Civic Intelligence

Second Harvest Heartland

990 • Fiscal year 2018 • EIN 23-7417654

Oct 01, 2017 to Sep 30, 2018 • Filed on Feb 28, 2019

1140 Gervais AvenueMaplewood, MN 55109

(651) 484-5117

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

61st percentile

0.41x

Higher debt load relative to assets than 61% of similar nonprofits.

2018 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2018

Liabilities / Revenue

17th percentile

0.12x

Higher debt load relative to revenue than 17% of similar nonprofits.

2018 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2018

Net Margin

49th percentile

3.5%

Higher net margin than 49% of similar nonprofits.

2018 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2018

Top Officer Pay

44th percentile

$423,352

Higher top officer pay than 44% of similar nonprofits.

Top officer pay equals 0.3% of source-year revenue.

2018 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2018

Asset Growth

87th percentile

16%

Faster asset growth than 87% of similar nonprofits.

2018 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2017 to 2018

Revenue Growth

60th percentile

8.3%

Faster revenue growth than 60% of similar nonprofits.

2018 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2017 to 2018

Assets

Up

$42,603,651

Up $5,867,599 (+16%) from 2017

Net Assets

Up

$24,938,331

Up $5,288,596 (+27%) from 2017

Liabilities

Up

$17,665,320

Up $579,003 (+3.4%) from 2017

Revenue

Up

$153,165,074

Up $11,713,350 (+8.3%) from 2017

Expenses

Up

$147,816,090

Up $9,700,237 (+7.0%) from 2017

Net Income

Up

$5,348,984

Up $2,013,113 (+60%) from 2017

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$150M$100M$50M$0Assets 2010: $15,514,530Liabilities 2010: $3,040,784Net Assets 2010: $12,473,7462010Assets 2011: $16,356,400Liabilities 2011: $2,447,895Net Assets 2011: $13,908,5052011Assets 2012: $19,658,291Liabilities 2012: $3,354,779Net Assets 2012: $16,303,5122012Assets 2013: $18,220,586Liabilities 2013: $3,563,490Net Assets 2013: $14,657,0962013Assets 2014: $16,451,076Liabilities 2014: $3,888,906Net Assets 2014: $12,562,1702014Assets 2015: $16,614,524Liabilities 2015: $4,411,046Net Assets 2015: $12,203,4782015Assets 2016: $20,711,200Liabilities 2016: $4,580,766Net Assets 2016: $16,130,4342016Assets 2017: $36,736,052Liabilities 2017: $17,086,317Net Assets 2017: $19,649,7352017Assets 2018: $42,603,651Liabilities 2018: $17,665,320Net Assets 2018: $24,938,3312018Assets 2019: $51,714,126Liabilities 2019: $21,822,075Net Assets 2019: $29,892,0512019Assets 2020: $102,263,171Liabilities 2020: $19,386,823Net Assets 2020: $82,876,3482020Assets 2021: $115,779,386Liabilities 2021: $13,885,958Net Assets 2021: $101,893,4282021Assets 2022: $100,651,861Liabilities 2022: $10,599,608Net Assets 2022: $90,052,2532022Assets 2023: $108,099,013Liabilities 2023: $9,724,882Net Assets 2023: $98,374,1312023Assets 2024: $123,126,842Liabilities 2024: $10,017,974Net Assets 2024: $113,108,8682024

Highlighted filing

2018

Assets$42,603,651
Liabilities$17,665,320
Net Assets$24,938,331

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$400M$300M$200M$100M$0-$100MExpenses 2010: $92,033,9862010Expenses 2011: $104,559,5102011Expenses 2012: $113,111,4822012Expenses 2013: $135,485,2422013Revenue 2014: $131,852,203Expenses 2014: $133,947,129Net Income 2014: -$2,094,9262014Revenue 2015: $121,694,206Expenses 2015: $122,052,898Net Income 2015: -$358,6922015Revenue 2016: $144,515,358Expenses 2016: $140,721,346Net Income 2016: $3,794,0122016Revenue 2017: $141,451,724Expenses 2017: $138,115,853Net Income 2017: $3,335,8712017Revenue 2018: $153,165,074Expenses 2018: $147,816,090Net Income 2018: $5,348,9842018Revenue 2019: $161,802,097Expenses 2019: $157,091,345Net Income 2019: $4,710,7522019Revenue 2020: $236,949,005Expenses 2020: $184,150,172Net Income 2020: $52,798,8332020Revenue 2021: $221,947,314Expenses 2021: $203,262,780Net Income 2021: $18,684,5342021Revenue 2022: $225,815,554Expenses 2022: $227,608,481Net Income 2022: -$1,792,9272022Revenue 2023: $260,459,497Expenses 2023: $254,670,313Net Income 2023: $5,789,1842023Revenue 2024: $309,241,504Expenses 2024: $300,595,143Net Income 2024: $8,646,3612024

Highlighted filing

2018

Revenue$153,165,074
Expenses$147,816,090
Net Income$5,348,984
Jump To
Filing Snapshot
Filing Period
Oct 1, 2017 to Sep 30, 2018
Signed
Feb 28, 2019
Return Version
2017v2.3
Gross Receipts
$154,552,630
Mission and Program Overview

Mission

Second harvest heartland is the upper midwest's largest hunger-relief organization, with a mission of ending hunger through community partnerships.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$17,923,101$20,056,124▲ $2,133,023
Investments in Publicly Traded Securities$6,700,372$6,860,604▲ $160,232
Pledges and Grants Receivable$3,934,780$6,760,472▲ $2,825,692
Inventories for Sale or Use$4,442,531$5,341,205▲ $898,674
Savings and Temporary Cash Investments$2,563,917$2,072,293▼ $491,624
Accounts Receivable$764,720$968,799▲ $204,079
Prepaid Expenses and Deferred Charges$377,873$517,950▲ $140,077
Cash and Non-Interest-Bearing Accounts$0$0→ $0
Other Notes and Loans Receivable, Net$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Intangible Assets$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$36,736,052$42,603,651▲ $5,867,599
Other Assets Total$28,758$26,204▼ $2,554
Liabilities
Mortgage Notes Payable Secured by Investment Property$13,400,000$13,400,000→ $0
Accounts Payable and Accrued Expenses$2,221,159$2,604,316▲ $383,157
Other Liabilities$1,465,158$1,586,989▲ $121,831
Deferred Revenue$0$74,015▲ $74,015
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$17,086,317$17,665,320▲ $579,003
Net Assets / Fund Balance
Unrestricted Net Assets$13,933,394$17,122,335▲ $3,188,941
Temporarily Rstr Net Assets$5,716,341$7,815,996▲ $2,099,655
Permanently Rstr Net Assets$0$0→ $0
Total Net Assets Fund Balance$19,649,735$24,938,331▲ $5,288,596
Total Liabilities and Net Assets / Fund Balance$36,736,052$42,603,651▲ $5,867,599

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$15,035,890$4,474,537$19,510,427
Other Land Buildings$1,915,523$3,376,765$5,292,288
Equipment$414,711$4,294,628$4,709,339
Land$2,690,000-$2,690,000
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Robert ZeaskeChief Executive OfficerFT$306,923$116,429$423,352
Robert ChatmasChief Operating OfficerFT$164,120$22,077$186,197
Marsha ShotleyChief Philanthrophy OfficerFT$167,335$13,461$180,796
Patrick BoranChief Financial OfficerFT$155,616$20,135$175,751
Dawn Marie NelmarkSr Director of Dev Mktg/communicatFT$128,937$20,073$149,010
THOMAS A O'NEILLDirector of Individual Major GivingFT$114,442$19,465$133,907
David E LaskeyDirector of Facilities & OperationsFT$110,346$12,857$123,203
Michelle HeereyDirector of Field ServicesFT$101,854$18,019$119,873
Marcus SchmitDirector of AdvocacyFT$102,468$17,322$119,790

Board Members and Trustees

NameTitle
Greg HildingBoard Chair
Chris NeugentBoard Vice Chair
Brian AudetteBoard Member
Brian BuhrBoard Member
Calvin AllenBoard Member
Cam HoangBoard Member
Christina HenningtonBoard Member
David FioccoBoard Member
Dr Jon PryorBoard Member
Emily CobornBoard Member
Eric StocklBoard Member
Glenn MccabeBoard Member
Hunter SakladBoard Member
Jim LemkeBoard Member
Ken DavidsonBoard Member
Marie ZimmermanBoard Member
SHAWN O'GRADYBoard Member
Scott PortnoyBoard Member
Jill HarmonAt-large
Thierry IbriChief Operating Officer
Colleen DockendorfSecretary
Jeff PutnamTreasurer

Highest Paid Contractors

ContractorServicesLocationCompensation
One All INCFundraising2 NORTH LAKE AVENUE SUITE 600, Pasadena, CA 91101$1,305,783
Feeding AmericaFees To Acquire Food35 E WACKER DR STE 2000, Chicago, IL 60601$763,032
Leo A DalyArchitecture730 SECOND AVENUE SOUTH SUITE 1300, Minneapolis, MN 55402-2416$332,572
Success Computer ConsultingSoftware Consulting6130 GOLDEN HILLS DRIVE, Golden Valley, MN 55416$273,426
Minneapolis Medical ResearchStudy Work For Grant701 PARK AVENUE, Minneapolis, MN 55415$186,165
Revenue and Support

Revenue Composition

Contributions and Grants
$141,786,547
Program Service Revenue
$11,160,483
Investment Income
$191,083
Other Revenue
$26,961
All Other Contributions
$137,376,026
Change in Net Assets
$5,348,984

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
Yes
Third parties used for noncash contributions
Yes

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Food Inventory-$115,460,094Wholesale-weight.avg
Securities Publicly Traded114$868,394Average Cost
Total Noncash Contributions114$116,328,488-
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Grants and Similar Amounts Paid$113,873,047
Other Expenses$20,993,310
Salaries, Compensation, and Employee Benefits$12,492,893
Total Fundraising Expense$4,897,470
Professional Fundraising Fees$456,840

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Grants to Domestic Orgs$106,154,044--$106,154,044
Other Salaries and Wages$5,363,065$2,010,597$1,866,498$9,240,160
Grants to Domestic Individuals$7,719,003--$7,719,003
Fees for Services Other$497,667$263,726$1,276,285$2,037,678
Other Expenses$1,178,713$7,963$730$1,187,406
Other Employee Benefits$711,948$210,174$234,135$1,156,257
Depreciation Depletion$965,913$11,568$18,720$996,201
Occupancy$925,820$29,964$24,883$980,667
Current Officers, Directors, Trustees, and Key Employees$557,197$208,892$193,920$960,009
Office Expenses$443,212$234,351$156,768$834,331
Information Technology$586,700$-69,860$188,905$705,745
Payroll Taxes$447,932$86,020$155,390$689,342
Fees for Services Professional Fundraising--$456,840$456,840
Pension Plan Contributions$262,514$95,453$89,158$447,125
Advertising$40,879$194,274$189,706$424,859
Travel$198,890$50,423$31,726$281,039
Interest$227,109$165$442$227,716
All Other Expenses$94,868$10,192$800$105,860
Conferences and Meetings$26,941$36,150$12,564$75,655
Fees for Services Accounting-$51,050-$51,050
Fees for Services Lobbying-$45,722-$45,722
Fees for Services Legal-$27,357-$27,357
Fees for Service Investment Mgmnt Fees-$17,770-$17,770
Total Functional Expenses$139,381,047$3,537,573$4,897,470$147,816,090
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Complete List Available Upon Request--Support Food Distribution to Member Agencies$179,405
Complete List Available Upon Request--Food Distribution-
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
Yes

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$479,117
Professional Fundraising Fees$456,840
Fundraising Gross Income$291,296
Gaming Direct Expenses$0
Gaming Gross Income$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Dish$757,868$235,516$128,125$107,391
Vintner Ball$65,309$27,870$18,704$9,166
Total Events$1,338,127$291,296$479,117$-187,821
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Jim Gilliam Montu StaffingFormer Board ChairTemporary LaborNo$49,300

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Capital Leases, Net of Current$1,247,604
Current Portion of Capital Lease$320,791
Fiscal Agent Payable$18,594
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Part VI, Section B, Line 10A & 10B

Hunger free minnesota, llc, a disregarded entity for tax purposes, does not have any local chapters, branches, or affiliates. All of their governing policies are the same as second harvest heartland.

Part VI, Section B, Line 11B

The form 990 is prepared by our auditor with support from staff at second harvest heartland. The finance committee of the board reviews and approves the form 990 which is then provided to all board members prior to filing.

Part VI, Section B, Line 12C

Upon hiring, employees are provided a copy of the conflict of interest policy. Human resources retains a signed copy from each employee stating they understood and accepted the terms of the policy. Members of the board are required to provide a signed agreement annually.

Part VI, Section B, Line 15A & 15B

Shh periodically uses external surveys to evaluate all employees' compensation. Shh also uses other compensation sources as well as considering the cost-of-living adjustment per the federal social security administration guidelines, the consumer price index, and wage and salary trend reports to determine an appropriate average annual percentage. An average increase based on second harvest heartland's financials is approved for budgeting purposes. Employees are given a performance appraisal and a recommendation of an increase (if merited) is made to the executive team.

Part VI, Section B, Line 19

Copies of all information are available upon request. Form 990 is made available through the organization's website.

Filing and Contact Details

Filer

Filer Name
Second Harvest Heartland
EIN
23-7417654
In Care Of
% PAT BORAN
Phone
6514845117
Address
1140 GERVAIS AVENUE, MAPLEWOOD, MN 55109

Signing Officer

Name
Patrick Boran
Title
CFO
Phone
6123325500
Signed
2019-02-28
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Rob Zeaske
Formed
1976
Legal Domicile
Mn
Voting Board Members
21
Independent Board Members
21
Employees
213
Volunteers
27,530

Preparer

Firm
Schechter Dokken Kanter
Address
100 WASHINGTON AVE SO 1600, MINNEAPOLIS, MN 55401
Preparer
Charles Selcer CPA
Phone
6123325500
Supplemental Narrative

Additional Explanations

Part I, Line 1 & Part III, Line 1

Our mission is to end hunger through community partnerships. In the years since our 2001 founding, Second Harvest Heartland has evolved from a food bank focused almost solely on food distribution. Today, Second Harvest Heartland is one of the nations largest, most efficient and most innovative hunger-relief organizations. In FY18, we distributed more than 89 million meals. New and growing partnerships with retail donors, government agencies, corporations, foundations and individuals, alongside increasing efficiencies within our organization, will allow us to continue to deliver more food. We invest in a range of efforts to fully address the problem of hunger in our communities. Through the SNAP Outreach Program, outreach specialists visit food shelves, soup kitchens and other organizations and events to help people understand the program and break down barriers to participation. Only 66% of SNAP-eligible clients are accessing SNAP in Minnesota. That translates to millions of dollars of already-funded food and financial assistance that goes unclaimed because people are unaware of their eligibility or because they have difficulty with the application process. We also operate the USDAs SFSP, a Minnesota Department of Education-administered program that funds free meals to children during the summertime. We identify high-need areas annually in our collaboration with the Minnesota Department of Education using school free and reduced meal program data. This data helps us promote our mini-grants program to eligible agencies and organizations and plan our outreach efforts for the year. Second Harvest Heartland has dedicated staff to conduct outreach in targeted communities and provides mini-grants to organizations to help alleviate barriers to participation. Fresh Food Nutritious food is a growing part of Second Harvest Heartlands offering. Retail partners and growers have joined hunger-relief efforts and continue to contribute record levels of perishable food. In fact, more than 61.5% of all food distributed throughout the fiscal year was fresh food, such as meat, produce, bakery and dairy products. Of this amount, more than 38.8 million pounds were distributed through the Food Rescue Program, largely comprised of fresh food such as produce, meat and dairy options. Volunteer program Our volunteer program is a vital component of our efforts to bring more food to those who are hungry in our community. In the coming years we will need additional support from volunteers to support our growth. We expect our volunteer capacity to double when we move to our new hunger-relief campus in Brooklyn Park. To meet a rapidly growing demand and to better serve our volunteers, Second Harvest Heartland is making significant changes and investments in our volunteer program. In FY18, we were able to engage more than 27,500 individual volunteers who contributed more than 120,000 hours, the equivalent of 58 full-time employees. Volunteers pack and distribute CSFP boxes and help people apply for CSFP and SNAP. Continued growth in our volunteer program is also required to help us meet our goals for those in need. Hunger and Health For our 532,000 clients, a lack of food means a higher likelihood of chronic disease and poor health. To address this intersection of hunger and health, Second Harvest Heartland launched an innovative program called FOODRx in September 2016 to achieve better health for those who are hungry. FOODRx works to bring healthy food directly into health care settings, removing barriers to the nutrition people need to be well and productive. In 2018, FOODRx partnered with seven clinics and five health systems to provide greater food security for patients with acute, chronic and preventative needs. FOODRx completed a year-long clinical trial this year with low-income patients who have a diagnosis for diabetes. The study showed that FOODRx produced significant improvements for patients in their health outcomes and significantly reduced the

Part III, Line 4C

Food Rescue: Nearly 450 stores donated 38.8 million pounds of food through our Food Rescue Program in 2018. We also worked with Minnesota growers in an effort to capture a portion of the 200 million pounds of crops that are either plowed under or unsold each year in our state. This year, the produce capture program collected more than 8.4 million pounds of sweet corn, potatoes, apples, cabbage, carrots, cucumbers, watermelon, tomatoes and other produce.

Part III, Line 4D

Since FY11, Second Harvest Heartland has enhanced our outreach efforts to connect people with the public resources for which they are eligible, including SNAP (Supplemental Nutrition Assistance Program, formerly known as food stamps). Second Harvest Heartlands SNAP outreach specialists visit food shelves, soup kitchens, workforce centers and other organizations and participate in events to help people understand the program and break down barriers to participation, from a lack of awareness to challenges with the application processes. In FY18, we assisted nearly 4,000 households with SNAP applications and re-certifications, adding nearly 3 million meals for families. The Summer Food Service Program (SFSP) is a meal reimbursement program that funds free meals to high-need children during the summertime. This USDA program, administered by the Minnesota Department of Education, provides children with more than 3 million meals at 995 sites (such as schools, parks and community centers) once school is out of session for the summer. Our staff conducts outreach efforts to increase awareness of SFSP and administers 24 mini-grant programs to fund 385 meal-sites within our service area. At these sites, 1,104,954 meals and 152,256 snacks were served by grant-awarded sponsors. In the 2017-2018 school year Food + You, a school-based program designed to increase the availability of healthy food resources to students and their families, partnered with 20 schools in high-need areas of Minneapolis and Saint Paul. This multi-dimensional pilot program offers direct food distributions, support for accessing existing federal nutrition programs and connections to broader community resources.

Financial Statement Notes

Part X, Line 2

The organization is exempt, as a public charity, from federal and state income taxes under section 501(c)(3) of the internal revenue code and applicable state statutes. The organization has evaluated its tax positions for uncertainty and has no unrecognized tax matters that are required to be disclosed.

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IRS990/ContractorCompensationGrp/ContractorName/PersonNm2LEO A DALY
IRS990/ContractorCompensationGrp/ContractorName/PersonNm3SUCCESS COMPUTER CONSULTING
IRS990/ContractorCompensationGrp/ContractorName/PersonNm4MINNEAPOLIS MEDICAL RESEARCH
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IRS990/Desc0Food Bank: Second Harvest Heartland is one of the nations largest, most efficient and most innovative hunger-relief organizations. We work alongside and strengthen the hunger-relief network, partnering with nearly 1,000 food shelves, food pantries and other meal programs in every corner of our 59-county service area. More than 103 million pounds of food, nearly 89 million meals!, was distributed through the food bank in the last fiscal year. Second Harvest Heartland works to eliminate barriers to food access with creative and innovative solutions. See schedule O for additional program service description.
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IRS990/FormationYr01976

Document Assets

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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Detailed filing. Detailed filing data is available for this year.$123$10.0$113$309$301$8.65
2023Detailed filing. Detailed filing data is available for this year.$108$9.72$98.4$260$255$5.79
2022Facts available. Structured filing facts are available, but richer extracted sections are limited.$101$10.6$90.1$226$228$1.79
2021Facts available. Structured filing facts are available, but richer extracted sections are limited.$116$13.9$102$222$203$18.7
2020Detailed filing. Detailed filing data is available for this year.$102$19.4$82.9$237$184$52.8
2019Detailed filing. Detailed filing data is available for this year.$51.7$21.8$29.9$162$157$4.71
2018Detailed filing. Detailed filing data is available for this year.$42.6$17.7$24.9$153$148$5.35
2017Detailed filing. Detailed filing data is available for this year.$36.7$17.1$19.6$141$138$3.34
2016Detailed filing. Detailed filing data is available for this year.$20.7$4.58$16.1$145$141$3.79
2015Detailed filing. Detailed filing data is available for this year.$16.6$4.41$12.2$122$122$0.36
2014Detailed filing. Detailed filing data is available for this year.$16.5$3.89$12.6$132$134$2.09
2013Facts available. Structured filing facts are available, but richer extracted sections are limited.$18.2$3.56$14.7$135
2012Facts available. Structured filing facts are available, but richer extracted sections are limited.$19.7$3.35$16.3$113
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$16.4$2.45$13.9$105
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$15.5$3.04$12.5$92.0