONSISTENT WITH MARKET NORMS AND PERFORMANCE RESULTS IN ANY GIVEN YEAR; AND - PERIODICALLY EVALUATE AND REALIGN PERFORMANCE MEASURES TO CONFORM TO CHANGING STRATEGIC GOALS AND OTHER BUSINESS NEEDS. - ENSURE 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 AND ITS COMMITTEES AND, WITH RESPECT TO EXECUTIVES OTHER THAN HERSELF, CR'S PRESIDENT. THE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS, WHICH ACTS AS THE COMPENSATION COMMITTEE FOR EXECUTIVE COMPENSATION MATTERS DETERMINES A COMPENSATION RECOMMENDATION BASED ON MARKET COMPETITIVE NORMS AND THE EXECUTIVES PERFORMANCE. THE GOVERNANCE COMMITTEE THEN MAKES A RECOMMENDATION TO THE FULL BOARD FOR APPROVAL OF THE TOTAL COMPENSATION FOR ALL EXECUTIVE POSITIONS AT CR.”

“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, form 1023, and conflict of interest policy are available to the public upon request.”

“Part xi, line 9 unrealized gain interest rate swap $ 1,557,400 pension related changes $ 5,677,060 change in value of split interest agreement $ 772,775 rounding $ 133 ----------------- total other changes in net assets or fund balances $ 8,007,368”